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Bob says ... "Now, that we know how much I'll need to have in Super...

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Accounting

image Bob says ... "Now, that we know how much I'll need to have in Super when I retire at 67 , will I be able to reach that target amount?" Bob has just presented you with another common financial planning question. Pulling out his personal information, you see that Bob is currently 23 , has just started work and has $0 in Super. His salary is $40,000 p.a. and he expects his salary to grow by at least an annual inflation rate of 2%. As per the Superannuation Guarantee Scheme, Bob has to put 10% of his salary into super each year and his super fund has long-term return expectations of 7% p.a. Time to do the math ... you will need to use your answer in Q1. After finishing the math, you reply to Bob ... "Bob, l've got news. You have enough to reach your target sunar laval that will allow you to spend $100,000 each year during retirement. This is because, at current projection's, you'll accumulat Hint: as with all annuity work, ID the right formula, write it down, ID what you are solvir ibles values to substitute

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