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Retirement Plan
Financial Plan
The client is a married male in his mid-twenties. It is projected that the client will graduate from college within the next year or so and immediately enter the workforce. The client's degree is in engineering and he is expected to land a well-paying job in a relatively short time. He and his spouse are currently childless but plan on having at least two children. The couple lives in an apartment but are plan on purchasing a house in whatever city the job is offered. The client comes from a long-lived family with the average family member living well into their eighties. The client wishes to pass on accumulated wealth without paying a large percentage in taxes to the government. The client plans on retiring at the age of 70, and will then travel and enjoy life with his spouse.
Current income needs are approximately $2,000 per month. This amount covers rent, utilities, food, clothing, transportation, entertainment, health insurance and incidentals. The client would like to save approximately $500 ($100 in emergency cash, $200 in mid-term investments, $200 long-term stocks and bonds) per month and would like to purchase a house right away. The client's parents have offered him a lump-sum of money to help him with the down payment for a house. Once a house is purchased future income will...
As children are born, expenses will rise that will affect the income stream. The client would like to maintain a 10% savings rate based on the income stream.
2. The client was raised with conservative values and abhors the idea of debt. However, one essential item will have to be purchased that will have to be paid for through a loan. That item is a residence. The client plans on purchasing a modest home for approximately $200,000 or less. The down payment on the house will be 10% ($20,000) leaving a loan amount of $180,000. The client will pay this loan off in 15 years and will be able to get a percentage rate of 4%. The client's bi-monthly payments will be approximately $770.00 (1,540.00 per month) which includes PMI and taxes. This raises his current income needs to $3,500 from his current needs of $2,500. The client does not plan on making any other major purchases with debt financing.
3. Acquiring assets will be done with any additional dollars (above what is needed in current income). Since the client was raised in a debt-free home, that value has stuck with him and he will not be purchasing items unless he has the cash to pay for them. On the reverse side, disposing of assets will be taken in an orderly fashion. Any asset that is not…
To get a reasonable return on a corporate these days, one must sacrifice investment quality, at which point it makes more sense to purchase a higher-quality equity. With respect to asset classes among equities, diversification is the most important objective. With that in mind, all three categories should be represented. Historically, the large caps are the most reliable of the three asset classes, with the lowest risk. These are companies
She is well-connected within the community and is confident that her business would be profitable within a year or two. She has a strong, charismatic personality and is also connected to Milwaukee's artistic community through her husband's architectural work restoring some of the city's beautiful historic buildings. She has a considerable portfolio, and occasionally sold stock photos or worked as a wedding photographer when she was in law school. Laura
Retirement Planning A comfortable retirement is a goal for most workers, but ensuring that comfort takes planning and foresight. Planning for retirement is much more complicated than opening a bank account or belonging to an employer-sponsored pension plan. While these are excellent beginnings, workers must plan for any and all events that can and will happen after retirement. Employees not only need to plan for retirement income, but they must also
Goal setting works well for simple jobs -- clerks, typists, loggers, and technicians -- but not for complete jobs. Goal setting with jobs in which goals are not easily measured (e.g., teaching, nursing, engineering, accounting) has posed some problems. Goal setting encourages game playing. Setting low goals to look good later is one game played by subordinates who do not want to be caught short. Managers play the game of setting
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.. Neglecting to do this is the number one mistake made by spouses who inherit because it is the key to the survival of the account after the spouse's death, and it's the key to keeping it in the family." On page 68 he says taxes on 401(k) NUA lump-sum distributions have changed. "At one time, this special break tax break for easing the burden on lump-sum distributions from ompany plans