Tags: How Do I Write A Dissertation IntroductionEssay On Value Based EducationEssay On Adversity Makes MenCv Personal Statement Sales ManagerExamples Of Autobiographical EssaysTale Of Two Cities Essay QuotesThesis Statement Of LoveEssay On ImaginationBrutus Antony Essay
Prices increased during a recent 12-month period (0ct. That means at a 2% inflation rate per year, Joe and Mary will need ,656 per month when they retire to maintain their standard of living.
But remember that some sectors of the economy like health care and education have had even greater price increases, so you may need to adjust this even higher depending on what your client is saving for.
Life Expectancy is a very critical number in retirement planning.
If it isn't guaranteed, it is best to leave money out of your planning calculations.
Do a baseline plan with social security, pensions and savings that are guaranteed.
Once again, being conservative is the rule, lowering estimates for future growth from stock investments is the best policy.
The Internal Revenue Service (IRS) website and publications are the source of information on tax matters.Returns on fixed income securities like US Treasuries and corporate bonds are known to investors and published on financial websites. A mixed portfolio of stocks is historically expected to return 10% per year, but that is a long term average that includes wild upswings and devastating crashes.It is best to project current returns into the future. The stocks traded on major exchanges number in the thousands. Financial publications and websites can offer guidance on the direction that stocks will take in the future and the returns that can be expected.In fact, the SSA estimates that 25% of them will live to be over 90.That means you jointly have to come up with a good number for this.The Social Security Administration (SSA) estimates like expectancy to project their liabilities and they have a good ballpark estimate for retirement planning.According to the SSA, Someone who just turned 65 can expect to live until they are 85, or a full 20 more years. ''No kidding,'' said Joe ''So we need to plan on making our money last for 20 years, right?If the inheritance comes through, it will just be something extra.This of course will vary greatly depending on the particular investment.Stress the word, ''uncertain'' with your clients: the world changes fast!A good rule to use with all assumptions is to be conservative.