156 PA RT 11 • TIME ANO RESOU-Cf ALLOCATION
FIGUR E 5. l 400.000
Sallll)'
Omar's Ufe-Cyde
"J00.000 r - --------- -----,"
Savings Plan
200.000t--
I Coosumpuon 1
100.<XXI
..... -- --
I•:············· ··············:!
0
Dl..000
-JQl.000
--•=
........
.
..
•
•••••••••••••••••
"ll "" M """
Age
"Table S.J and Fig""""' S.3 show Omar""• upcctcd pallrm of salmy and planned coo­"
sumpllOll <pendini lllld-·ing on the usumpuon 1ha1ht wanb 10 ba•c the same real coo­
"swnption n'a)I year His human apiW innwly i•SS.186.747.and his pcrttWIClll....,.,,.,"
"..$193.720 In onlcr IO sponc1 $193.720 per )CSdunng thc lhc of his te$1dcaicy. be wil l hi\-., IO borr- (- / Sl68.720 acb year IO IUppl<- bisSl5.000Abry Ills IQQJ tlldd>lcd"""""" ""'di pow ID a 1J12ximam o($89S.7SS at lg!' 3S.and tbon clechllc"
"aflcr *' a mull of h11 A""iag SI06.280 C\'a)I }cat fn>m age 36 unlil he 11tgc 6S. NOie that ht ""''""not ha ""paid off his dcbl untJI II""4S.One is DC\ct too yoong 105C11t leamln1finan.;e hoe Box S.3)."
l ) u i < I.. I ht ·• I.. "Suppaoe lhll 0.- is crcdil c:omtlatJled Md bar·-ct.ring ibt llCXI
,..,_.Ibo> docslhll atrca bis lifetime ""'""'°'and consunrprioa pbft1"
"i. ......i ...u .!S--SBwopc: mr lirmo wl .,.a_ ,.4k CS-S-P""ll illplorx
..... IO Mc:•GKK A 4' billly far tM:ir"" iwA•M 41 to-yJ e • wat<n...,.lmic ' W o••pll
""[• w-e...,... .... f*M • t.m. ffl:rM, ._, P""1- lllCltm Uiilc lnd \w•;' C lrK't of fK:ir ill L' •1
floe.c t r W im dldr'owa r.i: al f ..wL••5 ElowPii .•• IQ+•..hct-w'.eC:e ....
Mc.olm m.l.,lllilok tto. -a.- -a...- c:ill o\+ •im md h•""lllad>ic:e ""'tiicll -bc a6oicd
-lly do ......... -...... ...... inlla­ by linnl Ind r-s ..,.....,,.,..iCM be leM cll;•""'i""""­ doa, rbt (iatjon. wt oompowtd 1 .Tho to.. Ncwatbclm, JICOI*'with• IPeater u...ia-tdingoltm.­ pc<-.1 uviqa ob llDd f.-.qucnt bonl:ruptcy In the cial concq>ts h1YO btt_n ahown to ""'"""" more and mal;e United Slala IndOn:al Britain allnl to lhc t.cl< oC finan. higher rctuma on lbdr kto&-lmnia....wlmll.
Cllal lilcn<y .......m;my-c:jliu114 CioYawncnu --
b)' llldlta Mf••tuliffity fm cit ,,...•i>o """""""" """"' .....i :A.....,_-0..-Ja- n..n , 1..,1 112.
.._ .,,. fllr dadr «llircmrD. ...t ct....cfore lll&R)' poh•c JD06."
I f i na nci a l l n no\'a l ion lo c·
omhal 1.ongc\ it Risks
"Al hfe CJ< w.-J die IMJrid 10 rue.,"
"llWiWW eonpa,,..._.ccrporace pcm1on ..: hen..,.mtl\I find a """"Y IO accommodlle lhc of lhk Ma­ nllicant lrctlCL M""""Y unuhy r--lclcn and pcMiun tdtcitlCI ...... few ..-111> n<l: manqt'.1-tooh IO"
"dtal ...th '""""'mw>d t.fc - Thi•-jlO<C.ci­"
"-pdllaa for orpn1,.;.,,,. 11u1 ....,. Piil' indi•!dualt"
•.-rnan -.ldalll.
"Sc-.alll _...., """"""""' pooed -(m aim"
"-auucturcd llOlhal diepoymmu .,..,....boner•"
ltfcdqxwdtng oa the rnl1 0b00 ol dlU lndo
"1-compoalo In the Unncd Ktqdom bl>e apnsliCCI in1.,.... ntiuy1ng pcMiun promoa (mm finm lhM dan°1,._ 10 m11111C ouch risb. Hcd11n1tlDc nib"
"WD111d nnnlmue lhc !mi*' o( lhc ,,..... dttM'lloqihir"
UUld ol ..ty ..............lnl loqcr lllld collcCll111 -
"""""'--,_,.s..........,u,............Ctt»p:d. ...."
"...a ....,...,C1s-l 1t1 more poopl< c: laotp> ..i"