ipl-logo

Ridenour Group Case Study

587 Words3 Pages

The Golden Years, the time for stress free enjoyment of life supported from years of careful planning. The Ridenour group strives to provide clients with sound retirement consulting so you can enjoy the fruits of your successful career. The Ridenour group is pleased to provide the following review of Benedict’s retirement. We have built a savings model based upon the following parameters:

Parameters
Current Year 2016
Current Age 37
Current Retirement Savings $259,000.00
Annual rate of return on savings 4%
Current Salary $145,000.00
Annual salary increase 2%
Annual Contribution, % of Salary 6%
Expected retirement age 65
Annual expense after retirement $90,000.00
Rate of Return on savings after retirement 3%
Income tax postretirement 15% …show more content…

This will be addressed in our second model, Retirement Withdraw Spreadsheet on page 3. This model focuses on the estimated funds needed for living expenses with an adjustment for expected inflation. Based on inflation, expenses, and the income tax rate the withdraw model shows Benedict running out of funds when he reaches age 78. As in our first model this spreadsheet has been expanded beyond the desired regiment age to estimate continued shortfall in Benedict’s savings plan.

Future return on savings is important to retirement accounts. As indicated in the Retirement Savings Spreadsheet, retirement age can impact the longevity of the funds. Delaying retirement each year will aide in the growth of the retirement savings and extend the period of time the funds will last. Additionally the amount of additional investment to the account can further impact the longevity of the funds. Currently there is an allowance of up to $16,000 a year pretax that can be added to the savings. The chart below outlines the impact of delay in retirement age and additional pretax contribution.

As you can see, increasing the additional contribution and deferring the retirement age can significantly expand the longevity of the retirement

Show More
Related

  • 401k Retirement Savings Account: Case Study

    64 Words  | 1 Pages

    401K Retirement Savings Account is needed for the employees and their families. It is needed because it helps the employee save money towards their retirement before taxes are taken out reducing your tax bill for the current year. As our employee, you have the option to control how your money is being invested through a spread of stock, mutual funds, money markets and etc.

    Read More

  • Rules Of 401k Withdrawals

    267 Words  | 2 Pages

    The Rules of 401k Withdrawals Learning more about the rules of 401k withdrawals can be important, especially when a person is approaching retirement. After working diligently over the course of a lifetime to build a 401k, having this knowledge will help to ensure that your hard work isn 't wasted. Penalties The first item that should be considered is penalties.

    Read More

  • The Pros And Cons Of Central States Pension Cuts

    840 Words  | 4 Pages

    More than 40 years ago a pension was the best form of assurance for a financially happy life after retiring. In 2016, the Central States Pension Fund forecasted that it will run out of money in the near future. To potentially stop the fund from running out of money, it has proposed cuts to current and future pension payments. These cuts will affect not only thousands of workers, but could affect millions. As the director of the Central States Pension Fund it would be best to push for cuts on pension payments.

    Read More

  • The Measure Of My Days Book Report

    466 Words  | 2 Pages

    The book explores the feeling and experience of one 's later years: when one feels both cut off from the past and out of step with the present; when the body starts to give up but the mind becomes more passionate than ever. The book offers a wide vision of the issues that we go throughout our lives: the struggle to achieve goodness; how to maintain individuality in a mass society; and how to emerge out of suffering, loss, and limitation and so on. The book is an important contribution to the literature of aging, and of living. Scott-Maxwell’s book is compelling.

    Read More

  • Gerontology Chapter 13 Outline

    580 Words  | 3 Pages

    Ageing is something that can be split up into many groups like aa variety of things in society. Older people can be categorized into the young-old, the middle-old and, the old-old. That last one seems ridiculous to me. People in each of these groups are generally happier in this time period rather that the previous one because the United states has given the resources for us to be more prepared for aging. Also nowadays people can start planning for their retirements before they even think about getting old.

    Read More

  • Pennydrops Anywhere Key Lessons

    2077 Words  | 9 Pages

    This lesson introduced me to the different types of savings accounts and the concept of compound interest. I also learned about the importance of diversifying my investment portfolio to manage risk. One of the key takeaways from this lesson was the value of starting to save and invest early. By starting to save and invest at an early age, I can take advantage of the power of compound interest and potentially grow my savings and investments significantly over time. I also learned about the importance of diversifying my investments to manage risk, and how to select investment options that are appropriate for my risk tolerance and financial goals.

    Read More

  • Private Pension Plans During The Great Depression

    775 Words  | 4 Pages

    Some employers may even offer to match you. You maintain complete custody over these accounts. The biggest risk faced when using this plan is some stocks not performing as expected, but usually the market will balance itself out. The second option is a Defined-Benefit plan, where it promises to pay those who’ve retired based on salary and how long they worked there. But if these plans fall short, it leaves the people using the plan worried that their benefits might not be safe.

    Read More

  • Social Security In The 1800s

    721 Words  | 3 Pages

    Financial security is an aspiration for all families, wanting to secure their lives and not have to worry about the monetary aspects of the world. To have an economic safeguard, such as the Social Security Act, is crucial if someone is unable to work due to illness, age, sudden unemployment or when a provider passes away in order to provide some sort of income in times of need. This demand for insurance truly established itself sometime in the Industrial Revolution, as the United States began to become more forward thinking. However, it did not come to pass due to the short life expectancy in the 1800’s, around thirty-eight years old, and the lack of elderly individuals. As time went on, heading into the 1900’s, life expectancy began to rise and thus, the need for social security followed suit.

    Read More

  • Canadian Pension

    610 Words  | 3 Pages

    A country’s social security system is very important, as it directly relates to the happiness and wellbeing of its citizens. During this time period, Canada’s social security system advanced greatly, specifically with the Canadian Pension Plan and the Medical Care Act. Although an Old Age Pension Act was already introduced in 1927, this program only provided benefits for seniors who had an annual income that was less than $350. With the economic improvement following World War 2, seniors faced the problem of inflation because their pensions were tied to minimum income levels rather than the cost of living. In 1951, Louis St. Laurent fixed this issue by introducing the Old Age Security Act and Old Age Assistance Act, the first pensions that

    Read More

  • Unions In The Early 1900s

    1034 Words  | 5 Pages

    Pensions are important to obtain because they

    Read More

  • Summary Of Jean Domat's On Social Order And Absolute Monarchy

    763 Words  | 4 Pages

    This pension would help pay for his future publications as told in the

    Read More

  • Pony Express Rider Research Paper

    391 Words  | 2 Pages

    In my opinion, you should not become a pony express rider. Why? Because it is dangerous. In my opinion that would be too much for me. It also is lots of work.

    Read More

  • Persuasive Essay On Social Security

    1002 Words  | 5 Pages

    Every time a baby is born in the U.S. they are given a social security number. This number will continue to be important until the day that they die. Young people often do not know the importance of Social Security except the fact that it is used often for identification purposes. In recent years there has been a lot of talk surrounding the Social Security system and the current crisis that it is facing. Of course there are many possible solutions to combat this crisis, but none without their faults.

    Read More

  • Harley Davidson Case Study Solution

    813 Words  | 4 Pages

    Solution : Introduction: A budget is an estimation of particular commodity, quantity etc. It can be prepared for any number of days but generally it is prepared wither for a year or quarter... A budget may or may not become the actual outcome.

    Read More

  • Late Adulthood Research Paper

    1667 Words  | 7 Pages

    Late Adulthood is the stage of the human life cycle where an individual nears the end of their life. The life expectancy in the United States has slowly increased over the years therefore allowed many to further analyze the physical, cognitive, and psychosocial development during late adulthood. The stage of late adulthood has been emphasized by ageism and the stereotypical "old" person but, will be further educated by the normative development of the life cycle of late adulthood. For the “old” experience dramatic changes in their development as they face loss, death, and illness.

    Read More

More about Ridenour Group Case Study

Open Document