Employee benefit planning is when your employer

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Employee benefit planning is when your employer offers a wide variety of benefits such as life, health, and disability insurance. Others include 401(k) retirement plans, sick leave, personal time, etc.. In today's economy, you can no longer assume that you will stay with the same company for a long time so one must plan contingency plans to replace existing employer benefits. Tax planning can assist you in reducing the taxes you pay. It involves looking at your current and projected earnings and then developing a strategy to reduce the taxes.
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1-13) “ There’s no sense in worrying about retirement until you reach middle age.” Discuss this point of view. Most individuals don’t start thinking about retirement until their 40’s or 50’s. Unfortunately, for those who wait that long usually end up having substantially lower retirement income. The idea is if you start sooner, the better off you’ll be. 1-14) Discuss briefly how the following situations affect financial planning: a. There are couples out there that depend on that second income to just make ends meet while there are others that use the second income as financial security and a way to afford extras. Typically, couples have higher expenses to cover because of that second income. Partners have to be open minded and willing to compromise when deciding where and how much to allocate income. b. Marriages and divorces will result in the need to revise financial plans and money management strategies. With marriages, couples must look at their assets, liabilities, credit card accounts, etc. before they get married. With a divorce, income could possibly decrease for one or both of the parents because of child support and alimony. c. When there is a death, the person must decide how to receive and invest life insurance proceeds and other assets. With any of these situations, advance planning can minimize many of the problems. 1-15) What is a professional financial planner? Does it make any difference whether the financial planner earns money from commissions made on products sold as opposed to the fees he or she charges? A professional financial planner is an individual or firm that helps clients establish financial goals and develop financial plans to achieve them. I believe that it doesn’t make any difference because many just take an hybrid approach of commission and fee only. 1-16) Discuss the following statement: “ The interactions among government, business, and consumers determine the environment in which personal financial plans must be made.” Our purchases, savings, investments, and retirement plans are all influenced by the present and future state of the economy. When creating a financial plan, we must understand the economy to make better decisions. The government, businesses, and consumers all affect our economy which in turn affects our financial decisions.
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1-17) What are the stages of an economic cycle? Explain their significance for your personal finances.
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Christopher Reinemann
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