case studies summaries

Currently am 32 years old. I currently work as a junior accountant and according to my profession am planning to retire from the job at 65 years old. Since I plan to retire at 65 years, I have 33 years whereby I will be employed working for the company. Currently, I have a saving of $10,000. The annual saving usually generated an interesting average of 3.5%. Having the possibility of generating income from different sources of income is very key for retirement financial planning. Everyone wants to ensure that he/ she stable after retiring. Some people prefer to create a saving account where they can direct all their excess money to in order to save. The amount which one saves for retirement is based on the amount of income that has been channeled to the retirement. The more income and funds directed to the retirement fund the higher funds in the retirement scheme after retirement.

According to my plan, I will be saving an average of $10,000 annually for the next 30 years. My savings account has been experiencing an interesting growth of 3.5% each year. Between 5 and 15 years I would like to increase my saving from $10,000 annually to about US $15,000. The savings will be growing at a rate of 3.5 percent annually. This kind of saving will from employment income where I will be fully employed as an accountant. To ensure this is successful each month, there is a deduction from my total earning directed towards retirement planning.

My second source of income will be my rental income. The rental studio which my parents have apportioned to me will be the source of funds for my retirement funds. Currently, the rental generates an income of 12,000 net income after tax. The saving forms the rental income stands at $ 180,000. I plan to continue saving rental income for the next 15 years after which I am planning to acquire a house. The purchased house will be rented out to clients to continue generating cash together with other sources of funds. The income from rental income is likely to grow at a rate of 2.5 percent annually for the next 10 years, 3.3 percent annually between 10, and 15years.

The income which I will generate from private contracts I will channel it to the retirement saving. The income will be attracting an interest rate of 2.5 percent. Currently, I make USD $15,000 from private contracts which I have with different clients. I project growth of 4% annually from the private contract. Income from the contract is also projected to grow at a similar rate as the annual growth in the number of contracts I will acquire privately.

According to my plan about saving for retirement, I started it immediately after I started working at 20 years. In the beginning, I had disciplined myself to be saving 5 percent of my total earnings in the retirement scheme. The funds which are directed to the retirement scheme attract an interest of 3.5 percent compounded annually. Each month I had to make a contribution towards my retirement scheme.

Taxes have a significant effect on the amount of retirement savings that is saved by someone. Some of the accounts attract charges in form of taxes. It is important that the type of account be considered to ensure that accounts that are used for saving retirement funds attract minimal charges.