Being a college student, retirement planning is not at the top of my schedule of things to do. Most college students would think they have plenty of time to work on forming a retirement plan and why should said college student have to worry about retirement now? Why have a retirement plan when they do not even have a solid career yet? In the future, our bodies will be unable to keep up with our adult life style, and will lose the ability physically work, thus losing our primary source of income. Investing time and a little money into a retirement plan now, would prevent stress and create a worry-free environment in later years. By investing in a retirement plan early on, Americans could receive a little fiscal piece after retirement, get into a process of saving money and also potentially save an abundance of money for the future.
Investing in your future now can lead to many positive investment outcomes in the future. Some of these include traditional IRA, Roth IRA, Coverdell Education Savings account, Keogh Plan and one of the most popular, the 401 (k) Plan. All of these retirem...
Can We Keep Our Promises? The purpose of this paper is to provide a summary of the article called “Can We Keep Our Promises?” by Robert D. Arnott, and to help better understand the three key risks facing each investor. Robert Arnott describes risk and return as “having two sides of the same coin” meaning risk is inseparable from return. Arnott points out the most important risks that are faced by managers of company pension plans: underperforming other corporate pension funds (their peers), losing money (mostly associated with portfolio standard deviation or volatility), and underperforming the values of pension obligations and therefore losing actuarial ground.
This paper explores the characteristics of traditional and Roth IRAs, as well as the similarities and differences between both. The main characteristic of both IRAs is that both are considered tax shelters—a way for individuals to receive reduced tax liability by decreasing one’s taxable income. Traditional IRA’s are called “deductible” because contributions made with earned income, up to specified limits, are fully or partially deductible from income depending upon factors such as adjusted gross income and filing status. Upon withdrawal, the money is then taxed as ordinary income. Roth IRAs are the antithesis—the money that you contribute here is already taxed at your marginal tax rate and the withdrawals are generally not taxed. Only money that is considered investment income is taxed. Because of the income limits of Roth IRAs, some individuals choose first to contribute to traditional IRAs or employer-sponsored programs and subsequently convert to a Roth IRA. For younger individuals with lower incomes, Roth IRAs seem to be the better choice based on the below research. The money is taxed at a lower rate and then contributed. As one ages, tax rates are probable to rise and the cost of contributing increases as a result. Saving in full measure, below the legal limit and beginning this process at a young age seems the best option for a enjoyable retirement in years to come.
You might be tempted to dip into your retirement fund for a major purchase, find the will to resist. You’ll pay extra fees and taxes, and you are robbing your future self. If you leave it alone, your money will continue to grow year after year. Your gains can be reinvested and you’ll earn more than you would have with just a small chunk of
Students may think it’s unfair for some to go to college early and others stay behind, but this could actually separate the students who put in the work and effort to have this opportunity. If able, students should be able to start their lives early at a younger age because it brings about a greater experience. Starting their lives younger could be a great thing to go ahead and make their mistakes that every college student usually
Furthermore, to attend a university, it is becoming more expensive to receive a degree of your choice. Parents are expected to save their money from the moment their child is born, although, they might not have that privilege to save their earnings. One way I could benefit from the program is by saving money on tuition. My sister is currently attending college and by the time I graduate high school, my parents would like to save as much money as possible. By completing about thirty college credits, my tuition overall reduces. Another way I could benefit from Early College is by attending college classes. It will help me later on in my education and it will prepare me for university level work.
In today’s America, there are many people who would either be disgusted at the very mention of Welfare or be highly grateful for its existence. I believe that in order for welfare to be more effective in America, there must be reform. From the time of its inceptions in 1935, welfare has lent a helping hand to many in crisis (Constitution Rights Foundation). However, at present many programs within the system are being abused and the people who are in real need are being cheated out of assistance. The year after the creation of welfare unemployment was just about twenty percent (Unemployment Statistics). The need for basic resources to survive was unparallel. Today, many people face the same needs as many did during the 30s. Some issues with
Through the years, people age and become less productive. For these reasons, they have to prepare some plans that help them secure their own future. But, there are instances that lead an individual to an early retirement. Some lack motivation and enthusiasm in their work. Others are not capable of working anymore as well because of the health issues that they are facing. Regardless of the reason, it is important that one has to work so that by the time they retire, they will not end up broke. Having this in mind, many people are already investing in a simple IRA.
The United States offers citizens benefit programs at every level of government to help with life’s hardships, and a considerable number of people participate. A variety of benefits are available for all Americans and some non-citizens who are in need of aid. Many Americans are aware that these programs exist, but may not be informed about how many people receive assistance, what kind of benefits are available, or who garners government relief (Welfare Info.).
45 million Americans with low income rely on at least one of the many welfare programs. Of these government assistance programs, many of them deal with fraud and abuse. “Some cases of government assistance misuse are more blatant than others, but some aid recipients are using sneaky tactics that give other needy Americans a bad reputation” (calonia 1). Clearly, people are abusing the system in order to receive money they do not deserve. This makes it harder for people who need the welfare programs to get the money they need to support a family.
There are extensive studies on retirement covering education in general. The findings suggest that education is an important factor in affecting retirement planning preparedness (Hogarth, 1985; Joo&Pauwels, 2002). Education enables individuals to explore more information relating to their retirement planning and that sources of information will influence their decisions, attitude and intention to do retirement planning (Hogarth, 1985; Joo&Pauwels, 2002). Also, DeVaney (1995) addressed that the effect of education level may serve as a motivator or guidance for individuals to start the preparation for retirement planning. With the increase in age and educational level, individual tends to be more motivated to work on retirement planning preparation or take some action for their retirement (DeVaney, 1995).
Honestly college at this certain point in time does not seem worth it. Everywhere else in the world college is free but the United States. People would feel more motivated to go to college if it was free. College is the main reason Americans are having to live such a hard lifestyle. My father did not go to college and makes eighteen dollars an hour. On the other hand my aunt did go to college and make twenty-four dollars an hour but is still paying back student loans so after paying all of her stuff back she only makes around fifteen dollars an hour that she gets to bring back and that doesn’t include taxes. That’s the reason college doesn’t seem like a good choice to make in life.
Life is full of uncertainties. Risk lurks in every nook and corner of human life. In short, life is unpredictable. We need to be prepared for such circumstances. Leading a happy life, involves good planning and analysis for your personal health. Accidents do happen and you need to be prepared for such situations. In times of high health cost, you need to get covered for health risks.
While it is very important for young individuals to start to save and invest for their retirement, there are aspects that they should consider before jumping into investing into securities. Those subjects are cash, enough insurance, should you buy a home, how secure is your job, how much risk can you handle, equities are risky, get started, do everything, be flexible, and can you save and invest too much. These ten aspects should be looked at, analyzed, and taken into very critical thought before saving and investing into securities.
The future is always uncertain. However, having a financial plan for the future can save a person a lot of grief. More importantly, it can help tremendously for that young adult who is fresh out of college, and at the beginning stages of life; for the young adult who is preparing to attain his or her Doctorate, and will be living, most likely, completely on his or her own.
With technology advancing every day, the way people shop and invest their money has drastically changed. This is impacting financial professionals as