This assignment will allow students to further demonstrate their knowledge and application of personal finance planning. Personal finance planning includes finance management, risk management, investment, and retirement planning. In this assignment, we will focus on personal retirement planning.
Retirement Planning Framework Current Situation
Where appropriate, you should consider including the following:
- your life expectancy.
- your expected or desired retirement age;
- your expected income in retirement;
- your expected lifestyle expenses in retirement;
- your planned asset sales in retirement.
Issues and Opportunities
This section provides an analysis of your current retirement plan. You should clearly identify
- potential opportunities and constraints, including:
- Any cash flow surpluses and/or shortfalls in retirement;
- Debt repayment plan relative to their retirement goals;
- Savings plan relative to their retirement goals.
Assumptions:
- Your CPP and OAS will be as the Canadian average amount;
- Your current savings and assets will be assumed according to your personal situation;
- You will not have personal loan at your retirement age.
Rubrics
- Calculate life expectancy (5%)
- Prepare retirement incomes budget (20%)
- Prepare retirement expenses budget (30%)
- Prepare retirement cash budget (30%)
- Calculate the amount of retirement fund they need to retire (10%)
- Calculate the financial gap between current net worth and retirement fund (5%)