Financial planning involves analyzing a client's current financial situation, setting goals and objectives, identifying any issues, preparing a financial plan to meet goals, implementing the plan, and reviewing it over time. The key steps in the financial planning process are gathering data, setting goals and objectives, identifying financial issues, preparing the plan, implementing it, and reviewing it. Financial planning aims to help clients smooth consumption over their lifetime in line with the life cycle hypothesis. Proper retirement planning is important given demographic trends toward an aging population.
Laura Scharr-Bykowsky presented on retirement planning and improving financial health. She discussed typical symptoms of being unprepared for retirement like inadequate savings and no clear retirement vision. She emphasized the importance of doing a retirement calculation and "gap analysis" to determine savings goals. Early savers have a significant advantage over late savers due to compound interest. Her recommendations included developing a retirement vision, estimating expenses, analyzing savings gaps, maximizing retirement accounts and Social Security benefits, and reconsidering retirement dates or expenses if savings fall short of goals.
The document is a personal financial plan dated 2008 for James, Jill, and Jane. It includes an executive summary that outlines recommendations for cash flow management, risk management/insurance, retirement planning, investment planning, estate planning, and tax planning. The plan seeks to increase their annual surplus, ensure full family protection through insurance, accumulate sufficient retirement funds, improve investment returns, securely pass on assets, and maximize tax savings. It also includes sections on goals and objectives, personal details, and current financial situation.
Sample Comprehensive Personal Financial Plan Created in Excel based Personal ...Satish Mistry
Sample Comprehensive Personal Financial Plan in Excel with Entire Life Cash Flow, Child Future Planning, Future Need & Dream Planning, Retirement Planning, Investment Planning, Investment Analysis, Portfolio Rebalancing, All Life Insurance Policy Analysis including LIC's Plan, IRR Calculation, Mutual Fund Porttfolio Analysis, Mutual Fund Portfolio Rebalancing, Practical Asset Allocation with Scheme Removal / Addition. Also seek possibilities of early retirement. Income Tax Planning with Net Taxation Ratio on your Income. Instant Generated Financial Plan in Excel with Real time value of your all Financial Investment ( In Indian Context). If uou need more info, kindly mail me.
Financial Planning for Second Half of Your LifeBarbara O'Neill
This document provides information to help people plan financially for the second half of their lives. It discusses topics like assessing financial needs at ages 50+, common financial mistakes of older adults, health care and long-term care costs, creating retirement income, and required minimum distributions. The document emphasizes the importance of financial basics, diversifying investments appropriately, avoiding fraud, and getting help from financial professionals.
This document provides an introduction to superannuation. It discusses what superannuation is, why we need compulsory super, and the benefits of saving through super such as tax advantages. It emphasizes that starting contributions early and maximizing returns can make a big difference to the total amount saved by retirement. The document recommends seeking professional financial advice to understand options and strategies for one's personal situation.
This document summarizes information about self-managed superannuation funds (SMSFs) in Australia, including:
1) SMSFs allow individuals to control their retirement investments and have tax advantages but also full responsibilities as trustees. There are over 500,000 SMSFs holding over $496 billion in total assets.
2) Most SMSF members are aged 55+ and nearing or in retirement, so growth of assets will slow as members draw down pensions.
3) SMSFs have flexibility but also compliance obligations around establishment, contributions, investments, record keeping, and payments. Trustees must consider risk, returns, diversification and liquidity in the fund's investment strategy.
4) SMSFs can provide benefits
Laura Scharr-Bykowsky presented on retirement planning and improving financial health. She discussed typical symptoms of being unprepared for retirement like inadequate savings and no clear retirement vision. She emphasized the importance of doing a retirement calculation and "gap analysis" to determine savings goals. Early savers have a significant advantage over late savers due to compound interest. Her recommendations included developing a retirement vision, estimating expenses, analyzing savings gaps, maximizing retirement accounts and Social Security benefits, and reconsidering retirement dates or expenses if savings fall short of goals.
The document is a personal financial plan dated 2008 for James, Jill, and Jane. It includes an executive summary that outlines recommendations for cash flow management, risk management/insurance, retirement planning, investment planning, estate planning, and tax planning. The plan seeks to increase their annual surplus, ensure full family protection through insurance, accumulate sufficient retirement funds, improve investment returns, securely pass on assets, and maximize tax savings. It also includes sections on goals and objectives, personal details, and current financial situation.
Sample Comprehensive Personal Financial Plan Created in Excel based Personal ...Satish Mistry
Sample Comprehensive Personal Financial Plan in Excel with Entire Life Cash Flow, Child Future Planning, Future Need & Dream Planning, Retirement Planning, Investment Planning, Investment Analysis, Portfolio Rebalancing, All Life Insurance Policy Analysis including LIC's Plan, IRR Calculation, Mutual Fund Porttfolio Analysis, Mutual Fund Portfolio Rebalancing, Practical Asset Allocation with Scheme Removal / Addition. Also seek possibilities of early retirement. Income Tax Planning with Net Taxation Ratio on your Income. Instant Generated Financial Plan in Excel with Real time value of your all Financial Investment ( In Indian Context). If uou need more info, kindly mail me.
Financial Planning for Second Half of Your LifeBarbara O'Neill
This document provides information to help people plan financially for the second half of their lives. It discusses topics like assessing financial needs at ages 50+, common financial mistakes of older adults, health care and long-term care costs, creating retirement income, and required minimum distributions. The document emphasizes the importance of financial basics, diversifying investments appropriately, avoiding fraud, and getting help from financial professionals.
This document provides an introduction to superannuation. It discusses what superannuation is, why we need compulsory super, and the benefits of saving through super such as tax advantages. It emphasizes that starting contributions early and maximizing returns can make a big difference to the total amount saved by retirement. The document recommends seeking professional financial advice to understand options and strategies for one's personal situation.
This document summarizes information about self-managed superannuation funds (SMSFs) in Australia, including:
1) SMSFs allow individuals to control their retirement investments and have tax advantages but also full responsibilities as trustees. There are over 500,000 SMSFs holding over $496 billion in total assets.
2) Most SMSF members are aged 55+ and nearing or in retirement, so growth of assets will slow as members draw down pensions.
3) SMSFs have flexibility but also compliance obligations around establishment, contributions, investments, record keeping, and payments. Trustees must consider risk, returns, diversification and liquidity in the fund's investment strategy.
4) SMSFs can provide benefits
A document discusses accumulating funds in a deferred fixed interest and indexed annuity for retirement. It describes how annuities can be used to systematically save money and guarantee retirement income that cannot be outlived. It then provides details on sources of retirement income, obstacles to retirement planning, and how annuities can help overcome those obstacles by allowing tax-deferred growth and converting savings into guaranteed lifetime income.
This webinar will discuss one of the most important savings goals of American families: saving money for a comfortable retirement. Specific topics to be covered include research findings about the retirement preparedness of American families, conflicting opinions about “the number” (i.e., amount of money needed to comfortably retire), factors that influence the number, and retirement savings calculation tools such as the Ballpark Estimate and Monte Carlo simulations. Case studies and chat questions will be included to apply the webinar content to real world situations.
In gearing up for America and Military Saves Weeks, Dr. Barbara O'Neill will present this 90-minute webinar on the tools and resources available for calculating the amount individuals and couples need to save for retirement, on behalf of the Military Families Learning Network.
Financial planning is a long-term process of managing one's finances to achieve goals. It provides a roadmap to financial well-being and sustainable wealth creation. Many misconceptions exist, such as that it only involves budgeting or is only for the wealthy. Financial planning is needed due to risks like living too long in retirement, changing lifestyles, inflation, and lack of social security. It involves understanding assets, liabilities, priorities, timelines, and appropriate investment vehicles. Starting financial planning early allows greater benefits of compounding returns. Using systematic investment plans smooths out market volatility for better long-term returns. Financial planners can help develop and implement customized plans.
The document provides a personal financial analysis for Leslie. It includes an overview of Leslie's current and projected net worth, cash flow, emergency savings, taxes, retirement savings, insurance needs, and estate planning. The analysis finds that Leslie is currently underfunded for their emergency savings goal and provides recommendations to improve their financial situation through a proposed wealth plan.
Personal Financial Plan for Prittchet3docxKeise Larson
The document provides a personal financial plan for Jeremy and Gina Delgado-Pritchett that was prepared by FundVest Financial Advisors, including an analysis of their current financial situation, goals, expenses, assets, debts, cash flows, and recommendations for paying off debts, refinancing their mortgage, and ensuring adequate retirement savings and protection. It examines their net worth, spending habits, various debt ratios, and proposes using a PowerPay technique to more quickly pay down their existing debts.
This document summarizes information presented at a financial aid workshop at Nova Southeastern University. It discusses various types of federal student loans including Direct Subsidized and Unsubsidized Loans, Grad PLUS Loans, and Perkins Loans. It provides details on loan repayment options like standard, graduated, extended, income-driven, and income-sensitive plans. It also covers topics like loan consolidation, loan forgiveness programs for teachers, total and permanent disability discharge, and Public Service Loan Forgiveness. The workshop aims to help students understand their loan obligations and choose repayment plans suited to their financial situations.
Why Retirement plan ( Things to remember while planning for retirement )Singharoy Investment
The document discusses abuse and neglect of elders in India. It finds that 42% of elders felt disrespected, 37.8% were verbally abused, and 28.2% experienced neglect or economic abuse. The main abusers were sons and daughters-in-law, and over half of abused elders did not take action. The main context for abuse was related to property. Most elders felt that regular income was the only way to escape abuse. The document also discusses the importance of retirement planning and saving systematically from an early age in order to financially secure one's retirement years.
HUSC 3366 Chapter 14 Part I Retirement PlanningRita Conley
The document discusses various aspects of retirement planning such as estimating expenses, sources of retirement income, and types of retirement accounts. It notes that expenses may decrease in some areas but increase in others like healthcare and leisure. Common sources of retirement income include Social Security, pensions, savings and part-time work. People are advised to start planning and saving early to take advantage of compound interest and ensure adequate savings.
The changing environment for retirement incomenetwealthInvest
The document discusses changes to the legislative environment for retirement income in Australia. Some of the key changes discussed include:
- New rules for assessing lifetime income streams under the assets and income tests from July 2019 which provide more clarity and flexibility.
- Products called innovative superannuation income streams which have more flexible withdrawal terms but are assessed more favorably under the assets test.
- Combining different income streams like account-based pensions and lifetime annuities can help provide more stable retirement income and allow retirees to better manage risks.
- Structuring retirement income using a combination of income streams is important given longevity risks and volatility in investment returns that make it difficult to rely solely on investments or the age pension.
Actuary Steve Vernon, retirement expert, Fellow of the Society of Actuaries and president of Rest-of-Life Communications, provides his recommendations regarding the current state of retirement and what individuals, employers and plan sponsors should do to prepare for retirement. For more information, visit www.restoflife.com
What Young Adults Need to Know About RetirementBarbara O'Neill
This document discusses retirement planning for young adults. It provides objectives for a webinar on the topic, including discussing retirement planning across generations and three key messages for young adults. These messages are to save early and often, develop multiple streams of retirement income, and avoid cashing out lump sums from tax-deferred plans. The document also discusses typical retirement concerns at different ages, sources of retirement income, and variables to consider in retirement calculations.
The document discusses retirement planning and provides guidance on estimating retirement costs and investment options. It notes that people should plan early for retirement as the corpus needed is significant. Monthly retirement expenses of Rs. 20,000-80,000 would require investments of Rs. 483572-1934288 today at 8% return to last 30 years in retirement. Investment avenues discussed include PPF, SIPs, debt funds, annuity plans, and senior citizen savings schemes. Proper planning is necessary to ensure funds are available to live comfortably after stopping work.
Strategies for a sustainable income in retirementJohn Brown
This document discusses strategies for sustainable income in retirement. It notes that people are living longer in retirement so income needs to last 25 years or more. Successful retirement requires preparation for longevity, rising costs, healthcare expenses, potential changes to Social Security, and investment risks. The document outlines identifying reliable income sources, choosing appropriate withdrawal rates, managing risks through diversification and rebalancing, and using a bucket approach to funds for short, mid, and long-term income needs.
This document provides an overview of retirement planning and factors to consider when preparing for retirement. It discusses estimating future earning potential and life expectancy, sources of retirement income like Social Security and employer plans, estimating retirement savings needs, and the power of tax-advantaged retirement accounts. Key points made include that most people will live to retirement age and beyond, the average Social Security benefit replaces about 40% of pre-retirement income, and personal savings are needed to bridge the gap between expenses and other income sources in retirement. Delaying retirement planning can significantly reduce the amount saved.
Here are two key features of money market accounts with examples:
1. Relatively safe - They invest in high-quality, short-term securities issued by the government, large banks, and major corporations. This makes them among the safest investments.
2. Liquid investment - Money can be withdrawn at any time without penalty. Examples of underlying securities include certificates of deposit (CDs), US Treasury bills, and commercial paper.
This document provides a comprehensive financial plan for a client that includes goals, budgets, investment recommendations, retirement planning, insurance needs, education planning, tax planning, and estate planning. Key recommendations include increasing life insurance coverage, establishing an education fund for their son, optimizing 401k allocations, contributing more to retirement accounts, setting up an estate plan with a living trust to avoid probate, and granting power of attorney to their son. The plan provides strategies and guidance to help the client achieve their financial objectives.
When it comes to planning for retirement, the earlier you start, the more potential your money has to grow. Retirement planning is not simply about paying regularly into your pension and forgetting about it. Instead, it is essential to review your progress against your retirement goals and take account of changes that may affect your plans. For more information visit https://www.tudorfranklin.co.uk
An alternative to the charity tax cap for higher rate tax payers deckMark Astarita OBE
The document proposes an alternative approach to the UK government's proposed cap on tax relief for charitable donations by higher rate taxpayers. It suggests donors have a choice to either receive tax relief up to the cap, or opt out of tax relief allowing the charity to claim the full amount of tax paid. An example shows that under the alternative, a donor could provide £1.25 million total to charity by donating £687,500 while forgoing tax relief, compared to £1.25 million under current rules and £1.062 million under the government's proposed cap. Research is cited suggesting charities benefit more when donors opt to increase donations rather than claim tax relief personally.
The document provides a tour of landmarks and places of interest in the town of Trikala, Greece. It mentions the River Litheos, Asclipiou street, the fortress and open theatre within it, the old noble district of Varousi and manavika, the open market in the centre of town, the central square, Matsopoulos Mill, the Osman Shah mosque now used as a cultural center, the Non-commissioned officers Academy, the Gymnastics Academy, the Railway station, and the night life in Trikala.
This short document promotes creating presentations on Haiku Deck, an online presentation platform. It features a stock photo and encourages the reader to get started making their own Haiku Deck presentation by sharing it on SlideShare. In just 3 sentences, it pitches the idea of using Haiku Deck to easily create and share online presentations.
A document discusses accumulating funds in a deferred fixed interest and indexed annuity for retirement. It describes how annuities can be used to systematically save money and guarantee retirement income that cannot be outlived. It then provides details on sources of retirement income, obstacles to retirement planning, and how annuities can help overcome those obstacles by allowing tax-deferred growth and converting savings into guaranteed lifetime income.
This webinar will discuss one of the most important savings goals of American families: saving money for a comfortable retirement. Specific topics to be covered include research findings about the retirement preparedness of American families, conflicting opinions about “the number” (i.e., amount of money needed to comfortably retire), factors that influence the number, and retirement savings calculation tools such as the Ballpark Estimate and Monte Carlo simulations. Case studies and chat questions will be included to apply the webinar content to real world situations.
In gearing up for America and Military Saves Weeks, Dr. Barbara O'Neill will present this 90-minute webinar on the tools and resources available for calculating the amount individuals and couples need to save for retirement, on behalf of the Military Families Learning Network.
Financial planning is a long-term process of managing one's finances to achieve goals. It provides a roadmap to financial well-being and sustainable wealth creation. Many misconceptions exist, such as that it only involves budgeting or is only for the wealthy. Financial planning is needed due to risks like living too long in retirement, changing lifestyles, inflation, and lack of social security. It involves understanding assets, liabilities, priorities, timelines, and appropriate investment vehicles. Starting financial planning early allows greater benefits of compounding returns. Using systematic investment plans smooths out market volatility for better long-term returns. Financial planners can help develop and implement customized plans.
The document provides a personal financial analysis for Leslie. It includes an overview of Leslie's current and projected net worth, cash flow, emergency savings, taxes, retirement savings, insurance needs, and estate planning. The analysis finds that Leslie is currently underfunded for their emergency savings goal and provides recommendations to improve their financial situation through a proposed wealth plan.
Personal Financial Plan for Prittchet3docxKeise Larson
The document provides a personal financial plan for Jeremy and Gina Delgado-Pritchett that was prepared by FundVest Financial Advisors, including an analysis of their current financial situation, goals, expenses, assets, debts, cash flows, and recommendations for paying off debts, refinancing their mortgage, and ensuring adequate retirement savings and protection. It examines their net worth, spending habits, various debt ratios, and proposes using a PowerPay technique to more quickly pay down their existing debts.
This document summarizes information presented at a financial aid workshop at Nova Southeastern University. It discusses various types of federal student loans including Direct Subsidized and Unsubsidized Loans, Grad PLUS Loans, and Perkins Loans. It provides details on loan repayment options like standard, graduated, extended, income-driven, and income-sensitive plans. It also covers topics like loan consolidation, loan forgiveness programs for teachers, total and permanent disability discharge, and Public Service Loan Forgiveness. The workshop aims to help students understand their loan obligations and choose repayment plans suited to their financial situations.
Why Retirement plan ( Things to remember while planning for retirement )Singharoy Investment
The document discusses abuse and neglect of elders in India. It finds that 42% of elders felt disrespected, 37.8% were verbally abused, and 28.2% experienced neglect or economic abuse. The main abusers were sons and daughters-in-law, and over half of abused elders did not take action. The main context for abuse was related to property. Most elders felt that regular income was the only way to escape abuse. The document also discusses the importance of retirement planning and saving systematically from an early age in order to financially secure one's retirement years.
HUSC 3366 Chapter 14 Part I Retirement PlanningRita Conley
The document discusses various aspects of retirement planning such as estimating expenses, sources of retirement income, and types of retirement accounts. It notes that expenses may decrease in some areas but increase in others like healthcare and leisure. Common sources of retirement income include Social Security, pensions, savings and part-time work. People are advised to start planning and saving early to take advantage of compound interest and ensure adequate savings.
The changing environment for retirement incomenetwealthInvest
The document discusses changes to the legislative environment for retirement income in Australia. Some of the key changes discussed include:
- New rules for assessing lifetime income streams under the assets and income tests from July 2019 which provide more clarity and flexibility.
- Products called innovative superannuation income streams which have more flexible withdrawal terms but are assessed more favorably under the assets test.
- Combining different income streams like account-based pensions and lifetime annuities can help provide more stable retirement income and allow retirees to better manage risks.
- Structuring retirement income using a combination of income streams is important given longevity risks and volatility in investment returns that make it difficult to rely solely on investments or the age pension.
Actuary Steve Vernon, retirement expert, Fellow of the Society of Actuaries and president of Rest-of-Life Communications, provides his recommendations regarding the current state of retirement and what individuals, employers and plan sponsors should do to prepare for retirement. For more information, visit www.restoflife.com
What Young Adults Need to Know About RetirementBarbara O'Neill
This document discusses retirement planning for young adults. It provides objectives for a webinar on the topic, including discussing retirement planning across generations and three key messages for young adults. These messages are to save early and often, develop multiple streams of retirement income, and avoid cashing out lump sums from tax-deferred plans. The document also discusses typical retirement concerns at different ages, sources of retirement income, and variables to consider in retirement calculations.
The document discusses retirement planning and provides guidance on estimating retirement costs and investment options. It notes that people should plan early for retirement as the corpus needed is significant. Monthly retirement expenses of Rs. 20,000-80,000 would require investments of Rs. 483572-1934288 today at 8% return to last 30 years in retirement. Investment avenues discussed include PPF, SIPs, debt funds, annuity plans, and senior citizen savings schemes. Proper planning is necessary to ensure funds are available to live comfortably after stopping work.
Strategies for a sustainable income in retirementJohn Brown
This document discusses strategies for sustainable income in retirement. It notes that people are living longer in retirement so income needs to last 25 years or more. Successful retirement requires preparation for longevity, rising costs, healthcare expenses, potential changes to Social Security, and investment risks. The document outlines identifying reliable income sources, choosing appropriate withdrawal rates, managing risks through diversification and rebalancing, and using a bucket approach to funds for short, mid, and long-term income needs.
This document provides an overview of retirement planning and factors to consider when preparing for retirement. It discusses estimating future earning potential and life expectancy, sources of retirement income like Social Security and employer plans, estimating retirement savings needs, and the power of tax-advantaged retirement accounts. Key points made include that most people will live to retirement age and beyond, the average Social Security benefit replaces about 40% of pre-retirement income, and personal savings are needed to bridge the gap between expenses and other income sources in retirement. Delaying retirement planning can significantly reduce the amount saved.
Here are two key features of money market accounts with examples:
1. Relatively safe - They invest in high-quality, short-term securities issued by the government, large banks, and major corporations. This makes them among the safest investments.
2. Liquid investment - Money can be withdrawn at any time without penalty. Examples of underlying securities include certificates of deposit (CDs), US Treasury bills, and commercial paper.
This document provides a comprehensive financial plan for a client that includes goals, budgets, investment recommendations, retirement planning, insurance needs, education planning, tax planning, and estate planning. Key recommendations include increasing life insurance coverage, establishing an education fund for their son, optimizing 401k allocations, contributing more to retirement accounts, setting up an estate plan with a living trust to avoid probate, and granting power of attorney to their son. The plan provides strategies and guidance to help the client achieve their financial objectives.
When it comes to planning for retirement, the earlier you start, the more potential your money has to grow. Retirement planning is not simply about paying regularly into your pension and forgetting about it. Instead, it is essential to review your progress against your retirement goals and take account of changes that may affect your plans. For more information visit https://www.tudorfranklin.co.uk
An alternative to the charity tax cap for higher rate tax payers deckMark Astarita OBE
The document proposes an alternative approach to the UK government's proposed cap on tax relief for charitable donations by higher rate taxpayers. It suggests donors have a choice to either receive tax relief up to the cap, or opt out of tax relief allowing the charity to claim the full amount of tax paid. An example shows that under the alternative, a donor could provide £1.25 million total to charity by donating £687,500 while forgoing tax relief, compared to £1.25 million under current rules and £1.062 million under the government's proposed cap. Research is cited suggesting charities benefit more when donors opt to increase donations rather than claim tax relief personally.
The document provides a tour of landmarks and places of interest in the town of Trikala, Greece. It mentions the River Litheos, Asclipiou street, the fortress and open theatre within it, the old noble district of Varousi and manavika, the open market in the centre of town, the central square, Matsopoulos Mill, the Osman Shah mosque now used as a cultural center, the Non-commissioned officers Academy, the Gymnastics Academy, the Railway station, and the night life in Trikala.
This short document promotes creating presentations on Haiku Deck, an online presentation platform. It features a stock photo and encourages the reader to get started making their own Haiku Deck presentation by sharing it on SlideShare. In just 3 sentences, it pitches the idea of using Haiku Deck to easily create and share online presentations.
OnLive is a cloud gaming service that allows users to stream games to their devices without needing expensive hardware. It uses cloud computing to deliver games. While convenient for users, OnLive's model threatens GameStop's large used game business, which accounts for almost half its profits. If streaming services become more popular, it could severely damage GameStop's business and potentially cause it to lose its Fortune 500 status as new competitors enter the market and game prices drop.
Mark Astarita is the Chair of the Institute of Fundraising. In his speech, he discusses the important role of fundraisers and partners in fundraising in raising money to support charitable causes. He emphasizes that fundraisers cannot do their jobs without the support of partners. While giving has remained flat, fundraising is more important than ever to support charities' work. However, Astarita expresses concern that unless attitudes toward giving change, the sector may shrink in the future. He calls for a debate on ensuring a strong charitable sector and pushes back against recent hostility toward charities. Overall, he celebrates the achievements of fundraisers and partners in fundraising.
This document summarizes key aspects of pensions in Canada. It discusses the issues facing pensions globally and in Canada due to low interest rates. It defines pension assets and liabilities and explains underfunding. It outlines the differences between defined benefit and defined contribution plans. It provides an overview of retirement options in Canada like CPP, OAS, RRSPs, and TFSAs. It discusses the large unfunded liabilities of public sector pensions in Canada and other countries. It also summarizes statistics about assets and returns of private sector pensions in Canada.
This webinar discusses strategies for catching up on retirement savings for those who started saving later in life. It covers retirement planning realities like how many people have less than $25,000 saved excluding their home and pension. Catch-up strategies discussed include increasing retirement plan contributions, paying down debt to free up money for savings, taking on a side job to boost income, investing more aggressively in stocks when time allows, and maximizing available tax breaks. The webinar aims to encourage action and provide optimism that late savers still have options.
The Tax Diversify Your Retirement Income with Life Insurance sales presentation will help you understand the importance of tax diversification and the benefits that a Custom Whole Life (CWL) policy can provide. In addition to the traditional benefit of death benefit protection, the cash value of the CWL policy accumulates tax-deferred and can generally be accessed on a tax-free basis*.
Use the concept presentation and other materials to discuss how life insurance not only provides death benefit protection, but can also be a tax diversification tool.
Contact me if you would like to discuss
*The cash value is accessed through policy loans, which accrue interest at the current rate, and cash withdrawals. Loans and withdrawals will decrease the total death benefit and total cash value. The supplemental retirement income is not guaranteed.
This document provides a summary of retirement planning strategies. It discusses how much individuals need to save for retirement given increasing lifespans. Proper planning is important as delaying can significantly increase costs. The document outlines pension rules and options for investing in retirement plans. Taking professional advice is recommended to make informed decisions about securing adequate retirement income.
Paying for long term care insurance: The pros and cons of different payment m...ILC- UK
As the population of the UK continues to age, the demand for social care increases, as do the associated costs. How to pay for long term care is therefore a hot topic in the insurance world and amongst policy makers.
This event will saw the launch of a new paper from the ILC-UK and Cass Business School which investigates different ways in which individuals can purchase and pay for insurance products specifically to help them to pay for their care costs in later life.
Chaired by Baroness Sally Greengross OBE, Chief Executive of the ILC-UK, the launch included a keynote presentation report co-author Professor Les Mayhew. Responses were given by Jules Constantinou, Regional Manager, Gen Re Life/Health; Brian Fisher, Aviva/Friends Life, and Steve Lowe, Just.
The document discusses key milestones and considerations in retirement planning from ages 50 to over age 60. It recommends meeting with a financial professional prior to age 50 to review asset allocation and retirement strategy. At age 50, it suggests maximizing retirement contributions and catch-up contributions, and reviewing beneficiary forms and healthcare costs. At age 55, it addresses the impact of early retirement on Social Security benefits and pension payout options. At age 59.5, it discusses accessing retirement funds and protecting retirement income.
Find out how you can turn your pension into money you can use. Since 2015 there has been greater flexibility and freedom for people to access their pension savings. Find out more at https://www.tudorfranklin.co.uk
Implications of public pension enhancement in CanadaAlex Mazer
Common Wealth co-founder Alex Mazer's presentation on the Ontario Retirement Pension Plan and Canada Pension Plan enhancement to SHARE's Toronto Pension and Investment Governance Course on May 6, 2016.
This document provides an overview of financial planning for executives. It discusses the need for financial education due to complex financial products and deteriorating personal finances. The document outlines an agenda for financial planning topics including goals, risk vs return, compounding, inflation, savings vs investments, and various financial products. It defines financial planning as a process to help investors reach their desired financial position. Key aspects of the planning process include identifying goals, income/expenses, gaps, and preparing a plan to bridge gaps.
In this edition of Return On Investment, we have included information on the following topics:
1. The Importance of Risk Control
2. Are You Nearing the Age of 71?
3. Pension Reform: The CPP is Set to Change
4. Transferring Wealth: Preparing Your Heirs
5. Unclaimed Balances: Are Funds Owed to You?
6. Year-End Tax Planning Considerations
Join Dr. Barbara O'Neill for a discussion on savings strategies for late savers and resources for counselors and educators to encourage clients to make changes that benefit retirement savings.
Retirement planning is a constantly changing subject. John Friar, AIF, of HJB Financial walks employers through the new landscape of retirement planning.
Demographic change means that more people will live past the point where they require care. As the increase in life expectancy looks set to continue, we need to develop enterprising and innovative ways to help people save and plan for this eventuality and bring new money into the care system. If people are to save for their future, especially people who are on lower incomes or are less wealthy, it is essential that they have opportunities to do so in a way that is simple, attractive, engaging, and safe, and which provides them with more choice about the care and support they would like. Equally, they must not be penalised for having done so through means tested support. This is what Personal Care Savings Bonds are intended to be all about.
This document discusses creating a retirement income and investment strategy. It emphasizes the importance of planning before investing and outlines 4 steps to constructing a personalized strategy: 1) Estimate retirement expenses, 2) Identify sources of retirement income, 3) Determine tolerance for income variance, and 4) Construct the strategy with a financial professional. A case study example is provided to illustrate how these steps are applied for a hypothetical retiree. The key is to have guaranteed income sources cover essential needs and to work with an advisor to develop a customized plan.
This document discusses retirement planning and options for saving for retirement. It notes that traditional pensions have limitations in terms of maximum annual contributions and lifetime caps. Alternative retirement investing options are mentioned, such as SIPPs which allow investing pension funds in assets beyond stocks and bonds. The document stresses the importance of periodic retirement planning reviews given changing laws, economic conditions, and individual circumstances over time. Professional advice is recommended to evaluate one's retirement planning.
This document discusses retirement planning and options for saving for retirement. It notes that traditional pensions have limitations in terms of maximum annual contributions and lifetime allowances. Alternative retirement investing options like SIPPs allow for more flexibility and control over investments but come with risks. The document emphasizes doing a periodic review of one's retirement plan to ensure it remains adequate given changing laws, economic conditions, and personal circumstances. It also highlights the need to plan proactively to achieve financial goals for retirement.
Delaying retirement by a few years could significantly improve one's retirement lifestyle by providing more time to save and earn returns on investments, as well as increasing Social Security benefits. The document provides examples showing how retirement income and portfolio values increase by waiting until ages 64, 67, or 70 to retire rather than at 62. It also discusses factors like taxes, investment types and accounts, risk tolerance, and creating a long-term retirement strategy.
Retirement Planning is the process of determining and accumulating the retirement corpus one would require to live a comfortable life after the paid work life ends.
The ultimate goal of retirement planning is to achieve financial independence.
Objectives-
To cover medical expenses and be prepared for medical emergencies.
To create regular income sources after retirement.
To deal with any kind of uncertainities.
As the Indian economy will mature, the interest rate and stock market return will continue to moderate resulting in lower return from investment.
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Vicinity Jobs’ data includes more than three million 2023 OJPs and thousands of skills. Most skills appear in less than 0.02% of job postings, so most postings rely on a small subset of commonly used terms, like teamwork.
Laura Adkins-Hackett, Economist, LMIC, and Sukriti Trehan, Data Scientist, LMIC, presented their research exploring trends in the skills listed in OJPs to develop a deeper understanding of in-demand skills. This research project uses pointwise mutual information and other methods to extract more information about common skills from the relationships between skills, occupations and regions.
Abhay Bhutada Leads Poonawalla Fincorp To Record Low NPA And Unprecedented Gr...Vighnesh Shashtri
Under the leadership of Abhay Bhutada, Poonawalla Fincorp has achieved record-low Non-Performing Assets (NPA) and witnessed unprecedented growth. Bhutada's strategic vision and effective management have significantly enhanced the company's financial health, showcasing a robust performance in the financial sector. This achievement underscores the company's resilience and ability to thrive in a competitive market, setting a new benchmark for operational excellence in the industry.
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Financial Assets: Debit vs Equity Securities.pptxWrito-Finance
financial assets represent claim for future benefit or cash. Financial assets are formed by establishing contracts between participants. These financial assets are used for collection of huge amounts of money for business purposes.
Two major Types: Debt Securities and Equity Securities.
Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset.
• The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government).
• The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity.
• The 3rd important type of Debit security is TRESURY BILLS. These securities have short-term ranging from three months, six months, and one year. Issuer of such securities are governments.
• Above discussed debit securities are mostly issued by governments and corporations. CERTIFICATE OF DEPOSITS CDs are issued by Banks and Financial Institutions. Risk factor associated with CDs gets reduced when issued by reputable institutions or Banks.
Following are the risk attached with debt securities: Credit risk, interest rate risk and currency risk
There are no fixed maturity dates in such securities, and asset’s value is determined by company’s performance. There are two major types of equity securities: common stock and preferred stock.
Common Stock: These are simple equity securities and bear no complexities which the preferred stock bears. Holders of such securities or instrument have the voting rights when it comes to select the company’s board of director or the business decisions to be made.
Preferred Stock: Preferred stocks are sometime referred to as hybrid securities, because it contains elements of both debit security and equity security. Preferred stock confers ownership rights to security holder that is why it is equity instrument
<a href="https://www.writofinance.com/equity-securities-features-types-risk/" >Equity securities </a> as a whole is used for capital funding for companies. Companies have multiple expenses to cover. Potential growth of company is required in competitive market. So, these securities are used for capital generation, and then uses it for company’s growth.
Concluding remarks
Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
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2. Demographic Trends
• The proportion of the Australian older population is
increasing rapidly. Low fertility rates and continuous
increases in life expectancy have contributed to a
decrease in the number of workers supporting retirees.
• The predictions are that by the year 2030, two people in
the working age group will support one retired person and
this number will fall to 1.4 by 2050.
• Today, the dependency ratio is 3.5 workers for every
retired person.
Source: Australian Bureau of Statistics
2
3. Macroeconomic implications of
ageing population
• Due to low fertility rates, the labour force participation rate is predicted
to fall. Smaller number of workers will produce less products and
services. Thus, the shrinking workforce will negatively affect GDP
growth.
• The shrinking workforce combined with the growing number of older
Australians, will put pressure on Australian fiscal sustainability.
• As it is more costly to support an aged person than a young person,
total expenditure associated with ageing is anticipated to rise in the
future, creating a budgetary gap.
• The workforce will also experience ageing, with an increase of
workers aged 65 and over by around 50%.
Source: Productivity Commission 2005.
3
4. Government initiatives to improve
fiscal sustainability
• An introduction of the Superannuation Guarantee Charge -
9% of Gross earnings (contributions will be slowly
increased to 12% starting from the year 2013) paid by
employers to designated superannuation funds, and its
reforms such as: 15% tax charged only at the point of
entry and on earnings, no tax charged on withdrawals
whether lump sums or pensions for people retiring at the
age of 60 and over. Further, abolishment of RBL, ability of
drawing on super while still at work, allowable deductions
for employers on contributions paid to employees aged up
to 70. Raising the accessibility age to draw super from 55
years to 60.
4
5. Government initiatives to improve
fiscal sustainability (continued)
• Keeping fiscal expenses as low as possible by
providing pensions at the equivalent of 1/3 of the
average male salary which are means/asset tested.
• Encouraging people to stay longer at work by the
introduction of tax incentives for people staying at
work beyond the ‘normal’ age of retirement (currently
being 65 for men).
• Increasing of the “normal” retirement age for women
to 65 by 2014 and men to 67 by 2024.
5
6. Life Cycle Hypotheses
Financial planning has its roots in the “life cycle” theory of
consumption
and saving ( Modigliani and Brumberg 1954, Friedman 1957) and
considers paths of expenditure and income over a lifetime.
• Friedman & Modigliani and Brumberg assumed that households
save for future consumption.
• According to Friedman (1957), households will save more and
consume less if the level of income they currently earn is
temporarily. However, they will save less and consume more if the
level of income they earn is permanent, hence the term “permanent
income theory”.
• In the Modigliani-Brumberg model, the planning period is finite:
people save only for themselves, hence consumption and saving
patterns reflect an individual’s stage in the life cycle with saving for
retirement being a primary motive for deferred consumption
(Modigliani and Brumberg 1954; Ando and Modigliani 1963).
6
8. The proposition of the Modigliani’s
and Bloomerg’s model of the LCH
• People depend on others to expend money on their
behalf (e.g. children being dependent on their
parents, young people obtaining loans) while they are
in their infancy or at the beginning of their adult lives.
• Later, during their working lives, people generate
sufficient income to meet their current expenditure
and to provide some savings for future expenditure at
retirement.
• At retirement, people draw on their savings when
salaries and wages are no longer available.
8
9. What is Financial Planning ?
• Financial planning is a process that helps to set
objectives and arranging financial means to satisfy
those objectives.
• Financial means are achieved by analysing financial
and non-financial position and working out a suitable
investment plan which is consistent with risk-return
preferences.
• Financial planning involves managing the portfolio to
evaluate its actual behaviour in relation to expected
performance.
9
10. How a $1000 investment grows
over time
50000
45000 45259
40000
35000
30000
8% rate of return
25000
21725 10% rate of return
20000
17449
15000
10000 10063
5000 6727
4661
2594
2159
0 1000
0 10 20 30 40
• Source: Gitman, LJ.
10
11. Reasons for seeking financial advice
• Changes in personal circumstances such as:
- marriage or divorce;
- birth of a child;
- buying a home;
- changing jobs;
- death or illness of a family member.
• Investment of a windfall gain such as an inheritance,
compensation payment or redundancy payment.
• Saving for retirement.
11
12. Why retirement financial planning?
• Retired people will no longer be able to rely on the
government to provide financial support.
• As a rule, most of people do not start thinking about
retirement until well into their 40s or 50s, which results in
a substantially reduced level of retirement income.
• People do not save adequately. The introduction of
compulsory super should help but we still have to wait to
see its full impact.
• The sooner retirement saving starts (coupled with
compounded interest and salary sacrifice arrangements),
the better off retirees will be.
12
13. Attitudes towards retirement planning
• Comments of some planners regarding financial
understanding of retirement issues in the community.
For example, their clients:
- were surprised at how low the Age Pension is;
- generally had poor funding for retirement;
- thought that a lump sum of $50,000 to $60,000
constituted ‘substantial’ funds in super; and
- under estimated the cost of what they want to do in
retirement.
13
14. Will the projected superannuation payout
on retirement be sufficient to meet
lifestyle requirements?
• According to government estimates, saving of 12% of
annual income for the 40 years of working life would
give an income equal to 40% of pre-retirement salary.
However, 60-80% is preferred.
• According to the LCH, people want to smooth their
consumption over their life cycle (keep the same life
style before and after retirement), thus 40% of pre-
retirement salary might not be enough.
• People usually need more savings to support them in
retirement than they anticipate. The outcome of under-
provision is to retire later or work part-time after
retirement.
14
15. Six Steps Financial Planning
Process
• Step 1: Gathering data
• Step 2: Setting goals and objectives
• Step 3: Identifying any financial issues
• Step 4: Preparing a financial plan
• Step 5: Implementing the financial plan
• Step 6: Reviewing the financial plan
(Source: “Good Advice – for Peace of Mind”, Financial Planning Association of
Australia, 2006.)
15
16. Step 1: Gathering data
• Personal details
• Details of children/dependants
• Employment details
• Income from all sources and expenditure details
(including investment income or other such as
distribution from a trust)
• Asset and liabilities schedule
• Superannuation details
• Details of existing insurance and information of
further insurance needs
• Tax rates
16
17. Step 2: Setting goals and objectives
• Goals can be short (<1 year), medium term (2-5
years) and long term (>5 years).
• Establishing financials goals and objectives which will
determine the types of investments made:
– saving for major expenditures;
– accumulating retirement funds;
– being free of personal debt in retirement;
– non-specific goals such as: utilise surplus income
to accelerate investment capital without sacrificing
the current life style.
17
18. Life cycle requirements or life strategies
• Consumption phase - young single people and
married couples with a desire to save for the future
consumption.
• Wealth accumulation phase - people with
established careers and with no or small mortgages
seeking to establish well structured retirement plans.
• Approaching retirement phase - people at the age
55 - 65 seeking to maximise their retirement funds.
• Post-retirement phase - people with desire to
provide satisfactory income during their retirement
and seeking to preserve their savings for the long life
expectancy.
18
19. Step 2: Setting goals and objectives
(continues)
• Other issues: accessibility and liquidity
As circumstances change throughout a life,
liquidity and accessibility of investments need
to be considered. Investing a small proportion
of portfolio (around 5% of the total holding) in
easy accessible investment vehicles such as
term deposits should be recommended.
19
20. How financial goals change with a person’s life
situation
Personal Long term Intermediate- Short-term goals
Situation goals (5+ term goals (2-5 (1 year)
years) years)
1. University Repay Undertake Find a job
Student university student
and other exchange
loans program or travel
overseas
2. Single, Buy a home Save enough for Attend
mid 20s a deposit for a investment
home seminars
Travel overseas Begin to invest
20
21. How financial goals change with a person’s life situation
(continued)
3. Married Build a Begin an Seek a financial
couple with substantial education fund planner advice
children diversified and begin to
investment invest
portfolio
Buy a larger Increase Implement tax
home superannuation minimisation
contribution strategies
(salary sacrifice)
4. Married Retire at age Travel overseas Shift investment
Couple with 62 portfolio into
grown growth securities
children, mid
50s Take long Reduce expenses
holiday
Increase
superannuation
contribution
(salary sacrifice)
21
22. Step 3: Identifying any financial
issues
• Analyse financial position to determine the current net
worth, the current cash flow situation, and the saving
capacity now and in the future.
• Identify goals that are unattainable such as: a desire to
retire early but having insufficient funds to achieve this
goal.
• Categorise trade-offs e.g.: increase saving, accept
higher level of risk (invest in growth assets), retire later,
or accept lower accumulation of funds (lower income
at retirement).
22
23. Risk profiling and asset allocation
1. Very conservative investors – defensive
investments such as cash and bonds (government or
carrying high credit ratings).
2. Conservative investors – aiming to reduce risk of
loss and therefore accepting a lower return over the
long term, mixed defensive and growth investments
such as blue chips but substantial higher weighting
(around 60-70%) is given to cash and bonds holdings
(capital stable).
3. Balanced investors – aiming to achieve reasonable
returns, but less than growth funds, equal exposure
to both growth (shares and property) and income
investments (cash and fixed interest).
23
24. Risk profiling and asset allocation
(CONTINUE)
4. Growth investors – aiming for higher returns over
the long term but accepting a higher risk of losses
in bad years, mostly growth assets such as shares
and property with small proportion of portfolio
shifted towards defensive/income assets.
5. Aggressive investors – portfolio constructed from
growth and speculative assets such as futures,
options, warrants and other derivatives.
24
25. Step 4: Preparing financial plan
After careful analysis of the information gathered, and
identifying goals and any issues, a financial plan will be
prepared outlining the current position, goals, and
recommended strategies and investments.
A good financial plan should recommend the most
appropriate strategies which will meet the client’s goals
without substantially sacrificing their current lifestyle.
A good financial plan should contain strategies that will defer
and minimise an individual’s level of taxes over the long run
e.g. negative gearing, salary sacrifice, income splitting.
25
26. Step 5 and 6: Implementing and
reviewing financial plan
• The implementation occurs once the plan has been
presented to the client and subsequently agreed to.
• On at least an annual basis the plan should be
reviewed to ensure that recommendations remain
appropriate given changes to personal circumstances
and external factors (e.g. changes to legislation,
changes to economic conditions).
• Please note: for the purpose of this subject, we only discuss the
first 4 goals.
26
27. What is a Statement of Advice?
• Under the Financial Services Reform Act 2004 (FSRA) a financial
plan/Statement of Advice (SOA) must be provided to a client whenever
personal advice has been given by the planner.
• The Australian Securities and Investments Commission (ASIC) views the
plan as a document that outlines to the client how their goals and
objectives can be met (suitable to their risk profile), while providing all
information required for any reasonable person to make a decision
regarding that advice. That is, not only should the plan outline the
recommended strategies and investments, but also explain to the client
why these have been recommended, any risks associated with the
recommendations, the costs of the advice/recommendations, and how
the planner/dealer group is remunerated for this advice.
27
28. Statement of Advice (SOA)
1. Scope of advice – are there any limitations to the
advice?
2. Executive summary – what is recommended and
what is the outcome of the recommendations?
3. Existing position – personal and financial details,
current cash flow analysis.
4. Goals and objectives.
5. Investor risk profile – how should the client’s assets
be allocated given their tolerance to risk?
• Strategic recommendations – what are the
strategies recommended to meet the client’s goals
and objectives and why those strategies are
recommended?
28
29. Statement of Advice (continued)
7. Investment recommendations – what are the
investments recommended to meet the client’s
goals and objectives?
8. Revised position – what are the changes to cash
flow after the recommendations, and what is the
projected capital due to the recommendations?
9. Services – what level of service does the planner
offer?
10. Fees and interests – what is the cost of the advice,
and how is the planner compensated?
11. Disclaimer – what are the legal limitations of the
advice, and what should the client be aware of prior
to implementing the advice?
12. Appendices – usually include further information
relating to recommended strategies and
investments.
29
30. Timing in the market
• Deciding what to invest when the world is heading for a
recession, or at least an economic slowdown, is difficult.
A financial planner in order to provide the best advice,
should be aware of the economic cycles and its impact
on investment.
• A tool which people could use to understand the likely
repercussions of a changing economy and how it might
impact them is called an economic clock.
(source:http://www.wealthtipsonline.com.au/innercircle/hotopic1.html)
30
32. What is the economic clock?
• The economic clock demonstrates that as an economy
moves through its economic cycle there is a time to buy
certain types of investments and possible a time not to
buy. That does not mean sell, because one of the most
important investment habits to develop is a long-term
investment horizon.
• The economic clock identifies that the return a particular
investment will generate depends on what time it is in
the economic cycle.
• The economic clock provides a guidance but there is no
guarantee that the economy will go through the whole
cycle.
32
33. The Six O’clock Recession
• Recessions mark the peak of a downward swing in an economic
cycle.
• A recession is defined as a period of two or more successive
quarters of decreasing production. Production is usually measured
in terms of Gross Domestic Product (GDP), so in layman's terms,
any two consecutive periods of negative GDP will constitute a
recession.
• Recessions are characterised by high unemployment, caused by
employers shedding staff as production levels fall, cutting
profitability and the need for labour. With less employment comes a
drop in the average weekly earnings and with fewer dollars to
spend, consumers demand less, resulting in even lower
consumption.
33
34. Recovery Till Midnight
• A recovery from recession begins with a fall of interest rates.
• It is an excellent time to invest in the stockmarket as companies are
well placed to obtain higher earnings from growth in target markets
resulting in higher share prices and bigger profit distributions.
• Share prices move through a period of gradual increases as the
hour hands pass between six o'clock until about eleven o'clock
when those who have missed out on the stockmarket gain start
buying leading to more aggressive market highs. A frenzy begins
which marks the beginning of the end of the recovery cycle, which
peaks when the economy is booming.
• Just before midnight a phenomenon known as 'the greater fool
theory' begins. The greater fool theory suggests that no matter what
price an investor pays for a share, someone (the greater fool), with
less education and less understanding of the market, will buy it at a
higher price. You know you are in the 'great fool' period when you
hear that investors with little or no knowledge of the fundamentals of
investing believe they can't lose.
34
35. Midnight Boom Before The Impending
Correction
• Well before the clock strikes midnight the wise
investors have exited stocks and are looking for the
next opportunity. They have left because they
understand that there is likely to be a correction in the
market, since share prices cannot be justified by
traditional stock valuation methods.
• As investors leave the market, supply become higher
than demand triggering a sell off and a slump in share
prices. Investors who were too slow (or greedy) are
burned, particularly those that have leveraged (via
margin lending facilities) and the market is in a fall.
35
36. Property 'Till Three O'Clock
• The smart investors that 'got out' at the top move into property with
reliable 'bricks and mortar'.
• Extra demand in property pushes demand above supply and results
in higher prices.
• This itself isn't a problem, except that the government sees the
economy is overheating and looks to introduce measures to enable
a 'soft landing' through increasing interest rates to flatten demand by
consumers.
• With higher interest rates comes less profit in real estate since most
investors have leveraged their property purchases. Rises in interest
rates continue until it is no longer viable for purchasers to continue
investing in property and soon there are more sellers than buyers.
Property prices, like share prices, correct.
36
37. Decline Back To Six O'Clock
• Decline begins as business confidence begins to fall. Investors find
little value in either stocks or property and with impending trouble on
the horizon fixed interest securities become very popular again.
• Lower business confidence means that new capital ventures are
postponed.
• Less spending and higher interest rates result in lower demand,
which results in less production. With fewer sales there is a squeeze
on earnings, resulting in profit downgrades.
• The economy slows to the point where productivity stalls and then
declines. When this happens for two periods in a row, the economy
is said to be in a recession.
37