Friday, March 14, 2008
Retirement and College Plannning Discussion Questions & Case Studies Due 03-14-08
Type the discussion questions on page 32 of your Financial Peace Workbook and answer them in a complete sentence. Also, type the Case Studies on page 32 of your Financial Peace Workbook and answer them in a complete sentence.
Subscribe to:
Post Comments (Atom)
11 comments:
Discussion
1. Why is it important to spread your investments over the 4 categories of Mutual Funds?
-Because it lowers the risk of losing all your money.
2. Why should you wait to invest in retirement funds until AFTER your emergency fund is in place?
-Because there could be an emergency and you wouldn't have the money for it. Or because if you lose all your money you wont have any money to turn back on.
3. Why should you always invest in your retirment funds BEFORE you invest in college funds?
-In case the college dont work out for you, you'll still have something to fall back on.
4. List some ways you can avoid student loan debt if you do not have a college fund?
-Pay it back on time. And have a job and be pauing for it while your still in college.
5. Why should you take the match if a company gives one before you start a Roth IRA?
-So you know all the terms of the account.
Case Studies
1. Wes and Sue have not saved for retirement and they are in their mid-40's. They are out of debt with the exception of their house and have two children ages 6 and 10. They want to start an ESA to help with college and they have the money to fully fund each ESA. They have $500 in a sacings account for emergencies and feel they need to provide a higher education for the children. What would you say to Wes and Sue?
- I would tell them to wait till they got $1,000 or more in an emergency fund. And then start an ESA for the children.
2. Larry and Joan are in their early 60's and are looking forward to retirement. They have all of their retirement funds in bonds and CD's earning 3-6%. They have no pension plan, and the Social Security payments will be about $1,200 per month combined. The only debt they have is $4,000 on a used truck Larry boiught last year. They have $1,000 in savings and are considered using it to pay down the truck. What would you tell Larry and Joan?
- I would tell them to pay the $1,000 on the truck. And then after they get the truck payed off then they could retire.
Discussion Questions-
1. Why is it important to spread your investments over the 4 categories of mutual funds?
You have to make sure that if one fails, the other still supply’s money.
2. Why should you wait to invest in retirement funds until after your emergency fund is in place?
It is so you can leave your retirement fund alone.
3. Why should you always invest in your retirement funds before you invest in college funds?
Retirement can bring in money ahead of time.
4. List some ways you can avoid student loan debt if you do not have a college fund?
You can purchase an ESA.
5. Why should you take the match if a company gives one before you start a Roth IRA?
Case Studies:
1. Wes and Sue have not saved for retirement and they are in their mid-40s. They are out of debt with the exception of their house and have two children ages 6 and 10. They want to start an ESA to help with college and they have the money to fully fund each ESA. They have $500 in a savings account for emergencies and feel they need to provide a higher education for their children. What would you say to Wes and Sue?
- I would tell them to start saving in an ESA for their children and also get a retirement plan like a 401(k) from their workplace and to start saving for their retirement NOW!
2. Larry and Joan are in their early 60’s and are looking forward to their retirement. They have all of their retirement funds in Bonds and CD’s earning 3-6%. They have no pension plan, and their Social Security payments will be about $1,200 per month combined. The only debt they have is $4,000 on a used truck Larry bought last year. They have $1,000 in savings and are considering using it to pay down the truck. What would you tell Larry and Joan?
- I would tell them to keep saving a little bit each month from their Social Security payments until they get enough to fully pay off the truck, and then just keep saving.
DISCUSSION QUESTIONS
Why is it important to spread your investments over the four categories of Mutual Funds?
- You do this to make sure that if one falls behind, the others will still be bringing in money.
Why should you wait to invest in retirement funds until after your emergency fund is in place?
- That so you can leave your retirement money alone if a emergency does come into play.
Why should you always invest in your retirement fund before you invest in college funds?
- Retirement can get a head start and bring in money that is safe.
List some ways you can avoid student loan debt if you do not have a college fund.
- You can develop an ESA.
Why should you take the match if a company gives one before you start a Roth IRA?
- More money that will be tax free.
DISCUSSION QUESTIONS
Why is it important to spread your investments over the four categories of Mutual Funds?
- If one loses money, you still have one to fall back on.
Why should you wait to invest in retirement funds until after your emergency fund is in place?
- That so you can keep your money in retirement.
Why should you always invest in your retirement fund before you invest in college funds?
- Retirement can keep building up.
List some ways you can avoid student loan debt if you do not have a college fund.
- You can start an ESA.
Why should you take the match if a company gives one before you start a Roth IRA?
- It's safer amd allows larger sums of money to start.
Case Studies:
1. Wes and Sue have not saved for retirement and they are in their mid-40s. They are out of debt with the exception of their house and have two children ages 6 and 10. They want to start an ESA to help with college and they have the money to fully fund each ESA. They have $500 in a savings account for emergencies and feel they need to provide a higher education for their children. What would you say to Wes and Sue?
- Start saving in an ESA for their children and also get a retirement plan from their workplace and to start saving for their retirement.
2. Larry and Joan are in their early 60’s and are looking forward to their retirement. They have all of their retirement funds in Bonds and CD’s earning 3-6%. They have no pension plan, and their Social Security payments will be about $1,200 per month combined. The only debt they have is $4,000 on a used truck Larry bought last year. They have $1,000 in savings and are considering using it to pay down the truck. What would you tell Larry and Joan?
- Keep saving each month from their Social Security payments until they get enough to fully pay off the truck.
1. Why is it important to spread your investments over the 4 categories of Mutual Funds? So that all your money is not in the same place, or lower risk.
2. Why should you wait to invest in retirement funds until AFTER your emergency fund? Because the retirement fund will take years, and you could have an accident.
3. Why should you always invest in your retirement funds BEFORE you invest in college? So you’ll start out with money in your retirement fund before you start your career.
4. List some ways you can avoid student loan debt if you do not have a college fund? You could take money out of the retirement fund.
5. Why should you take the match if a company gives one before you start a Roth IRA? Because the better the match the more money you will make in a less amount of time.
1. Wes and Sue have not saved for retirement and they are in their mid-40’s. They are out of debt with the exception of their house and have two children ages 6 and 10. They want to start and ESA to help with college and they have the money to fully fund each ESA. They have $500 in a savings account for emergencies and feel they need to provide a higher education for their children. What would you say to Wes and Sue? They seem to be fully set. I would tell them to save for a better education and then in high school they could get their children to switch schools.
2. Larry and Joan are in their early 60’s and are looking forward to retirement. They have their retirement funds in Bonds and CD’s earning 3-6%. They have no pension plan, and their Social Security payments will be about $1,200 per month combined. The only debt they have is $4,000 on a used truck Larry bought last year. They have $1,000 in savings and are considering using it to pay down the truck. What would you tell Larry and Joan? I would tell them to keep their savings. They may need it in case one of them dies. I would tell them to sell some bonds, and then pay off the truck.
Discussion
1. Why is it important to spread your investments over the 4 categories of Mutual Funds?
So just in case there’s a problem with one of them then you have backup.
2. Why should you wait to invest in retirement funds until AFTER your emergency fund is in place?
So you don’t use your emergency fund money for retirement.
3. Why should you always invest in your retirement funds BEFORE you invest in college funds?
So incase you get disabled you still have your retirement fund to live off of.
4. List some ways you can avoid student loan debt if you do not have a college fund?
If you don’t have a college fund, you shouldn’t be getting bills for student loans anyway.
5. Why should you take the match if a company gives one before you start a Roth IRA?
It’s negotiating.
Case Studies
Read the following case studies and write down what you would tell these individuals, if you were their financial advisor.
1. Wes and Sue have not save for retirement and they are in their mid-40’s. They are out of debt with the exception of their house and have two children ages 6 to 10. They want to start an ESA to help with college and they have the money to fully fund each ESA. To help with college and they have the money to fully fund each ESA. They have $500 in a savings account for emergencies and feel they need to provide a higher education for their children. What would you say to Wes and Sue?
2. Larry and Joan are in their early 60’s and are looking forward to retirement. They
Discussion
1. Why is it important to spread your investments over the 4 categories of Mutual Funds?
-So you'll do everything right the first time.
2. Why should you wait to invest in retirement funds AFTER your emergency fund is in place?
-You never know when an emergency is going to happen.
3. Why should you always invest in your retirement funds BEFORE you invest in college funds?
-The retirement funds build up as time passes by.
4. List some ways you can avoid student loan debt if you do not have a college fund?
-By using the IRA, it will help you.
5. Why should you take the match if a company gives one before you start a Roth IRA?
-It will be a better deal in the long run.
Case Studies
1. Wes and Sue have not saved for retirement and they are in the mid-40's. They are out of debt with the exception of their house and have two children ages 6 and 10. They want to start an ESA to help with college and they have the money to fully fund each ESA. They have $500 in a savings account for emergencies and feel they need to provide a higher education for their children. What would you say to Wes and Sue?
-I would tell them to go ahead and start saving for college but as well as retirement.
2. Larry and Joan are in their early 60's and are looking forward to retirement. They have all of their retirement funds on Bonds and CD's earning 3-6%. They have no pension plan, and their Social Security payments will be about $1,200 per month combined. The only debt they have is $4,000 on a used truck Larry bought last year. They have $1,000 in savings and are considering using it to pay down the truck. What would you tell larry and Joan?
-I would tell them to go ahead and pay off their debt then start saving up for whatever else they want to.
Discussion
1. Why is it important to spread your investments over the 4 categories of Mutual Funds?
So you'll do everything right the first time around.
2. Why should you wait to invest in retirement funds AFTER your emergency fund is in place?
You never know when an emergency is going to happen so you need to always have money put aside.
3. Why should you always invest in your retirement funds BEFORE you invest in college funds?
The retirement funds will eventually build up as time passes by.
4. List some ways you can avoid student loan debt if you do not have a college fund?
By using the IRA, it will help you out a lot.
5. Why should you take the match if a company gives one before you start a Roth IRA?
It will eventually be a better deal in the long run and better for saving.
Case Studies
1. Wes and Sue have not saved for retirement and they are in the mid-40. They are out of debt with the exception of their house and have two children ages 6 and 10. They want to start an ESA to help with college and they have the money to fully fund each ESA. They have $500 in a savings account for emergencies and feel they need to provide a higher education for their children. What would you say to Wes and Sue?
I would probably tell them to go ahead and start saving for college but not to forget about retirement because that will came as well.
2. Larry and Joan are in their early 60's and are looking forward to retirement. They have all of their retirement funds on Bonds and CD's earning 3-6%. They have no pension plan, and their Social Security payments will be about $1,200 per month combined. The only debt they have is $4,000 on a used truck Larry bought last year. They have $1,000 in savings and are considering using it to pay down the truck. What would you tell Larry and Joan?
I would tell them to go ahead and pay off their debt then start saving for the next thing that they want or that comes up not expectantly.
1. Why is it important to spread your investments over the 4 categories of Mutual Funds?
-Because it lowers the risk of losing all your money.
2. 2. Why should you wait to invest in retirement funds until after your emergency fund is in place?
It is so you can leave your retirement fund alone.
3. Why should you always invest in your retirement fund before you invest in college funds?
Retirement can get a head start and bring in money that is safe.
4. List some ways you can avoid student loan debt if you do not have a college fund.
You can start an ESA.
5. 1. Wes and Sue have not saved for retirement and they are in their mid-40s. They are out of debt with the exception of their house and have two children ages 6 and 10. They want to start an ESA to help with college and they have the money to fully fund each ESA. They have $500 in a savings account for emergencies and feel they need to provide a higher education for their children. What would you say to Wes and Sue?
Start saving in an ESA for their children and also get a retirement plan from their workplace and to start saving for their retirement.
6. 2. Larry and Joan are in their early 60's and are looking forward to retirement. They have all of their retirement funds on Bonds and CD's earning 3-6%. They have no pension plan, and their Social Security payments will be about $1,200 per month combined. The only debt they have is $4,000 on a used truck Larry bought last year. They have $1,000 in savings and are considering using it to pay down the truck. What would you tell Larry and Joan?
-I would tell them to go ahead and pay off their debt then start saving up for whatever else they want to.
Post a Comment