Personal Retirement Assignment Example | Topics and Well Written Essays - 1250 words

Personal Retirement - Assignment ExampleThe ain solitude planning is a disciplined and step-by step procedure that ensures a secured future retreat life. occupation Formulation and Determination of Objectives The first step in planning personal retirement is to determine the up-to-date and future objectives. For instance, among many options that are available, the most preferable option is the growth in in buzz off. On the contrary, others cleverness consider the safety of principal investment and they prefer investment in less doubtful assets. sometimes situations might exact fixed periodical earnings. There is another option left for personal retirement and that is adapted by many smart individuals who prefer to invest in a basket of securities in order to diversify investment rather than concentrating the entire investable fund in single option (Goetzmann & Kumar, 2008, pp.1-10). slightly individuals with higher risk appetite might also prefer investment in relatively risk y securities in order to earn higher returns in future (Statman, 2004, pp.50-51). Hence, it is possible that the requirement on mavin individual will not be the same as other consequently the requirement objectives are likely to vary from one individual to another (Grinold & Kahn, No Date, p.2). So, if I prefer higher actual consumption assuming that the future is uncertain, others might like to create a safer future for their family and children (Montana State University, 2010) and the abandon scenario is also applicable. For my personal retirement problem I plan to efficiently balance and allocate legitimate consumption and future consumption by vesting the available investible fund in various retirement options and thus bring certainty in future earnings. Determination of Investible Funds My post retirement income may come from sources such as pensions, social security, trusts, or annuities. The remaining required amount that I might spillage short of (for purchasing assets or sudden contingent requirements etc.) may be covered by collect savings before retirement or through investment. In order to formulate my personal retirement plan I need to make two important assumptions as follows Assuming that I give way a fixed investible amount of $50,000 and my topical earnings are $2000 Assuming that I would not require consuming any part of fixed investible fund unless there is an emergency requirement. Hence, according to this basic role model it can be said that I would like to carry out my daily activities financed by my current income and for any other purpose such as asset purchase, medical treatment, education fee payment, etc. will be funded through investment or owed funds. Determination of Retirement Age and Expected early Earnings According to the RES (Retirement Eligibility and Services) and Federal Employee Retirement System that assesses the eligibility criteria for the annuity benefits for individual, the social security presidential te rm (SSA) benefits will be available to an individual as and on the day he or she retires. So, from the supra discussion and eligibility criteria I would prefer my minimum age of retirement to be 60 years in the personal retireme