...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: 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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...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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...Planning for Retirement Planning for retirement doesn’t usually cross the minds of young people who feel as if they have the rest of their life ahead of them. What they don’t realize is that life “happens” and then you realize you should have started planning for retirement many years ago. When you start planning for retirement at an early age, you are able to take advantage of investing and the power of compounding interest over the years, which will add up when you are ready to start using your retirement account. If you withdraw from your retirement account before age 59 ½ then you will be penalized by having at least 20 percent taxes taken out and you will be assessed a penalty fee when you file your taxes next year. Before you withdrawal any money from your retirement account, weigh the pros and cons and if it is for a major life event or because you want to purchase a midlife crisis toy. While one is planning for retirement, the best way to figure out what you will need when you retire is to conduct a financial analysis. You may want to start by looking to see what assets you possess. Assets are defined as cash, personal property, personal possessions and investments; cash in your checking and savings accounts, a house, car, television, etc. (Kapoor, Dlabay, & Hughes, 2010). When you retire, a house will probably be the most valuable asset you own. If you purchase a house in the early years, there is a possibility that you have only a few...
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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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...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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...Renee Kelly Week 3 Assignment OUTLINE Topic: “In the United States, we do not need to plan for retirement. Social Security will cover our needs when we are retired.” Thesis: Retirement is a time to break away from a hectic schedule and enjoy life. Retirement also can be a time of change and unexpected challenges. Planning for retirement with a solid financial investment is the key to providing financial security for life’s “golden years.” Relying solely on Social Security benefits to fund your retirement will place your financial security at risk. Organization: Order of importance. Purpose and audience: To show a solid financial plan for retirement is possible at any age, and the importance of not relying on Social Security as a sole means of taking care of day-to-day expenses. This essay is intended for an audience interested in learning how to make wise choices for their retirement, especially those who are planning to rely on Social Security benefits only. I. Relying solely on Social Security to fund for retirement may be a recipe for financial failure. A. Current research states the Social Security fund may be depleted of funds by the time most people are ready to retire in the next ten (10) years. B. Provide government statistics indicating current rate of payouts as opposed to program’s available funds. C. Current economic research showing of increasing...
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...II. Demographic Paragraph on your topic, statement of the problem, delineation of a human diversity issue. (To be submitted in the 8th week) By now, you should be able to articulate a clear topic title of your management project. Create an introduction to your topic by defining a problem/issue that is encompassed by your two readings. Using the Tentative Annotated bibliography and topic statement from week 3, expand your discussion of the connections of your topic to the required components for the project: Systems Theory Model, human diversity, some aspect of family or consumer resource management. After you have developed the connections, delineate the problem/issue by highlighting statistics and facts that make this an important problem or issue for which the class should be concerned/interested. You should go outside the two articles that you have read to find this information. An example might be citing such things as “1 of every 2 marriages ends in divorce” to focus attention on how frequently the marital system breaks down to introduce why you are focusing on how to make a marriage last. Note: this assignment is to total approximately 400 words. (Make sure to identify a source for your statistics/facts that is other than the two articles read.) Title: Parental Behaviors Effecting Children Introduction: From the time that a child is born to their adulthood, they are being influenced by their parents, from participation in physical activity to stress responses...
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...Retirement Abstract Retirement is a great is one of the biggest developmental changes that life has to offer. It can affect you in many ways if you are not prepared. Although, it may have negative effects on a physical and psychological level, it also can have its benefits. It depends on how prepared you are, going in to this stage of life. In most cases, the economical status of an individual can be a major factor in being prepared for this event. As human beings, we are not able to depend on our own selves and that is where psychological stress may impair our vision of retirement should be. Now, I ask, why do we retire? Obviously, to enjoy what we have achieved from all the hard work that have had to endure. For some it may come easy; for others it becomes a difficult stage where independence becomes dependence and that is where anxiety and depression come in to play. In this paper, I will discuss the findings psychologists that have studied the effects of this life stage. First, let’s review the psychological perspective of retirement. As stated by Kenneth S. Shultz and Mo Wang, “Retirement is an interdisciplinary topic studied by researchers in psychology, sociology, social work, demography, economics, and organizational sciences…” Because of this, literature on retirement has grown a great deal and has research has taken many different forms. The basic...
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...Retirement is an important aspect in life that many people don’t ever get to experience. I know many people that work their whole life; which is mostly because they can’t afford to retirement. Having a retirement plan helps you prepare for the future so you can enjoy the final years of your life. Some people also enjoy working their whole life because it’s what keeps them going. I honestly wouldn’t mind working my whole life unless I wasn’t physically able to. Everyday throughout the world people are getting ready or finished planning their retirement plan. There is so much to look into on how to organize a plan very well on what you want for your retirement. Many focus on what stocks and bonds they will want to invest in and also about the 401k. I don’t plan on working a normal job in the future, but if I did a 401k would help me out the most when in retirement. What I want more than anything is to have my own business because that’s what I’m going to school for. If my business works out good and generates plenty of profit then I should be able to have a nice retirement. The two main problems in everyday people in trying to organize their retirement plan is what kind of stocks they would want to invest in. There are so many different stocks in the stock-market that it makes it difficult for people to figure out which one will go best for you in the future. A different problem would be what bonds they would also like to invest in. Investing in stocks and bonds will not make...
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...Economics’ Approach to Financial Planning by Laurence J. Kotlikoff, Ph.D. |Executive Summary | |Economists long have shown that when it comes to consuming lifetime economic resources, households seek to neither splurge nor hoard, but | |rather to achieve a smooth living standard over time. Consumption smoothing not only underlies the economics approach to spending and | |saving, it is central to the field’s analysis of insurance decisions and portfolio choice. | |Smoothing a household's living standard requires using a sophisticated mathematical technique called dynamic programming to solve a number | |of difficult and interconnected problems. Advances in dynamic programming coupled with today's computers are permitting economists to move | |from describing financial problems to prescribing financial solutions. | |Conventional planning’s targeted liability approach has some surface similarities to consumption smoothing. But the method used to find | |retirement- and survivor-spending targets is virtually guaranteed to disrupt, rather than smooth, a household’s living standard as it ages.| |Moreover, even very small targeting mistakes will suffice to produce major consumption disruption for the simple reason that the wrong...
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...3 THE IMPACT OF DOWNSIZING PRACTICES ON THE PERFORMANCE 4 ALTERNATIVES TO LAYOFF 5 EARLY RETIREMENT 5 DOWNSIZING AND THE LEGAL ISSUES 6 REFERENCES: 6 INTRODUCTION Over the past decade, corporations have been under economic pressures for a long term. Consequently, some of them were eliminated from the local market, the survivors have been driven to reorganize, redesign and restructure their organization with the intention of maintaining their place in the market. According to the decision maker, downsizing can be a solution to many organizations to reduce their budgeting issues and to increase their productivities. ( Labib & Appelbaum,1994) This essay will focus on organizational downsizing. Part one present the downsizing concept, particular attention is paid to downsizing reasoning and stages, its impact on the performance and the legal issues. Part two focus on the early retirement. ORGANIZATIONAL DOWNSIZING – A LITERATURE OVERVIEW The term downsizing refers to an "elaborate decision to reduce the size of the workforce in an organization" to improve the organization performance and decrease cost. (Kozlowski et al., 1993, p. 267). Layoff and early retirement are methods of downsizing; in fact layoff is an immediate act of discharging an employee due a decline, while the early retirement is a personal decision to leave a job voluntary before the retirement age. (http://www.answers.com) There are two terms of downsizing: downsizing by need and downsizing...
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