Page 166 - DMGT515_PERSONAL_FINANCIAL_PLANNING

Mahesh Kumar Sarva, Lovely Professional University
Unit 9: Retirement Planning-I

Unit 9: Retirement Planning-I Notes

CONTENTS
Objectives
Introduction

9.1 Meaning of Retirement Planning
9.2 Why Plan for Retirement
9.2.1 Uncertainty of Social Security and Pension Benefits
9.2.2 Unforeseen Medical Expenses
9.2.3 Estate Planning
9.2.4 Flexibility to Deal with Changes
9.3 Retirement Planning: How much will I Need?

9.4 Retirement Planning: Where will my Money Come From?
9.4.1 Employment Income
9.4.2 Social Security
9.4.3 Employer-Sponsored Retirement Plan
9.4.4 Current Savings and Investments
9.4.5 Other Sources of Funds
9.5 Retirement Planning: Building a Nest Egg
9.5.1 Government-Sponsored Vehicles
9.5.2 Company Pension Plans

9.5.3 Other Products
9.6 Retirement Planning: Tax Implications and Compounding the Early Bird Gets …
the Nest Egg
9.6.1 Compounding your Tax Savings
9.6.2 The Bottom Line

9.7 Summary
9.8 Keywords
9.9 Review Questions
9.10 Further Readings

Objectives

After studying this unit, you will be able to:

Describe the need and objectives of retirement planning;
Understand the process of retirement planning;
Learn about the various sources of income for retirement planning;
Know about the various investment options available for retirement planning.

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