Math2

Estate Planning

Gary tells you that he has revised his retirement plans. He would like to retire in 20 years instead of the original 25 years. His goal is to save $500,000 by that time. Gary still believes his technology stock will be all he needs for retirement.

Gary’s job offers several types of investment programs. As his advisor, you have informed him that he should take advantage of the employer’s matching funds program, stock purchase plan, and the available IRAs. You have mentioned retirement match: his employer will match retirement plan contributions up to $300.00 per month. Factoring the employer's matching retirement benefit, Gary could possibly save $7,200 per year.

Gary is not sure where to begin when it comes to estate planning. Gary thinks all of this estate planning might be going overboard, and he is not convinced he needs to plan so much for the future right now. He wants to enjoy his life now and let Social Security take care of the rest of his needs when he is old. Gary is in great physical shape, and he thinks he has a lifetime to make a will.

Gary’s sister has two boys who are growing up fast. Gary’s sister mentioned that she is concerned about their future, and she asks Gary if he could help with a college fund. Gary decides that he would like to provide for his little nephews' in the event of his death. On the way home Gary decides to look into starting an investment portfolio just for them.

Recently Gary is getting serious about his girlfriend, and they have started talking about getting married. Gary begins to think that she might be the one. Gary’s thoughts of marriage being to multiply: How will getting married affect all the plans he has made as a single guy? How will it affect the nephews' education? How will he be able to provide a retirement for two instead of one?

Gary Grandview 6 Reading Segment 3.2.2013 Rev - SL