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.