Essays on Retirement Fund

Planned retirement age

I plan to retire at the age of 60 years. It is my hope that I shall have accumulated adequate resources to finance my post-retirement expenses. I also believe that I shall have done everything I have wished for in my career.

Retirement money

I will need about $641,000 for my retirement. This determination is based on my current and the expected salary as well as salary increases. The retirement fund requirement is also based on my current and expected expenditure. It also takes into consideration annual savings for retirement. I anticipate that my annual retirement expenditure will be about $ ...

Summary: Time Value of Money

The concept of compounding is deeply embedded in our everyday life, and this calls for our attention to understand the basics of time value of money. Important to note, the concept of time Value of Money asserts that value of a dollar received today is more than the same amount of dollar received at a future date. Stated simply, a dollar today cane invested in a return generating asset, and at future period, the investor will get additional interest on the money invested. Stated below are some of the reasons as why money has time value: a)Risk and ...

Executive Summary

Financial planning is both a science and an art. To properly determine the viable asset allocation for each individual, their time horizon and life goals are given prime consideration. In this case, the near retirement couple would be suitable for investments that provide a fixed return. Since they expect to derive income from their retirement fund, it should likewise be able to create a positive fixed income stream. Meanwhile, the risk level of their fund should be at the low end. The couple does not have the chance to recover losses if any, as compared to when they were ...

Introduction

Employer sponsored retirement plans are broadly classified into two categories; defined benefit pension scheme (DB) and defined contribution plans (DC). As the name suggests, in a defined benefit pension scheme, a defined pension is paid to employees every month/quarter after the retirement till the end of life. On the other hand, in a defined contribution plan, employees and employers contribute and invest funds over time to build a retirement fund. Both the schemes are different from the perspective of who bears the risk, growth opportunities of funds and administration and distribution of funds (JCT, 2002). Defined benefit plans are ...

Introduction

There are two major options for a person to earn his living. One is through getting a job in an organization while working for that organization which is created by others. The other option is to become self-employed through starting own business . In the case of the second option a person may start a big or small business depending on the investment, he has for the business. I have decided to start my own business and become self-employed. Since I have a little investment to start, I will start my business career through establishing a small business. I need ...

Arnone notes that planning for retirement has become more important today because many employers have moved away from the defined benefit pension plan to a defined contribution plan (p.3). This means that employees are tasked with the responsibility of ensuring that they save enough during their working life in order to have sufficient savings to meet their post-retirement expenses. Some of the common mistakes individuals take when planning for retirement is to overestimate how much they will receive from the social security or underestimate how long they will live (Arnone 5). Another major mistake individuals planning for retirement make ...