...Retirement 1 Bob Davidson is a 46-year-old tenured professor of marketing at a small New England business school. He has a daughter, Sue, age 6, and a wife, Margaret, age 40. Margaret is a potter, a vocation from which she earns no appreciable income. Before she was married and for the first few years of her marriage to Bob (she was married once previously), she worked at a variety of jobs, mostly involving software programming and customer support. Bob’s grandfather died at age 42: Bob’s father died in 1980 at the age of 58. Both died from cancer, although unrelated instances of that disease. Bob’s health has been excellent: he is an active runner and skier. There are no inherited diseases in the family with the exception of glaucoma. Bob’s most recent serum cholesterol count was 190. Bob’s salary from the school where be works consists of a nine-month salary (currently $95,000), on which the school pays an additional 10 percent into a retirement fund. He also regularly receives support for his research, which consists of an additional two-ninths of his regular salary, although the college does not pay retirement benefits on that portion of his income. (Research support is additional income; it is not intended to cover the costs of research.) Over the 12 years he has been at the college his salary has increased by 4 to 15 percent per year, although faculty salaries are subject to severe compression. So he does not expect to receive such generous increases into...
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...Retirement Planning Allen and Nancy Berger The ideal retirement benefit plan to install in Allen’s company would be the Defined Benefit Plan. The defined benefit plan best fits Allen’s current business situation in multiple ways. Allen will be able to maximize corporate tax deduction because employers are generally allowed to contribute more (and therefore tax deduct) than the alternative retirement plans. Business owners can write off these contributions as a business expense which is tax deductible, which will assist in Allen maximizing his corporate tax deduction. Defined benefit plans have no contribution limits, Allen and Nancy have a goal to secure a $61,241.90 after-tax serial payment by retirement. Other retirement plans such as the 401(k) have contribution limits that will not allow for Allen and Nancy to meet this future retirement goal. Defined benefit plans are truly ideal for small business owners who are behind in retirement savings and are nearing retirement. In the case of Allen who is currently 54 years old, the defined benefit plan is ideal because he is not restricted on how much he can contribute, so by the time he does reach the age of retirement, he will likely be able to reach his goal. Because of the maximums on plans such as 401(k) and Money Purchase plans, those alternatives would serve little use to someone like Allen looking to retire in less than a 20 year period. Allen currently has stable, predictable cash...
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...Associate Level Material How Retirement Planning Fits within your Financial Planning You want to know how long your retirement money will last. Who doesn't? But first you must tackle an even tougher question: how long will you live? Ah, if we only knew. But you can have some fun coming up with an educated guesstimate by going to the Paul Beeson Physician Faculty Scholars in Aging Research Program Here's how: type in Beeson-- beeson.org/livingto100 – if only we could --/quiz.htm. The life expectancy calculator asks 23 questions ranging from do you smoke to eating habits to a little family history. According to the calculator, I can expect to live a fraction more than the male average of 84 years. Obviously you really can't predict how long you'll live, just as you can't know how well your portfolio would do over time. But a new generation of calculators will compute the odds that your mix of stocks, bonds and cash will support your desired standard of living during retirement. These Monte Carlo simulations work out the probability by running thousands upon thousands of results including worst case scenarios. The best known is offered by financialengines.com. So let's go to financialengines – one word --.com. And from the home page, put our cursor on my info. The advice costs money, but you can get a free forecast and see if you like the service and whether you like looking at the world through the lens of probabilities rather than certainties. Don't forget your Social...
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...Retirement Planning and Social Security In the United States, we do not need to plan for retirement. Social Security will cover our needs when we retire. This is a common misconception among Americans simply because the Social Security program has been such a vital part of most everyone who has retired in our country for so many generations. We as Americans have grown to trust that our country is going to be not only able to give a portion back to us in our older years, but we feel it is our right as Americans to finally receive a little financial peace after a lifetime of labor and dedication. While all of these feelings are completely justified, there are a few questions we need to ask ourselves to ensure that freedom. We need to decide what exactly are our needs going to be at this point in our lives, and what we can realistically look forward to from Social Security, and finally educate ourselves on the alternatives and supplements that may be offered to us. Naturally you will want to know how long your retirement money will last you. First you must tackle an even tougher question; How long will you live? The life expectance for both men and women has increased over the past several years mostly due to such great strides in healthcare. If we only knew what to expect it would make planning much more precise. There are a few fun ways to gather an educated guess, by going to the Paul Beson Faculty Scholarships Aging Research Program you are able to fill out a life expectancy...
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...Anderson 04/14/2012 Planning the Retirement Party In organizing this retirement party I believe there are 5 important tasks to follow. We have to decide a date and location of the party as well as calling the locations for open dates and booking rates which should be completed within the first day of planning. Sending out invites to employees with developing a flyer for the party and sending them out to all employees also should be completed within the first day of planning. Decorating the event with the essential party decorations like balloons, paper plates etc. and with some entertainment should be completed in 3 days. Book a catering company for the food, drinks and cake that can stay within set budget, should also take a head count of confirmed attendance showing with the possibilities of a few extras so they know how much food to order, this task should be completed in 3 days. And Finally Scheduling invited employees for event and making sure the party dose not conflict with work schedules this should be completed in 1 day witch would be the last day of planning. First of all some sort of conflict will always happen, it is how you deal with it is what makes you a better leader. Most people I included like to avoid confrontation but in the past couple of weeks I have learned that you shouldn’t avoid confrontation but embrace it and explore all working possible solutions for the conflict. If any kind of conflict would arise during the retirement party you can use this...
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...asset class, a benchmark of expected performance has been performed. If the current stocks held in that class are underperforming the class in general, they should be sold and replaced with positions that better represents the asset class. Then purchasing patterns will be changed to add asset in the other classes that are currently not represented in your portfolio. The net result will be a well balance asset allocation that is representative of moderate risk tolerance. James and Lucy currently hold over one million dollars in real estate and have a relatively small equities portfolio. The Anderson’s IRAs and non-retirement assets are concentrated in small and mid cap growth and cash. RECOMMENDATIONS James and Lucy have a significant income and monthly net cash flow. We recommend that you begin contributing to your retirement and non-retirement accounts...
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...Name Tutor Course Date Final Exam 2016 1. A trust is a legal agreement document that must be drawn up by an attorney. 2. The creator of a trust is called settlor or grantor. 3. The individual or a business entity who administers the trust is a called a trustee and has attorney powers. 4. A trust can be living or testamentary. 5. A beneficiary who is to receive the income of the trust for life has equitable interest in the trust. 6. When a trust terminates the assets of the trust will be distributed to the correct beneficiaries who are named in the trust document. 7. A trust created during the lifetime of the individual is a living trust while a trust created at the death of the individual is a testamentary trust. 8. Is a trust subject to federal income tax? Yes and if so what tax form would be filed? Trust and Estate Tax Return. 9. If an individual wanted to control his or hers assets after they died they would have established through their living trust a will. 10. This type of trust declaration would allow the individual to avoid probate but would still be subject to taxation by federal estate tax . 11. A gift qualifying for the annual exclusion must be $14000 or less and be a present interest gift. 12. The person making the gift is the donor and the person receiving the gift is the donee. 13. If an individual makes a taxable gift they must file a tax report on money above the annual gift exclusion...
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...Retirement Planning: Plan for the Unexpected Many adults are optimistic about retirement, but many will be unsuccessful in preserving the lifestyle and standard of living to which they have become comfortable because they will neglect to plan and save. In fact, some people do not even attempt to calculate what their needs will be when they retire. In the past, Americans could count on Social Security, Medicare, and pension plans directed by their employer to help plan their retirement; however, today it is entirely different. The future of both the Social Security program and the Medicare program are uncertain, and to compound the problem, most employers no longer offer defined benefit plans. Some employers offer contribution plans, such as 401k plans; however, that means that people need to have self-discipline and exhibit regular patterns of investing to ensure a comfortable retirement. Citizens must be active and take responsibility for their own financial security. Not only do people have to calculate how much money they will need for ordinary living expenses, but they will also have to calculate how many years they will live in retirement. In addition, they need to recognize the impact that inflation will have on spending power and determine how much money they will need to cover medical and long-term care expenses if they arise. Although the Social Security program will play an important role in retirement, Americans must create a plan that covers every cost, including...
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...CHAPTER IRAS AND SEPS DISCUSSION QUESTIONS 1. What is the limit on contributions to an IRA for 2014? The following chart depicts the combined contribution limits for traditional and Roth IRAs. In addition, individuals who have attained the age of 50 before the end of the current taxable year are also eligible to make catch-up contributions, thereby increasing the annual IRA contribution limits. Year 2014 Annual Limit $5,500 Catch-Up Limit (for those over age 50) $1,000 Maximum Contribution $6,500 2. 3. What is a spousal IRA? An IRA for a spouse who has no earned income is generally referred to as a spousal IRA and can be established provided the other spouse has sufficient earned income. The necessary level of compensation is equal to the total amount that is to be contributed to both IRAs. Spousal IRAs can be established up to the contribution limit for the year in question ($5,500 for 2014) the catch-up contribution is also available for those individuals age 50 and over). 4. Why is age 70½ significant to traditional IRA contributions? Contributions to a traditional IRA are not permitted in the year, or any years after the year, in which an individual attains age 70½. This limitation for traditional IRAs does not apply to Roth IRAs. Individuals who have sufficient earned income may continue to contribute to a Roth IRA after the attainment of age 70½. 5. 132 List items of income that are considered earned income...
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...Barry Cameron UIN # 00728497 FIN 317 Mon 4:20 SUCESSFUL RETIREMENT PLANNING THE DESIRE TO RETIRE Everybody looks forward to the day that they no longer have to fight traffic or deal with an unappreciative boss. A time when one can focus on more meaningful things in one’s life. Spending more time with family, traveling, hobbies, volunteer work, becoming more active in the community or church; or “do nothing” as forty percent of Americans plan to do upon retiring from the work force. Without the promise of retirement, many would find it very difficult to get out of bed and head to work each morning. “Retirement is a fairly recent phenomenon. At the beginning of the nineteenth century, few people retired, because they simply could not afford to do so. As white – collar jobs replaced a predominantly agricultural economy incomes rose and people had more money with which to retire” (Cullinane and Fitzgerald, 3). People began living longer and found that they had more leisure activities from which to choose from. In the United States, the invention of social security and company pensions greatly contributed to the ability of Americans to retire from the work force. RETIREMENT PLANNING Retirement Planning is an attempt to figure out how much money you need to save each month in order to have a comfortable retirement. It is an attempt because retirement planning requires you to try to predict the future. Nobody really knows what kind of return their...
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...Student Loans, Debt, and Retirement Letter the Editor on Student loans, Debt, and Retirement I am writing in response to an article written by Mason Braswell’s “Generation W(on’t be Able to Retire” featured in On Wall Street. It is clear that generation “X” will face a new set of challenges with their future plans of retirement. The large amount of student debt they accumulate will have worse affect’s on their financial future’s than the baby boomers before them It is noted that students now should see student loan repayments as a part of their financial obligations after receiving their degree in the same manner as buying a car or a house. It is questionable if this generation will even be able to retire with such costly commitments they have incurred. Supporting this authors position research reflects the impact of these high debts will collide with financial futures reaching even into the retirement plans of generation “X”. This letter will present some facts on the financial issues they will encounter as they plan for their “golden years”. First, student debt has become a huge problem for many individuals. For generation “X” student debt is one of life’s realities that will end with an unpleasant consequences. Studies are showing the boomer’s children will be the first generation of individuals to experience the perils of debt and its effect on their lives and retirement plans. Mason writes that “80 is the new 65” (Braswell, para 2). Retirement planning is going to involve...
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...[pic]Ageism: Future Planning After Retire In The Military INTRODUCTION Ageism What is ageism? Regarding to Wikipedia, Ageism, or age discrimination is stereotyping and discriminating against individuals or groups because of their age. Age discrimination refers to the actions taken to deny or limit opportunities to people on the basis of age. These are usually actions taken as a result of one’s ageist beliefs and attitudes. Ageism is a form of discrimination, which is based on someone's chronological age. Many people use this term specifically to refer to discrimination against older people, but ageism can strike people of all ages. Like other forms of discrimination, ageism can be extremely harmful, especially when it is viewed as culturally normal and acceptable. In some regions of the world, campaigns to fight ageism have been initiated in an attempt to educate people and stamp out ageism. Age discrimination occurs on both a personal and institutional level. On a personal level, an older person may be told that he or she is too old to engage in certain physical activities, like an informal game of basketball between friends and family. A younger person may be told they are too young to get a job or help move the dining room table. On an institutional level, there are policies and regulations in place that limit opportunities to people of certain ages and deny them to all others. The law, for instance, requires that all young persons must be at least 16...
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...Social Security Planning Even though Social Security was designed to take care of us in our retirement years, a secondary retirement income to coincide with our social security is an extremely important consideration if not a necessity. One has to take many considerations that into account when deciding whether or not to plan a secondary income source to coincide with their retirement benefits. Tax rates, inflation, Cost of Living Index and even geographic location play an important role on the ability to live comfortably on social security in retirement. Other things that need to be taken into consideration are not only current economic criteria but future economics as well. Many analysts predict, using current data and future projections, that by the year 2044 the Social Security Administration will no longer have any funds, in which to disburse to retirees. When talking about retirement planning, one has to begin by being aware of and understanding economics and how these affect not only current, but future trends. Quite a bit of information is available at the Social Security Administration Official website – www.ssa.gov. From this site one has access to different financial calculators and other resource links, one of which is a very detailed downloadable retirement planning guide, entitled – Taking the Mystery out of Retirement Planning. This guide has been developed by the U.S. Department of Labor, Employee Benefits Security Administration and its partners. Another...
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...7 golden rules of retirement Experts contend that retirement planning should start from the day you start earning. Sound advice indeed, but one that is seldom followed. This is why ET Wealth decided to bring to you seven immutable rules of retirement planning. Steeped in financial prudence, these canons have been advocated by experts through the decades. Follow them and you can be sure that you will retire in comfort. Save 10% of your income for retirement The first rule of retirement planning is also the easiest to follow. If you have a regular job, then 12% of your basic salary and an equal contribution by your employer that flows into your Provident Fund account is a good way to build a nest egg. The best thing about this option is that you cannot avoid it. EPF rules require all employees to contribute 12% of their basic income to retiral savings, which include the Employee Provident Fund and the Family Pension Fund. It is a forced saving that becomes the default retirement plan for many individuals. The amount of contribution to the EPF does not matter. Given the power of compounding, even a small contribution can bloat into a big sum over the long term. Don't underestimate the significance of the savings in the first few years. Assuming that a 25-year-old investor puts away a fixed amount every month, his savings in the first five years will account for 44% of his total corpus when he is 60 years old. The later you start, the more you will need to save...
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...FINAL 1. Financial Planning What are the three most valuable concepts you learned about the financial planning process? What actions will you take in your personal life based on what you have learned? Financial planning is a systematic process that considers the important Elements of an individual’s financial affairs in order to fulfill financial goals (Pg.5). The financial planning process involves six steps translating Personal financial goals into specific plans and strategies, and implements them and then uses budgets and financial statements to monitor and evaluate and revise plans and strategies as needed. The three most valuable concepts that I learned about the financial planning process include defining goals, creating a plan, implementing plan through action, and evaluation. They that time that it is impossible to an actively manage your Financial Resources without financial goals. Defining goals is Crucial after defining these goals you must formulate and develop plans and strategies in order to reach these goals. These plans goals strategies all need to remain realistic and attainable. It’s important to consider priorities and can raise them into long-term and short-term goals. Ann’s and strategies which to me is the most difficult because it requires control and monitoring. Spending money wisely and would be an example of implementing financial plans and strategies in order to reach financial goals. 2. Credit In what ways do you use credit...
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