1. BOB’S RETIREMENT
MODEL PLANNING
MODEL PREPARED BY:
IDRISS ACHOUR
PRESENTED BY
NIKKI DUFOUR
Retirement plan analysis
Feb/15/ 2014

2. Assumptions
Data fixed variable controlled
Bob's Current Age 50 R
Retirement age 65 R
Savings Rate 3% R
Postretirement Income (% of his final salary) 60% R
Rate of return on Investments /year up to retirement = 8% R
Rate of return on Investments /year after retirement = 5% R
Age at death 80 R
Age when wife dies 80 R
Bob's Current Retirement Fund $ 150,000 R
College % Invested 10% R
Current Salary $ 100,000 R
Bob Average Annual Contribution $ 7,500 R
Age runing out of money $ 81

3. Data used
 Controllable data
 current and retirement age
 Annual Salary and increases
 Rates of return on investement
 Employer and personal contributions

4. Graphical presentation
50
60
70
80
90
100
110
AgeBobrunsoutof$
% Age of post retirment income
Age Bob runs out of $ Postretirment income %

5. Graphical presentation
0
20
40
60
80
100
120
55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76
Bobrunsoutofthe$
Retirement Age
Age Bob runs out of $ Retirement age

6. Graphical presentation
50
55
60
65
70
75
80
Bobrunsoutof$
Bob's annual contribution
Age Bob runs out of $ Bob's annual contribution

7. Sensitivity parameter
56.00 61.00 66.00 71.00 76.00 81.00 86.00 91.00 96.00 101.00
Retirement age
Postretirement Income (% of his final salary)
Current Salary
Rate of return on Investments /year up to retirement =
Bob's Current Retirement Fund
College % Invested
Bob Average Annual Contribution
Bob's Current Age
Savings Rate
Rate of return on Investments /year after retirement =
Age at death
Age when wife dies
Output Measure
Parameter
Tornado Sensitivity Chart
-20 Pct +20 Pct

8. Recoomendations
 Suggested age of retirement – 65
 Personal contribution increased
 Modest post- retirement income