Recommendation

3.
How would you recommend the Lis prepare for their retirement and what actions
should they take to prepare?
The recommendation the Lis prepare for their retirement
Tom and Deena Li must to make a saving for their retirement. The savings that they
will make can give reward for them in future. They can started in a small amount and try to
improve the amount by each month. When they start to save early from today, they can get
more money. Tom and Deena Li must take the retirement savings are their priority. They also
can set up an account to take a certain percentage of each pay check. Tom and Deena Li must
to review the budget to see their saving. For example they can save 10 to 20 percent from the
balance of their monthly income deduct the living expenses and paying off debt. For the
future, they can manage their own savings like a professional. They must to be proactive in
saving and get the tips to make more saving the Internet, books, magazines and others.
After that, Tom and Deena Li must to know their retirement needs. The estimation
will require 70 to 90 percent of their earnings income to maintain the current standard of
living. There are the steps that can determine enough income and savings to cover their
retirement expenses. The annual contribution to retirement savings must to multiply that by
the number of years left until retirement. Then, add the current retirement savings to that
number, divide by the number of years to retire and add the other guaranteed sources of
income. After that, can compared the answers to the current annual expenses to know it is
enough to cover the living expenses
Then, the other recommendation is Tom and Deena Li must to contribute to the
retirement savings plan. When the employer offers a retirement savings plan for example a
401 (k) plan, they must to enrolled and contributed it. It can make your taxes will be lower
and automatic cuts make easily. The benefits of compounding and deferral of taxes can create
a big difference in the amount. They must to learn about their own plans such as the
contribution to get a full employer donations and stay plans to earn that money. The other
plans that the employer can make is on easy workers' pensions under Public Service Revenue
Services 590 by calling 1-800-829-3676 on the IRS website.
Tom and Deena Li must learn about pension plan. When the employer has a pension
plan, they must to understand the steps of the pension plan. They can see the individual
statement to know the benefits. They must know the benefit of their pensions. They can put
up to $ 5,000 a year into the Individual Retirement Account. For 50 or older, they can put up
to $ 6,000 and get the tax benefits. There are two options when you open Individual
Retirement Account, it is a traditional Individual Retirement Account or a newer Roth
Individual Retirement Account. The donation and withdrawal tax treatment are based on the
option. They should know after tax deduction based on the inflation and the type of
Individual Retirement Account.
Tom and Deena Li must to consider basic investment principles. The inflation and the
type of investment take an important role in retirement. They must to find the savings or
pension plan is invested. They also must find about the investment plan options with asking
the questions. Tom and Deena Li can put the savings in investments. They should reduce the
risk and increase the returns. The investment can change time to time depends on the age,
goals, and finances situation.
Moreover, Tom and Deena Li cannot to use their retirement savings and just to keep it
safe. When they want to withdraw their retirement savings today, they will loss the principal
and interest. They also may lose tax benefit or must to pay the withdrawal penalty. They must
to keep their savings that invested in the current retirement plan, launch to IRA or launch in
new employer plan when changes the job.

Tom and Deena Li can told their employer to start a plan. There are a selection of
retirement savings plans. The employers can make simple plans that can help it. The plan
must to start early. They can get more money when start saving as soon as possible. They can
make a retirement plans as a main priority. So, they need to establish the plans, diligence, and
set goals for their retirement plans.
Last but not least, Tom and Deena Li must to prepare for the unexpected such as the
unhealthy and incident. They need to consider to pay and respond or everything from small
problems that come. They may expect health problems with that age and will do the best to
stay healthy and active. There are a plans to meet unexpected obstacles. There are a lot of
problems to retirement early such as ill physical health, lost job, take care of my family
member and mental health like addiction, depression and anxiety.

References
All Worth Financial. (2017, October 27). 6 Ways to Prepare for an Unexpected Early
Retirement. Retrieved from https://allworthfinancial.com/6-ways-to-prepare-for-an-
unexpected-retirement
Dana Anspach. (2010, March 24). Here Are 5 Easy Steps to Determine If You Have Enough
to Retire. Retrieved from https://www.thebalance.com/calculate-retirement-funds-
2388829
EMPLOYEE BENEFITS SECURITY ADMINISTRATION. (2017, September). Top 10
Ways to Prepare for Retirement. Retrieved from file:///C:/Users/user/Downloads/top-
10-ways-to-prepare-for-retirement.pdf
Fuscaldo, D. (2012). 10 Steps to Get Ready for Retirement - Financial Planning. Retrieved
from https://www.aarp.org/work/social-security/info-05-2011/10-steps-to-retire-
every-day.html
Hands on Banking. (2018, March 16). Start saving for retirement. Retrieved from
https://handsonbanking.org/articles/start-saving-for-retirement/

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3.

should they take to prepare?

The recommendation the Lis prepare for their retirement

enough to cover the living expenses

Services 590 by calling 1-800-829-3676 on the IRS website.

Retirement Account, it is a traditional Individual Retirement Account or a newer Roth

Individual Retirement Account.

goals, and finances situation.

new employer plan when changes the job.

set goals for their retirement plans.

member and mental health like addiction, depression and anxiety.

Retirement. Retrieved from https://allworthfinancial.com/6-ways-to-prepare-for-an-

to Retire. Retrieved from https://www.thebalance.com/calculate-retirement-funds-

EMPLOYEE BENEFITS SECURITY ADMINISTRATION. (2017, September). Top 10

Ways to Prepare for Retirement. Retrieved from file:///C:/Users/user/Downloads/top-

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