[SOLVED] maintain their current lifestyle during their retirement years

[SOLVED] maintain their current lifestyle during their retirement years

Your aunt and uncle, Marilyn and David are both 65 and are about to retire. They have no assets other than $1,600,000 in cash savings, and they have no debts. They wish to maintain their current lifestyle during their retirement years. Their current annual living expenses are $120,000 per year. They have no children and they do not  wish to bequeath any assets to charity after they pass.  Marilyn and David are in excellent health and have a normal life expectancy. They are, however, concerned about the possibility of outliving their retirement income (i.e., longevity risk).  During their retirement years, they will rely entirely on their savings to support themselves. In addition, they are risk averse and do not want to experience a significant loss of their savings.
Marilyn and David have decided to use their cash savings to purchase an annuity that will
provide them with the necessary income to cover their living expenses over their retirement
years. They initially consult with Ms. Sheila Young who is an investment advisor at Merrill
Lynch about purchasing their desired annuity.  Ms. Young is a relatively new financial advisor
and claims to be able to get Marilyn and David a much higher annual income because she
“knows” how to invest their savings in financial instruments that can yield at least 15% per year.
Given the data in the “Risk and Return” Excel spreadsheet (also posted on Canvas), this assumed
rate is well above the historical average return for U.S. stocks as measured by the S&P 500 stock
market index.
Marilyn and David want you to provide a “second opinion” of the analysis done by the
Merrill Lynch advisor.  Specifically, they want you to write a memo to Ms. Young that
compares her proposal with your “second opinion” that will analyze the risks and benefits
of each alternative.  They feel certain that Ms. Young is not giving due consideration to their
risk aversion and other consideration such as realistic expected stock market returns and
longevity.  Since your aunt and uncle do not know how to clearly articulate their concerns to Ms.
Young, they want you to prepare this memo on their behalf.
Write a memo to Ms. Sheila Young containing the following information:
1. Provide a professional and financially sound evaluation of her proposal and contrast it
with your own alternative proposal.
2. Please use and include the attached Excel spreadsheet in your evaluation that will:
i) analyze and challenge Ms. Young’s assumptions and identify weaknesses in her
analysis, and
ii) offer an alternative analysis based on your own assumptions.
3. Your conclusion must include specific actions to address and correct the problems and/or
mistakes in Ms. Young’s analysis.
(No sources are needed for this assignment, just an evaluation).

Are you overwhelmed by your class schedule and need help completing this assignment? You deserve the best professional and plagiarism-free writing services. Allow us to take the weight off your shoulders by clicking this button.

Get help

Who Will Write your Paper

Writer avatar

Rating: 4.9/5    Reviews 377

Success rate 99%

Completed projects: 545

I am an experienced writer offering professional services across diverse fields. I provide quality work with strict adherence to the deadline.

Writer avatar
Tutor_Dr. Edith

Rating: 4.8/5    Reviews 381

Success rate 100%

Completed projects: 490

I am an experienced writer with great research and analytical skills. Original quality paper and on-time delivery are guaranteed. Let's do this!

Writer avatar

Rating: 4.7/5    Reviews 316

Success rate 97%

Completed projects: 398

I am a professional writer with more than 8 years of experience. My mission is to provide you with high-quality paper in a timely fashion.

Writer avatar

Rating: 4.8/5    Reviews 371

Success rate 99%

Completed projects: 432

Hi, I deliver quality papers on time following all the instructions provided. Client's satisfaction is my priority. Welcome for plagiarism-free papers.

Writer avatar
Tutor_Prof. Allan

Rating: 4.8/5    Reviews 400

Success rate 97%

Completed projects: 487

With over half a decade of academic experience, I'm committed both to efficiency and punctuality. If it's quality you're looking for, then I'm here to provide!

Writer avatar
Tutor_Prof. Gabie

Rating: 4.9/5    Reviews 447

Success rate 96%

Completed projects: 546

A quality-driven, skilled writer with over 5 years of experience in various disciplines. I deliver plagiarism-free papers and content of impeccable quality, always original and always before the deadline!

Writer avatar

Rating: 4.9/5    Reviews 427

Success rate 99%

Completed projects: 567

I have been a full-time freelance researcher and writer for a period of over 6 years. I have successfully completed over 1000 projects and assignments. I have had a good professional relationship with my clients. Try me today!

Writer avatar

Rating: 4.9/5    Reviews 305

Success rate 99%

Completed projects: 404

I am a proficient writer with knowledge across a wide range of academic disciplines. I guarantee quality, timely and original content.

Writer avatar

Rating: /5    Reviews 419

Success rate 100%

Completed projects: 506

Hi, count on me to deliver quality and exemplary papers. I will pay attention to all your instructions, and meet all your expectations.