Retirement Planning | essaymoose

Assignment Requirements

Answer the following questions as completely as you can

Name: _____________________________________________ Date: _______________

FIN 405 OL Individual Research Project

Answer the following questions as completely as you can. Enter your responses through SafeAssign prior to the due date.

Sally Silverstein has a budding flower shop. She is thinking of installing a retirement plan, but she knows nothing about how to do that. She has decided to speak with you, her financial advisor, about this. What steps would you take to help Judy decide on what to do? What information would you gather in order to make appropriate recommendations? Be specific.

Sam Doyle, owner of Affordable Furniture, Inc., has asked you to help him create a qualified plan that has the following characteristics:

Provides an adequate pension for his employees, regardless of what the stock market does
Benefits employees who have been with him for a long time
Relates pension benefits to salaries at retirement
Encourages employees to stay with the company

What kind of plan would you recommend and why? Be specific. Discuss any appropriate alternatives.

Bill Buckley owns a small business. As an owner, what types of retirement plans could he participate in? Be specific.

Dr. Daisy Dogwell has her own veterinary clinic, PetsRUs, Inc. She is 57 years old and has never set up a qualified plan. Dr. Dogwell has 3 younger employees she would like to include in the plan, but her clinic is small and she cannot afford to pay her helpers very much. She can only afford to save 20% of her $100,000 salary. What type of plan would you advise Dr. Dogwell to adopt and why?

Annabelle Adams has a small business that has a steady cash flow, young well-paid key employees, and a low turnover rate. Annabelle wants to adopt a plan that has predictable costs, clearly stated contributions, is simple to administer, and easily communicated to employees. What kind of plan would you advise Annabelle to adopt and why?

Arnold Schwartz has a business. Arnold is thinking about establishing a retirement plan. He has told you that his objectives for the plan are:

What kind of plan would you advise Charley to adopt and why?

Rainy Days & Mondays, Inc. is a business that manufactures umbrellas. Unfortunately, cash flow varies with the weather. The owners, Michael and Janet, would like to establish a qualified plan, but they would like to be able to withdraw their funds in the future, if they need to expand their business. What type of qualified plan would you advise for Michael and Janet? Why?

Best Bookkeepers Inc., has decided to adopt a profit-sharing plan that allocates profits in excess of $10,000 to participants in the same ratio that a participant’s salary bears to total compensation. Abel earns $100,000, Baker earns $75,000, and Charlie earns $25,000. They are the plan’s only participants. Best Bookkeepers has a $60,000 profit. How much will be contributed to each of the participants? Show your work.

Dick and Jane are married, filing jointly, and have a combined modified AGI of $97,000 in 2013. John is 45 and Mary is 44. John is an active participant in his employer’s 401(k) plan, but Mary is not. What is the amount of the deductible IRA contribution that John and Mary can make for 2013 assuming that both earn more than $7,000?

Steve and Edie are considering contributing to a Traditional IRA or a Roth IRA in 2013. Here are the details about their situation:

Ages: Steve is 54, Edie is 49
Modified AGI: $130,000
Employment: Eddie is not employed. Gwen is employed and earns $107,000
Marital status: Married filing jointly
Participant status: Gwen is an active participant in her employer’s 401(k) plan. Eddie is not.

What are their options? Explain your reasoning. Complete the following table:

Steve & Edie’s 2013 IRA Contributions

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