Monthly Archives: December 2015

Interrogate and financial plan of retirement

On the other hand financial planning retirement with a defined benefit plan engages retirement accounts that is set up as well as controlled by an employer. These ensure a set payout during retirement. The financial calculation is chiefly based on the tenure as well as the salary of an employee. These funds may be further categorized into cash balance plans and pensions. They may be either unfunded or funded. Social security system is a suitable example of an unfunded plan wherein the contributions take the form of FICA or the Federal insurance contributions act. Self employed people may also go in for financial retirement planning. The Simple IRAs, Simplified Employee Pension (SEP) IRA as well as 401(k) are channeled towards the self-employed section of the financial system. Some of the benefits that the self employed people can opt for include tax deferred savings and up front tax breaks.

With financial planning you can plan your retirement. But then, what do you think that retirement financial planning is all about? Well, in simple words, retirement financial planning engages making arrangements for the needed finances that you would need post retirement. Financial planning for retirement involves a defined contribution plan or a defined benefit plan. Some of the notable examples of defined contribution plan are as follows-

1. Individual Retirement Account (IRA)

2. 401(k)

3. Roth 401(k)

4. Profit sharing plans

In general, the aforementioned plan dont allow for any withdrawals from the savings for a stipulated span of time span.

Most Retirement Financial Planning are inclusive of life insurance and health insurance products. These plans allow net-worth individuals an affordable and quick access to the investment classes. These are inclusive of products which diversify the contribution of an investor into multiple sub classes such as bonds, cash, commodities, stocks to name a few. Estate planning involves committees and trusts which safeguard your assets as well as their distribution incase of the applicants demise. To sum up, Retirement Planning is a crucial factor that you need to take into consideration if you want to lead a financially secured life post retirement.

The impact of rising oil prices on the economy of a country

Oil prices continue to soar lately have an impact on the lives of the most important climatic investation.Yang whether the government will also adjust the price of oil / fuel in the country or not. If yes, of course, of course, can be very different economic conditions. Normally the fuel price hike will lead to higher production costs, increase in distribution costs and also increase inflation.

The prices of goods are becoming more expensive, purchasing power decline, because they fixed income. Tip the economy will stagnate and the level of well-being disturbed.

On the other hand, more and more bad loans to increase, the most serious is the limited employment opportunities for businesses to adjust production in accordance with the rise in prices and a decrease in demand for goods.

The things above happen if fuel prices increased, What if not? Government subsidies on fuel will increase as well, why? Although our country an oil producer, in fact, to produce the fuel we still need oil imports of raw materials as well.

In the absence of fuel price hike, subsidies should be provided by the government are also getting bigger. Where the source of these subsidies cover? One is the increase in export earnings. Why be like that? Because of the increase in world oil prices also boosted the export prices of certain commodities, such as palm oil as crude palm oil (CPO) is the petroleum subsidy. Income from rising CPO prices will not be proportional to the amount of costs to be incurred for oil subsidies.

In connection with the above conditions is approximately policy is to be taken by the government?

If the increased fuel prices, the government’s image in politics will be disrupted, people certainly do not agree that the prices to be expensive, if the government bothered impacts is very broad, so, if it refers to the possibility that fuel prices will not be increased.

But the problem has not been done here, even though fuel prices are not raised, still the impact of rising world oil prices affect the economy of a country, including the investment climate.

Rising world oil prices make the cost of production increases. That means the selling price of imported goods will also be costly imports that will have an impact on inflation due to rising prices of imported goods.

The impact of this first, deposit and loan interest rate will not go down in the near future, the interest rates tend to rise, or at least still be inversely proportional to the price of the bond. This means that if interest rates rise, bond prices will likely fall. Thirdly, the interest rate unchanged also give different levels of interest in the foreign country with a relatively steady or even widened. (Endang Wahyuningsih)


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