Nobody downloaded yet

Investing Money towards Retirement - Essay Example

Comments (0) Cite this document
In the essay “Investing Money towards Retirement” the author focuses on saving and investing money towards retirement, which is a very important decision working people should make. The earlier you start saving money towards your retirement the better off you will be in the future…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER91.3% of users find it useful
Investing Money towards Retirement
Read TextPreview

Extract of sample "Investing Money towards Retirement"

Download file to see previous pages In the United States traditionally parents assume the cost of putting their kids through college. Financing the college education of two kids can become a very expensive ordeal. Like most working adults Sam is struggling to get by, but he realizes he has to start saving towards these two goals or he won’t have enough time left to accomplish his goals.
Sam’s master plan entails saving $150 a month for the foreseeable future in order to put his two kids through college and to be able to retire at the age of 60. His two kids are age 3 and 8 years old. Assuming his two kids will start college at the age of 18 like most teenagers Sam will have to start spending money on college tuition 10 years from now. Sam’s plan of saving 150 a month implies he will save $1,800 a year. Assuming he leaves the money in the bank and makes 1% rate on his saving Sam will have 10 years from now $18,919.25. This amount of money is not sufficient to put his elder kid through four years of college. Sam needs to make adjustments to his plan. The simplest way to adjust his plan is by making better investment options that will allow Sam to make a higher return on his investment. Depending on the banking industry for long-range savings is not a wise move due to the extremely low-interest-rate that this industry offers. Typically interest earns on a banking account is not sufficient enough to offset inflation.
Mr. Johnson has to start an investment plan that is aligned with his long-term financial goals. Investing money is not a rocket science, but it requires a person to get educated on financial tools such as stocks, bonds, and mutual funds. Common stocks are one of the simplest types of investment options. A common stock is the transfer of a piece of ownership in a company in exchange for cash.  ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Investing Money towards Retirement Essay Example | Topics and Well Written Essays - 1250 words”, n.d.)
Investing Money towards Retirement Essay Example | Topics and Well Written Essays - 1250 words. Retrieved from
(Investing Money towards Retirement Essay Example | Topics and Well Written Essays - 1250 Words)
Investing Money towards Retirement Essay Example | Topics and Well Written Essays - 1250 Words.
“Investing Money towards Retirement Essay Example | Topics and Well Written Essays - 1250 Words”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Investing Money towards Retirement

Retirement Planning

.... There are other financial instruments that can be used to save money towards retirement. One of the most popular forms of investments is common stocks. Common stocks give investors ownership in a publicly traded company. The investors that keep stocks for a long time earn dividends from common stock as well as a capital gain once the investment is sold. The safest type of stock that an investor can choose is blue chip stocks. A blue chip stock is a stock issued by a well known company with an established record of making money and paying dividends (Teweles, Bradley, Teweles, 1992). An example of a blue chip stock is Microsoft. Due to...
3 Pages(750 words)Assignment

Retirement Planning can take to retire, some have greater risk while others offer security. For those of us wanting to retire in the next fifteen to twenty years, risk should be tempered through proper management, diverse investing, and proper estate planning that includes a will, estate plan, and life insurance if one is not self insured through a high net worth in personal property (FINRA, 2011). How Much Does one Need to Retire? Retirement goals most often deal with time and money. In order to retire by a certain time, one must have a certain amount of money. This amount can be in a stock account, coming in as...
4 Pages(1000 words)Essay

Investing For Retirement

...? Investing For Retirement March 15, Investing For Retirement SUMMARY In the Family Finance section of Financial Post, there is an article entitled "Retirement Transition All About Expectations." This article is about a couple, Julius ,60, and Emma, 58, in Alberta, Canada who are both retirees, who's been worrying about how they can protect themselves financially if ever there would be a sudden change in the economy. According to Julius, "it might be difficult to make the transition from employment to retirement" (Allentuck, 2011). Exposure to inflation is their main threat being a retiree. Don Forbes, head of Associates/Armstrong &...
5 Pages(1250 words)Research Paper

Retirement Age

... Money - U.S. News & World Report. Retrieved on October 3 2013 from: Meyer, H. (2013). Number of over-65s still in work triples in 15 years. The guardian|The Observer. Retrieved on October 3 2013 from: Woodifield, P. (2013). Independent Scotland May Scrap Plan to Raise Pension Age to 67. Bloomberg. Retrieved on October 3 2013 from: ? Retirement Age Retirement Age In most developed counties such as America and UK, where have been increased rates of aging population and...
3 Pages(750 words)Essay

Retirement Planning

...right now, the opportunity cost they throw and the ultimate decision which needs to be taken up to optimize our earnings for a trouble-free future. It has various components like tax planning, managing liquidity, financing for large purchases, asset and income protection, money investment plans, and the most important function being planning for your retirement. In fact, all the above five functions are usually taken up only to cater to the financial needs after retirement. Depending on the above five parameters, you will have to set up your retirement planning goals for which the following points are to be considered: 1. Social Security 2. Employer...
5 Pages(1250 words)Essay

Retirement Planning

...-Cap Value Beta Still Relevant? Retrieved November 25, 2012 from (2012). How Large Are Large-Cap Stocks? Retrieved November 24, 2012 from Hazell, A. (2012). Retirement Planning Calculator. Retrieved November 23, 2012 from Kenny, T. (2012). Long-Term Bond Market Returns: Stock vs. Bonds. Retrieved November 24, 2012 from Paulson, E. (2009). Long Term Average Returns: Lessons from the Past....
4 Pages(1000 words)Essay

Retirement Issues

...age health care. What have been stated above clearly portrays that retirement plan failure generally happens owing to two sets of problems namely human error and stochastic incidences. Among the human errorovertly satisfaction with the saved amount of money, not giving due importance to savings, delayed savings activities, saving almost nothing even knowing that the concerned person has to finance his child’s education, premature social security claim, premature retirement age determination, remaining beyond the pension net by the small business units, irrational attachment towards the living place, leakage of retirement fund and overdependence on...
15 Pages(3750 words)Essay

Investing In Retirement

...Investing In Retirement It is essential to save consistently and develop viable plans of saving in achieving retirement goals. This can be done through considering schemes that provide tax incentives on savings. It is for this reason that my wife (a chemical engineer) and I (a geologist) are planning to start investing and saving for the future. The sooner we start setting money aside for retirement, the better because this is what makes investment worthwhile in the end. Starting early enough is imperative because of the aspects of compounding interest that tends to accumulate the amount invested....
1 Pages(250 words)Essay

Forms of Indirect Investing

...the investors with the option of efficiently capitalizing with the advantage of global diversification. It also helps the investors to achieve a perfectly diversified portfolio with a prominently lower capital outlay. The investors may also rely on the expertise of the analysts for the management of their external portfolio (Direct vs indirect property investing). Case Study This case study discusses different examples of indirect investment portfolio. There is no hard and fast rule for how the portfolio of the investor must be divided, however it is dependent on the investor that how well he research the market before investing in shares. Case of Kay, 59, Approaching...
9 Pages(2250 words)Case Study


...Retirement al Affiliation) The following is an illustration of the five stages of retirement: The initial stage isimagination lasting for averagely ten years before retirement. At this stage, individuals are engaged in caring for either children or parents (Schieber, 2012). The last five years, just before retirement, is the anticipation stage, where individuals contemplate on what to do, while on retirement (Schieber, 2012). The availability of guidance to the pre-retirees at this stage is wanting. The liberation stage is marked by the first day of retirement. Also referred to as the honeymoon stage, it lasts for about a year (Schieber,...
2 Pages(500 words)Assignment
sponsored ads
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.

Let us find you another Essay on topic Investing Money towards Retirement for FREE!

Contact Us