Retirement Saving

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 her 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 accommodate 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) criticises 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. Furthermore, with the help of annuity and investment yield calculation the novice is able to effectively depict the retirement amount, which could be enjoyed by Arquette at the end of her retirement age.

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