Math2

4math.xlsx

BB-6

	Name:			Date:
	Name:
	Gary Grandview—A Continuing Case
	Part 6: Estate Planning
a.	Read Gary Grandview Part 4. Analyze the changing facts provided in Parts 1-4. Continue to assume the role of Gary's advisor and provide your answers in a business like style and tone.
b.	Please make sure that WRAP TEXT and MERGE and CENTER are ON. (*Excel Toolbar, Home Tab, Alignment section)
c.	Ensure your answers can be seen in the yellow highlighted text box. Need more space? Increase height of the text box. a) Drag the bottom line of the number row (far left column) down, or b) Insert a row while inside Column A.
d.	Ensure printed copies are readable. Print in Portrait.
e.	Save and upload the document in the In Assignment Folder . Print a copy for class.
	Case Questions				Value of Points
					Possible	Lost
1	Gary wants to know how much will he have in 20 years if he invests $300 per month at 8% without the employer's matching contribution? Will this amount be enough to meet his retirement needs? Explain briefly.
	Future Value of an Annuity
	Payment per year				1
	Number of years			20
	Annual interest rate
	Future Value			$0.00

					1

2	Gary decides that he needs to conduct more research. Gary wants to know much the employers matching program will provide at different lengths of time. How much will the fund accumulate in 20, 25, and 30 years if invested at 8%? Gary has researched his family's history. Most of the men have lived into their 70's; therefore, Gary estimates he will be retired for approximately 30 years. Will he have enough in the fund to live on for the duration of his retirement years? Explain to Gary the different scenarios in simplest terms.
	Future Value of an Annuity
	Payment per year				1
	Number of years	20	25	30
	Annual interest rate	8%	8%	8%
	Future Value	$0.00	$0.00	$0.00
					2


3	How much will Gary be able to accumulate in his retirement fund using the employers matching fund program, if he can find investments that will increase the interest rate to 10%?
	Future Value of an Annuity
	Payment per year				2
	Number of years		25	30
	Annual interest rate		10%	10%
	Future Value		$0.00	$0.00
4	Gary decides that he needs to revise his earlier goals for his retirement fund. Gary now plans to have $1,000,000 in his retirement account. Use the table below to help Gary find out what will need to invest per month in a fund earning 8% per year to reach his a new goal of $1,000,000. Will Gary be able to afford any of these options in his budget?

		20 Years	25 Years	30 Years
	Amount to be Accumulated				2
	Number of Years	20	25	30
	Annual Interest Rate
	Annual Deposit	$0.00	$0.00	$0.00
	Monthly Deposit	$0.00	$0.00	$0.00
	Yes/No

5	What impact could retiring after 25 years have on Gary's current standard of living? How would it affect his standard of living if he were married?
					2

6	Advise Gary on adding annuities to his retirement portfolio. Who sells annuities? Are there any disadvantages to investing in annuities?

					2
7	What is an IRA? Are there different types? Are there advantages of one type
	over the other? Give the two pros and two cons.
					2


8	If Gary really wishes to provide for his nephews' college education,
	how can a 'Will' help him achieve that goal? What should it include?
	Where should it be kept? What else should be kept with the Will?
					4

9	Gary's new goal is to prepare a college fund for his nephews. What kinds of investment programs are designed for this type of investment? Use the table below to show Gary according to the maximum amount he can invest per year and how many years will be needed to accumulate $40,000 in a Educational Fund earning 8% for his nephews?

				EDU
	Amount to be Accumulated				2
	Number of Years
	Annual Interest Rate			8%
	Annual Deposit			$0.00
	Monthly Deposit			$0.00

					2

10	Prepare a written report on your findings and recommendations to Gary.

					2

					25	0
				Final Score		25

Math2

BB-6

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