In This Discussion You Will Have An Opportunity To Ma 532355 ✓ Solved

In This Discussion You Will Have An Opportunity To Make Connections B

In this discussion, you will have an opportunity to make connections between your prior knowledge and the new content you are learning this week. Use your results from this week’s Build Your Proficiency Diagnostic to provide context for your prior knowledge and consider the new content about paying for college, repaying student loans, and planning and saving for retirement as you respond to the discussion prompt. Also, review the iGrad resources for content about paying for college and repaying loans. Respond to at least three of the following questions in a minimum of 175 words:

1. Identify one concept from the Build Your Proficiency diagnostic from Chapters 10 and 11 that you scored lowest in. How might this concept be important to your personal finances? Why would you want to know more about this?

2. Enter your information into this Retirement Income Calculator from Bankrate to estimate how much monthly income you may have during retirement (be sure to expand the “Investment returns” section to edit those fields as needed). Enter your current savings information or what you plan to do after graduation. What did the results show you about your retirement? What steps can you take to save and invest in your future now?

3. In the Week 4 Learning Path, complete Interactive Figure: How Risk Averse Are You? in WileyPLUS. What did the results show? In the same learning path, complete Interactive Figure: Behavioral Biases and Retirement Planning in WileyPLUS. Which biases did you find influence your decisions? If you are using federal student loans to pay for college, what will your standard monthly payment be? If that amount is not affordable, what options are available to reduce or postpone payments? How might a college education affect your long-term financial plan? Consider future income and loan repayment in your response.

Sample Paper For Above instruction

Making informed financial decisions is critical for securing a stable financial future, especially when it comes to paying for college, managing student loans, and planning for retirement. Reflecting on my recent diagnostic results from Chapters 10 and 11, I discovered that my understanding of interest compounding and loan repayment strategies was relatively weak. I realize this concept is vital to my personal finances because effective management of loans and interest can significantly reduce debt burden and increase savings over time. To deepen my comprehension, I plan to review financial literacy resources and consult financial advisors to gain better insights into optimizing my repayment plans and investments.

Using the Bankrate Retirement Income Calculator, I entered my current savings and estimated contributions post-graduation. The results indicated that without additional savings, my retirement income would be modest, highlighting the need to amplify my savings rate. It emphasized the importance of starting early, taking advantage of compound interest, and diversifying investments. To improve my financial outlook, I aim to contribute consistently to retirement accounts such as IRAs or 401(k)s and explore employer-sponsored plans. Additionally, learning about investment options can help me build wealth for retirement and achieve a more comfortable future.

Participating in the Interactive Figures in WileyPLUS revealed my risk aversion level, which suggests I prefer moderate risk investments. The biases that influenced my decisions included overconfidence and anchoring, which sometimes lead me to underestimate risks or stick to familiar options. Recognizing these biases helps me make more balanced investment choices. Regarding college loans, my estimated monthly payment is approximately $350. If this amount is unaffordable, options like income-driven repayment plans, forbearance, or deferment are available. Understanding the long-term impact of a college education on my financial health underscores the importance of budgeting future income and loan repayment strategies to avoid financial strain and enhance my ability to save for retirement.

References

  • Bankrate. (2023). Retirement Income Calculator. Retrieved from https://www.bankrate.com/retirement/calculators/
  • Financial Literacy and Education Commission. (2020). Financial literacy resources. Retrieved from https://www.mymoney.gov
  • U.S. Department of Education. (2023). Paying for College Resources. Retrieved from https://studentaid.gov
  • Investopedia. (2023). Understanding Interest and Loan Repayment. Retrieved from https://www.investopedia.com
  • National Endowment for Financial Education. (2021). Risk tolerance and investment strategies. Retrieved from https://www.nefe.org
  • WileyPLUS. (2023). Interactive Figures for Behavioral Biases in Financial Planning.
  • Loan Repayment Options. (2022). Federal Student Aid. Retrieved from https://studentaid.gov
  • American Council on Education. (2021). The Impact of College Education on Long-term Financial Stability.
  • Personal Finance: The Balance. (2023). Strategies for Managing Student Loans.
  • Committee for Economic Development. (2022). Planning for Retirement in the 21st Century.

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