1、Chapter 9 Retirement and Estate planning,Learning goals:LG1: Recognize the importance of retirement planning and identify the three biggest pitfalls to good planningLG2: Establish your income needs in retirement, and estimate your retirement income.LG3: Understand different types of basic and supple
2、ment employee sponsored pension plans and self directed retirement plansLG4: Choose the right type of annuity for your retirement plan. LG5: Understand the role of estate planning in personal financial planning and the seven steps involved in the process.LG6: Determine whether a gift will be taxable
3、 and use effective estate planning techniques to minimize taxes.,Role of retirement planning in personal financial planning,It is forward looking, has an impact on both your current and future standard of living, and if successful, can be highly rewarding and make a significant contribution to your
4、net worth.How to do retirement planning?1.Set your retirement goal.2. Establish the size of the nest egg.3. Formulate an investment program.,The three biggest pitfalls to sound retirement planning1. They start too late.2. They put away too little3.They invest too conservatively.Compounding the error
5、s: compounding essentially magnifies the impact of these mistakes.,,退休生活设计,工作生涯设计,通货膨胀率,退休年龄,薪资成长率,退休生活总需求,退休时可领退休金,需自筹的退休金,投资报酬率,已累积之净值,每年可储蓄额,Estimating income needsdetermining future retirement needsEstimating retirement income: inflation factorFunding the shortfallFinancial planning software, su
6、ch as Quicken,case,赵先生现年40岁，预计20年后60岁时退休，目前家庭共同生活人数5人，退休后生活人数2人。赵先生目前家庭年支出103000元，表1为赵先生退休后第一年各种支出估算表，,,退休期间总需求分析假定投资报酬率与生活费用成长率相互抵消：总额=第一年费用*退休后余寿如果以存本取息方式满足生活需求，退休需准备的钱：退休后第一年费用/定期存单利率考虑投资报酬率与退休后费用成长率：E：退休后第一年支出 c：退休费用成长率 r：投资报酬率 n：退休后余寿,Sources of retirement income,Social securityWho is covered?W
7、hen are you eligible for benefits?Social security payroll taxesSocial security retirement benefits:1 old age benefits2 survivors benefits(5) How much are monthly social security benefits?(6) Tax on benefits(7) Social security and retirement planning,2. Pension plans and retirement programsemployer-s
8、ponsored programs: basic plans1 participation requirements2whats your contribution?3 vested interest: a right to the benefits4 retirement age5 defined contributions or defined benefits6 cash balance plans7 qualified pension plans(2) employer-sponsored programs: supplemental plans1 profit-sharing pla
9、ns2thrift and saving plan3 salary reduction plans,Evaluating employer-sponsored pension plansEligibility requirements: Defined benefits or contributions Vesting proceduresContributory or noncontributoryRetirement ageVoluntary supplement programs,3. Self-directed retirement programsKeogh and sep plan
10、s: an account to which self-employed persons may make payments, up to the lesser of $40000or 25% of earned income per year, that may be taken as deduction from taxable income, the earnings on such accounts also accrue on a tax-deferred basis.Individual retirement arrangements (IRAs)1 traditional(ded
11、uctible) IRA2 nondeductible(after-tax) IRA(3) self-directed accounts,4. annuities,Classification of annuitiesSingle premium or installmentsDeposition of proceedsImmediate vs. deferred annuityFixed vs. variable annity (2) Sources and costs of annuities(3) The investment and income properties of annuities(4) How good is the insurance company?,
