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Retirement Plan In Companies In United States

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There are multiple avenues to achieve success, not just one specific way or method. The definition you have for success and it also varies by what how you measure your definition of success. It could mean you have abundant amounts of assets, multiple degrees, or just content with being alive. Many things that as humans we cannot alter or change no matter how rich we are or educated. In time, everyone ages and a burden that nobody wants is to be a senior citizen and still going to work to pay their bills.

The official age of retirement in the United States of America as of 2018 is 65 years old. It is used as a guideline for being able to sign up for programs such as Medicare, and it also used as a deadline for people to be able to start receiving benefits from their retirement programs. The official retirement age in the United States as of 2018 is 65 years old. It is used as a guideline for being able to sign up for programs such as Medicare, and it is also used as a deadline for people to be able to start receiving benefits from their retirement programs.

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Financial markets in which financial assets (securities) such as stock and bonds can be purchase or sold. Financial markets facilitate the flow of funds and thereby allow financing and investing by households, firms, and government agencies. (Madura, Page 3)

“For example, College Students are typically deficit units, as they often borrow from financial markets to support their education. After they obtain a degree, they earn more income than they spend and thus become surplus units by investing the excess funds. Further down the line, they may again become deficit units when it comes time to purchase a home. They may be providing funds and access funds from financial markets simultaneously. That is, they may periodically deposit savings in a financial institution while also borrowing a large amount of money from a financial institution to buy a home.”

Stocks that are bought represent partial ownership in the corporations that issue them. Investors who purchase stock (Stockholders) get a common stockholders vote through a company representative. Stocks have a perpetual life and aren’t mandated to distribute dividends.

They are classified as capital market securities because they have no maturity and therefore can serve as long term serve as long-term source of funds; if not resold on the secondary market.

Stocks provide income by distributing a portion of their quarterly earnings, in the form of dividends.

“As corporations grow and increase in value, the value of stock increases; investors can then earn a capital gain from selling stock for a higher price than they paid for it. Thus investors can earn a return from stocks in the form of periodic dividends and if they are in the form a capital gain when they sell the stock.”

Bonds offer a definite return of interest accumulated plus the Par value of the bond depending on the time of maturity. Investors loan money as an investment to an entity typically corporate or government, which earns interest over a period of time. The entity borrows the funds for a defined price of time at a variable or fixed interest rate. Companies, municipalities, states and sovereign governments to raise money to finance a variety of projects and activities use bonds. Owners of bonds are debt holders or creditors of the issue

Bonds represent loans, they have no ownership right, no voting rights, finite life (matures), and can offer legal recourse if payments are missed, may not pay interest, may not be liquid, and can have fixed or variable terms. Bonds are long-term debt securities issued by the Treasury, government agencies and corporations to finance their operations. They provide a return to investors in the form of interest income (coupon payments) every six months. Since bonds represent a loan; they specify the Par value (Face amount), the interest rate, the time to maturity (years bond is held), and the amount that you will receive at redemption of the bond. At maturity investors holding the debt securities are paid the principal; treasury bonds are perceived to be free from default risk because they are backed by the U.S. Department of Treasury.

Taking retirement age into consideration, it will be another 44 years until, reaching that. Securities that have the potential to cover future retirement expenses are a $10,000 Savings bond and $25,000 investment into the stocks of Lockheed Martin Corporation, an aerospace company.

Treasury bonds are a type of debt security; the U.S. federal government guarantees payment of these bonds, thus making it a domestic security. An EE Treasury Savings bond with an initial investment of $10,000, at 3% interest over a 30-year maturity at a Federal Tax rate of 28%. The U.S government has the highest credit rating (“AAA/Aaa”) from two of the Big Three Credit Rating Agencies (CRAs). The U.S has experienced the “gold standard” of triple-A ratings from all other agencies (Fitch, Moody’s and S&P) from time of their recognition as standards by the SEC until the S&P downgrades in early August 2011 stated in the CNBC article “US to keep AAA- rating after debt ceiling”. (CNBC)

Treasury Bonds are dependent on the interest rate and tax rate charts depending on if there terms are fixed or variable. Thus the estimations can only give you an idea (approximation) not a definite figure; actual earnings may vary. Treasury Direct supplies users with growth calculator with an investment of $10,000 dollars at an expected fixed interest rate of 3% over 30 years maturity at a Federal Tax Rate of 28%.

These EE Treasury Bonds are backed by the U.S Treasury and guaranteed to yield, double your initial investment in current market conditions with 20- year maturity. EE bond will pay a fixed 0.1% interest for up to 30 years. Most investors/analysts see this and dismiss them immediately. The Treasury guarantees that an EE Bond will be worth at least its face value after the first 20 years. If an EE bond does not double in value (reach it face value) as a result of applying the fixed rate of interest for those 20 years, Treasury will make a one-time adjustment at the 20 year anniversary of the bond’s issue date to make up the difference. (Treasury Direct)

Paper EE bonds can be bought at half of their face value, unlike electronic bonds which are sol at face value.

For 30+ years you collect a 0.1% interest and then the treasury automatically adjusts your principal to double your original investment; The original $10,000 investment becomes $20,000 in 20 years at this point it can be sold if need be.

The U.S. government propose their Fiscal Year 2019 budget request of $716 billion for national security, $686 billion of which will be designated for the Department of Defense. Showing that investing within Department of Defense’s (Department of Defense) independent contractors; the majority of Lockheed Martin Corporations’ business is with the Department of Defense and U.S. Federal agencies.

In addition, Sikorsky (a Lockheed Martin Company) provides military and rotary-wing aircraft to all five branches of the government along with military services and platforms. (Customer Base Lockheed martin who we are)

Lockheed Martin Corporation is an international security even though it is a domestic company it is considered to be international because it has a subsidiary company that does business internationally. Lockheed Martin Corporation stock ticker symbol is (LMT) on the New York Stock Exchange. They are ranked 59th in the Fortune 500 list of large industrial corporations.

Lockheed Martin Global was created in 1975 as a legal vehicle to deliver Lockheed Martin products to customers outside of the United States. Lockheed Martin Global Inc. (LMGI) is a wholly-owned subsidiary of Lockheed Martin Corporation, a highly diversified global enterprise principally engaged in the conception, research, design, development, manufacture and integration of advanced-technology products and services. (Lockheed Martin ,who we are)

Lockheed Martin Corp. is rated by as a B- (Buy) which is considered to their analysis as a stock to invest in. As of July 3rd 2018 “Lockheed Martin Corp. (LMT) is now the #163 pick moving up by 3 spot. “ (S&P 500 analyst moves , Nasdaq article) This Rank is formed by averaging the analyst opinions for each component from each broker, and then ranking the 500 components by those average opinion values; stock price movement year to date, (LMT) is lower by about 6.3%.

Lockheed Martin Corporation has stock information readily available online monthly and yearly data; via Yahoo Finance powered by data from New York Stock Exchange. (NYSE)

Their financial performance over the last year has been phenomenal. In 2017 sales totaled $51 billion dollars in sales, $100billion in backlog, Cash flows from operations $6.5 billion.

Their estimated earnings shows that their will be growth from their current good year to potential higher stock prices according to the graph. The total $51 billion in sales came from each department listed Aeronautics, Missile and Fire Control, Rotary and Mission systems, Space which produced $20.1billion, $7.2 billion, $14.2 billion, $9.5 billion respectively (first department correlate to first number).

Stocks are generally short-term investments; Lockheed Martin Corporation’s latest stock price as of (7/24/18) was $322.57 that is roughly about 77 shares of stock with a $25,000 investment in today’s market conditions. Stockholders at any time can be relieved of their stock in case their stock prices plummet. There is a difficulty when trying to gauge if an investment is good, you can assess their financials, study brand history and mission; ultimately it is all left up to speculation when predicting if a stock will present a good yield.

The Lockheed Martin Corporation security would flourish in the second market according to speculation in the current market and projected growth and analysis of the previous years financials.

Lockheed martin raised it’s 2018 earning forecast from $16.75 to $17.05 per share and raised its revenue estimate by $1.2 billion. The defense contractor also beat analyst estimate on both the top and bottom lines for its second-quarter earnings. (CNBC Today) Reported earnings of $4.05 per share, ahead of its $3.92 forecast made by analysts, and revenue of $13.4 billion over half a billion dollars more than the forecast projected.

“The company bumped up its 2018 forecast to a range of $16.75 to $17.05 earnings per share and an expected full year revenue of $51.6 billion to $53.1 billion — a rise of more than $1.2 billion on the low end of the range.”

(LMT) stock rose more than 2.7 percent on July 24th 2018, the company’s stock has risen more than 10% in the last year. As of Monday July 22nd 2018 it closed on the NYSE at $318.33, annual cash flow projected to be $3.3 billion from its previous year’s $3 billion. Lockheed Martin has shown free cash flow growth, Lockheed’s earnings per share is up by 23% from last year to $4.05. Lockheed shows high potential to give high yield on dividend in the future.

The estimated return after taxes on the EE Treasury bond from is over $100,000 dollars. The retirement plan would be well funded with that return on investment alone; which inquisitively inclines an investor to purchase more EE bonds.

The projected growth of Lockheed Martin Corporation can either incline or decline, hence leaving uncertainty to future conditions. The data and information from current conditions would suggest that the stocks are rising currently to $325 from $318 after only a few hours displaying a + 1.33% change in stock price.

The Fundamentals from Jeff Madura’s Financial Markets and Institutions, 11th edition have been properly taught and explained, leaving me with more confidence with investing in the future. Prior to this class, stocks and investments gave this grandeur idea of the New York Stock Exchange with brokers, business suits and a golden bell. Understanding now that stocks can be bought, sold, and traded anywhere;

Bonds peaked my interest in class; they offer a definite return of interest accumulated plus the PAR value of the bond depending on the time to maturity. Investors loan money as an investment to an entity typically corporate or government, which earns interest over a period of time. The entity borrows the funds for a defined price of time at a variable or fixed interest rate.

Companies, municipalities, states and sovereign governments to raise money to finance a variety of projects and activities use bonds.

Owners of bonds are debt holders or creditors of the issue.

The EE savings bond ends up yielding an estimate $124,563.38 which is guaranteed to be backed by the U.S. Treasury. Stocks within Lockheed Martin Corporation are projected to grow and reach high dividend payouts in the near future. Combined initial $35,000 investment could potentially yield over $200,000 in 30 years.

Making retirement less of a financial burden and paying medical bills easier as a senior citizen. With the knowledge and lessons learned; it can be believed that investing early on for your future can pay off. Stocks and bonds can allow more liquidity and generate money faster than other methods. It can be suggested that investing in a few long-term bonds now can generate lots of money for retirement expenses. Also EE savings bond allow more yield and can potentially be tax free when pursuing higher education after a bachelor’s degree.


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