Retirement PlanningRetirement PlanningChapter 17
Facts of Retirement Planning
•It is the responsibility of individuals to
prepare his or her retirement.
•It is the time when someone depends on
investment to support his or her living.
Contribution to Social Medicare
•Employee pays a percentage of her
earning to contribute to the plan.
•Employer pays a percentage of
contribution to the plan.
•Each month both payments are collected.
Receiving Social Security Benefits
•Begin receiving benefits at full-benefit
age.
•Begin receiving reduced benefits at
younger age.
•Begin receiving larger benefits at a later
age.
Projecting Annual Retirement Expenses and Income
•Someone needs to calculate how much
money she needs to support her living
costs during retirement.
•Therefore she needs to calculate how much
money she needs to invest starting now in
order to be able to receive the amount
needed above.
Projecting Annual Retirement Expenses and Income (ctd)
•This is in order she could live a
comfortable style of living.
•If he needs advice regarding the issues,
she may talk to a financial advisor.
•The main thing to keep in mind is be self-
disciplined.