(c) You have commenced work as a certified Financial Planner. Your supervisor has provided the following...

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Finance

(c) You have commenced work as a certified Financial Planner.Your supervisor has provided the following financial data for a newclient Brant Jerome. The client turned 34 years old today and plansto retire when she turns 67. The client owns a diversified shareportfolio which is valued today at $47,000. It is expected thatthis portfolio will earn (on average) 7% per annum indefinitely.Brant also has a superannuation account with a balance of $78,000to which he currently contributes $1,000 per month. Thesuperannuation account is expected to continue to earn 8% perannum. At his retirement your client plans to consolidate hisfinancial holdings and purchase a monthly annuity as a pension tofund his planned lifestyle. Brant believes he will need toself-fund his retirement until he reaches the age of 85 at whichtime he would like to have $120,000 remaining to fund any costs notcovered by the age pension. During the pension phase of hisretirement Brant will adopt a Balanced investment strategy whichwill return 5% pa (compounded monthly) on his annuity investment.(i) What will be the value of Brant’s financial assets when heretires at age 67? Present all calculations to support your answer.(ii) What will be the monthly pension amount that Brantwill receive on his retirement? Present all calculations to supportyour answer.

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4.4 Ratings (895 Votes)
Part 1 Diversified Share Portfolio will be worth4700010733 438291 at year 67Super Annuation account calculation is shown in the image Forexample In yr 35 there    See Answer
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