3433-vol. 6 issue 2-3.pmd - iarfc

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Journal of Personal Finance
A Spreadsheet For Calculating Income Replacement Ratio ................76
Ahmet Tezel, Associate Professor of Finance
Haub School of Business
Saint Joseph’s University
It is widely accepted to calculate income replacement ratios for measuring how
much wealth is needed at retirement and for assessing retirement readiness of
individuals. This paper presents a model to estimate income replacement
ratios under a variety of savings rate assumptions and other relevant variables.
The model is unique because, in addition to the flat rate of savings, it
allows an increase in the savings rate over the life cycle based on the portion
of the real increase in incomes.
Credit Card Debt Reduction And Developmental
Stages Of The Lifespan ........................................................................86
Shayna Lee Thums M.S.
Barbara M. Newman, Ph.D., Professor
Department of Human Development and Family Studies
University of Rhode Island
Jing Jian Xiao, Ph.D., Professor
Department of Human Development and Family Studies
University of Rhode Island
Credit card debt is a large and growing problem among American consumers.
Few studies have focused on barriers to getting out of debt or helping
consumers change their behaviors. The current study examined the link
between theory-based developmental stages of the lifespan and factors
associated with troubling debt and change. Results are based on survey
responses of 263 participants ages 20 to 85. Stages of the lifespan were linked
to differences in worry about credit card debt and the confidence participants
felt in their ability to get out of debt. Results are linked to suggestions for
how financial counselors or advisors can assist clients in paying down credit
card debt.
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