Comprehensive Case Assignment #2
Alvin and Fran Jackson Case (Case #2 from your book)
1. Calculate “PV of retirement needs” and “annual payment needs” for three scenarios:
a. Retirement at 62 with 70% WRR
b. Retirement at 65 with 75% WRR
c. Retirement at 67 with 80% WRR
2. Calculate PV of education costs of all three children.
3. Say, the couple have decided that they will pay for the college cost as they go. Explain ‘pay as they go and withdraw funds from the brokerage accounts and Roth IRAs’. How it might work?
4. Explain their investment portfolio considering CAPM, Sharpe ratio, and Treynor performance measure analysis.
5. Explain with calculations how their plan of buying a vacation home will work?
CALCULATIONS MUST BE DONE IN EXCEL! CASE IS PROVIDED BELOW. NEED DONE IN 7 HOURS!!!