Investments

Satisfactory Essays
Economics 101

Summer 2008 Independent Learning @ WLC

Instructor: Dr Jack Kapoor

Assignment #4 Individual Investment Plan

Dawn M Russo

To begin assignment four, I created three long-term financial goals: 1. Emergency Fund: 6 months to 1 year of gross income.
2. College Funding: Two children, ages 6 and 11 years old.
3. Retirement Plan: Including provisions for the possible Social Security program end.

I chose to focus on the retirement plan goal and consider the potential for income loss if the SS program does “go under” in 2014. Per the Social Security Administration’s own prediction, their allocation for these benefits will be zero in the year 2014. As the “Baby Boomers” retire, it will take approximately two worker’s income reductions to support every one “Baby Boomer.” I began by determining the amount of money I would need to live comfortable after retirement. This I concluded by using a calculator provided by KJE Computer Solutions, LLC. I entered my current household income yearly, the age at which I would retire and at what percentage I would like make income contributions. They formulated the remaining factors and made suggestions as to which options I should increase to formulate a plan that met my goals. I had to increase my income contributions, lower the amount I projected for living expenses, and increase the current rate of return. I reduced the rate of salary increase in figuring the amounts if there was no Social Security benefits to allow for a larger gap in the total amount. The final figures that I came up with were:

a. $5135.00 or 8.27% contributions made from income yearly b. 10.23% current rate of return/yr c. 8 % rate of return in retirement/yr d. 4% estimated salary increases (3% salary increase w/SS)/yr e. 3.1% inflation rate /yr f. $ 905,551 at 65 years old (923,363 at 65 with SS) g. $66,820.00 Social

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Based on your inputs, what is your estimated monthly retirement income after tax/inflation? Nothing changed from before taxes. I still see $895 a month.…

    • 561 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Hcm413 Assignment 2

    • 1248 Words
    • 5 Pages

    Tell me what retirement calculator you used and how much money you will need to save by the time you retire to reach your goals.…

    • 1248 Words
    • 5 Pages
    Satisfactory Essays
  • Powerful Essays

    The Flat Benefit formula is calculated with a fix dollar amount or a dollar amount that is based on the employee compensation. An example would be in 2010 Deborah plans on retiring and her final average salary in the 3-year period preceding retirement was 60,000 this is based on 59,000 in 2007, 60,000 in 2008, and 61,000 in 2009. We would then add 59,000 + 60,000 + 61,000 and divide by three and that equals 60,000 in a three-year time. We can then assume that the benefits Deborah will receive is at 50%. Deborah will be receiving a yearly retirement compensation of $30,000 from her retirement plan.…

    • 1851 Words
    • 8 Pages
    Powerful Essays
  • Good Essays

    Investment and Money

    • 877 Words
    • 4 Pages

    Is an account where a saving note is issued by a bank to a depositor who places funds in savings for a set period.…

    • 877 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    Investment and Money

    • 290 Words
    • 2 Pages

    A deposit account offered by a bank invests in government and corporate securities and pays the depositor interest based on current interest rates in the money markets.…

    • 290 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Finance

    • 1032 Words
    • 5 Pages

    SunShine Systems (trends, ratios stock performance) (LO3) SunShine Systems is a leading supplier of computer related products, including servers, workstations, storage devices, and network switches.…

    • 1032 Words
    • 5 Pages
    Good Essays
  • Good Essays

    Finance

    • 968 Words
    • 4 Pages

    1. (TCO 1) What is the goal of financial management for a sole proprietorship? (Points : 3)…

    • 968 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Finance

    • 5197 Words
    • 21 Pages

    4.2: Describe the difference between the formats of financial statements for different types of business……………………………………………………………………………………………

    • 5197 Words
    • 21 Pages
    Powerful Essays
  • Satisfactory Essays

    Finance

    • 385 Words
    • 2 Pages

    |Step 1 | Did a CGT EVENT happen in the income year? See Div 104. |…

    • 385 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Finance

    • 642 Words
    • 4 Pages

    Unlevered has no debt. These firms operate in the Modigliani-Miller world with no taxes. How…

    • 642 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    finance

    • 264 Words
    • 2 Pages

    The Finance Club will be hosting Bob Makela, Director of Tax and Assistant Treasurer of Taylor Corp, as our speaker this evening from 4:45-5:45pm in MH103. Taylor Corp is one of the largest privately held companies in the United States, and has a history of hiring MSU graduates.…

    • 264 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    finance

    • 258 Words
    • 1 Page

    First, there are three types of generic strategies in Porter Models, low price, customer service and focus. Quirky as a company who is based on invention is taking a customer service strategy. The products selling on their website are not cheap but not too expensive. So I believe that Quirky are focusing on the relationship with customers.…

    • 258 Words
    • 1 Page
    Satisfactory Essays
  • Good Essays

    finance

    • 784 Words
    • 2 Pages

    In the play the Pavilion, regret, forgiveness, and living in the present were the main themes presented in this play. Everyone has regrets on what they should or should have done but can we really go back in time to change our decision, no. All we can really do is learn from our mistakes and try not to make the same mistakes again. Forgiving sometimes is a hard thing for someone to do. But once you get to the point where you can forgive someone you can finally move on from the problem. In this play, I will demonstrate what Kari and Peter did to show forgiveness, regret, and also lastly living in the present.…

    • 784 Words
    • 2 Pages
    Good Essays
  • Satisfactory Essays

    quiz 3 answers investments

    • 2479 Words
    • 29 Pages

    Which of the following is not a consideration for investing in real estate investment trusts (REITs)?…

    • 2479 Words
    • 29 Pages
    Satisfactory Essays
  • Powerful Essays

    Investment

    • 2543 Words
    • 11 Pages

    From the paragraph, we know that Universal Auto is a large multinational corporation headquartered in the United States, which is a big market in the world and it is not easy to survive without a well development company. So that, the company must has their survival plan to make the company stay in the big market, but they need to make some changes to solve their losses problem, for example their passenger cars business has had weak operating results for the past several years. Even this business is not their primarily income, but they are still feel confident with that and believe that it will growth to the another level to help company to earn profits in the future. In the current year, they still have other business earning profit very stable like information processing services; it is stable income for the company in the past 15 years. Other than that, the company wants to use industrial life cycle and business cycle to show that how their businesses living in the big market and use their pricing strategies to set their product’s price to make sure it is suitable for the big market in the United States. The industry’s life cycle has different life stages in a particular industry. There are stages in everybody’s life like childhood, adult, middle age, and then old age. Likewise, there are four stages in every industry’s life cycle and there are introduction stage, growth stage, maturity stage, and decline stage in industry life cycle. There is different with industry life cycle, the business cycle is the periodic but irregular up-and-down movements in economic activity, measured by fluctuations in real GDP and other macroeconomic variables. A business cycle is not a regular, predictable, or repeating phenomenon like the swing of the pendulum of a clock. Its timing is random and to a large degrees, unpredictable. There are four phases of business cycle, such as prosperity phase, recession phase, depression phase, and recovery phase. Lastly, the…

    • 2543 Words
    • 11 Pages
    Powerful Essays