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Retirement Planning
Briefly discuss on (1), (2) & (3)
1. a general plan for your budgeting and tax planning
Evaluate your current financial position
Assets: what you own
Liabilities: what you owe
Net worth: the value of what you own minus the value of what you owe
2. a general plan to manage your liquidity
Liquidity: access to funds to cover any short-term cash deficiencies
Money management: decisions regarding how much money to retain in a liquid
form and how to allocate the funds among short-term investment instruments
Credit management involves decisions about how much credit you need to support
your spending and which sources of credit to use.
3. a general plan for your financing
Loans often needed for large expenditures
- College tuition, car, house, etc
- Managing loans
Briefly discuss on (1), (2) & (3)
1. a general plan for your budgeting and tax planning
Budgeting is the process of creating a plan to spend your money. This spending plan is called a
budget. Creating this spending plan allows you to determine in advance whether you will have
enough money to do the things you need to do or would like to do. Budgeting is simply balancing
your expenses with your income.
Getting a successful strategy for money related retirement diminishes strain and significantly
impacts you to arrive at these goals. With an incredible retirement finance, rather than destroying
you, your money will let lose you. Your fantasy retirement may additionally consolidate giving
your family back. If you have a solid pool of stores that you simply can take advantage of, you'll
be the parent or grandparent who gives your family liberal things, for example, taking your entire
brood on a remarkable event or purchasing a trip home-grown that you simply can continue.
Masterminding retirement is basic since it'll help you end running out of cash in retirement. Your
strategy will help you choose the pace of return on your assets that you simply require, how much
peril you'll be capable take, and how much pay you will easily remove from your portfolio. If you
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begin to get ready for retirement right off the bat, you'll be capable put yourself inside the best
condition. It will require a very long time to raise the stores you wish for a solid retirement,
contingent upon your pay, and when you are presently not taking in a check, you'd need as
enormous of a settled egg as possible. Your save finances will gather and develop over the long
haul by beginning to add to your retirement from the get-go in your profession, getting out you
with a gigantic adequate help to satisfy your retirement dreams.
BALANCE SHEETS:
Balance sheet for age stage 26-35:
Details
RM
RM
Assets
Cash on hand
Savings account
Total Liquid Assets
INVESTMENTS
Stocks
Bond 1
Mutual Funds
Cash Surrender of Life
Insurance
ASM
Total Investments
PERSONAL PROPERTY
Auto(s): Perodua MYVI
Household furnishing
Jewelry & artwork
Total Personal Property
Total assets
2000
5,000
3000
5000
0
5,000
15,600
44,801
0
2500
7000
28600
47,301
82901
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Liabilities
Insurance Premiums
Credit card balances
Total Current Liabilities
Long term liabilities
Automobile loans
Education loans
Total long-term liabilities
Total liabilities
3750
5000
44468
18000
8750
62467.8
71217.8
Net Worth
Total assets
Less: Total liabilities
Total net worth
82901
(71217.8)
11683.2
Balance sheet for age stage 36-45
Details
RM
Assets
Cash on hand
Savings account
Total Liquid Assets
INVESTMENTS
Stocks
Bond 1
Bond 2
Mutual Funds
Cash Surrender of Life Insurance
ASM
Total Investments
Primary residence
2000
10,000
5000
5000
10000
5,000
10000
159,795
12000
189794.51
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Total real property
PERSONAL PROPERTY
Auto(s): Perodua MYVI
Household furnishing
Jewelry & artwork
Total Personal Property
Total assets
40879
10000
2500
500000
53379
755173.5145
Liabilities
Utilities
Insurance Premiums
Credit card balances
Total Current Liabilities
Long term liabilities
Mortgage loan
Total long-term liabilities
Total liabilities
2640
11210
5000
18850
888480
907330
Net Worth
Total assets
Less: Total liabilities
Total net worth
755173.5145
(907330)
-152156.4855
Balance sheet for age stage 46
Details
RM
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Assets
Cash on hand
Savings account
Total Liquid Assets
INVESTMENTS
Stocks
Bond 1
Bond 2
Bond 3
Mutual Funds
Cash Surrender of Life Insurance
ASM
Total Investments
Primary residence
Second home
Total real property
PERSONAL PROPERTY
Auto(s): Perodua MYVI
Household furnishing
Jewelry & artwork
Total Personal Property
Total assets
3000
15,000
7000
5000
10000
15000
20887
15000
218371
40879
0
2500
18000
291258.2469
1360000
43379
1712637.247
Liabilities
Utilities
Insurance Premiums
Credit card balances
Income tax payable
Total Current Liabilities
Long term liabilities
Mortgage loan
Total long-term liabilities
0
14210
5000
15.060
34269.68
592320
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Total liabilities
626589.68