Lý thuyết tài chính - Planning for retirement

PFIN4Planning for Retirement 14Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. GITMAN/ JOEHNK/ BILLINGSLEY2Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Recognize the importance of retirement planning, and identify the three biggest pitfalls to good planningEstimate your income needs in retirement and the level of retirement income you’ve estimated from various sourcesExplain the eligibility requirements and benefits of the Social Security programLEARNING OUTCOMESPFIN4 | CH143Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Differentiate among the types of basic and supplemental employer-sponsored pension plansDescribe the various types of self-directed retirement plansChoose the right type of annuity for your retirement planLEARNING OUTCOMES (continued)PFIN4 | CH14Steps in Retirement Planning 4Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Describe:Things a person wants to do in retirementStandard of living that is hoped to be maintainedLevel of income wished to receiveRetirement goalsPFIN4 | CH14Role of Retirement Planning 5Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Formulating an investment programCreating a savings plan in which a certain amount of money is saved each yearIdentifying the investment vehicles that will meet the retirement needsTax planningMaximizes the accumulation of retirement fundsPFIN4 | CH14Pitfalls in Retirement Planning6Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. PFIN4 | CH14Starting too lateSaving lessInvesting conservatively Estimating Income Needs7Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Strategies for forecasting retirement needsPlan for retirement over a series of short-run time framesState retirement income objectives as a percentage of the present earningsFollow a long-term approachFormulate the level of income expected to receive Identify the required amount of funds needed to achieve a desired standard of livingPFIN4 | CH13Exhibit 14.18Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. PFIN4 | CH14Sources of Income for the Average RetireeSource: Federal Interagency Forum on Aging-Related Statistics, Older Americans 2012: Key Indicators of Well-Being, Indicator 9, June 2012, p. 14, aoa.gov/Agingstatsdotnet/Main_Site/Default.aspx, accessed November 2014.Social Security Coverage9Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Classes of employees exemptedFederal civilian employees hired before 1984 and are covered under the Civil Service Retirement SystemEmployees of state and local governments who have chosen not to be coveredMarginal employment positionsNewspaper carriers under age 18 and full-time college students working for a universityPFIN4 | CH14Social Security Payroll Taxes10Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Cash benefits provided are derived from the payroll (FICA) taxes paidTax rate in 20146.2 percent for Social Security1.45 percent for MedicarePFIN4 | CH14Old-Age Benefits11Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Received by fully covered workersFull retirement age as defined by the Social Security Administration is 67 yearsWays of receiving in a two-income familyTake the full benefits to which each is entitled from his or her accountTake the husband and wife benefits of the higher-paid spousePFIN4 | CH14Survivor’s Benefits12Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Received by the spouse if a covered worker diesSmall lump-sum payment of several hundred dollars, followed by monthly benefit checks Eligibility criteriaSurviving spouse must be at least 60 years of ageHaving a dependent and unmarried child of the deceased worker in his or her carePFIN4 | CH14How Much Are Monthly SocialSecurity Benefits?13Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Social Security Administration’s computerized service estimates the benefitsSocial Security Statement provides credit information under the scenariosRetirement at age 62 and receive 70 percent to 80 percent of the full benefitFull benefit at age 65 to 67Increased benefit available if the retirement is delayed until age 70PFIN4 | CH14Exhibit 14.214Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. PFIN4 | CH14Average Monthly Social Security Benefits Paid in 2014Source: “Understanding the Benefits,” SSA Publication No. 05-10024, ICN 454930, accessed November 2014.How Much Are Monthly SocialSecurity Benefits?15Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Taxes on benefitsApplicable if the beneficiary’s annual income exceeds:$25,000 for a single taxpayer$32,000 for married taxpayers filing jointlyZero for married taxpayers filing separatelyPFIN4 | CH14Pension Plans and Retirement Programs16Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Employee Retirement Income Security Act of 1974 (ERISA)Ensures that workers eligible for pensions actually receive benefitsPermits uncovered workers to establish individual tax-sheltered retirement plansPFIN4 | CH14Types of Employer-Sponsored Retirement Programs17Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Basic plansEmployees automatically participate after a certain period of employmentSupplemental plansVoluntary programsEnable employees to increase the amount of funds being set aside for retirementPFIN4 | CH14Basic Plans18Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Participation requirementsEligibility criteriaYears of serviceMinimum ageLevel of earningsEmployment classificationVested rights: Employees’ nonforfeitable rights to receive benefits in a pension planPFIN4 | CH14Basic Plans19Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Employee contributionNoncontributory pension plan: Employer pays the total cost of the benefitsContributory pension plan: Employee bears part of the cost of the benefitsDefined contributionSpecifies the contributions that both employer and employee must makePFIN4 | CH14Basic Plans20Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Defined benefitInvolves formula for computing benefits is stipulated in its provisionsQualified pensionMeets specified criteria established by the Internal Revenue CodePFIN4 | CH14Types of Supplemental Plans21Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Profit-sharingEmployees of a firm participate in the company’s earningsThrift and savingsSupplements pension and other fringe benefitsFirm contributes an amount equal to a set proportion of the employee’s contributionSalary reduction or 401(k)Agreement by which part of a covered employee’s pay is withheld and investedPFIN4 | CH14Features Used to Evaluate Employer-Sponsored Pension Plans22Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Eligibility requirementsDefined benefits or contributionsVesting proceduresContributory or noncontributoryRetirement agePortabilityVoluntary supplemental programsPFIN4 | CH14Self-Directed Retirement Programs23Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Keogh planAccount to which self-employed persons may make specified payments that are deducted from taxable incomeEarnings also accrue on a tax-deferred basisSEP planAims at small business owners, requiring a plan which is simple and easy to administerPFIN4 | CH14Self-Directed Retirement Programs24Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Individual retirement account (IRA)Open to any working AmericanPerson may contribute a specified amount each yearTypesTraditional (deductible)Nondeductible (after-tax)RothPFIN4 | CH14Annuity25Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Investment product created by life insurance companiesProvides a series of payments over timeAccumulation period: Premiums are paid for the purchase of an annuityDistribution period: Annuity payments are made to an annuitantSurvivorship benefits: Portion of premiums and interest unreturned to the annuitant before his or her deathPFIN4 | CH14Classification of Annuities26Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Single premium Purchased with a lump-sum paymentImmediateAnnuitant begins receiving monthly benefits immediatelyInstallment premiumPurchased through periodic payments made over timeDeferred benefitPayments are postponed for a certain number of yearsPFIN4 | CH14Disposition of Proceeds27Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. PFIN4 | CH14Life annuity with no refundAnnuitant receives a specified amount of income for life, regardless of the length of the distribution periodGuaranteed-minimum annuityProvides a guaranteed minimum distribution of benefitsLife annuity, period certainRefund annuityAnnuity certainProvides a specified monthly income for a stated number of years without consideration of any life contingencyFixed versus Variable Annuity28Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. PFIN4 | CH14Fixed-rate annuity Insurance company agrees to pay a guaranteed rate of interest on the moneyVariable annuity Monthly income provided by the policy varies as a function of the insurer’s actual investment experience29Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Employee Retirement Income Security Act of 1974 (ERISA)Vested rightsNoncontributory pension planContributory pension planDefined contribution planDefined benefit planQualified pension planKEY TERMSProfit sharing planThrift and savings planSalary reduction or 401 (k) planKeogh planIndividual retirement account (IRA)AnnuityAccumulation period Distribution periodSurvivorship benefitPFIN4 | CH1430Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Single premium annuity contractsDeferred annuityLife annuity with no refund (pure life)Guaranteed-minimum annuity (life annuity with refund)Life annuity, period certainRefund annuityAnnuity certainKEY TERMSFixed-rate annuityVariable annuityPFIN4 | CH1431Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. SUMMARYThe pitfalls to good planning are starting too late, saving less and investing conservatively The sources of retirement income are Social Security, earnings from income producing assets, earnings from full and part time jobs, and pension plansSocial Security provides old-age and survivor benefits to retired people and their dependentsPFIN4 | CH1432Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. SUMMARYEmployer-sponsored retirement programsBasic plans - Employees automatically participate after a certain period of employmentSupplemental plans are voluntary programsSelf directed retirement programs include Keogh plan, SEP plans and IRAsAnnuities are classified based on payment of premiums, disposition of proceeds, inception date of benefits, and methods used in calculating benefitsPFIN4 | CH14