FNPLMod4Retirement

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School

Franklin University *

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Course

300

Subject

Finance

Date

Feb 20, 2024

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docx

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3

Uploaded by CoachRainKingfisher33

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1 Ashley Eltringham February 4, 2024 Financial Plan Part 4 Financial Planning-300 For this part of our financial planning process, I chose to complete my assignment using the hypothetical case-study of David and Kassidy Thomas. I know for certain that the calculations for my own social security benefits pertaining to retirement or disability would not be adequate in any way. Thomas’ Goals Thomas’s goals for retirement seem so extravagant for a moment until looking further into their finances. They wish to have $6.2 million for retirement. David does have a decent annual salary, so it does seem possible. However, they would have to be willing to cut back on expenses and some of their luxuries. Which is something that they do not wish to do. Retirement and/or Disability Calculations Using Social Security’s online calculator that was provided by Instructor Scott Murray, the Thomas’s would receive $170,401.00 annually for retirement ( Quick Calculator , 2014). This was calculated using an inflation rate of 3%, which was suggested by the online calculator. That amount breaks down to $14,200.00 a month. Assuming that their future value for monthly expenses is less than they are currently, this would be sufficient. Again, assuming their debts have been paid off, mortgages paid, and so on.
2 Disability Calculations Using the same online calculator provided to us from Social Security, I calculated the Thomas’s disability benefits. If David himself had to take six months off work due to sickness or injury he would receive $3608 a month. His wife Kassidy would receive $2,764 if she were taking care of their child. The family maximum in disability per month totals $6,452. However, their monthly expenses currently remain steady at $12,000, variable cost fluctuating. The disability benefits would not be sufficient. They clearly need to start that emergency savings that they wish to do in case of unforeseen encumbrances.
3 References 4-1 Financial Plan Part 4: My Social Security Benefits Overview . (2020). Instructure.com. https://franklin.instructure.com/courses/15575/assignments/384995 Quick Calculator . (2014). Ssa.gov. https://www.ssa.gov/OACT/quickcalc/
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