Analysis :

Using the budget in part 1; Use as many time lines as you need forecast all your projected savings(investments) to get each investments future value. You will have to determine your PV, I/y, N, PMT then calc FV

If you don’t have any idea on the I/y you could use 5 or 6% to be conservative. N depends on your current age and when you think you will retire.

Savings

401k or (403B) whichever you use

IRA’s….

Home Ect…….

Once you **add up all the future values from step 2 above, **and do a time line to determine how **much** you will be able to **spend each year** assuming you are going to spend all your money. I.e. your future value will be 0. To calculate N, you have to make a lot of assumptions. For example, if you are planning on retiring at age 65 and think (hope) you will life until you are 90 (25 years) your N will be 25.

**Week 4 Part 2 B (must be completed in Excel)**

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Scenario Analysis:

Run at least 3 different scenarios to see the impact of decisions. Some examples may include:

What happens if you delay start of Savings for 5 years?

What happens if you work 3 more years?

What if the interest rate is higher/lower?

What if you have more to save after student loans are paid off?

DO THIS BASED OFF THE TABLE IN THE FILE BELOW