Jones Electrical Case - 1038 Words

MBA770 Corporate Finance Case â€Å"Jones Electrical Distribution† Description Jones Electrical Distribution (â€Å"JED†), which sells electrical components and tools to general contractors and electricians, is experiencing rapid growth in a highly-fragmented, highly competitive industry and despite profits, experiencing a cash shortfall, resulting in increased borrowing from Metropolitan Bank (the â€Å"Bank†) to $250K, the max loan amount the Bank will make to any one client. JED has been able to remain within this amount through 2006, relying heavily on trade credit from suppliers. As a result, Nelson Jones, owner and president, is seeking a new banking relationship. Nelson’s friend introduced him to a new bank where he felt he might†¦show more content†¦Borrowing limited to available borrowing base of margined A/R and Inventory, will pay an unused fee of 0.25%, annually, on the portion of the revolver not used. This allows the flexibility to grow into a larger revolver continuing to support growth. Expected Customary Covenants – JED should expect that the note to the former shareholder will be fully subordinated to the Bank’s senior revolver facility. Should also expect that he will sign an unlimited/unconditional personal guarantee. No Need for Growth Equity – It is not believed that JED needs to consider growth equity, resulting in dilution and high cost of capital. The growth can be supported by traditional bank financing, as suggested above. Appendix |Balance Sheet | | | | | | |Inventory |$243 | |$278 | |$379 | | / COGS |$1,304 | |$1,535 | |$1,818Show MoreRelatedJones Electrical Case Essay820 Words   |  4 PagesDevin Carr Cases in Finance 9/13/11 Jones Electrical Distribution In the case of Jones Electrical, after running pro-forma financial statements for the year 2007, Mr. Jones should forgo taking the trade discounts. Although it would seem advantageous to pay suppliers within the discount period (2/10/net 30), the amount of capital required is beyond the capability of the business and the extent that Southern Bank amp; Trust was willing to provide. As it can be seen from Exhibit 1, the amountRead MoreJones Electrical Case Study1056 Words   |  5 PagesCase Study - â€Å"Jones Electrical† 2. – Why this profitable company needs a bank loan? As we can see from the figures and the information given in the present case, the company is very profitable due to the ambition and well management done by its owner Mr. Jones. In this regard, we can see in â€Å"Table 2 in the spreadsheet†, that the company is taking advantage of the 2% discount offered by suppliers saving around $75,000.00 per year. We have to pay especial attention to the agreement reached withRead MoreJones Electrical Distribution Case Analysis2414 Words   |  10 PagesJones Electrical Distribution Case Analysis Financial Management-Huaihai Cohort- Team 9 This analysis is based on the 5 questions to the case. We believe that answering them builds a rather exhaustive and clear picture of the state of Jones’ business and its strengths and issues and offers a good analysis of its current state. Question A) How well is â€Å"Jones Electrical Distribution† performing? What must Jones do well to succeed? Jones Electrical Distribution is electrical supplying company. SinceRead MoreJones Electrical Distribution Case Essay example909 Words   |  4 PagesJones Electrical Distribution Case Case II Jones Electrical Distribution is a small company involved in wholesales of electrical devices and appliances. Even though Jones Electrical has been able to turn a profit over the past few years, they have noticed a shortage of cash when attempting to take advantage of trade discounts. Their current bank is unable to extend financing over $250,000, and Jones believes they will need considerably more to finance their operations. Therefore, Nelson JonesRead MoreJones Electrical Distribution1201 Words   |  5 Pagesï » ¿Jones Electrical Distribution case Jones Electrical Distribution is a wholesaler of electrical components and devices to general contractors and electricians. Although Jones Electrical Distribution has been profitable in the past few years, the company experiences a drain on its cash when it attempts to maintain a rapid growth while taking advantage of trade discounts at the rate of 2%. Problems faced by Jones Electrical Distribution are as follows: Should the company maintain a rapid sales growthRead MoreSampson Products Case1477 Words   |  6 PagesSAMPSON PRODUCTS Sampson Products Corporation was a major manufacturer of electrical equipment used extensively by consumer goods manufacturers. The company sold most of its products to manufacturers of refrigerators, automatic washers, and electric stoves to be installed as original equipment that usually retained the Sampson brand name. In addition to the original equipment market, Sampson had obtained a significant portion of the replacement market for the products it manufactured. Sales of SampsonRead MoreThe Human Race : A Great Deal Over The Course Of Recent History Essay1050 Words   |  5 Pagesin society can be attributed to the achievements of engineers - however, despite this, many do not realise their contribution and importance. One of the fundamental bases behind these engineering feats is the harnessing of energy sources, such as electrical and heat energy. This has allowed for many innovations, for example power stations, transportation, communications and computers, which have all b ecome critical to society and the modern world in which we live. 1 – Introduction ItRead MoreJones Distribution Case Solution1990 Words   |  8 PagesJones Distribution Case Finance Team -13 Executive Summary: The Company Jones Electrical Distribution was founded in 1997. The company distributes and wholesales electrical components. It is a sole proprietorship owned by Nelson Jones who is looking for a new banking relationship that will allow him to receive a larger loan to sustain his business. Even though the company has been turning in profits, the ineffective collection practice, not availing trade discounts on time and ineffectiveRead MoreThe Method Of An Accounting Method Essay1459 Words   |  6 PagesHowever, the IRS mandates that any business that sells or produces inventory be required to use the accrual method, however, there are exceptions. Businesses can use the accrual method for tax purposes and cash-basis to record expenses. In the case of Mr. Jones, he is going to continue using the accrual method because the business is still under three years old (Koening 2016) (Publication 538 2015). Accrual method accounting includes the uses of Accounts Receivable and Cost of Goods Sold for recordingRead MoreDetecting Heart Blockage in a Patient1732 Words   |  7 PagesSA node (Sino atrial node) also called the pacemaker as it generates the hearts own electrical signal and allows it to contract and pump blood to the rest of the body. This gives the heart a special feature making it the only organ that is capable of working outside the body if provided with enough oxygen. The electrical system controls the rhythm of the heart and the heart rate. A problem with the hearts electrical system affecting the transfer of signals from the SA node to the AV node and then

Actors Chinedu Ikedieze and Osita Iheme Essay Example For Students

Actors Chinedu Ikedieze and Osita Iheme Essay Chinedu Ikedieze, alongside Osita Iheme are excelling actors who have created lots of impact throughout the Nigerian movie industry (Nollywood) and Africa at large. They have been able to apply their personal lives as well as their attribute as comedians throughout their acting career and the roles they play. Aki Na Ukwa (2002) and Adaobi and Adaeze (2014) bring out the strengths of Chinedu Ikedieze and Osita Iheme not only as actors but also as friends and partners over a decade. Their dual cast in Aki Na Ukwa (2002) serves as a great account to why they excel on and off screen. Bringing out the similarities and differences of these actors in both movies, helps to show their personalities in real life and how they relate to each other. The intent of this paper is to demonstrate the similarities and differences of both actors, how they relate or differ from each other in and out of the acting world, and how they have been able to succeed as two of the most popular actors of Nollywood. Chinedu Ikedieze who was born in 1977 attended primary, through secondary and graduated college with a degree in Mass Communication. In 1998, he had his first cast into the movie titled Last Burial. Biography of Osita Ihieme and Chinedu Ikedieze). During this time, he was just twenty-one years old and brand new in the movie industry. This explains why his fame and popularity were in evident. However, he had an impressive start which was thanks to fans who enjoyed watching this movie. The role he played in the movie, placed him on a high stool towards his cast in his subsequent movies together with his long lasting partner Iheme when they met in 2002. Their bond was a boom which served them a limelight into the world of fame and field of acting. Iheme who is much younger than his copartner Ikedieze was born in 1982. However, they acquired same level of education, ending up as graduates through college with degree in mass communication. Unlike Ikedieze, Iheme had his first shot on camera in 2001 where he featured in the movie, Cold War. (Biography of Osita Iheme and Chinedu Ikedieze). Similar to Ikedieze, Iheme did not gain much popularity or attention from his viewers. The popularity of both actor cracked boundaries in 2002 when they had a duo cast in the movie titled Aki Na Ukwa. It would great interest to know that there are many things in common between these two actors despite the fact that they are not of the same parents or neighborhood. The lights and brightness of both actors came to life in 2002. This was when they had a duo cast in one of the most popular movies in the history of Africa and Nollywood. In 2002, Philips being the produce of Aki Na Ukwa, served as the driving force to the fame of both actors. These actors inherited the names â€Å"Aki and Pow-Pow† which they are popularly known by. Ikedieze, who is the eldest to Iheme, went by the character â€Å"Aki† and Iheme went by the character â€Å"Pow-pow†. According to the story line of Aki Na Ukwa, Aki and Pow-pow are two brothers who course problems everywhere they find themselves. They go around the neighborhood and coursing trouble to the people around. As a result, their parents abandoned them, did not provide them with money or food to eat. This makes them to take advantage of a village beggar who then gives them her money in the name of love. Also, these two truants figured out other ways to get money for survivor. They decided to dance in the market square as entertainers. Those who enjoyed their dance, then gave them money. .u5e4872494daa758840f57a54aa40fd1b , .u5e4872494daa758840f57a54aa40fd1b .postImageUrl , .u5e4872494daa758840f57a54aa40fd1b .centered-text-area { min-height: 80px; position: relative; } .u5e4872494daa758840f57a54aa40fd1b , .u5e4872494daa758840f57a54aa40fd1b:hover , .u5e4872494daa758840f57a54aa40fd1b:visited , .u5e4872494daa758840f57a54aa40fd1b:active { border:0!important; } .u5e4872494daa758840f57a54aa40fd1b .clearfix:after { content: ""; display: table; clear: both; } .u5e4872494daa758840f57a54aa40fd1b { display: block; transition: background-color 250ms; webkit-transition: background-color 250ms; width: 100%; opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #95A5A6; } .u5e4872494daa758840f57a54aa40fd1b:active , .u5e4872494daa758840f57a54aa40fd1b:hover { opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #2C3E50; } .u5e4872494daa758840f57a54aa40fd1b .centered-text-area { width: 100%; position: relative ; } .u5e4872494daa758840f57a54aa40fd1b .ctaText { border-bottom: 0 solid #fff; color: #2980B9; font-size: 16px; font-weight: bold; margin: 0; padding: 0; text-decoration: underline; } .u5e4872494daa758840f57a54aa40fd1b .postTitle { color: #FFFFFF; font-size: 16px; font-weight: 600; margin: 0; padding: 0; width: 100%; } .u5e4872494daa758840f57a54aa40fd1b .ctaButton { background-color: #7F8C8D!important; color: #2980B9; border: none; border-radius: 3px; box-shadow: none; font-size: 14px; font-weight: bold; line-height: 26px; moz-border-radius: 3px; text-align: center; text-decoration: none; text-shadow: none; width: 80px; min-height: 80px; background: url(https://artscolumbia.org/wp-content/plugins/intelly-related-posts/assets/images/simple-arrow.png)no-repeat; position: absolute; right: 0; top: 0; } .u5e4872494daa758840f57a54aa40fd1b:hover .ctaButton { background-color: #34495E!important; } .u5e4872494daa758840f57a54aa40fd1b .centered-text { display: table; height: 80px; padding-left : 18px; top: 0; } .u5e4872494daa758840f57a54aa40fd1b .u5e4872494daa758840f57a54aa40fd1b-content { display: table-cell; margin: 0; padding: 0; padding-right: 108px; position: relative; vertical-align: middle; width: 100%; } .u5e4872494daa758840f57a54aa40fd1b:after { content: ""; display: block; clear: both; } READ: Movie Continuity - Taken EssayThese two actors played the merged characters as teens which contradicts the reality of their ages as adults. Majority of the African population who loved this movie, ranged between the ages of five and 17. However, adults, especially parents, loved watching this movie for two reasons. Firstly, they use the names Aki and Pow-pow to teach toddles how to speak their first word. This was thanks to the popularity of the movie. Secondly, the ages of Aki and Pow-pow in real life did contradicted their role in Aki Na Ukwa. It was unbelievable to those who heard of it for the first time. Seeing them fit so well in their character as little brats from their 1998, 2001 through 2002 movies seen in the previous paragraphs. Up to this point, questions feel the hearts of fans and views of African movies when it comes to the debate as to if Aki and Pow-pow are really adults or teens. Some people find it hard to believe that they have actually gone through college and complete with degrees. The duo act of Aki and Pow-pow in their first movie (2002) as little village boys, did not only give them a lime light into their career as actors or comedians, but it also gave them a better position into their acting field. Over the years, they have been acting as great partners in their career. Examples of some movies they have jointly acted after Aki Na Ukwa include; School Dropout (2002), Two Rats (2003), Brain Box (2006), and their most resent, Adaobi and Adaeze (2014). Majority of the film which Aki and Pow-Pow have both acted, they have featured in as kids. However, they also have other movies they acted as adults though their physical structure as dwarfs could not really feet completely into their character. Contrary to Aki Na Ukwa (2002), Aki and Pow-Pow have also acted as ladies in their latest movie titled Adaobi and Adaeze (2014). According to Nigerian customs, the names Adaobi and Adaeze could only be given to females. This explains the more reason why Aki and Pow-pow went by the names Adaobi and Adaeze respectively. The interesting aspect from this movie, is how perfect they fit in their female character. A good account for this success, could be attributed to their body structure, and skin color. From a physical perspective, these two actors are approximately equal in height and body structure. A good similarity between them, is the fact that they both have fluffy body structure as well as full chest and breast that gives them added advantage to suit their role as females throughout the movie. Despite the above similarity of Aki and Pow-pow, what differs between them is the fact that Aki is much older when it comes to age difference than Pow-pow. This explains why he had an upper advantage of being the first to act in the Nigerian movie industry (Nollywood) (1998). Also he has a dark skin color as opposed to his copartner Pow-pow. With reference to the biography of both actors, it brings out a clear fact that they come from separate families. With this being said, the question that has not yet been answered up till date, is how come they are able to relate to each other without problems and make great success not only in their field of acting, but also in real life. These talented and inspiring young men gone a long way in exceeding their limits not only as actors on stage but also jointly agreeing to build a twin building for themselves after having several other buildings in their separate hometowns. In looking at the similarities and differences of both actors, it is important to note that they have more in common as opposed to their difference. Examining their relationship in and out of the acting field, brings to mind the fact that no matter the qualities of an individual, there is always a potential that lies in them. All that is needed, depends on courage, aiming high and believing that fears are a test of time, courage is the weapon to fight and success is the trophy. Their achievements off-stage has greatly inspired lots of other upcoming actors to a positive mind set.

The Most Incredibly Overlooked Answer for Abstract of a Research Paper

The Most Incredibly Overlooked Answer for Abstract of a Research Paper How to Get Started with Abstract of a Research Paper? In the event your paper is devoted to social science or humanities, you have a chance to use some creative approaches. At times, a lengthy research produces a student adore the subject. The abstract is a brief paragraph employed by academics and researchers in order to swiftly and efficiently decide if a particular work is helpful to his or her own study. The abstract of a research paper or dissertation enables the reader to find a general idea and the outcomes of research work accomplished by the students. Finding the Best Abstract of a Research Paper An extensive review of the used literature is a significant approach to spell out the significance of your own work. Although there isn't any single right'' way to conduct research, certain techniques and skills are able to make your research efforts more efficient and potent. Try to remember, even the most seasoned academic veterans have needed to learn to compose a research paper at some time in their career. Writing a research paper is an important part of academics and shouldn't be avoided on account of somebody's anxiety. The second job of your introduction is to offer a well-rounded summary of prior research that's related to your topic. A great introduction should explain what the subject of your paper is while also giving information concerning the context. It is crucial to provide the reader a very good summary of the historical context of the problem you're writing about, but don't feel as if you have to provide an exhaustive review of the subject. The abstract should incorporate all info that reader may not feel to read text so as to understand what research is about. The target of your introduction isn't just to let your reader know what your paper is all about, but also to justify why it's essential for them to find out more about. If your subject is too comp lex, you must make it comprehensible with your thesis statement. Research paper introduction has become the most important and difficult part to write because it ought to be straightforward and self explanatory for the audience to comprehend the topic. In the majority of cases, research paper introductions ought to be limited to just 1 paragraph. The Upside to Abstract of a Research Paper The important goal of introduction is to introduce to the reader the objective of your research. Once you are all set to compose your introduction, your very first task is to give a succinct description of the research question. The abstract, on the flip side, is likely a comparatively new endeavor. A rationale of the job has to be laconic and precise. A Startling Fact about Abstract of a Research Paper Uncovered One of the most difficult facets of writing a research paper is often creating a wonderful introduction. Once reading your thesis, your readers ought to be motivated to read the remainder of the essay. An excellent research paper introduction should make your reader feel like he's in addition to the essay topic you're going to discuss. Because academic fashions of writing are referred to creative writing too. Who Else Wants to Learn About Abstract of a Research Paper? Abstract of title is a significant portion of a title search and title insurance plan. You will be given a title insurance plan which is based on the title search outcome, including making a judgment on the abstract of title. As soon as you've settled for an excellent title, you are now able to proceed. Depending on the sort of book the title might be a precise detail of the content, or only a hint at what's inside. Not only do you clearly establish what you plan to accomplish in your research, but you also need to incorporate a declaration of what the study doesn't mean to cover. It's time-consuming in the feeling that you truly don't understand what study methodology you're likely to use or what your major objectives are. Try to remember, your study may not always create the outcomes you anticipated. While in most instances it's much better to briefly summarize the outcomes of the analysis, occasionally it's not possible to summarize the info in just a few sentences. You should assume your paper is directed at someone with a fantastic working knowledge of your individual field. Engineering is among the oldest academic disciplines on Earth, and it's streamlined into different fields. Always make certain you adhere to an outline and you're going to stay on the right path. Finding Abstract of a Research Paper During the reading procedure, be sure you're taking notes. A research paper is a formal academic document that learners write after they've spent a protracted period of time researching a specific subject. While a number of them are a bit more technical than others, all of them follow the fundamental rules of what it requires to compose a decent ab stract. When you have located a report, examine the reference section to track down different studies cited in the short article. Top Abstract of a Research Paper Secrets It's always better to have a fresh set of eyes look at it. Descriptive Abstract A descriptive abstract indicates the sort of information found in the job. You also need to center the word Abstract'' at the very top of the webpage. Make certain you're familiar enough with your poster that it is possible to speak about it without looking at it. Abstract of a Research Paper Can Be Fun for Everyone The introduction is where to highlight any weaknesses in the experiment from the beginning. The abstract is written to be able to summarize research work in short form. The abstract should only comprises the most crucial elements of the research work as a way to ensure it is brief. Abstract for a research paper is the very first portion of a study that is written before the introduction to be able to present the co re idea of the entire work to its readers. The Foolproof Abstract of a Research Paper Strategy Next tips will reveal to you just how to fulfill the aim of research paper introduction and remove the creative mess. To simplify, utilize the next diagram whenever you have to work on a research paper. Now you know how to begin your research paper, you're probably thinking about how to keep going. When you're writing your research paper's introduction, you ought to be building it around a particular outline that supplies a general review of the paper. As soon as your introduction is done, it is possible to now consider attacking the remainder of the paper. While the abstract will be at the start of your paper, it needs to be the previous section that you write. The objective of your abstract is to supply a brief yet thorough breakdown of your paper. The format of your abstract also depends upon the sort of paper you're writing.

The Great Gatsby Women Rule Essay Topic

The Great Gatsby Women Rule Essay TopicHow to answer a question about the Great Gatsby women rule essay topic? I was thinking about this just as I was reading the book. This is a great question to ask because there are so many great questions to be asked in a book like this. I was also wondering if the Great Gatsby women rule essay topic could have been discovered by looking at the text of the great book itself?One question I am sure you would want to ask is why did it take the author to figure out how to write an essay about the great book and not simply copy the first paragraph of the introduction? There are two important facts about this question that the author would want to answer.One, the author had to ask himself and answer the question, How do you write an essay about the great book and make it stand out as being different from the rest of the books out there? Two, the author had to figure out a way to make it different from all the other versions of the Great Gatsby women ru le essay topic that had already been published.It would have been so easy to simply copy the Great Gatsby women rule essay topic from the introduction. She did not have to figure out a way to get it to sound different than everything else out there on the market. We already have a way to do this with all the different versions of the Great Gatsby woman rule essay topic that we can find. So this could not have been her goal.Instead she wanted to answer the question of how to write an essay about the great book. The reason why she did not find a way to get it to sound different is because she did not have to. She had the text, the introduction, the summaries, the resources, the timeline, and the great book itself.That means she could get her essay ready in a day if she wanted to or she could write it in a few days if she needed to. No need to find a way to get it to sound different than everyone else's version of the Great Gatsby women rule essay topic. That is why she did not do this .These are some of the reasons why she did not include the Great Gatsby women rule essay topic in the book. If you want to know more about the Great Gatsby women rule essay topic, please feel free to search the internet for more information.

Quantitative Method Essay Topics

Quantitative Method Essay TopicsHow can one successfully create a quantitative method essay topic that will get him the desired college degree? Here is an idea that may be useful. There are several subjects where a student can come up with a good subject that will allow him to do well in the entire course. In quantitative methods, some topics would not be bad to include in the class.Students often want to include topics that relate to their majors. Most of the subject matter has to do with the courses. For example, they might discuss a product or service from the auto parts to medical clinics. The topics will help the students to see what they are studying in classes and make a better grade.It is important to create a strong subject so that it gets them the required grade. One must also remember that it would be quite hard to get a perfect grade when a subject is not based on a real life experience. However, it does not necessarily mean that you cannot discuss subjects that you know about and that would help you get a good grade.It is quite easy to come up with a topic that will get the students a good grade if they have the right approach. When a topic does not go against the guidelines for the college, it can be successful. A good subject will make the students to study more efficiently, making them learn much faster and thus earn a good grade.Some subjects can be very interesting to the students. However, they need to focus on getting the right topic for their subjects. They must focus on what they know and what their area of interest is. By getting the right subject, the student would be able to get a high mark and make the professors happy.Once the subject matter is written, it is important to look for the topic in order to understand its potential and uniqueness. A student may want to create a topic that is a combination of topics from several other subject. Thus, he can make a topic that combines both related and unrelated topics to give an outstanding w riting.The subject matter must be a logical subject, so that it will be easy for the students to understand. Since this topic relates to the classroom, a large number of students will be able to understand the topic. Students should choose their subject based on the professor.

Sample APA Essay Paper

Sample APA Essay PaperSample APA essay papers are not for everyone, but there are some people who really enjoy writing in the form. The sample APA essay is really meant to give students a great way to take advantage of the information that they would have if they sat down and actually did the research, just like you would if you were in college.'The popular term for this type of paper is not just that of an essay but a research paper.' said Susan H. Clark in her article on the subject, which was published in the Journal of Educational Psychology. This is actually not a bad description of what an APA sample consists of, since the topic is based more on the subject matter of the area being studied.You can find them in the online discussion forums, which are very helpful for people just starting out. In fact, it might be more helpful for them than any textbook or anything else that you might be using at the moment. Online, the number of topics are much larger because the forum is free a nd there are hundreds of posts in almost every topic that comes up.Although it is not the same as taking the course all at once, it still gives a good base for you to start off on your APA papers. And of course, you don't need to go through the full course, just the required number of topics, because the topics that you get from APA are only the ones that you are required to have written at the end of the year. Once you have read the APA guidelines and the sample guidelines, you can then start writing your own APA essay.There are two different sections that you need to look into. The first one is 'Basis' and the second one is 'Description.' They are basically what they sound like. Since the samples are going to be given for you to use, you can choose to use them or not, but you will have to read them and decide for yourself what you think would work best for you.The first section of the papers is the 'Basis', which is basically the subject of the paper. You would want to make sure t hat you create a good outline, so you can really put everything in your head, get everything down, and not have any doubts in your mind about how you are going to accomplish this particular task.The next part of the paper is called the 'Description'. It is going to be a few sentences that you would use to explain the topic that you just wrote.

Baby Boomers After World War II

Table of Contents Introduction Government Plans Social Security Trust Fund Conclusion References List Introduction Retirement of baby boomers is inevitable. To analyze the government’s strategies concerning retirement and social security of the same, it is important to note some key factors. The people born immediately after World War II (baby boomers) were many; unfortunately, they have not been giving birth to enough children that could match the population of that time; therefore, demographic change is inevitable. The number of tax paying employees has been declining since 2008 when the first crop of baby boomers entered retirement.Advertising We will write a custom essay sample on Baby Boomers After World War II specifically for you for only $16.05 $11/page Learn More The decline is attributed to the simple reason that baby boomers did not bring forth enough children to maintain constant population. This implicates that, without proper man agement, social security will shrink and finally collapse because tax-paying population cannot sustain retirement benefits for retired and retiring baby boomers. So, what is the government doing about this lurking crisis? Government Plans According to Gale (2007), â€Å"80 million Americans born from 1946 to 1964 could qualify for Social Security and Medicare during the next 22 years.† Out of this 80 millions, 3.2 millions entered retirement in 2008 at age 62, the early retirement age. Even though some have dubbed this, â€Å"the single greatest economic challenge of our era† (Bernheim, 2000, p. 288), government has strategies in place to counter these challenges. Actually, one of the biggest, though unknown challenges is the fact that many baby boomers are not having enough private savings; hence, they would be forced to depend entirely of social security fund. Nevertheless, the much publicized ‘enough’ private savings is not quantifiable because this is a personal issue. After the government realized that, more than a quarter of baby boomers had not saved enough, it embarked on a campaign to encourage baby boomers not to retire at 62 but prolong that, a little bit long. â€Å"Because people who retire at 62 can expect to live another 20 years, each year they postpone retirement reduces their need for retirement savings by about 5 percent† (Gale, 2007, 5). Extending retirement by a single year increases one’s social security benefits by a significant margin and government is currently campaigning for this extension. Moreover, working for a longer time presents one with the opportunity of saving more, hence reducing the amount that he or she will need from the social security scheme. For instance, taking the case of Casey-Kirschling, at 62 years this year, if she starts drawing money from the social security trust fund next year, â€Å"she will get $240 less per month than she would have if she waited four years† (Butrica, Howard, Iams Karen, 2010). This makes sense and this is the reason the government is campaigning for baby boomers to extend their retirement time.Advertising Looking for essay on social sciences? Let's see if we can help you! Get your first paper with 15% OFF Learn More Congress has been working tirelessly to ensure that baby boomers retirement does not plunge the country into economic crisis. In 2003, Congress increased healthcare budget by $768 annually; however, in 2005, â€Å"lawmakers nicked Medicaid’s projected cost by $5 billion over five years, but the Congressional Budget Office still projects the program to grow by about 8% a year† (Butrica, Howard, Iams Karen, 2010). This is commendable and it would work; at least for some time. The other strategy, though a risky one is that of basing government â€Å"pension plans on the assumption that stocks will return an astounding 9.5% yearly growth on average, and that bonds will pay about 5.75%† (Kotlikoff, Auerbach, 2009). The risky part of this notwithstanding, this strategy would work out very well and let baby boomers retire in peace. The other option that the government has is to increase tax rates and cut down the rates of benefits that retirees would get from the social security trust fund. However, this would face opposition from many quarters. Social Security Trust Fund The government initialized Social security system to enable utilization of tax money in a bid top provide retirement benefits to retirees and baby boomers make a good number of these retirees. Among the taxes accumulated under the social security program, are taxes on salaries, wages, and Medicare. According to Pearson (2007), â€Å"out of every dollar collected, 85 cents are deposited into social security trust fund while the remaining 15 cents are utilized to pay the benefits to disabled people and their families.† Even though this strategy is not sufficient, it would work and save baby boomers from financial woes. Generally, Social security trust fund benefits are entitled to retirees, their spouses or any dependants and this is commendable. Moreover, the social security system is dynamic and retirees can choose how to get their benefits. For instance, the government, through the social security trust fund pays full benefits to those retiring at or after 65. This is a strategy on its own, for baby boomers would be compensated upon their retirement. The amount they will get may be relatively small to what is expected; however, the fact is the sustenance of the social security trust fund is helping greatly in strategizing on baby boomers retirement.Advertising We will write a custom essay sample on Baby Boomers After World War II specifically for you for only $16.05 $11/page Learn More On the other hand, government has restructured the social security trust fund system to allow retirees to take early retirement. This of cours e contradicts the ongoing campaign to encourage people to extent their retirement. However, because not everyone is willing to extent his/her retirement, the social security fund allows those who are willing to take early retirement to do so at a cost. Those willing to retire early receive â€Å"permanently reduced retirement benefits if they opt for early retirement† (Pearson, 2007). This strategy helps to save more money that would otherwise been paid to these early retirees if they retired at the appropriate time. To create a balance between early retirees and late retirees, government is giving incentives to those willing to prolong their retirement age. In this case, those who â€Å"defer receiving the retirement benefits until the age of 70; they collect higher benefits after that† (Pearson, 2007). This strategy also works; logically, if someone prolongs his or her working age to 70, the tax-paying workforce will be high and this deals with the fears of imbalance d tax-paying employees compared to those depending wholly on the social security trust fund. Moreover, it implies that, apart from withdrawing from the trust fund, people working past their retirement age contribute to it and this may work for the government. Finally, there is a $100 billion surplus annually for the next ten years directed towards the social security trust fund. Moreover, the medical reforms that the Obama administration is pushing may work for the best of baby boomers. With medical services becoming more available, baby boomers retirees do not have to worry; even if they have little money left for medical expenses, this would match the reduced costs of health care services. Conclusion Baby boomers expected and inevitable retirement has caused ripples in different quarters as a crisis looms over their retirement benefits. Nevertheless, the government has ensured that proper mechanisms are in place to counter any crisis. The dynamic nature of the social security trus t fund caters the needs of baby boomers’ retirement. The government is campaigning for extension of retirement age, as this would boost the capacity of the social security trust fund to pay retirees. The $100 billion annual surplus towards the trust fund is a landmark as it ameliorates the trust’s capacity to compensate retirees. On the other hand, the Obama administration is pushing for medical reforms and this would help ‘cash strapped’ retirees.Advertising Looking for essay on social sciences? Let's see if we can help you! Get your first paper with 15% OFF Learn More References List Bernheim, B. (2000). How Much Should Americans Be Saving for Retirement? American Economic Review, 90(2); 288-292. Butrica, A., Howard, M., Iams, K., Karen E. (2010). It’s All Relative: Understanding the Retirement Prospects of Baby Boomers. Chestnut Hill: Boston College Center for Retirement Research. Gale, G. (2007). The Aging of America: Will the Baby Boom Be Ready for Retirement? Brookings Review, 15(3); 4-9. Kotlikoff, L., Auerbach, J. (2009). U.S. Fiscal and Savings Crises and Their Impact for Baby Boomers. Washington: Employee Benefit Research Institute. Person, C. (2007). Social Security Government Retirement Benefits. Web. 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