Your Perfect Assignment is Just a Click Away
We Write Custom Academic Papers

100% Original, Plagiarism Free, Customized to your instructions!


MGT 458 California State Personal Financial Strategy and Decisions Questions

MGT 458 California State Personal Financial Strategy and Decisions Questions

Question Description


Financial Independence/Retirement Plan

1) What is your number and what age do you want to reach financial independence or retirement? (I’m 23 and I want to reach financial independence or retirement by like 30-35)

Calculate how much money you need a year to retire? What age would you like to retire or reach financial independence

      1. Social Security benefits are much more modest than many people realize; the average Social Security retirement benefit in June 2020 was about $1,514 a month, or about $18,170 a year. (The average disabled worker and aged widow received slightly less.)
      2. What does an average retirement cost? According to the Bureau of Labor Statistics: about $49,000 per year in 2014, the most recent year for which statistics are available. That means if you live for 20 years after you retire, you’ll end up spending about $980,000 (plus taxes, not accounting for inflation).Nov 19, 2019
      3. The average retirement age is 62, but 64% of Americans say goodbye to the workplace between the ages of 55 and 65. Also, many retirees go back to work. Some work part time, while others pursue a second career. Some even return to full-time work and then retire again in a few years.

2) How much money do you need to save and invest per month to reach your goals?

      1. Use the Compound Interest Calculator at (Links to an external site.) to caluate how much you need to save and invest per month.
      2. What type of return should you expect if you invest your savings in U.S. equities. The S&P 500 index is a benchmark of American stock market performance, dating back to the 1920s. The index has returned a historic annualized average return of around 10% since its inception through 2019. If you use a different return number to calculate your performance please explain why.

3) Construct your personal portfolio to financial independence.

    1. You can use a portfolio of these assets: Bonds (e.g., TLT), Equities (e.g., SPY), Precious Metals (e.g., GLD), Foreign equities (e.g, EEM), and Commodities (e.g., DBC). You can use any combination of assets you want. You can use any percentage of assets. You can also use other Asset classes not list here too. However, explain your reasons for your asset allocation and backtest this portfolio using the Portfolio Backtesting Tool available here: (Links to an external site.)
    2. Plug your personalized portfolio annual return or (cagr) into the Compound Interest Calculator. How does this new return affect your savings goals?

3) Please describe your analysis and results. Discuss how investment returns shape your financial independence/retirement goals? How do factors such as how much you save a month, your investment return, age of retirement, as well as your expected financial needs/costs in retirement affect your calculations and financial plans?

Please write at least one page double spaced.

Order Solution Now

Our Service Charter

1. Professional & Expert Writers: DESTINY PAPERS only hires the best. Our writers are specially selected and recruited, after which they undergo further training to perfect their skills for specialization purposes. Moreover, our writers are holders of master's and Ph.D. degrees. They have impressive academic records, besides being native English speakers.

2. Top Quality Papers: Our customers are always guaranteed papers that exceed their expectations. All our writers have +5 years of experience. This implies that all papers are written by individuals who are experts in their fields. In addition, the quality team reviews all the papers before sending them to the customers.

3. Plagiarism-Free Papers: All papers provided by DESTINY PAPERS are written from scratch. Appropriate referencing and citation of key information are followed. Plagiarism checkers are used by the Quality assurance team and our editors just to double-check that there are no instances of plagiarism.

4. Timely Delivery: Time wasted is equivalent to a failed dedication and commitment. DESTINY PAPERS is known for the timely delivery of any pending customer orders. Customers are well informed of the progress of their papers to ensure they keep track of what the writer is providing before the final draft is sent for grading.

5. Affordable Prices: Our prices are fairly structured to fit in all groups. Any customer willing to place their assignments with us can do so at very affordable prices. In addition, our customers enjoy regular discounts and bonuses.

6. 24/7 Customer Support: At  DESTINY PAPERS, we have put in place a team of experts who answer all customer inquiries promptly. The best part is the ever-availability of the team. Customers can make inquiries anytime.