How can you structure your retirement program to achieve the target retirement fund of USD250,000.

Requirements:

Financial Management

Assignment 1 – Individual assignment 30%

You are planning for your financial retirement.

You expect that you need at least USD 250,000 to retire to create an endowment fund and live on the income from endowment. You expect to retire at USD 1,250 ‘pension’ per month after retirement based on the targeted endowment fund.

You are currently 45 years old and have only 15 years to work on the targeted retirement fund.

Average income from investment is currently at 6% per annum.

Question 1 :

How can you structure your retirement program to achieve the target retirement fund of USD250,000.

Question 2 :

You felt that the above retirement program may be very hard to achieve as your monthly income is not sufficient to contribute the required monthly investment installment.

So you are going for a creative approach in generating the retirement fund using the business and entrepreneurship approach.

The approach is as follow :

To identify a product and business opportunity

To start a pilot business operation using the cheapest and simplest form

To magnify business volume

To magnify wealth using the Market earning multiple approach

To target corporate listing within the next 5 – 10 years

To guestimate the target value of wealth that can be generated within the next 15 years.

Show you spread sheet analysis

If you use time value of money in the opportunity analysis, will this approach still stand viable ?