Retirement Plan Essay

Improved Essays
Retirement Plan Dr. Michael Walden’s Retirement Savings Procedure:
Step 1: I am 21 years old and I plan of retiring at the age of 65. I believe I will be alive for 32 years in my retirement.
Step 2: With the way things are looking I estimate that I will need $44,000 a year in retirement income. I plan on investing in retirement so I am going to use a 7% interest rate.
Step 3: I am not going to include Social Security in my analysis because by the time I will retire I do not believe that Social Security will still exist. Therefore, my answer for Step 3 is 0.
Step 4: The job I currently have does not offer a DB pension; therefore, my answer for Step 4 is 0.
Step 5: I have a Traditional IRA, it is currently worth $11,935.35. My IRA is invested
…show more content…
I need to have my money in some sort of investment and what is a better investment than myself. Because I have been able to invest at such a young age I need to keep adding money to it that way I can have a nice amount of money to retire with. I is always good to save because it is hard to know what is going to happen in the future. And if I decided or need to retire earlier than I planned I can.
What impact will your personal retirement planning have on your immediate family? Right now I am the only one of my sibling who was money set aside for their retirement. So my sibling constantly joke that I am going to have to take care of them when we are older. But if I have a family of my own this money will make sure that I am taken care of and my children do not have to worry about me.
What impact will your personal retirement planning have on society? I feel like my personal retirement plan will have a positive effect on society. This is because I am not relying on government assistance. My retirement will be paid for by me.
What impact would there be on the economy if every American had and implemented a retirement plan? I think that it would have positive effect on the economy. If everyone in America had and implemented a retirement plan we would not need government assistant programs like Social Security. But you have to be educated and knowledgeable about your money and ways you can save

Related Documents

  • Improved Essays

    Nt1310 Unit 5 Assignment

    • 716 Words
    • 3 Pages

    These assumptions may include, but are not limited to, your anticipated retirement age, life expectancy, retirement income requirements, government benefits, time horizons, special needs, rates of return and inflation and income tax rates. Any assumptions I make will be both reasonable and realistic, and they will be disclosed to you in writing in the financial plan. Having reviewed your financial situation, I will prepare a written financial plan for you to review. When discussing this report with you, I will do so in such a way so that you are able to understand: The advantages and disadvantages of the various alternatives; The costs of the various alternatives; The risks involved in the various alternatives; The time sensitivity of recommendations; The consequences of no action being taken; and The impact of a change in the assumptions on the projected results. The client is obliged to inform the advisor if he or she does not understand any of the above points.…

    • 716 Words
    • 3 Pages
    Improved Essays
  • Superior Essays

    The author explains various retirement packages that are available and advises young people on which to invest in first. It is important to save in the retirement funds irrespective of the income. According to the author, the youths need to follow the steps of their parent and event their grandparent of saving for retirement. The young generation is encouraged to start saving before they get children who will use all their funds. 7.…

    • 1407 Words
    • 6 Pages
    Superior Essays
  • Improved Essays

    Why Is 401k Important

    • 754 Words
    • 4 Pages

    I believe the best way to save for retirement is through the 401k program. It is beneficial to invest early in a 401 k retirement plan because your money compounds and increases over time, employers match a percentage of your contribution and between 3-6 percent of your gross wages, and you receive deferred tax. It is imperative that one starts saving immediately after working because of the compounding effect of the 401 k plan. The average annual return for investments is about eight percent, which means that every seven years your money would double. According to Practicalmoneyskills.com, assuming 5,000 dollars is saved for ten years, “If you started saving at age 25, stopping at age 35, when you retire at 65 your account would be worth about $787,000.…

    • 754 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Dbq Social Security Act

    • 722 Words
    • 3 Pages

    During the Roosevelt administration, there was a very important piece of legislation passed called the Social Security Act of 1935, which was chosen as the topic of this paper. The Social Security Act was enacted to help older Americans with having adequate retirement incomes so that they would not have to depend on welfare. Years after the act was passed, the right to social security was declared as a human right in 1948.The Social Security Act was the first national program of economic protection for Americans, and it included several provisions. Those provisions included “ADC, UIB, Social Security pensions for older Americans, Aid to the Blind, and Old Age Assistance”. In 1939, the coverage was extended to dependents and survivors.…

    • 722 Words
    • 3 Pages
    Improved Essays
  • Great Essays

    Barriers that prevent Nurse Practitioners from practicing in Long Term Care Facilities Nancy Marshall A thesis presented to the School of Graduate Nursing Mountain State University In partial fulfillment of the requirements for the degree…

    • 3531 Words
    • 15 Pages
    Great Essays
  • Decent Essays

    When President Franklin D. Roosevelt signed the Social Security Act into law on Aug. 14, 1935, only a relative handful of citizens were covered by private pension funds. If you weren't wealthy, or didn't have an extended family with means, there was no place that you or your family could turn to if you were in economic distress, except charity. Most Americans faced a future full of economic hardship and uncertainty, and a "poverty-ridden old age," to use FDR's apt…

    • 81 Words
    • 1 Pages
    Decent Essays
  • Improved Essays

    Baby Boom Sociology

    • 1104 Words
    • 5 Pages

    Those who were born in the United States between 1946 and 1964 are known as baby boomers. The baby boom is defined as having occurred during the peak years of this roller coaster ride: its legacy was a population bulge destined to leave its imprint on each phase of the life cycle (MacUnovich). Baby boomers represent the largest generational birth cohort in United States history, making about 76.5 million in total (MacUnovich). Though there is no definitive answer, some effects that were stated to attribute the birth increase during the baby boom generation, were the antiwar movement, an increase in crime rates, and the development of the women’s movement (Kirszner). The baby boom generation is often characterized as a generation of optimism,…

    • 1104 Words
    • 5 Pages
    Improved Essays
  • Superior Essays

    Social Security Reform

    • 1470 Words
    • 6 Pages

    As the reality of the Social Security systems impending failures under its current construct, there has been a growing agreement throughout the United States’ population and government regarding the need to reform the Social Security system. With the trust fund projected to be depleted in but a few decades from now, it is time the debate progresses beyond generalities and hypotheticals and examination of the implementation of specific proposals for reforming Social Security takes place. In Michael Tanner’s piece, 6.2 Percent Solution: A Plan for Reforming Social, Tanner delves into the viability of a reality of transforming the current outdated system to that of individual accounts that would give workers ownership of and control over their…

    • 1470 Words
    • 6 Pages
    Superior Essays
  • Great Essays

    Social Security History

    • 2052 Words
    • 9 Pages

    Throughout American History, the government has put forth effort in providing for people in need. This idea of providing security and safety to people in poverty later created the American welfare state, wherein the national government created programs designed to promote economic security for all Americans- programs not specifically for poor people. These programs were made to help people with an illness, disability, temporary unemployment, and mainly the elderly who are struggling financially. The largest programs made for the elderly include Social Security and Medicare; however, there are many others that are much less popular but still existing. In this essay, we will discuss how Social Security and Medicare began, changed throughout the…

    • 2052 Words
    • 9 Pages
    Great Essays
  • Improved Essays

    Basically, You just saving your money in your piggy bank and by the time it full, then you open the piggy bank and get the money for personal uses. Thesis Statement: Today, I will try to persuade you all to start investing for a retirement plan, so that you will have the money to pay for medical care, the lifestyle you want, the home you want to have, the cars you want to own, and all the amazing places that you want to visit by the time you are retired. Credibility Statement: Since I was a kid, I would start saving money during the month of…

    • 1044 Words
    • 5 Pages
    Improved Essays
  • Decent Essays

    Retirement Project

    • 198 Words
    • 1 Pages

    Retirement Project Retirement is such a hard thing to plan because no one knows how much money will change in the upcoming years. I am planning on retiring at age sixty-seven so as of right now I have forty-seven years to start saving money and planning for my retirement. On average I spend close to two-hundred dollars a week. Two-hundred dollars multiplied by fifty-two weeks in a year multiplied by the twenty-two years that I will be retired based on my life expectancy means that I will need $228,800+ to live securely until I am eighty-nine years old.…

    • 198 Words
    • 1 Pages
    Decent Essays
  • Improved Essays

    Betting Vs Bookies

    • 1205 Words
    • 5 Pages

    When you gamble online, you are betting against a bookie. They produce odds that show how much you will be paid if you win. These odds are manipulated to ensure the bookie cannot lose, and they may even use the odds to affect which bets you place, since unlike investing, you have a choice on how much you place on each bet. When you invest, you do not have a choice of how much a share costs, though you do have a choice around how many of them you buy. When you buy shares, you are not putting your money against a bookie, which is a point in your favor.…

    • 1205 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    Figuring out my Personal Retirement plan has been an absolute eye opener. Instead of daydreaming about where I will be thirty or forty years from now, I have actually taking out the time to sit down analyze my finances and plan for the future. Having a definite number to target for annual savings is better than using a ballpark number that sounds good, now I know how much money would be Ideal to live comfortably at wiser years. One of the key things that I am lacking is not having a mutual fund to contribute for my retirement.…

    • 767 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Keep in mind your objectives before you decide to invest in a particular investment plan. Invest in life insurance…

    • 791 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Spend your time to decide your goal, your future need after retirement, the corpus that you actually need to fulfill every prerequisite without financial hassle, and other significant factors that you think essential to be taken care post-retirements. You can make a cash flow and goal chart to understand your income, expected growth over the period, investment planning that you may opt or afford, your liabilities and way to save more. Without having a proper planning to manage income and assets, creating big corpus is almost impossible. The biggest and unhidden mantra to increase your saving is to lose your burden of debt.…

    • 1064 Words
    • 5 Pages
    Improved Essays