Essays on Personal Financial Planning Coursework

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The paper "Personal Financial Planning" is a great example of a finance and accounting coursework.   It has been shown clearly that the public sector pension’ s schemes are becoming unfavorable with the increasing costs which are basically getting out of hand. It has created strains at a particularly very opportune time for both the public sectors and the local governments and more seriously to the individuals. “ Pensions are one basic means of financial support in the old age accounting from all social protections expenditure” (Brainard 2006). At the turn of the century, the US public pension funds faced a perfect hurdle that was caused by the unfavorable logistics in terms of the demographics of the populations, the interest rates that have highly contributed to the increased present values of the liabilities, the decline in the investment returns that arise from the stock market and more especially the rising ranks of the pensions benefit claimants.

“ It has been estimated that the population growth is anticipated to increase from about one million to about 60 million in the next thirty years to come” (Copeland, 2005).

This as well correlates to the increased ageing population as there are more birth rates and less death due to the improved health care in all nations including the US. Evidently, health care is the number one docket that receives most of the Government funding and thus the reduced death rate and more of the birth rates (Brainard 2006). The spending rate by the government has been the biggest concern especially due to the recent unexpected relatively mild recession that has had serious impacts on the tax revenues. This has more strongly impacted on the spending side of the government’ s equation.

A much larger chunk of the money collected from the revenues is being dedicated to expenditures such as health care and the elementary and the secondary education. This leaves little money that can be used for the more beneficial government services. The issues of the pension schemes heighten this problem since the people are protected by the law by the non-impairment clauses which guarantee each individual a payout regardless of the conditions that the government may find itself in at that particular time. Raising taxes has been a solution to most of these problems and cutting down on the spending on most of the other programmer so as to meet the pension requirements for the people.

The government has as well also to the cost of the post-employment retiree health care cost The estimates for the aggregate of the unfunded amount of the money required according to the actuarial liabilities as computed indicate that an excess of the assets. The pensions for the State and the local government range at an approximate value of $200 billion to an estimated $700 billion.

The statistics, however, indicate that the pension estimates are always imprecise and sometimes very controversial. This is because the estimates are bound to certain changes such as the changes in the interest rates and the investment returns change that is as a result of the demographics of both the future and the current pensions.


Brainard, K 2006. Public Fund Survey, summary of findings for FY2005. National Association of State Retirement Administrators, report, September.

Byrnes, N 2006. Pensions: Hedging bets in Harrisburg. BusinessWeek. 06_06/b3970103.htm?chan=g1.

Retrieved on 24th January 2012.

Byrnes, N., Christopher, P 2005. Sinkhole! BusinessWeek.

Retrieved on 24th January 2012.

Copeland, C 2005. Employee tenure: Stable overall, but male and female trends differ. EBRI Notes, Vol. 26, No. 3, March, pp. 2-10

Coronado, J., Eric, & Brian, K 2003. Public funds and private capital markets: The investment practices and performance of state and local pension funds. National Tax Journal. Vol. 56. No. 3.

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