Retirement Memo Sample

Retirement Memo Sample
MEMORANDUM
IRA AND QUALIFIED RETIREMENT PLAN BENEFICIARY DESIGNATIONS AND STANDALONE RETIREMENT PLAN TRUSTS (SRTS)
INTRODUCTION
IRAs, 401(k)s, 403(b)s, and other qualified plans are great ways to plan and save for retirement (hereinafter, these plans are generally referred to
simply as "IRAs"). For many individuals, retirement assets represent a substantial portion of their wealth. And although retirement plans were designed
to permit individuals to save for their own retirement, rather than to accumulate assets to pass to younger generations, with the right planning
implemented these plans can also become legacies for your beneficiaries. This memo will discuss and illustrate the power of allowing your retirement
assets to grow in a tax–deferred environment and how retirement assets can be structured to provide the greatest benefit to your family.
Without completing the proper planning for IRA assets, you risk losing the ability to maximize the benefits afforded by deferring the payment of
income taxes on these funds. However, by taking steps to carefully consider the ultimate disposition of these assets, you can ensure that your
beneficiaries receive a "stretch" of the asset (as explained below), as well as provide them with protection against divorce, creditors and bankruptcy,
and provide extra protection ... Show more content on Helpwriting.net ...
Contributions to IRAs (and any growth of those contributions) are taxed only when they are distributed from the account; then they are taxed as
ordinary income. Because Congress's intention was for IRAs to be used for people to save for their retirement (and then spend), rather than to
accumulate wealth and pass it to younger generations, the rules governing IRAs require a certain amount of the accounts to be distributed to the IRA
owner once he or she reaches a particular
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Financial Planning And Advice Industry And The Department...
This paper is an analysis of the Financial Planning and Advice industry and the Department of Labor's recently finalized law regarding the definition
of an "Investment Advice Fiduciary". The secondary focus will be on the company Robinhood Financial, LLC. 1.)Internal Performance Robinhood
Financial, LLC's values are modern, as is fitting for a new company. Their values are "Exceptionally engineered systems", "Simplicity", and "Individual
participation in equity markets" (Robinhood, 2016). The company has few stakeholders as a small, young, private company. The biggest investor for
their seed round of funding was Index Ventures. Other notable investors were Google Ventures, IT Ventures, Andreessen Horowitz, and Frontier Tech
Ventures. According to SEC records form X–17A–5 that was submitted by Robinhood on 02/23/2016, their financials look like they are in good
condition. Their assets total $2,257,938, in which $1,824,713 of their assets is cash, around 80 percent. Their liabilities total $249,628, which is quite
small, leaving a relatively massive amount of member's equity at $2,008,310 (SEC, 2016). In total, Robinhood has received $66,000,000 from
investors (crunchbase, 2016). Currently, there are no patents that I am aware of, or major law disputes for the company. They only have two mobile
apps as consumer products, with a brand–new subscription service that starts at $10 a month. Since previously Robinhood was completely free, this
now gives them the opportunity to

Plans for Retirement
Retirement is often in the front of many U.S. workers minds during their later year of employment. However, the most important undertakings of
retirement happen during ones first few years in the job industry. There are many options available to employees and employers alike, and to make
the proper decision one must have at least a basic understanding of opportunities made accessible to them. This paper will discuss the individual
retirement accounts, pensions plans and the benefits made available by social security. It will go into depth on the benefits are of a 401k plan and
Roth IRA, the difference between defined benefit and defined contribution pensions, and discuss who is eligible for certain benefits afforded by social...
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Yet another type of individual retirement plan is the Keogh plan. A Keogh plan differs from IRAs and 401(k) s in that they are designed for self
employed professionals, typically small business owners. Full time employees of a small business must be included in the plan if they have worked
for the company for at least three years. (3) As with the other retirement plans mentioned, one cannot take money out of a Keogh until the age of 59 ВЅ
years without penalty. Keogh plans also allow individuals to put their funds into the plan on a tax free basis, with the individual paying taxes upon
withdrawal. Small business owners can set their own eligibility requirements for employees to meet in order to take part in a Keogh. For example
the employer can require employees to be full time, to meet a certain age requirement (cannot exceed 21 however), and to have worked for the
company for a set amount of time. (3) Keogh plans are attractive to small business owners because the funds put into the plan are allowed to grow tax
free, however owners who invest in a Keogh plan need to weigh the costs with the benefits in order to gauge if a Keogh makes economical sense.
Pensions are also an important consideration when making plans for retirement. A pension is similar to an individual retirement plans as they involve
an account that the employee pays into. A pension is a steady

Social Security Programs Essay
America's Social Security Program's Change Over Time
America's Social Security Program is much different from any other financial security system around the world. The initial framework for America's
Social Security Program modeled German and Bismarckian financial security programs, and its primary goal was to regulate "mandatory social
insurance financed from payroll taxes" instead of a model similar to the United Kingdom's "flat–rate benefits subject to a means or earnings test"
(Hoskins). In addition, President Roosevelt stressed the distinction between social insurance and social assistance, expressing "preference for 'earned
rights'...that financing should be based on worker/employer contributions rather than general revenue financing" ... Show more content on
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In order to counteract the worsening government Social Security Program, America must implement individual retirement programs unique to each
citizen and effectively regulated by asset managers. This new social insurance would be independent of government regulation and unreliant on the
declining population. In addition, it would create more job opportunities in the future by increasing the need for employment among asset managers. In
turn, this increase in employment would strengthen individuals' economic status, the public economy, and not cause any negative effects on the
individual retirement programs. Also, the use of individual accounts would actively exemplify America's government emphasizing the importance of
America's mantra of liberty and freedom in an economic perspective. The implementation of individual accounts works in increasing Americans'
individual private income, stabilizing America's public economy, and maintains important cultural integrity of personal liberty with financial freedom,
making a very effective solution to America's defective Social Security

Retirement Planning Essay
Retirement Retirement seems to be one of the most often overlooked areas of people's future plan. Simply because it seems so far away, it is an area
that is subject to procrastination. People are expected to live longer now than ever before, this is another reason why young adults and teenagers are
not worried about saving for their retirement. The baby boom generation, the seventy seven million people born between 1943 and 1960, face an
entirely different retirement plan. As they began to retire, people are starting to think that there will be no money left and this will turn into a crisis.
What will happen when seventy–seven million baby boomers begin to want the money they paid in... but it is not there? Retirement provisions such as
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Roth IRA's are said to give Americans another way to save on taxes. A Roth Ira can be withdrawn tax–free, as long as the account has been open at
least five years and you are age fifty–nine and a half when you begin withdrawing the proceeds. The contributions can be up to two thousand dollars
per person or four thousand per couple. The beauty of a Roth IRA is its simplicity. You can contribute to a Roth IRA even if you have an
employer–sponsored retirement plan. You can contribute to a Roth IRA even if you have an employer
–sponsored retirement plan. You can make
contributions to a Roth IRA at any age as long as you are earning income. Your contributions however, can't exceed your income. Someone who
contributes even a little as a teenager can end up with quite a bit of money later on. With a Roth IRA your beneficiaries will not have to pay income
tax on it. A Traditional IRA is for taxpayers that are under the age of seventy and a half, who are still working. Some people prefer the traditional IRA
because they can get an immediate tax deduction equal to the contribution they put in. The money in a Traditional IRA grows tax–deferred. You have
to pay a tax on all your earnings. Distributions of a Traditional IRA are required at the age of seventy and a half or you have to face penalties. There
are also penalties on withdrawals before the age of fifty–nine and a half such a ten percent tax unless the money is

Social Security
The United States Social Security System is often considered a political football, frequently debated on whether the government should continue to
manage it or should it be privatized. Either way, in today's economy, it's vital to the welfare of many. The main purpose of the system is to provide
benefits to America's workers and their families for retirement, disability, and early death. (Unknown Social Security ProCon) According to the data
collected in the 2000 census, "Social Security is the main source of income for men and women 65 and older." (Hartmann, Lee Highbeam) This
finding proves people have become to depend on the government for this benefit, and for a multitude of reasons are not saving enough money to live
on once they ... Show more content on Helpwriting.net ...
"A 1972 amendment tied increases in Social Security retirement benefits to increases in the Consumer Price Index. In 1974, Social Security insurance
was taken over by the Social Security Administration, and in 1983 an amendment allowed partial taxation of the benefits given to upper–income
recipients. In 1999, payroll deductions for Social Security were set at 6.2% of annual wages below $72,600, and payroll deductions for Medicare were
1.45% of annual wages (no upper limit), with employers contributing matching amounts." (Columbia Encyclopedia Infoplease) The rates previously
listed continue to increase, often annually. The Social Security tax for 2010 is 6.2% of the first $106,800. Earnings above that are exempt from
additional tax. In addition to the Social Security tax, all employee's taxable earnings are taxed a 1.45% Medicare tax. Both taxes must be matched by
the employer. (Averkamp Accounting Coach)
With all the tax revenue being generated, the next question often asked is; what is the best approach for investing it. This again, often leads to
controversy. "Social Security funds are invested in federal securities, mainly long–term bonds. In 1997 a government advisory panel proposed that
some of the revenues be invested in stocks and bonds to generate higher returns. The panel was divided over whether the money should be invested by
the government or by individuals, as well as the amount that should be shifted

Retirement Should Be An Enjoyable Experience
Retirement is supposed to be an enjoyable experience. Most seniors hope that their lifestyles will continue in the same fashion as it is at the time of
retirement. Retirement is anticipated as a time of more leisure, a time for slowing down from the daily rat–race and enjoying life. Many retirees hope
to take advantage of the opportunity to embrace a simpler lifestyle and experience less stress. Unfortunately, for many, this turns out to not be the case.
Although some retirees have planned adequately for retirement, many are ill–prepared. The statistics, when viewed, are alarming. Only 53 percent of
workers have retirement plans and only 48 percent actually participate in a 401(k) or retirement program offered by their employer. Some thirty–eight
million, approximately 45 percent of current households with working–age individuals, state that they have no retirement savings at all. "The median
retirement account balance is $3,000 for most working–age households–with and without retirement accounts–and $12,000 for near–retirement
households." (Farmer, 2015) (Carlozo, 2014) "Even for those who do have a 401k, IRA or other retirement fund, the median balance at retirement is
$120,000. That may sound like a lot, but for the typical household, that amounts to only $400 a month." (Sherter, 2014)
There are various reasons seniors might not have a retirement fund. A significant reason, says Anthony Webb, a senior research economist at Boston
College's Center for Retirement

Why Budgeting Can Improve Your Life Essay
5 Reasons Budgeting Can Improve Your Life
By Shawn P Dempsey | Submitted On December 19, 2010
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Expert Author Shawn P Dempsey
It is often asked why you should budget. It is so boring. I don 't have time to budget. Lots of excuses. But the truth is budgeting is very helpful and
beneficial to you and your family. Here are 5 Reasons Budgeting Can Improve Your Life.
1. Reduce / Eliminate Debt
The number one reason given for making a budget is to reduce your overall debt and to eventually eliminate debt from your financial life totally.
Budgeting is a tool by which you take back control of your cash flow. You remove the majority of the spontaneous spending and you plan ahead of
time on how your money will be spent. It eliminates the feeling of no control and returns those controls back to you.
2. Build Savings
Budgeting is not just for being rid of debt. Once you have paid off all of your debt you should continue to budget. Where before you were directing
your money were to go to get out from under that debt burden, now you can direct your money where to go for savings and investment purposes.
Once you get to this stage of budgeting, budgeting

Gary Neal 's Financial Plan Essay
Gary Neal's Financial Plan
Michelle Tindal: 50
Aaron Mercer: 50
Michelle Tindal
Aaron Mercer
Hypothetical Person Financial Plan
A financial plan is the structure through which you can establish and integrate all goals and needs. (class notes) This is the best way to achieve
financial objectives through personal financial planning and this will help define financial goals and develop appropriate strategies to reach them.
Projection of income:
Active duty officer in the US Army.
He will start off at 90k and the first 4 year bonus would give him a salary of 100k
As years go on an occupation within the army changes, salary goes up to about 120k a year by the time he retires.
Current financial status:
100,000 salary a year
Wife: 80,000 salary a year
Goals:
Gary Neal wants to retire at age 42
He will need the retire income until the last life expectancy of age 79
Help pay for his children college tuition
.
Life insurance benefits everyone in many different ways. Life insurance is financial protection for dependents. This type of insurance provide financial
protection for your dependents after your death. Cost and features play a big role when deciding what kind of life insurance to choose. The cost must
be affordable for you to pay monthly and the features must fit you. Our hypothetical person has life insurance through the Army which is service group
life insurance. A life insurance analysis should ensure that when a death occurs in your

Tax Laws
Professor Emanovsky
Econ 2015
Should Tax Laws be Reformed to Encourage Savings? What defines a nation's way of life and standard for living depends entirely on its ability to
function economically. In addition, the rate at which a country saves is the key to determining its prosperity from a long term perspective. More
businesses with more facilities and more equipment equal a greater degree of productivity and greater income for employees. This formula transfers to
show greater income for consumers and proves clear relationships between national saving rates and terms in which we measure economic well–being.
In addition to the large scale national example, there is also an obvious connection between increased savings and families who ... Show more content
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In some cases, families intentionally save very little in order to qualify for these educational benefits. Some supporters for tax law reform suggest
expanding the ability that households have to use tax advantaged savings accounts such. In such accounts, owners do not have to pay taxes for interest
until the money is withdrawn at retirement. Unfortunately, such accounts limit how much can be deposited, who is authorized to withdraw and when.
In average American households, where the potential for real emergencies is consistently present, the unavailability of funds when they're needed is a
real deterrent from putting money in such an account in the first place. One of the most likely beneficial changes would be something called the
Financial Security Credit. This credit would benefit low/middle income homes who save money at tax time because it would give them an
opportunity to open a savings account directly on their tax form but it would not discriminate against those who already have savings accounts
established. In addition, it would support a larger variety of current savings products and would match every dollar that low/middle income tax filers
deposit in a designated savings account and add an additional dollar from the federal government. Such a plan would have a cap at $500 annually and
would also deposit matched credit directly

History Of The Traditional Ira
History of the Traditional IRA
The Individual Retirement Account, or IRA, was formed in 1974 under the Employee Retirement Income Security Act (ERISA) (Holden, Ireland,
Leonard–Chambers, & Bogdan/Investment Company Institute, 2005). When the Traditional IRA was first created, it had two functions: the first was
to give tax benefits to workers who contributed to an IRA without an existing employee retirement plan, and the second was to allow funds in an
existing employee retirement account to be relocated to an IRA when he or she changed jobs or retired (Holden, Ireland, Leonard–Chambers, &
Bogdan/Investment Company Institute, 2005). Since then, eligibility requirements and contribution limits have changed, and different forms of IRAs
were established.
How a Traditional IRA Works
An individual retirement account (IRA) is an account for individuals to save money for their retirement and receive certain tax advantages on the
money saved. With this account, the individual makes yearly contributions based on his or her income, and as a result, the individual obtains income
tax benefits. The earnings grow without being taxed until retirement. Depending on the amount of income the individual earns, a portion or all of his
or her earnings may be tax deductible (Rejda & McNamara, 2013, p. 285). Two requirements must be satisfied in order to establish a Traditional IRA:
first, he or she must be younger than 70 ВЅ years old; second, the individual must have taxable earnings throughout

Essay on Speech: IRA Retirement Plans
Speech: IRA Retirement Plans
Saving for Retirement
General Purpose: My general purpose is to persuade.
Specific Purpose: My specific purpose is to persuade the audience to start saving for their retirement instead of simply relying on Social Security.
Thematic Statement: Starting to save for retirement early has many benefits over Social Security.
Introduction of Speech
I. I took a survey of thirty BSU students, who are employed, to determine how many of them have started saving for their retirement.
A. Only nine people, out of the thirty responses from various class levels, have started saving for their retirement.
1. This is understandable because most of us probably think that retirement is something that is eons away. ... Show more content on Helpwriting.net ...
First of all, allow me to explain what Social Security is.
A. Social Security is a Federal program where they take a percentage from all of the wages earned by workers in this country.
1. You can see what I mean when you examine your paycheck.
B. The money that is collected is put in a trust fund that provides a monthly income for retired workers.
II. According to The Heritage Foundation there are several problems to the current Social Security system.
A. Founded in 1973, The Heritage Foundation is a research and educational institute whose mission is to formulate and promote public policies based
on the principles of free enterprise, limited government, individual freedom, traditional American values, and a strong national defense.
B. Social Security gives a poor rate of return (Heritage Foundation, 2000).
1. The rate of return varies from person to person.
a. For instance, for the best case scenario, a married couple with two children and a single earner receives only 4.74 percent if the earner was born in
1932 (Heritage Foundation, 2000).
b. However, none of us were born in 1932 so that percentage decreases to less than 2.6 percent for those born in 1976 (Heritage Foundation, 2000).
c. Single men do the worst when they only have a rate of return of less than half a percent (Heritage Foundation, 2000).
C. People are becoming more dependent on Social

Retirement Income Plans
TORY BENEFITS The Social Security Act of 1935, with its later amendments, established a system of providing old age, survivor's, disability, and
retirement benefits [EEOC, 2005], which the Social Security Administration administers. Furthermore, the act is to provide for the general welfare by
establishing a system of Federal old–age benefits, and by enabling the several States to make more adequate provision for aged persons, blind
persons, dependent and crippled children, maternal and child welfare, public health, and the administration of their unemployment compensation
laws; to establish a Social Security Board; to raise revenue; and for other purposes (Social Security Administration, 1935). For 2005, social security
is supported by a tax of 15.3 percent on income up to $90,000. If your net earnings exceed $90,000, you continue to pay only the Medicare portion of
the Social Security tax, which is 2.9 percent, on the rest of your earnings (Social Security Administration, 2005). Employers pay 7.65 percent, the
employee pays the other 7.65 percent, and if an individual is self–employed they pay both halves. VOLUNTARY BENEFITS Retirement income plans
are a benefit, which gives individuals some form of additional income other than social security after retirement. Retirement income plans are governed
by the Employee Retirement Income Security Act of 1974 (ERISA) and the purpose of the act was to regulate private pension plans in order to assure
that employees who put

Preparing For The Life After Retirement Plan
Introduction For every adult in the professional world, preparing for the life after retirement is an essential strategy that guarantees monetary freedom
in the latter stages of life. Therefore, it is necessary that an individual come up with an effective retirement plan to secure a comfortable future.
Additionally, individuals who develop such a plan in youth will most likely generate the highest benefit when they retire. It is important to develop a
strategy that will enables members of an organization to successfully plan for their retirement that may be fast approaching or far off. Retirement Plan
Proposal The most uncomplicated condition in creating an effective retirement plan is ensuring an individual can save part of their current... Show more
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The 401(k) is provided to individuals employed by for–profit organizations while employees such as teachers may be offered 403(b) (Mears, 2014).
Through consistent contributions, an employee can transfer their 401(k) or 403(b) account from one employer to the next. An alternative option is the
individual retirement accounts (IRAs). In this case, the individual will set up a personal account with one of the numerous financial corporations or
mutual funds companies. Based on federal law, individuals will set aside part of their salaries to the account it will then be invested with the
possibility of growth over time without being taxed. This may also be categorized along with the Simplified Employee Pension plan (SEP) where the
employer may match the contribution of the employee or not according to their capability of the organization. This is a valid savings plan particularly
in cases where the employer matches your contribution, which is actually free money. There is also the option of a health savings account (HSA) that
allow individuals to put monies away for their retirement tax–free. In such cases, an individual will have to make contributions either as an individual
or as a family with those above the age of 55 being allowed to make higher contributions. Through this saving plan, an individual will also be provided
with an

401 K 401 : 401k Fund Essay
Keywords
401 K
401K
401(k)
410 (k)
401K Fund
How Much Do You Need To Have Saved For Retirement?
Before starting, let's understand one thing. The amount you have in your retirement fund right now has nothing to do with how much will be there
when you retire. Just because you are making poor quality contributions now means nothing, you may become very rich next year and start topping up
your 401K like a member of the Hollywood elite.
You may add a minimal amount until the age of 60, whereupon you make some smart investments outside of your 401K and increases your savings by
tenfold so that you do not need your retirement fund anymore. Do not limit your investing and your future wealth building to your retirement plans.
H3Save, Invest, Work Hard And Earn
In addition, while saving in your 401K, you should also be saving, working hard and investing so that you do not have to rely on it when you retire.
Think of it more as a backup account for if your current wealth building methods do not pan out. With that said, here is how much you need to have
saved in your 401K for your retirement.
H3What About The Old "One Size Doesn't Fit All" Saying
I have read many articles that say the amount you save for retirement depends on X, Y and Z. They all say that one size doesn't fit all, but we are not
saying that. In this article, you will see solid numbers and you will see usable percentages that you can apply right now to your 401K savings plans.

H3What Is Your 401K Fund

The State Employee Retirement System
Introduction: For Massachusetts state employees, like myself, there is one big decision that has to be made after being employed. That decision is if
you are going to select the State Employee Retirement System (MSERS), or the Optional Retirement Plan (ORP). Upon employment, any
contributions are immediately put into the MSRES system; the employee has 180 days to indicate that he/she would like to switch over to the ORP.
Once the decision is made it is irreversible. Because there is no reversing this decision, it is a decision that employees spend time thinking about what
the best long–term decision is. Defined Benefit vs. Defined Contribution These two programs are different in that the MSERS is a "defined benefit"
plan,... Show more content on Helpwriting.net ...
It may also be structured as a "profit sharing plan." This is a plan in which the employers can make the decision of how much to contribute each
year. Unlike the money purchase pension plan, which requires a fixed amount to be contributed, the contributions in a profit sharing plan is usually
in proportion of the employees pay. MSERS Plan The SERS plan, which is a defined benefit system, has calculations made on retirement benefits
that are based upon combining the number of years served in addition to age. All employees in the pension plan have monthly contributions taken
out of their pay check; all of their contributions are deposited into an annuity account. The amount that is contributed is defined by when state
service is started. For new state employees, contribution percentages are set at 9% of the salary. There are regulations to how much can be
contributed. If the employee makes $30,000 or more, there is an extra 2% added. Employees who have signed up for MSERS, are vested at age 55
after serving 10 years, or at any age with 20 years of service. At the time of retirement, the employee is eligible for monthly retirement benefits for the
rest of their life. Vesting means the employee is entitled to the retirement benefits under the plan. Under the SERS plan, the retirement income is
predictable. This is due to the

Individual Retirement Accounts: Why Bother? Essay
Individual Retirement Accounts: Why Bother?
Outline
Thesis: When planning for retirement, Individual Retirement Accounts offer several benefits; however, careful planning is essential to ensure that:
upon retirement there is an adequate amount of money saved, that the heirs to the IRA are chosen carefully, and that unnecessary taxes and penalties
are avoided.
I. Upon retirement there is an adequate amount of money saved.
A. How much money necessary to retire?
1. Social Security verses retirement.
2. Savings Accounts verses retirement.
3. Advantages of starting an IRA early.
II. Careful selection of the heirs to the Individual Retirement Account.
A. Advantage of leaving IRA to spouse
1. Special rights as a spouse. ... Show more content on Helpwriting.net ...
Thus, regular savings accounts are not a practical method to save for retirement; however,
IRA's offer deferred taxes on the interest earned until the money is withdrawn from the account. Therefore for a given amount of money, there is a
considerable advantage when saving in an IRA. For example, according to Heady: if you were to save $2000 dollars a year at 6% for 30 years under
the terms of a regular savings account, the total earnings would be approximately $120,900 after paying taxes; however, if you were to shelter $2000
a year at 6% in an
Individual Retirement Account that amount would increase by $48,000 dollars to a total of $168,000 because of the tax–deferred feature (60).
Using this example, the tax deferred feature of an IRA is easily recognized as having a considerable edge over regular savings plans.
Another advantage to consider when planning an IRA is to start the account as early in life as possible. It is obviously an advantage to use the
program that is going to give the best overall return; however, the advantage of starting early should not be taken lightly either. As with all savings
plans, a key factor in the final results is the overall length of time that has been exhausted investing into the account. People often think that there is an
age requirement to start an IRA; however, this is not the case. There are several

Banks that will even allow teenagers

Executive Financial Plan Summary 1 8 Essay
Executive Financial Plan Summary
For Jim & Anne Dowler
Prepared by: Robert Lipovsky
I want to take this opportunity to thank you for reaching out to me. One of the first steps towards financial clarity and meeting your financial goals is
to reach out to specialists who can identify your needs and financial position. I am pleased to help you get started on your journey and look forward to
seeing you meet your goals!
Throughout this document, I will be using various numbers and concepts under the assumption that they represent your financial position. In truth,
these numbers are meant to be fluid and may change with time depending on the course of events in your life. Reviewing the document carefully to
understand the underlying concepts ... Show more content on Helpwriting.net ...
Issue 4: Homeowner's Coverage
Your current homeowner's coverage is adequate from a baseline perspective, but I believe some minor improvements can be made to your coverage.
With the cash flow we currently have available, minor tweaks can be made to your policy to ensure that you are covered under the most strenuous of
circumstances and can have peace of mind regarding your home.
Recommendation A: My first is that you increase your base coverage by $10,000; this will cover you for the full value of your home as you currently
are covered for only 96% of its value.
Advantages:
The advantage of increasing your homeowner's coverage on your dwelling from $310,000 to $320,000 is that you will receive the full replacement
cost of your home in the event of a catastrophe.
Increasing your homeowner's coverage is also quite cheap; the additional cost is only $35 per year.
Disadvantages:
The additional homeowner's coverage is cheap, but modest in its advantages. The $35 you are spending on these could easily go elsewhere.
Recommendation B: My second recommendation is you take an inventory of your personal property.
Advantages:
A personal property inventory will ensure you know the value of your possessions in the event of a catastrophe.

Appraisals of high–value items such as your jewelry, wedding ring, antiques, and guns will be beneficial not only for your personal property inventory
but also for your

Investing in a Plan for Retirement: Are You Prepared for...
Options for Retirement
The majority of people age 65 or older in the United States are still working in full time positions. This opens the question if they planned for
retirement, or what if anything went wrong while working? How do they feel about still having to work? Have they taken proper steps in preparing for
retirement? Are they only working to pass time? These are the questions that everyone should be asking themselves about their own retirement plans,
and what they have done to financially prepare for that stage in their life.
It is never too early to start planning for the retirement. In today's economy there are no guarantees that there will be sufficient funds coming from
Social Security when an individual reaches the time ... Show more content on Helpwriting.net ...
In the private sectors retirement packages do not transfer between different companies; therefore if an employee decides to switch careers after
working for twenty years chances are their accrued benefits package will not be transferred to the new company. Predicting the future is impossible,
no one will know if a company may go bankrupt or expand, but there is a plethora of ways to ensure a comfortable retirement will be available when
that point in life is reached.
Planning, just like saving for the future does not always come natural to a person and a lot of times has to be recommended by professionals. It
takes personal discipline along with dedication to follow a good retirement plan. In order to achieve personal goals for retirement there has to be a
plan of action to obtain success. Proper planning for retirement will also provide a positive outlook for that stage of life.
In the beginning stages of planning personal attainable goals should be set. They can be short term or long term goals, depending on what is
necessary to stay on track and maintain focused. Many retirees consider relocating due to the cost of living expenses at their current location, wanting
to live closer to family, or simply to a place they had always dreamed of spending the rest of their lives at.
To be able to figure out the amount of income needed, the preferred lifestyle should also be considered when starting to draft a retirement plan. A
financial advisor

The Modern Girl 's Guide For Spending Less And Saving More...
The book Shoo, Jimmy Choo! The Modern Girl's Guide to Spending Less and Saving More by Catey Hill lays the foundation of financial life
management for women of all ages. She uses fun and real world examples to connect with her audience. There are actual instructions and how–tos
feature throughout the book, so the reader can be proactive in improving their financial stance. There are four main parts that the book follows: 1)
Style, Diet, and Fitness...for Your Finances, 2) Spending Style, 3) Debt Diet and 4) Financial Fitness. I chose to do myfinance book review on this
book because I personally have some problems with saving money. I love to shop a lot, so this book was an easy, relatable guide for me to learn
more about finance, savings, and taking control of my life now as well as for my future. The whole book was a constant circuit of new financial
lessons. A few of the most important financial lessons I learned included tips for overcoming my spending triggers. I tend to carelessly buy food,
clothes, and accessories without really thinking twice about it and this lesson recognized all the triggers and suggested ideas to overcome spending
habits. For example, to pack lunches and have little snacks with you so that you do not overspend with food. I also made a financial goals chart that
covered my goal, the total cost or savings needed, timing and the monthly amount needed to achieve the goal. One helpful thing that Catey Hill did was
provide real world examples

Social Security and Retirement: An Uncertain Future Essay
A failing Social Security Retirement program glimmers like broken glass on the horizon. Unfortunately, many people are relying on this program for
their approaching retirement needs and by doing so add uncertainty within their future. Misconceptions pertaining to the program are widespread, and
require further examination. Two questions may single out whether one has a false impression of the role of Social Security andretirement. First, was
Social Security meant to be the only source of an individual's income, and second, are the taxes paid today saved exclusively for an individual's future
retirement? According to a brochure from Social Security Online, (Understanding The Benefits, 2010) the answer to both questions is no, therefore ...
The financial instability of the Social Security program is nothing new, as the program relies on the economy. The workforce pays taxes to provide
benefits. A positive workforce equals a surplus, as any extra taxes not required for current benefits are reserved. The working people support the
program, therefore when people lose jobs less money is available for the program. The number of people entering their retirement is climbing, while
the economy is struggling. Individuals who enact upon a plan for their retirement needs avoid the instability of the program, therefore taking control of
their future. For many people, retiring will eventually become part of their future, so by taking back control they achieve peace of mind. A program
does not feel the pain associated with losing everything an individual gained throughout his/her lifetime. A program may claim to sympathize, but in
the end, the one who suffers is the individual. Taking control of retirement now, as opposed to later or never, resolves a crucial element of the future,
because planning allows an individual the tools to fix a problem before the individual confronts the problem.
According to the (U.S. Census Bureau, Federal Budget Debt, 2010) national debt is climbing at an unprecedented level never seen before. Reflecting
on the data should substantiate the need for planning. The

Personal Finance
Personal Finance
Chris Cannard, Van Trinh, Jommel Esteybar,
Edward Sy, Cricket Williams, Trey Vogel
San Jose State University
Abstract
Many people assume that handling personal finances is straightforward and can be done with little to no preparation. This paper delves into the many
different aspects of personal finance. It discusses the tools that we are learning in class and explains how these tools that can be used to save for
retirement. It offers tips to improve your financial standing both now and in the future. And finally, it compares these tips with advice offered by an
expert, Suze Orman. Everyone needs to learn how to properly prepare their finances to reach their goals. While doing so can be easy and rewarding,
neglecting ... Show more content on Helpwriting.net ...
When you are ready to make your financial investments, you will need to study your finances to figure out how much to invest which can be done by
using a simplified Income Statement.
Your income statement will list all of your incomes, debts, and taxes so that you can properly assess how much money you have for future
investments (Brigham, 2007). It is critical to account for all of your debts to get a legitimate view of your finances. For instance, do not forget to
account for food, gas, cell phone bill, entertainment, and other non–fixed monthly bills. In order to create an investment plan that you will stick to, you
must include reasonable living expenses. If you do not include items such as entertainment, then long term acceptance of your investment plan will be
dubious at best. Once you have a reasonable income statement created, you will need to figure out your Debt to Income ratio. This is very easy to
create with the information you have included in your income statement: add your monthly income and payments and then divide your monthly
income by your monthly payments, if your ratio is above fifty percent, than you should work towards lowering your debt with a goal of less than 25
percent (Brigham, 2007). The lower your debt ratio, the higher your credit score will be which will allow you to be approved for loans with better
interest rates. Knowing the true interest rate on a loan is

The United States Retirement Income System
Envision feeling cold, starved, petrified, and alone, just getting home to find an eviction notice, perhaps a letter of foreclosure hanging from the door.
As the room goes grey and begins to spin, four words begin to echo in the background, "Is this really happening?" All resources are exhausted and
Social Security proves ineffective. Fear has taken over. Thoughts of life in a shelter cloud the room. The bills are piling high, as bank accounts begin to
dwindle. Unfortunately, this is the harsh certainty of many people in the aging community.Retirement is a critical life event that everyone has to
undergo, through being unprepared, many fall victim to poverty in old age. Individuals should utilize Individual Retirement Accounts, ... Show more
Social Security, on average, makes up the largest part of older people 's income (Novak, 2012.) With Social Security making up such a vast portion of
retirement income, yet only maintaining 62% (Mendel &, Schram, 2012) of a person's pre–retirement income, individuals should utilize Individual
Retirement Accounts, and Defined Contribution plans combined with Social Security to avoid poverty in old age.
While Social Security has made great advancements in defeating poverty, there are still many pitfalls present in the program. Franklin Roosevelt
created Social Security as a safety blanket to combat poverty, in response to the Great Depression. Social security pays monthly checks to retired
workers, by taxing workers payroll (FICA ;) similar to a pay–as–you–go system. Tannahil suggest that, up to 77% of current worker expect Social
Security to play a role in retirement income. However, Social Security Trustees fear the Social Security Trust Fund Reserve will be depleted by 2033
(Tannahil, 2012, p. 27). This leaves the previously mentioned, 20% of individuals who depend on Social Security alone, at great risk, after retirement.
A second pitfall in this government program, it that individuals who earn a higher income pay less in Social Security taxes juxtaposed to individuals
with lower earnings. Social Security ultimately, only mandates taxes on individuals with an income of $118,500 or less (Consumer Reports Money
Advisor, 2015, p.

Benefits And Benefits Of Yahoo
This paper explores the benefits offered at my organization. Yahoo provides a benefits package that includes Medical, Dental, Vision, Life Insurance,
and Disability. In addition, there are supplemental and voluntary benefits that have become "industry standard" offerings based on larger competing
organizations. (Levin–Epstein, 2011) Working in the technology industry, the recruitment and retention efforts drive benefit offerings to be highly
competitive. This requires consistent review of turnover causation in correlation to accessible benefits. Examples of newly recognized benefit offerings
that are now considered 'industry standard' are adoption assistance, tuition reimbursement, and sabbaticals. Additionally this paper will identify
quantitative and qualitative methods to evaluate effectiveness, utilization, and employee satisfaction in regards to recommended changes or additions
to these benefits. MSHR 640 Term Project– Current Benefits & Recommendations My organization offers some standard benefits as well as some
extra benefits to set them apart as an extraordinary employer. The 'standard' medical package includes Medical, Dental, Vision, 401k and Disability
insurances. All full time employees that are not considered contractors are offered enrollment on the first day of employment up to 31 days from your
hire date to select your benefits; however your effective date is the day you start. If you do not make any elections, they will automatically enroll you in

IRA Cons
IRA is the stands for an Individual Retirement Account, which is another form of a savings plan. "You can open an IRA through almost any large
financial institution, including banks, mutual fund companies and brokerage firms" (Where should I open an IRA). It is a savings account meant
for your retirement. It helps save money for your future so by the time you retire you will have enough to live off of. There are different types of
IRA's to pick and choose from to best fit what the individual needs along with what they are eligible for as well. The main 3 are "Traditional, SEP
(Simplified Employee Pension), and Roth" (Internet Retirement Allowance). All of these IRAs have different requirements and but the one thing they
have in common ... Show more content on Helpwriting.net ...
This IRA is meant for "business owners to help contribute toward their employees retirement as well as their own retirement as well" (SEP Plan
FAQs). "The amount that employers can deposit into this IRA is up to 15%" (Internet Retirement Allowance). The benefits of this IRA are "less
responsibility, low fees, tax–deferred and tax deductible" (Simplified Employee Pension Plans–Pros and Cons). The employee does not have a lot of
responsibility because he or she does not have to put the money into the retirement account on his or her own; the employer does it directly. While this
is helpful to the employee, the "employer gets to deduct the contributions that they make into the fund from their taxes creating an incentive for them"
(Simplified Employee Pension Plans– Pros and Cons). SEP accounts have reasonable fees; they're not over the top. The last benefit of a SEP IRA is
"the money you make in the retirement account from investments is allowed to grow tax–free; you do not have to worry about taxes before you
retire"(Simplified Employee Pension Plans– Pros and Cons). The disadvantages are "contributions and no guarantees" (Simplified Employee Pension
Plans–Pros and Cons). The bad thing about contributions is that the employee does not get a say on how much they want to deposit into their SEP
account; the employer decides for them. The last thing that is a con is that "there could be no requirements for contributions; they employer can pick
and chose when they want to make a contribution to the employees account" (Simplified Employee Pension Plans– Pros and Cons). The SEP IRA is
good for employees who do not want the responsibility for putting money into their retirement account. It is a risky one since the employee will be
depending on the employer to do their part of the contribution. It is important to make sure you have a good employer if you do decide to choose to
go with the

The Social Security Retirement Fund
Social Security, as we know it today, began as the "Economic Security Act" in 1935, and it wasn't until later that activist Abraham Epstein coined the
phrase "Social Security". In its earliest form, the government paid benefits only to the primary worker in the household, but in 1939 the act was
rewritten to include survivor's benefits for spouses and children. The very first recipient of social security received 17 cents, paid to him in January
1937. The first person to receive monthly benefits began to do so in 1940. In the three prior years, this person had contributed a total of $24.75. By
the time of her death in 1975 (at the age of 100) she had collected $22,889 (http://people.howstuffworks.com/social–security–number6.htm). By
contrast, the first person to ever be issued a social security number (in 1936) died in 1974 at the age of 61 without ever receiving a single social
security payment (however, his widow did). This is the "math" of social security and it doesn't always add up in a logical way. The financial solvency
of the social security program has been in question for some time. According to analysts, the Social Security Retirement fund has enough funds to pay
full benefits until 2034 (http://www.therubins.com/socsec/solvency.htm). It sounds far off in the future, but in reality that is only 19 years away! In
that time, I ... Show more content on Helpwriting.net ...
He called it a "Roadmap for America's Future" which involved moving social security funds to private retirement accounts and eventually increasing
the age of eligibility. This plan was shot down by the Congressional Budget Office which said to do so would risk the financial security of future
generations. Their reasoning is that returns on stocks aren't a guarantee. It was felt to be too much of a risk and the entire plan was scrapped after
Republicans won the House

Essay What You Should Know About 401k Plans
Bits of What You Probably Should Know of 401 (k) Plans
–––The term 401 (k) is one that is heard quite often in today's. Most people know that it has something to do with retirement, but few young people
know exactly how 401 (k) plans work or why they are becoming more and more popular. Additionally, many people who have 401 (k) plans may
not know all the details of how they work, how to get the most out of their plan, and how to keep their money safe. In reality, everyone in the
business world should be aware of the details and advantages of having and managing a 401 (k) type savings plan, as it is becoming one of the most
popular ways to save for retirement in the United States and many other countries. First, it is imperative to ... Show more content on Helpwriting.net ...
There are some cases, however, where there are exceptions . Some exceptions may include leaving your employer at age fifty–five or older, purchase
of a primary residence, to avoid foreclosure of or eviction from a primary residence, and medical expenses not covered by insurance (The basics of a
401(k) plan). If a person chooses to wait to begin taking money from their account, they must begin making required minimum distributions by the year
after they turn seventy and one half. The notable exception is for those still working at this age (401 (k) – Wikipedia). There are many advantages of
401 (k) plans, both for employees and their employers. One major important benefit is that the employee has control over how much money they
contribute to their account. In addition all employer contributions and any growth in the capital grow tax–free until withdrawal. If the company
matches contributions, it's like getting extra money on top of your salary. Also, unlike a pension, all the savings can be moved from one company's
plan to the next (or to an individual retirement account) if a participant changes jobs (Neiters). Another benefit can be that employees can reduce their
taxes because they are reducing their taxable income while they are working and because they will be in a lower tax bracket when they begin making
distributions. "The major cause for the huge popularity of

Gift Of The Age : A Gift For The Ages
A Gift for the Ages Three Ways to Give From Your IRA Your individual retirement account (IRA) is an excellent tool for saving for your retirement
years. Even better, it's an extremely easy way to support the causes that matter most to you. If You Are Between 59В
Ѕ and 70ВЅ: Once you hit 59ВЅ,
you may begin taking money out of your IRA without paying a penalty. You'll pay incometax on the amount you decide to withdraw, even if you use
this money to make a gift to the Kappa Kappa Gamma Foundation. But if you itemize your tax deductions, you are eligible to take an income tax
charitable deduction for the full value of the gift, reducing your overall tax bill. If You Are 70ВЅ or Older: Now you must begin taking the required
minimum distribution ... Show more content on Helpwriting.net ...
Janie did not have the money roughly 30 years ago to make a gift, but now she has proudly included The Stewart House in her estate plan. She is
so glad to give back to Kappa in this way. Janie's paternal grandmother's name was Minnie Sharpe and her father graduated from Monmouth,
magnifying her connection to Kappa Kappa Gamma and Alpha Chapter. "Anything I can pass along to the Monmouth Kappas and The Minnie
Stewart House, I am happy to do," Janie says. Janie Gildow's business is called RT Pencils Academy Store. Her website is www.janiegildow.com.
Discover a Dozen Ways to Make a Difference In 12 Ways to Make a Meaningful Difference, you'll discover different ways you can include the
Kappa Kappa Gamma Foundation in your estate plan. With so many different options, you're sure to find a plan that fits your goals. Making an
Impact Now and in the Future How to Leave a Legacy in Five Minutes How to Give in Times of Change INSIDE Dr. Pamela R. Benitez, Washington
Univ. (St. Louis), has given gifts that will help Kappas in need for years to come. If you, like Dr. Benitez, are interested in supporting Kappa sisters
through a planned gift, contact Maggie Simms Coons at 866–KKG–1870, ext. 2117 or mcoons@kkg.org. Continued on Page 4 " To help another is one
of the greatest gifts we can give to each other." –DR. PAMELA R. BENITEZ Dr. Pamela R. Benitez learned firsthand about the power of women
helping women during her days as a

Assignment 2: The Social Security System
I would like to see the social security system completely reorganized and a higher retirement age for anyone born after the year 2000. This
reorganization would not affect anyone born before the year 2000 in any way. However, anyone that can retire before 2035 will have the option to
invest up to twenty–five percent of their current social security withholdings in a 401k type retirement plan. п»їAn option of this type would allow the
individual to decide where their investment goes and thus reduce the amount that the federal government is responsible for paying out to any retiree
that chooses this option. Anyone born after the yearп»їп»ї 2000, their retirement would be a combination of the two accounts and of the current funds
being

Retirement Planning
Retirement
By: tena
E–mail: tena2001@aol.com
Retirement Retirement seems to be one of the most often overlooked areas of people's future plan. Simply because it seems so far away, it is an area
that is subject to procrastination. People are expected to live longer now than ever before, this is another reason why young adults and teenagers are
not worried about saving for their retirement. The baby boom generation, the seventy seven million people born between 1943 and 1960, face an
entirely different retirement plan. As they began to retire, people are starting to think that there will be no money left and this will turn into a crisis.
What will happen when seventy–seven million baby boomers begin to want the money they paid inВ… ... Show more content on Helpwriting.net ...
The Roth Ira is mainly for people who do not want to deal with all of the complex rules or worry about paying taxes on future withdrawals. What are
401k's? A 401k's is an employee's best friend. It is a plan that allows employees to contribute a certain percent of their salary up to a specified
maximum. These contributions are tax–deductible and your earnings are tax–deferred until withdrawn. Your employer can also provide "matching"
contributions up to a certain percent as an additional benefit. According to the Washington, D.C.–based Employee Benefit Research Institute, about
forty percent of all workers are offered a 401k–type plan, and of those, seventy five percent participate in it. The employees that are not taking
advantage of the 401k plan just have not been educated about it, says Tom Foster, ERISA attorney for John Hancock Life in Boston. Another thing that
is good for retirement is Mutual funds. Amutual fund is an investment vehicle that invests in the financial markets, such as stocks, bonds, and so on.
Mutual funds give investors a chance to "play" with their money under the supervision of an experienced fund manager. There is a wide variety of
funds available. There are Equity Funds for the most aggressive investors who will endure higher risk. Then there are Balanced Funds for the
middle–of В–the–road investors who want to combine equity investments with income investments such as bonds. Then lastly there are Income Funds
for the

Benefits Of Retirement Plan Will Fit Financial Needs
Introduction
Choosing which retirement plan will fit financial needs is not always the easiest decision to make. While investing in both traditional and Roth
individual retirement accounts (IRAs) appears to draw considerable attention, differences in the rules for contributing to and withdrawing from these
retirement plans places individuals and married couples in a predicament. They may choose to invest in either a traditional or Roth IRA while they may
also choose to invest in self–direct, direct contribution (DB) or defined benefit (DB) plans sponsored by employers. In any case, individuals and
married couples approaching retirement age should carefully consider their own financial needs before choosing to invest in any retirement ... Show
more content on Helpwriting.net ...
Other types of earned income include alimony and military differential pay, but does not include interest or dividends from investments, income from
rental property and pension payments (para. 3). In terms of contribution limits for individuals and married couples with a Roth IRA, if earned income
for one year is less than the contribution limits, they may only contribute up the total earned income amount (para. 4). As of 2014, for individuals and
married couples under the age of 50, the annual contribution limit is $5,500. For married couples filing separately, the earned income limit for making
contributions to a Roth IRA is $10,000. Otherwise, a married filing separately does not have any eligibility for making contributions to a Roth IRA.
Tax Incentives Both traditional and Roth IRAs have generous tax incentives (Spors, para. 3). However, claiming the tax incentives for either a
traditional or a Roth IRA depends on timing. With traditional IRAs, contributions made to it based on earned income are tax deductible on both state
and federal income tax returns for each year that an individual or married couple contributes (para. 3). Withdrawals made during retirement receive the
ordinary income tax rate (para. 3). Roth IRAs, however, do not provide any tax incentives for any contributions made to the account, though earnings
and withdrawals are mostly tax–free (para. 3). In other words, with traditional IRAs, contributions do not have

Informative Speech
OUTLINE FOR INFORMATIVE SPEECH Financial Planning for your Future Purpose: To inform the audience about how small sacrifices today
can result in huge dividends in retirement. Thesis: Today I will inform the audience of the power of saving small amounts of money for the future
and how compound interest works in their favor when they start saving as soon as possible. Organizational Pattern: Topical Introduction A.
Attention Getter Who wants to be a millionaire? You can be!!! B. Relevance Everyone is faced with the prospect of living their "golden" years without
a paycheck. Social Security will very likely NOT be available to people currently younger than 40 and if it does survive will not be a... Show more
The real opportunity in 401K is the employee match program where your employer invests the same amount into your account, usually up to a certain
percentage. 3. Individual Retirement Accounts (IRAs) are another way to save for retirement. They can be used independently or in conjunction with
a 401K plan. Funds are deposited after taxes have been withheld so there is no tax due upon withdrawal in retirement. IRA contributions can be
withdrawn without penalty if you face a financial hardship such as losing your home or significant medical bills. Transition My final point is a
strategy that can meet your goal while minimizing impact on your current lifestyle. 1. Many of you are working toward new careers and excited about
that first REAL paycheck. 2. If you "forget" about the percentage of your check that is going into the 401K and structure your budget on the remaining
amount you will find saving easy and rewarding. 3. Begin with 3% of your pay going into retirement savings. Each raise/promotion you get increase it
by 1% until you have reached your employer's maximum match rate. Then add the 1% into an IRA until you have reached the percentage that results in
your desired retirement account. Transition In conclusion, II. Conclusion A. I have discussed when to start saving for retirement,

Research Paper On Bank Of America
Bank of America is one of the world's driving budgetary foundations, serving singular purchasers, little and centre business sector organizations and vast
companies with a full scope of saving money, contributing, resource administration and other monetary and danger administration items and
administrations. The organization gives unmatched accommodation in the United States, serving roughly 48 million buyer and little business
associations with around 4,800 retail monetary focuses, roughly 16,000 ATMs, and grant winning internet managing an account with 31 million
dynamic clients and around 18 million versatile clients. Bank of America is among the world's driving riches administration organizations and is a
worldwide pioneer in corporate and speculation managing an account and exchanging over an expansive scope of benefit classes, serving enterprises,
governments, establishments and people far and wide. Bank of America offers industry–driving backing to around 3 million little entrepreneurs through
a suite of ... Show more content on Helpwriting.net ...
CBB item offerings incorporate conventional bank accounts, currency market bank accounts, testament of stores (Compact discs) and individual
retirement accounts (IRAs), noninterest–and enthusiasm bearing financial records, speculation records and items, and additionally credit and charge
cards to purchasers and little organizations in the United States. The establishment system incorporates roughly 4,800 saving money focuses, 15,800
mechanized teller machines (ATMs), the country over call focuses, online and portable stages. CBB likewise offers a scope of loaning related items
and administrations, coordinated working capital administration and treasury answers for customers through a system of workplaces and customer
relationship groups alongside different item accomplices to the United States–based

Individual Retirement Accounts Case Summary
Individual retirement accounts (IRAs) have become a dominant retirement vehicle in the US. As a result, the IRA has become a major asset class that
stands out in the estates of many high net worth individuals. For those with outside funds who are drawing only the required minimum distributions
(RMDs), the IRA can be a great asset to pass on to the next generation. Younger heirs will have the ability to stretch out the tax–deferred status of IRA
assets by taking out distributions over a long period of time. Additional wealth can be transferred through the tax–deferred growth in these assets.
Unfortunately, the ability to stretch out distributions is not automatic and the rules are more complex than most people realize. One wrong move could...
The first option again is for the heir to take annual installments over the beneficiary's life expectancy, the stretch method. The second option does not
include a five–year rule. Instead, the heir can continue the original distribution schedule using what would have been the age and life expectancy of the
deceased owner. The IRS states that the second method is the default method if the beneficiary does not make a selection or the IRA custodian does not
name the other method as the default. As previously mentioned this is also the default if the estate is named as

Essay on RETIREMENT
Retirement, Are You Saving Enough?
As and investor, you are overwhelmed with advice in newspapers, magazines, and mailings discussing what to invest in for a successful retirement nest
egg, when to start saving for retirement and who to invest with. There are millions of people who realize that an investment portfolio for retirement is
necessary, but do they really understand the investment instruments and the amount they must invest for tomorrow? The subject of retirement is a
fascinating area but it also could be a fuzzy subject without the correct amount of knowledge, understanding and professional guidance. The number one
question of concern for individuals facing retirement issues is whether or not they ... Show more content on Helpwriting.net ...
The trick to retirement is making the savings and investment part of that formula last as long as you do. "Traditionally, experts have advised you to
invest your savings in stocks and bonds, with the ratio of stocks to bonds gradually decreasing as you get older. The rule of thumb was to have 65% of
your investment dollars in bonds by your 65th birthday." (aol.sageonline.com) This rule of thumb has changed recently in order to take into account the
increase in life expectancy. Now that your retirement money has to last longer, the experts are beginning to lean toward investing more of your money
in the stock market and keeping it there further into retirement than you normally would. The most important notion that retirees must learn is that the
longer you can go without dipping into your principal, the longer your money will last for you due to the rule of compounding of interest. There are
numerous different techniques for people to use in order to retire comfortably and remain comfortable until their deaths. Since deciding how much
money you need for retirement is obviously a highly personal calculation, individuals must explore the many different instruments for retirement. So
how should people invest today for the future and their retirement?
"The most crucial retirement investing advice anyone can give is really quite simple: Start early, max out your 401(k), and

Personal Interview : An Interview To Interview With My...
When I got this assignment I figured it would be quite easy and it would take no time to complete. As I began to think about which family member I
was going to choose for this interview, I ran into a problem. I realized that most of my immediate family members have terrible money management
skills and their advice might not be the best. My parents never went to college and have terrible credit scores because of their lack of education in
personal finance. Neither my mother's parents, nor my father's parents attended college and lack money management skills as well. Being that this
assignment is based around financial advice for the future, I wanted to interview someone with a good understanding of personal finance. I decided that
interviewing my godfather would be the right way to go. His name is Matt Jongebloed and he is from Long Island, New York. He has been friends
with my parents for many years and was always around when I was a kid. He was a student at Hofstra University and studied political science. His
parents are both college educated and own a law firm together up north. Although Matt is not directly related to me, I value his advice and consider
him part of my family. Matt has a very appealing personality, and he is easy to talk to once you get past his New York accent. He jokes about
everything and can find humor in situations that most people cannot. When I asked him if I could interview him for this paper he seemed excited and
eager to offer his

Possible Retirement Plans
In this report I will be giving you a brief description of three possible retirement plans; and to compare and contrast each similarity and difference.
A retirement plan is a defined type of pension plan in which an employer/sponsor promises a specified monthly benefit on retirement that is
predetermined by a formula based on the employee's earnings history, tenure of service and age, rather than depending directly on individual investment
returns. I've chosen to discuss the 401(k), 403(b), and the SEP (Simplified Employee Pension Plan).
A 401(k) is a feature of a qualified profit sharing plan that allows employees to contribute a portion of their wages to an individual account. To start a
401(k) you are required by your employer to pass a ... Show more content on Helpwriting.net ...
It's very similar to a 401(k) plan. Just as with a 401(k) plan, a 403(b) plan lets employees defer some of their salary into an individual accounts. For
example, the 403(b) is used primarily by the self–employed or small business owners. As the employer, you can contribute up to 25 percent of your
income or $53,000, whichever is less, in 2015. These accounts are easier to set up than a solo 401(k).Lastly, a SEP or a Simplified Employee Pension
plan can provide an important source of income at retirement by letting employers set aside money in retirement account for themselves and their
employees. It's a flexible plan if cash flow is an issue. The plan I think would be more beneficial long–term would be a 401k match which is the best
plan and the current plan I have being a CNA at a nursing facility. When I worked as a cook on Ft. Sam Houston AFB I had a great 401k plan that
when I left that job after 2 and a half years I was granted my pension I so deserved and helped me thru hard times. To withdraw a pension you have
to be willing to give up 20% of your earning which is roughly $400 or roll it into another 401(k) account with a new employer. A short term
retirement plan I did not list but I would say is a simple IRA account. It has a low contribution each year, easy to set up and inexpensive. The plan
that is best for where I am in life as of today is the 401k plan. I have it and I've never had any issues with it. I ended up saving more money than I
thought and I am very excited for my upcoming

Traditional IRA Definition
After closing the safe deposit box, closing the traditional IRA was the next task on the administrative plan. Earlier in the administration, while in
the interim, I called the custodian of the traditional IRA to inform them of my Uncle's death. We talked about the account, but couldn't do anything
at the time because I haven't received approval to act as executor. So, at the end of the call, the representative said, "When you receive your
approval letter call back and we'll discuss the IRA." After the call, I put aside the matter of closing the traditional IRA to deal with later. As a few
weeks went by and since been approved as executor, the custodial bank sent me a letter in early December, 2012. In short, the letter served as a reminder
... Show more content on Helpwriting.net ...
I knew a little about the 5–year rule. However, I didn't want to manage an inherited IRA for five years and run up probate costs for each year. 2)The
stretch rule. I knew even less about the stretch rule, but knew I would have to manage the inherited IRA for a length of time based on my Uncle's life
expectancy factor. Since this option may require keeping the estate open longer than the 5–year rule, it wasn't a viable option. 3)The lump–sum
distribution. I knew a tax hit would result, but it's the best option based on what I knew at the time. Once at the bank, with my decision made, the
representative took me to her office immediately. As we took our seats, she said to me, "Have you decided how you want the taxes handled for the
IRA?" Even though I made a decision, I was kind of confused at the question because I thought we were going to discuss the options. At this point,
seeing my stunned look, she explained, "Typically, when the estate is the beneficiary, people opt for the lump
–sum payout and handle the taxes later." I
replied, "Then let's do that. The other options require keeping the estate open longer than required and I have no interest in doing that. So, let's close
out the IRA." The representative agreed and took me back to the waiting area so she could get the paperwork ready. To

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