Question : need answer Retirement planning?
Need quick respond about retirement planning.?
hi, the I got an exam question about 5 objective for retirees

a. to minimise the amount of tax that will be paid on retirement income.
b. to minimise the amount of tax has to be paid immediately upon retirement
c. to maximise age pension entitlements
d. to maximise retirement income and maintain purchaising power of the income
e. to preserve power of their capital

is there any one can help me to explain what is each objective mean? and give me 1 example?
and besides that they also required us to find 5 cases or situation where 2 of the objectives conflict to each other and give some strategy and necessary to place a higher priority on one objective than the other. thanks..

Additional Details
I need a complex answer for this? I need a long explanation, what each objectives mean. thanks
and why there’s objective is like that?
I mean, why they need to minimise the amount tax that will be paid on retirement income?

what happen behind that?
retirement planning help

Best answer:

Answer by NYAD
I wish I could help you. I’ve recently retired and thought that I might know something about “retirement planning”, but I’m sorry, I don’t. Most of these objectives are for a society or a level of society that I don’t relate to; these are concerns of people who have such choices. I can count only three years out of 30+ that I earned more than 30,000 in a year, not much leeway for investments or retirement accounts.

Even if I can’t help you directly, perhaps you can fit some “real life” into your subject matter. Most, not all, of the people I know retire on earned Social Security benefits, any pension that they managed to have from their job, and whatever they could save in a bank account. That’s it. There’s no 401s, no investments, no “retirement planning”. But on the other hand we didn’t loose anything on investments in recent years, we paid no fees to brokers and we lived on our income, didn’t have to worry about what plan was most beneficial because there weren’t any that we could afford.

a. I minimize the tax I pay on retirement benefits by not having much.

b. No taxes to pay immediately on retirement because it’s straight retirement income.

c. No entitlements to maximize.

d. No maximizing retirement income, both social security and retirement plan are “cut and dried”; purchasing power is what it is.

e. I preserve the power of my capital (savings account) by only using it for what is absolutely necessary just as I always have.

I don’t wish to upset you with this kind of response, but for many of us, this is the reality of retirement. You should know about this part of it as much as the text book lessons. And, believe me, it is a good life even on it’s small scale. The important things you need for retirement I have; the friends I have, the knowledge I have, the people I meet can never be affected by a downturn in the market and I pay no fees or commissions.