Personal Finance (2) : Retirement Fund Excel Tool

Continue from Part 1:<-

As human perspective tends to focus on the short term events and, to most people, retirement seems to be something that is very far away. As the time keep passing by... and when it come close to their "official age" of retirement, most will get a shock that they are not ready for it.

Click to Zoom In

Another reason for people to ignore the retirement fund issue is as what Dr. Albert A. Bartlett had said:"The Greatest Shortcoming of the Human Race is our Inability to Understand The Exponential Function." That is most people cannot easily imagine in their mind that how big the number would get into with the compound inflation rate (and it now climbing proportional to the rate of Money Supply.)


To over come this challenge, here is a tool, Excel Worksheets, that was designed to help in putting all these figures down on paper. It can help individual to figure out how much it would require for him/her to be financial independent/freedom at a target date.


In the worksheet 1: just need to fill in the following data:


In the worksheet 2: one would need to fill in the details of expenses in various categories into the various fields as circled in the following diagram. It will then compute the ultimate retirement found figures with compound interest/inflation rate.




In the worksheet 3: Well, lot of people like to buy lottery and hope to retire now. This worksheet will tell you EXACTLY HOW MUCH you need to set the figure for achieving your goal -- that is the amount of money that you need to have in order to retire immediately. :-)


When someone is prepared early, this will not be his scenario:-



Here is link for the downloadable Tool in Scribd:->
Personal Finanical Tool:Retirement Fund Calculation

By the way, just some points for ponder....

* Why is there an "Official Retirement Age", and why many people follow? Are you plan to follow this "rule"?

* If making enough money can retire early, why many politicians and businessmen do not retire early and choose to work till the last day in their life?

"If you continue to think like what you always thought,

you continue to get what you always got."

- ?

Personal Finance (1) : Retirement Fund

Recently, I had come across two articles on the subject of personal finance regarding retirement fund. Both articles are trying to project the amount of money that would be required for retirement with the goal of financial independent in mind. The first article is from the US and the second is from China.

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The first article was a summary from a survey with 226 registered investment advisors, and attached Table is the findings: Source URL Link :-> $1 Million Doesn't Cut It for Retirement

The second article is from a Professor, Prof. Zhong, in Financial Research Center, Beijing Pedagogical Academy, China, stated that: “For those who, stay in the first-line cities (such as Beijing, Shanghai, & ShenZhen), are going to retire in 2027, having a sum of 10 million (RMB) might not be enough.”

“北师大金融研究中心一教授钟伟在《英才》杂志发表文章，称一线大城市的居民，2027年退休的话，预备1000万元养老恐怕也不够。”

Source URL Link:-> 白领存款1000万未必够养老

The article by Prof. Zhong had created a series of criticism in the web and media, as far majority of the people do not believe that they stand a chance to make 10,000,000RMB in their entire life. While Prof. Zhong defended himself by commenting that this would be the end result of continuous growth in Money Supply (or better known for the term as keep printing more money).

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I think that these articles are of good intention to alert people in starting to plan for their retirement early. And, the following will add some mathematical charts to demonstrate why these article make perfect sense...

Albert Einstein had said:

“The most powerful force in the universe is compound interest”

And, this has proven been true as Warren Buffett made himself one of the richest man by compounding his fund - Berkshire Hathaway - with an average of 20 over percent over the last few decades. The following Chart (click on the chart to ZOOM) illustrate how money can growth in an exponential form want one learnt how to use the wonder of Compound Interest...

But, this is a double-edge sword. If one does not know how to invest and when the inflation rate keep climbing up directly proportional to the money supply grow. Then the Value of the Cash on hand will depreciate accordingly. The following is the chart to illustrate how fast the value (buying power) would evaporate over the years...

So, with both chart above, it clearly show that if one were to retire with the peace of mind... He/she really need to has a skill to earn more to cover both the expense plus capital depreciation due to inflation. Or else, at the age of 65, he/she will become the 95% of the people show in this diagram. :-> "What's Preventing Most People from Financial Freedom".

(...to be continue...)

"The Greatest Shortcoming of the Human Race

is our Inability to Understand

The Exponential Function." -

Dr. Albert A. Bartlett


"Some people spend more time planning a two-week
vacation than they do retirement planning."
~ Anonymous

Link to more relevant articles<:-


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New Business & Surety Bond Program

A new entrepreneur or a business owner are generally not aware of the basic concepts of surety bond, what it is and why it is required, until owners gets experience and stay into their business for a long, and their business get settled down and start running smoothly. Then why not to get the knowledge beforehand? To start with, about the surety bond program we should first know what is a Surety Bond? A surety bond is like a pre requisite for a new business; it is of paramount importance for a business, since in order to get a license or a permit to start a new business an owner needs to secure a surety bond to legally operate.

A surety bond guarantor takes into account an owner’s experience in the industry as well as length of time in business which can sometimes present a problem with new business owners. At this stage an owner need to have a surety bond to get started and turning back is not an option which is why we developed the new business surety bond program.

New Business Surety Bond Program and your Eligibility?

Always do check your eligibility for the New Business Surety Bond Program. So here is good news, any new entrepreneur or a business owner is eligible for the new business surety bond program. Just they need to comply few norms, such as the application process which will include some questions about length in business and based on that we will determine your eligibility for the program.

Procedure for applying for the program?

You just need to fill out the form to your right and a surety bond expert will contact you to discuss your options. It is always advisable that you should be sure enough to note on the application form that your business is a new one and to be precise” you are a new business owner and we will automatically shop your rate through our special partnerships. It's that simple!

Self Development idea (8) - DO IT ANYWAY.

Here are two short stories, a poem, and a song to illustrate the point:- DO IT ANYWAY.

I. Story 1: The Freshmen

In the first day of an engineering course in a university, a freshman was excited and went to the classroom early. On the way, he met an old man, who carried the same text books walking towards the same classroom. So, he walked closer and greeted him.

“Good morning, Professor.”

The old man replied, “ Good morning, my friend. I am just like you – a freshman.”

The young man was surprised and asked, “Oh, I see. By the way, how old are you?”

The Old man said,” I am 61 years old.”

The young man asked, ”So, when you finish the course, you will be 65 years old by then?!”

The old man smiled and replied, “Yes, my friend. I will be 65 years old anyway in 4 years time, regardless I take the course or not.”

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II. Story 2: Star Fish

Original Version (public domain)

As the old man walked down a Spanish beach at dawn, he saw ahead of him what he thought to be a dancer. The young man was running across the sand, rhythmically bending down to pick up a stranded starfish and throw it far into the sea.

The old man gazed in wonder as the young soul again and again threw the small starfish from the sand into the water. The old man approached him and asked why he spent so much energy doing what seemed a waste of time. The young man explained that the stranded starfish would die if left until the morning sun.

"But there are thousands of miles of beach, and miles and miles of starfish. How can your effort make any difference?"

The young man looked down at the small starfish in his hand, and as he threw it to safety in the sea, said, "It makes a difference to this one!"

Anonymous

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III. Poem - Do It Anyway

DO IT ANYWAY

By a spiritual teacher

People are often unreasonable, illogical, and self-centered;

Forgive them anyway.

If you are kind, People may accuse you of selfish, ulterior motives;

Be kind anyway.

If you are successful, you will win some false friends and some true enemies;

Succeed anyway.

If you are honest and frank, people may cheat you;

Be honest and frank anyway.

What you spend years building, someone could destroy overnight;

Build anyway.

If you find serenity and happiness, they may be jealous;

Be happy anyway.

The good you do today, people will often forget tomorrow;

Do good anyway.

Give the world the best you have, and it may never be enough;

Give the world the best you've got anyway.

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IV. Song - Anyway

Link<- (in case it does not appear on some browser)

"Don't die with your music still inside you.

Listen to your intuitive inner voice and

find what passion stirs your soul."

- Wayne Dyer

Importance of Restaurant insurance

Insurance is one such thing that can protect you and your business from a myriad of problems, from broken equipment to liability lawsuits. All over the world consumers try to lessen the burden of risk from external environment and rising inflation and do some or the other insurances for some or the other things. This can be a life insurance or non life insurance.

Like life gets secured by a life insurance the same way restaurant needs a business or a restaurant insurance to be specific. The urgency is more for the later since it is the business after all, one has to run a family from the business, it is for the survival, and hence should get a coverage more than that of a personal. The scope of application of Restaurant Insurance is wide and hence covers varied types of stake holders in its purview, i.e. the employer, employee, food, the restaurant's physical set-up and the customers.

Restaurant insurance come with a basic objective of providing the restaurant owners in New York a sense of security. Restaurant Insurance can be selected depending on the business needs, location and considering various other factors in constraint as well. The various types of restaurant insurance are available covering different liabilities of restaurant needs. The selection for restaurant insurance ranges from general liability, liquor liability, automobile liability, bar insurance, catering insurance etc. In the current uncertain economy with various natural disasters every now and then it is imperative that the entire restaurant owner should get their restaurant secure with Restaurant Insurance so that the restaurant is properly protected with the right Restaurant Insurance Policy.

What we understand by Business Debt Refinancing?

Business debt refinancing is conversion of existing debt into a new debt with lower interest rates. This is basically for business owners and this program is offer by various lenders to cover existing debts and start with a new with different terms and conditions.

It can convert short term loan into long terms, which helps a business to maintain their cash and to increase capital. Also a business owner can make a good reputation, by paying off their creditors, which help in future in getting further financial help.

Unfortunately, there is some eligibility for getting business debt refinancing. All business is not eligible for this program. A business should have good debt history and trustworthy record in term of finance. Lenders will check your financial history and records before refinancing, as it’s a bit risky to covers all debt and refinance.

Before going ahead for business debt refinancing plan, it’s important to check few thing. Compare the interest rates and also the terms with different lenders and go only for which is suitable for you. All the refinancing agreements should be read carefully. Also check if the interest rates are flat throughout the period or get increased in between at anytime. Calculation should be done beforehand, for all the other fees like service fees, debt reduction fees, and listing fees.