We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Personal Financial Planning - Essay Example

Comments (0) Cite this document
Summary
Everyone has to plan for his better future life. 60 years old Jeff needs to invest his money in such a way that he may get a good return at the time of retirement. The data shows his average annual income of last five years i.e. about £28000…
Download full paper
GRAB THE BEST PAPER

Extract of sample
Personal Financial Planning

Download file to see previous pages... Jeff has now 5 years of job remaining. The best way to utilize his resources to save the money for his retirement is to invest the amount to get a good return. So that he may have enough money to complete his post-retirement plans. Jeff is also having full National Insurance contributions and has some savings. He has won the lottery ticket prize of £800,000. Now he has to use the entire amount wisely because he has various plans to be fulfilled. These plans can only be completed by having proper use of the available cash. For that purpose, Jeff needs complete personal financial planning.
Now Jeff needs to be very careful to use the money in such a way that he may fulfill his plans after retirement. Obviously he would like to use his money to earn some profit on it. The financial institutions are there to help such people. They offer different rates for the investment of 5-10 years and so on. They have different policies so one should be aware enough to choose his required package of investment according to the rates. He should deposit the amount for annuity and get the reward at the end of fiscal periods. In UK market, the present rate of pension annuity is about 40% and it also varies by institution to institution. So if Jeff starts investing his money for pension annuity then this activity will be fruitful at the time of his retirement. Moreover, statistics shows that there are chances of increase in the annuity rate in coming years.
Normally the pension annuity period goes to the age of 75 in UK but mostly people avail the opportunity at the time of retirement i.e. 65. Though some people go for other options to hold their finance or maximize it. That is the remedial measure to adopt such steps during the job to secure the life after retirement. During the job, this may be the best way to save money for future. But there is another fact that if anyone at the age of 65, wants to utilize his annuity amount then there will be surely reduction of 1% in profit. This is the reason people go for other options. More the time will be; more the chances to get higher profit for annuities (Murthi, July 2000). All the people whether they are skillful or not, consider the financial planning a very important thing. With the passage of time people became aware of its importance. It’s not necessary that they have the knowledge to plan perfectly for their selves or not. The thing is that they have vision of the importance of financial planning and they want develop a financial plan for themselves to save their financial resources for the future life. The advice of an expert financial advisor also helps the individual lot. A research study shows that only 13% people are known with the skills of financial planning. Everybody has his own preferred resources to identify the needs to plan for future life (Murphy, 2010). In Jeff’s case, we need to consider the rates of different institutions and compare their rates of annuities. The highest rate of return will be considered. Basically, the rates are linked with the period of time you are investing money for. If the time period is longer, the rate will be higher and vise versa. The investor gets the highest rate in the later years so that is the main purpose of pension annuity. This thing helps the individual to secure their future after retirement. So this will be beneficial for Jeff to invest money in pension annuity and make it more of the original. We can go for fixed annuity. In such annuity, the annuity is sure for some years e.g. we say that we have an annuity for 5 years. So it is the annuity in which number of years is fixed. The financial institution will make the payment at the end of that period. Jeff can get more of this plan. Another option is the Maximum Investment Plan offered by different ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Personal Financial Planning Essay Example | Topics and Well Written Essays - 2500 words”, n.d.)
Retrieved de https://studentshare.org/finance-accounting/1390692-personal-financial-planning
(Personal Financial Planning Essay Example | Topics and Well Written Essays - 2500 Words)
https://studentshare.org/finance-accounting/1390692-personal-financial-planning.
“Personal Financial Planning Essay Example | Topics and Well Written Essays - 2500 Words”, n.d. https://studentshare.org/finance-accounting/1390692-personal-financial-planning.
  • Cited: 0 times
Comments (0)
Click to create a comment
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
Personal financial planning
today. Bismarck: The Bismark healthcare system owes its history to the German Chancellor (Otto Von Bismarck). This healthcare system is somewhat based on the model of a government welfare state as implemented by the chancellor. Funding for the healthcare system comes from a kind of insurance that is largely funded by employers, employees, and the government which would be familiar to many Americans.
1 Pages(250 words)Essay
Personal financial planning
Most of the world’s poorest countries have an Out-of-Pocket healthcare system in which patients do not have insurance and pay for medical expenses in cash or in kind. There are currently 50 million Americans without insurance that are forced to pay for medical services out of pocket when illness forces them to see a doctor (Kaiser Commission 1).
1 Pages(250 words)Essay
Personal financial planning report for Ms Lucy Hargreaves
to our latest meeting, I have immense pleasure here in to enclose a report that will form the basis of your financial planning. The report aims to analyse your current state of affairs and then based on that the report will construct relevant immediate and long term financial objectives.
10 Pages(2500 words)Essay
Personal financial planning
During this period Jack would have return of deposits amounting to $ 8000 and the return from superannuation as $ 1350. This could be deposited on long term basis and as the seven years are completed the amount could be added with the Marions return to meet their living expenses.
6 Pages(1500 words)Essay
Financial Planning
A Financial Planner is always set and has capabilities to help others in dealing with various financial issues. Planners' tasks are plentiful, but foremost include investment planning, appropriate advice on cash flow, estate planning, business planning, risk management and insurance planning, retirement planning, and many other issues relating to Finance1 together with an estimate of the probable outcomes of the recommended strategy.This assigned study describes the relevance of financial planning for clients as useful tools of financial services guide & skills requirement, Client Financial Fitness Assessment and its use as a useful strategy.
8 Pages(2000 words)Essay
Financial Services - Personal Financial Planning
This paper aims to look at the issue that has been pointed out by the statement and presents arguments in line with it. This paper argues that while government punishes those who save, the incentives come to those who invest
7 Pages(1750 words)Essay
Personal Financial Planning - The Pensions Environment
n turn leads to availability of better health and medical facilities and availability of safe, cleaner environment to citizens in the name of welfare by concerned authorities. Unequivocally, the developed nations such as Western, European and North American states such as United
12 Pages(3000 words)Essay
Australian personal financial planning case studny questions, urgent
For any member of either Leo or Spiro family to assume the directorship of the company in the future, the family member must be chosen by the company’s
12 Pages(3000 words)Essay
Finance - Personal Financial Planning
You and your spouse are in good health and have reasonably secure careers. Each of you makes about $28,000 annually. You own a home with an $80,000 mortgage, and you owe $10,000 on car loans, $5,000 in personal debts, and $3,000 on credit card loans.
2 Pages(500 words)Assignment
Personal Financial Plan - Part II
Apart from the role of economics in developing financial plans, the use of credit is also of prime importance. This paper describes the role of economics and credit in personal financial planning. Gitman, Joehnk, and Billingsley (2010) define Personal financial
1 Pages(250 words)Essay
Let us find you another Essay on topic Personal Financial Planning for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us