PART·1

LEARNING

Planning for Retirement1

Walter wants to retire within the next few years.He’s been working at the same company for over fifteen years as an accountant. During that time he’s been saving his money and paying off his debts.However,even with his savings and investments, he isn’t sure that he’ll have enough money for retirement. If he doesn’t, he’ll have to keep on working, which depends on the company.For now, the company is okay,but it’s no longer growing as fast as it used to.

Whether or not he can keep on working ’ ’depends on the company he`s working for.

To prepare for his retirement, he’s been~~~saving his money and paying off his debts

Whether or not he can keep on working will also depend on his health.①Fortunately, he`s in good health, but he knows that that could change at any time.②If he fell down or had a stroke, it could force him to stop working. ③If that happened, he would have to rely on his savings and other assets to survive. ④Sooner or later, he knows his health will decline and he’ll have to stop working. So he needs to prepare.

Most of his wealth is in the form of company stock and the value of his home. Both of these are at risk. The company stock may go down, and the value of his home may also fall.① The company he works for is a pharmaceutical company. ②It develops new drugs, which is a risky business, and sells them worldwide.③ It`s expensive to develop new drugs, and it can take a very long time to get a new drug approved. ④Without government approval, it can’t be sold, which can result in a huge loss.

(If new drug isn’t approved, it can’t be sold, which results in a loss.)

Another threat to the company comes from foreign competition, which is getting stronger. The company has also started to move some of its research and production facilities overseas. Salary levels are lower there, and the quality of foreign workers is getting better. As a result, the company has reduced its local hiring and is on longer giving large bonuses.

(The costs of doing business are lower there.)

One thing he is considering is to sell his shares in the company.①He could begin to sell a little at a time and reinvest the money somewhere else. ②But where would he invest?③He doesn’t know much about investing, and several of his friends have lost a lot by making bad investments. Investing in real estate or the stock market could be very risky.

(Salary levels are lower overseas./It has reduced its local hiring because salary levels are lower overseas.)

2018年10月3日星期三

Planning for Retirement2

In the best case he would make a lot of money. If that happened, he could finally retire and enjoy a comfortable life. On the other hand, in the worst case, his investments could result in a huge loss. If that happened, he wouldn't be able to enjoy his retirement. He wouldn't be able to travel or do any of the things he has dreamed about doing.

So, now he has to decide what he should do. Should he begin to sell his stock in the company, or should he wait until he actually needs the money? If he sold now, he would have to decide what to do with the money. His investments could turn out well, or they could turn out to be a disaster. On the other hand, if he decides to wait, everything will depend on the company. The one advantage he has with this option is his being on the inside of the company.

（As long as he works for the company, he can predict what might happen to the stock.)

With his insider information, he can predict the company's short-term future. This is especially true because, as an accountant, he has access to the company's financial data. If things atart to go badly, he can begin to sell his stock and avoid a big loss. Otherwise, it's probably safer to keep his stock and hope that the company does well, even if its growth rate declines. So for now, that's probably what he should do. If you were he, what would you do?

(In his role as an accountant, he has special access to the company’s financial data./If he made a lot of money, he could finally retire and enjoy a comfortable life./As long as he works there, he should be able to find the best time to sell and avoid trying to find other ways to invest./It’s expensive to develop new drugs, and it can take a very long time to get a new drug approved.)

2018年10月5日