Running Head: Retirement Planning 1

Assignment on

Retirement Planning

By XxX

Dated:
Retirement Planning 2

How would you rate or describe her income level and expenses?

The discussion about Mrs. Martinez and here retirement life is the crucial task here. It can be

seen that the overall expenses that is received and hence is spent on Maintenance, food, Utilities

and cars consumes about half of her monthly budget. This percentage is quite huge as it leaves

Martinez vulnerable and leaves behind only 47% of her income to deal with her health and

toggle any discretionary incomes available. The second major expense that she faces is the health

expense. This too is quite big, but this can neither be ignored nor be reduced under the given

circumstances. It can be observed that there are 4 medications that are taken by here and it can

also be seen that there are also monthly visits and test strips that contribute to this part of her

budget. There is not much left after the health, food and utilities spending as it can be keenly

observed that the potential and competitive environment does give her the opportunity to spend

18% of her budget as per her will.

If her expenses are increased or income is decreased, both would result in a lesser discretionary

spending as this spending is here joy for life it can be observed that the potential and competitive

environment can lead to decrease in income, while on the other hand inflation and other such

expenses can lead to a substantial expense and a rapid increase in spending that is pertaining to a

potential rise in the position that creates a risk matrix, which creates a lot of uncertainty about the

future. In case she wants to keep her discretionary income constant, she could have to cut down,

either her medical expenses or her monthly upkeep. If it is assumed that she is willing to sacrifice

her health in this scenario, then the life span of Mrs. Martinez could drastically shorten.

What are the effects of an increase in expenses/decrease in income on Mrs. Martinez ability

to manage her health?

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In case that her health drastically suffers or she meets with an unexpected medical situation, then

it could be observed that her medical budget would boost and it would result in a lesser

discretionary spending. It can also be observed that in order to meet the needs of the health, some

other part of the budget would have to be disturbed. It can also be covered by a little less

maintenance of lawn or the car too but in that case the element sacrificed for health would suffer

and could require even more maintenance in the coming future (Parker, 2014).

What life events could affect Mrs. Martinezs ability to meet her healthcare/pharmacy

expenses?

In order to balance the situation and meet any unprecedented situations in the coming future, she

has a limited number of options, this is due the factor that she has almost outlived most of her

life and time is what is needed, and it is the resource that she lacks. So the options here are

partial saving from discretionary income, reduction of maintenance budget or purchase of a

complete health insurance package that covers all her medical needs and emergencies. The point

of recommendation here is to go for insurance, this would not only decrease her medical

expenses but also enable her to meet any emergencies in the future with a lot of certainty and

ease. In this case the potential provident of the situation lies in her favor (Golio, 2007).

What options are available to Mrs. Martinez that may help in manage her healthcare

expenses?

Overall, Mrs. Martinez is managing her retirement budget with a lot of efficiency and with ease.

But she does not have any provisions for emergency medical situation. In this case it is

recommended that she purchases an insurance policy and should therefore meet all her medical
Retirement Planning 4

needs with ease. It can therefore, be concluded that the need of the hour is to meet the

uncertainties in her life, which would most probably unbalance her delicately balanced budget.

References
Golio, M. (2007). Engineering Your Retirement: Retirement Planning for Technology

Professionals. John Wiley & Sons.

Parker, J. R. (2014). Sound Retirement Planning. BookBaby.