Tuesday, February 25, 2020

Personal Retirement Assignment Example | Topics and Well Written Essays - 1250 words

Personal Retirement - Assignment Example The personal retirement planning is a disciplined and step-by step procedure that ensures a secured future retirement life. Problem Formulation and Determination of Objectives The first step in planning personal retirement is to determine the current and future objectives. For instance, among many options that are available, the most preferable option is the growth in income. On the contrary, others might consider the safety of principal investment and they prefer investment in less risky assets. Sometimes situations might require fixed periodical earnings. There is another option left for personal retirement and that is adapted by many smart individuals who prefer to invest in a basket of securities in order to diversify investment rather than concentrating the entire investable fund in single option (Goetzmann & Kumar, 2008, pp.1-10). Some individuals with higher risk appetite might also prefer investment in relatively risky securities in order to earn higher returns in future (Sta tman, 2004, pp.50-51). Hence, it is possible that the requirement on one individual will not be the same as other thus the requirement objectives are likely to vary from one individual to another (Grinold & Kahn, No Date, p.2). So, if I prefer higher current consumption assuming that the future is uncertain, others might like to create a safer future for their family and children (Montana State University, 2010) and the reverse scenario is also applicable. For my personal retirement problem I plan to efficiently balance and allocate current consumption and future consumption by vesting the available investible fund in various retirement options and thus bring certainty in future earnings. Determination of Investible Funds My post retirement income may come from sources such as pensions, social security, trusts, or annuities. The remaining required amount that I might fall short of (for purchasing assets or sudden contingent requirements etc.) may be covered by accumulated savings be fore retirement or through investment. In order to formulate my personal retirement plan I need to make two important assumptions as follows: Assuming that I have a fixed investible amount of $50,000 and my current earnings are $2000; Assuming that I would not require consuming any part of fixed investible fund unless there is an emergency requirement. Hence, according to this basic framework it can be said that I would like to carry out my daily activities financed by my current income and for any other purpose such as asset purchase, medical treatment, education fee payment, etc. will be funded through investment or owed funds. Determination of Retirement Age and Expected Future Earnings According to the RES (Retirement Eligibility and Services) and Federal Employee Retirement System that assesses the eligibility criteria for the annuity benefits for individual, the social security administration (SSA) benefits will be available to an individual as and on the day he or she retires . So, from the above discussion and eligibility criteria I would prefer my minimum age of retirement to be 60 years in the personal retireme

Sunday, February 9, 2020

Entity's ability to continue as an going concern Research Paper

Entity's ability to continue as an going concern - Research Paper Example The company will have to settle its dues by selling off all tangible assets. Intangible assets become worthless then (â€Å"The Going Concern Principle†). Going concerns are the only type of entities that can secure loans from banks and other institutions. Investors will only be interested to invest in a business that is expected to run for a long time in the future. A going concern is based on the idea that by continuing its operations in the business, a firm can yield the money that has been invested in the assets. In this way, profits will be generated and dues will be settled. It is important for a company to realize importance of the going concern concept in business and include this aspect in annual reports and statements (Hanif 3.3). Therefore, the objective of this research is to identify what a going concern is and ways in which an organization can effectively decide whether it is a going concern or not. The research is done on the basis of data provided by the International Financial Reporting Standards (IFRS) on the subject matter of going concern. Certain guidelines issued by the Generally Accepted Accounting Principles (GAAP) have also been referred to. Based on information collected, analysis was done with the help of books written by various authors as well as online resources. The analysis was designed in a manner so as to understand; the meaning of going concern; the different ways in which a firm can identify whether it is a going concern or not; the advantages of being a going concern; and the uncertainties that renders a firm as not a going concern. This research involves primary analysis of data based on qualitative method and rationale. The research is done on the basis of guidelines laid down by IFRS and GAAP standards. The IFRS and GAAP standards are considered in order to ensure whether a company can be regarded as a going concern or not. It is necessary to study a company on the following parameters (â€Å"Going