Retirement Plan



Retirement Plan

Introduction

Employees do not remain employed forever, so the best thing that should be done is to plan. The retirement plan is very necessary and it should be started as soon as possible (Ruffenach & Greene 2007). That is if more time is given to the money to accumulate in investment, the more amount will the retiree have at the time of his investment for disposal purpose. These retirement plan are planned according to the needs of the individual lifestyle, financial goals, life expectancy and income (Gijsen 2002). Thus, it is very important for a person to create a plan that suite to the specific need of the person, since what is good for you may not be good for me.

Retirement Goals: How much money do they need?

Calculate required income

Required Income

 

0

1

2

3

4

5

6

7

8

9

Alan

100000

$ 100000

$ 100000

$ 100000

$ 100000

$ 100000

$ 100000

$ 100000

$ 100000

$ 100000

Joane

40000

$40,000

$40,000

$40,000

$40,000

$40,000

$40,000

$40,000

$40,000

$40,000

Income

140000

140000

140000

140000

140000

140000

140000

140000

140000

140000

Children Education

-$ 25000

-$ 25000

-$ 25000

-$ 25000

-$ 25000

- - - - -

Mortgage payment

($42,000)

($42,000)

($42,000)

($42,000)

($42,000)

($42,000)

($42,000)

($42,000)

($42,000)

($42,000)

Chequing amount

10000

- - - - - - - - -

Required Income

$83,000

$73,000

$73,000

$73,000

$73,000

$98,000

$98,000

$98,000

$98,000

$98,000

What level of Retirement income is appropriate?

Appropriate Retirement Income

 

0

1

2

3

4

5

6

7

8

9

Required Income

$83,000

$73,000

$73,000

$73,000

$73,000

$98,000

$98,000

$98,000

$98,000

$98,000

Joanne Pension

$20,000

$20,000

$20,000

$20,000

$20,000

$20,000

$20,000

$20,000

$20,000

$20,000

Alan saving per year

$ 15000

$ 15000

$ 15000

$ 15000

$ 15000

$ 15000

$ 15000

$ 15000

$ 15000

$ 15000

Joanne Saving per year

$1,000

$1,000

$1,000

$1,000

$1,000

$2,000

$2,000

$2,000

$2,000

$2,000

Saving on Child Education

0

0

0

0

0

$25,000

$25,000

$25,000

$25,000

$25,000

Total Saving

$16,000

$16,000

$16,000

$16,000

$16,000

$42,000

$42,000

$42,000

$42,000

$42,000

Appropriate Retirement Income

$67,000

$57,000

$57,000

$57,000

$57,000

$56,000

$56,000

$56,000

$56,000

$56,000

How long do they need the income? (Based on Alan's life expectancy of 91 ...