Question

Discuss the retirement planning process for individuals, including which aspects are most important and how they are applied. Discuss investment options and impact in a retirement plan.

Further discuss whether the tax-deferred savings, and in some cases tax deductions for contributions, make up for the tax liabilities during the pre-death or post-death distribution period.

Answer 1

Retirement Planning is the way toward deciding retirement pay objectives and the activities and choices important to accomplish those objectives. Retirement arranging incorporates recognizing wellsprings of salary, assessing costs, actualizing an investment funds program, and overseeing resources and risks. Future money streams are evaluated to decide whether the retirement salary objective will be accomplished or not.

1. Health status and financial security:

Healthcare is a most thing to worry about those going into retirement. As healthcare costs are rising and many individual are concerned about getting diagnosed with an illness during retirement and not having enough money for their medical care. Many studies over the past few years have estimated that very few individuals could spend approximately $200,000 from their pocket for their health care costs during their retirement. But, with people living longer and health care costs going up each year and they have to utilize their money from their own pocket as the amount is limited after the retirement the individuals need to plan for their financials accordingly.

While planning for the retirement the individual should work with the financial advisor and with some good saving plan option for their future health care costs after their retirement. While planning they should calculate the inflation on that amount with the health care related savings and non-healthcare related services.

2. Educate yourself on the reality of long-term care.

According to the estimated data around 70% of the 65% year old needing some form of long term health care policy. As this is the most important thing to discuss with the financial advisor while discussing the retirement savings. Most of the heath care policies does not provide with the long term cover. While planning for their retirement plan the individual should consider the every causes and the cost off medical care which is going to be occur after their retirement.

3. Outliving your money.

Every individual have a certain life span he or she should always plan according to the long term living life as the time of the life span we don't know. If the planning of or savings goes wrong according to our life span then we will be out of money and it will become difficult to survive without the money as in the old age there are lots of medical expenses which need to be fulfilled. So an individual should take care while planning of their retirement they should not go out of money till the time they are living should always live a good life. They should have a proper planning of their of retirement goals and accordingly they should plan for it.

There are many plans available In to the market for the retirement plan an individual should aways play safe for the retirement the individual should make an investment in the debt funds on which that individual will be getting the fixed rate of interest and will be living a happy life according to their living standards, They should always go for a debt fund fixed interest every year and their money will Also be secured and no risk will affect their retirement.

While making an investment the individual will be getting the tax benefits he or she can show their fund investment file filing their tax liability. In case the individual who is the policy holder dies then the amount of the policy will go to the beneficiary of the and if the lives a long life he will be getting a good amount of money after the maturity of the policy.