Retirement Planning

Retirement Planning

Introduction

At the age of 30, my current income is $34000, so total annual income becomes 408000. Currently working in financial institution of USA and expected to be retired at the age of 65. Further, as per my health condition is and GOD will am hoping to live until 80 years.

Hence, it is extremely important to draft my retirement plan from today, as no one knows what future holds for us. Therefore, according to current situation and as per my company policy will be rewarded 75 percent of 34000 as a pension amount, which approximately becomes 25500 monthly and 306000 annually (Blommestein et al, 2009).

Based on above assumptions, I would be require approximate $1.1 million, which means that $395,196 annual saving from now onwards to retirement age. More, after acquiring the required retirement, the next important phase it to allocate this amount to different investment so that it could become fruitful for family members.

Allocation of amount is normally considered as crucial and risky step of person financing decision, as slight lack of concentration might destroy the hard work of entire life. Therefore, it is fundamentally important for a person to consult a financial investment analysis, as he will provide affective guidance for future investment.

For this purpose, I visited the investment consultation firm and according to my projection, he provided me with following asset allocation or investment plan, which suggests investing 25 percent of the amount in government bonds, 35 percent on large business stocks, and 20 percent each for treasury bills and foreign stocks.

Further, explains that since government bonds and treasury bills are guarantee investment with no risk at all, whereas, 55 percent of amount invested in stocks of firms is expected to be risky investment in current economic scenario. However, agent assures me that amount will be invested only ...