FIN1 FTU - Stage 14

F1 – Project-Stage 14: Retirement Planning Lawrence (2011). Chapter 14 JPMorgan, Guide to retirement* QUT (2019). Personal Financial Planning TCHE322 https://am.jpmorgan.com/us/en/asset-management/adv/insights/retirement-insights/guide-to-retirement/ 1 Schedule of lectures Project topic covered • Financial freedom at retirement • Assets management Groupwork project activities • Making plans for prosperous retirement • Managing assets after retirement 2 Why Retirement Planning? MISCONCEPTIONS ABOUT RETIREMENT PLANNING – My expenses will decrease when I retire – My retirement will only last 15 years – Social Security & my company pension will pay for my basic living expenses – My pension benefits will increase to keep pace with inflation – My employer health insurance plan will cover my medical expenses – There’s plenty of time for me to start saving for retirement – Saving just a little bit won’t help 3 A sound retirement plan – Retirement equation Retirement equation https://am.jpmorgan.com/us/en/assetmanagement/adv/insights/retirementinsights/guide-to-retirement/ 4 How much do you need to save each day to be a millionaire by age 65? - Assumes a 12% return - Does not consider taxes http://www.businessinsider.com.au/build-a-million-dollar-retirement-account-20157?utm_content=bufferd7b3c&utm_medium=social&utm_source=facebook.com&utm_campaign=buffer?r=US&IR=T- https://am.jpmorgan.com/us/en/asset-management/gim/adv/insights/guide-to-retirement Notes: Start saving early (compound interest) / Risk vs Return