Retirement Saving

Question: How to evaluate the significance of retirement saving? Answer: The study mainly aims is evaluating the significance of retirement saving, which are conducted by individuals to increase asset valuation. Furthermore, the study also helps in Arquette to make adequate investment decisions to increase its overall asset accumulations after her retirement. Furthermore, the novice effectively calculates annual mortgage and loan amortizations table to help Arquette to make adequate investment decisions. Furthermore, the study effectively portrays different calculations and graphs, which could be used in analysing and evaluating mortgage payments conducted by Arquette. The impact of superannuation fund to boost individuals wealth is also explained in this study. Evaluating the significance of retirement fund: Retirement scheme is an effective strategy that is used by individuals to meet its future financial obligations. Furthermore, global change in living standard could only be met with increased investment conducted by individuals in retirement schemes. In this context, Drucker (2013) suggested that with the help of retirement schemes individuals are able to maintain cash inflow after its working year. On the other hand, Wang and Peng (2016) criticised that investment scheme in the current era conducted without effective research could increase risk and hamper investment capital. Furthermore, the rising inflation could eventually reduce capacity of Arquette to meet her future financial obligations. Currently in Australia the standard of living is relatively high and the rising inflation has motivated individuals to make retirement schemes to support their future endeavours. Arquette could effectively with the help of retirement scheme invest and save adequate cash, which might reduce he r burden after the working age. Boyer et al. (2014) stated that individuals to maintain their living standard after their retirement make adequate investments, which might help in generating the required return to support their activities. On the contrary, Abourashchi et al. (2014) argued that retirement produced reduced return during an economic crisis, which mainly liquidates the whole financial market. Furthermore, the International financial volatility and rising commodity prices has mainly helped individual all over the world to maintain a retirement scheme which could help in supporting their expenses after retirement. Moreover, retirement schemes are mainly conservative in nature, which increases investment in fixed interest rate scheme. Landsberg (2014) mentioned that fixed interest rates mainly help investors to attain the required return to support their investing needs. On the other hand, Chingos and West (2015) criticises that some investments strategy does not accommod ate time value of money, which might reduce overall profits of the investor. Around 9.5% of gross income attained by Arquette has to be invested in superannuation fund as mentioned by Australian government. Furthermore, any changes in policy of superannuation could directly have impact on decision making process of Arquette. In addition, the investment that is conducted by Arquette in superannuation fund mainly affects its decision making process. Furthermore, the changes in superannuation rate and policies could directly affect return generation of the Arquette and hamper the overall amount that might be received after retirement. Furthermore, any negative change might limit Arquette exposure in the superannuation fund, while positive impact could increase its exposure. In this context, Rees and Smith (2014) mentioned that investment conducted in higher return schemes could help investors to reduce the negative impact of inflation. On the other hand, Duxbury et al. (2013) criticis es that economic crises could negatively impact all the investment schemes used by investors, which mainly reduce its profitability. In addition, the overall asset valuation at the time of retirement is 1,439,453.43. This amount could help Arquette to fulfil her financial obligations after retirement till the age of 83. Conclusion: The overall study mainly helps in evaluating the significance of retirement fund that could be used by Arquette to fulfil her financial obligations after retirement. In addition, the assignment also helps in evaluating mortgage valuation, which could be used by individual to increase their assets accumulation. 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