Question

Jose is 40 years old and has had a retirement portfolio for 15 years. He still has about 27 years to go before retirement. Which breakdown of investments would a financial advisor most likely suggest for Jose at this point in time?

0% high-risk; 10% medium-risk; 90% low-risk
10% high-risk; 20% medium-risk; 70% low-risk
30% high-risk; 45% medium-risk; 25% low-risk
70% high-risk; 25% medium-risk; 5% low-risk

Answer 1

@jim_thompson5910

Answer 2

Megan made contributions to a Roth IRA over the course of 29 working years. Her contributions averaged $2,250 annually. Megan was in the 24% tax bracket during her working years. The average annual rate of return on the account was 4.5%. Upon retirement, Megan stopped working and making Roth IRA contributions. Instead, she started living on withdrawals from the retirement account. At this point, Megan dropped into the 20% tax bracket. Factoring in taxes, what is the effective value of Megan’s Roth IRA at retirement? Assume annual compounding.

$116,151.82
$163,541.82
$113,541.82
$126,591.82 @jim_thompson5910

Answer 3

Early in a savings plan, you are advised to take more high-risk investments, because if you lose them, you still have time to make the money. Near retirement, you want to make more low-risk investments. Jose is about a third of the way through his working life, so he wants some balance. Probably leaning towards C.

Answer 4

what about the 2nd one

Answer 5

don't really know about that

Answer 6

I know a future value of annuities formula plays a part here. I just don't know what to do with the taxes part. Does your lesson mention anything about it?

Answer 7

Um let me check

Answer 8

Also, if possible, can you post the tax bracket given to you in the lesson? I'm not finding the 24% tax bracket, but I am finding the 25% tax bracket

Answer 9

They do not have a bracket for it but I have an example that I am not sure will help

Answer 10

ok let me see and it might help

Answer 11

Tabitha has a health insurance policy that allows for up to 52 chiropractic visits per year, paid for through a coinsurance agreement. In particular, the insurance company pays for 50% of the cost of the first 10 visits, that is, visits 1 through 10. It pays for 75% of the cost of visits 11 through 20, and 100% of the cost of visits 21 through 52. Tabitha is responsible for the remainder of the costs. How much will Tabitha pay directly for her chiropractic care in a year in which she has 60 visits, billed at $120 each?

Answer 12

so there is no tax bracket anywhere in your book ? or anywhere in the lesson?

Answer 13

dont think so

Answer 14

btw, what's the name of your book that you are using?

Answer 15

Its not a textbook its Florida Virtual School

Answer 16

I see

Answer 17

For the tabitha question it says that Tabitha must pay 50%of visits 1-10, 25% f visits 11-20, 0% of visits of 21-52, and 100% of visits 53-60
0.50*120*10=600
0.25*120*10=300
1.00*120*8=960
Total cost for tabitha=1,860

Answer 18

are there any other IRA examples?

Answer 19

I am checking

Answer 20

Max made contributions to a Traditional IRA over the course of 45 working years. The contributions averaged $3,000 annually. And the average annual rate of return on the account was 7%. Upon retirement, he stopped working and making IRA contributions. Instead, he started living on withdrawals from the retirement account. At this point, his income is no longer from a job and is mostly from the money he earns from his IRA withdrawals. Based on his new retirement income, he is in the second tax bracket, so he will be taxed at the 15% rate

Answer 21

FVOA=C * (1+i)^nt-1
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