Financial Security in a Persons Retirement Term Paper

Financial Security in a Persons Retirement - name Paper ExampleIn order to have financial security in our retirement, we need to offshoot deliver, keep saving and also stick to our goals. We need to make saving for the retirement a priority. In order to stay focused, we need to know our retirement needs and save towards it. A good startle point is finding out our retirement benefits.Investing for retirement is vital in ensuring safe and sweet retirement. Due to uncertainty, the true quality of a persons retirement actually depends on their mean and planning moldiness begin somewhere (Berk & DeMarzo, 2014). To have a secure retirement one must understand all the necessary factors that are crucial in the realization of the set goal. In saving for retirement individuals must understand the time value of money concept because it influences any financial conclusion to be made. They need to start saving early enough to increase the worth of the money in the time to come. It is the i dea that money available today is worth more than the same beat in future because of its potential earning capacity (Taillard, 2013). Because money earns interest, any amount of money is often worth more the kind of it is invested.The paper entails computation of the amount to be invested annually to earn $1,000,000 in 30 years and the amount earned at retirement. In addition, it discusses values such as time and the interest rate that tin can be changed to lower annual deposits while increasing benefits. Besides, it discusses addition allocation among three asset classes, stocks, bonds, and cash. It concludes by looking at the investment objective which in this case is capital appreciation. Further, it discusses investment constraints that affect my asset allocation.In solving the problem, I will use the money purchase method which takes into rate annual deposits and actuarial factor that is based on annuity period (time horizon or age) (Berk & DeMarzo, 2014). This method take s into account the time value of money by using present value or ordinary annuity