Individual Retirement Accounts: Why Bother? Essay

Billy would still deposit $6 a week and about $24 a month. With the interest included, Billy would’ve saved about $2,020.49 in seven years, however this is risky because he could possibly lose a lot of money while investing in stocks.

in monthly savings around to $139. Over time you could save $33,284, with a repayment period of about

How much would you pay for a security that pays you $500 every 4 months for the next 10 years if you require a return of 8% per year compounded monthly?

(Conservative rate, burden of saving on myself. I am not a risk taker and do not feel confident in investing in the stock market)

In 1997 great things came into play for the taxpayers. The Tax Reform Act of 1997, which was inacted by the IRS, allowed single taxpayers and married taxpayers a considerable amount of tax relief for the Educational and Roth IRA’s. Individual Retirement Accounts, also known as IRA’s, are accounts opened in an individual’s name only and provide tax-deferred savings for retirement. The contributions may be fully deductible, partially deductible, or nondeductible.

The term 401 (k) is one that is heard quite often in today's. Most people know that it has something to do with retirement, but few young people know exactly how 401 (k) plans work or why they are becoming more and more popular. Additionally, many people who have 401 (k) plans may not know all the details of how they work, how to get the most out of their plan, and how to keep their money safe. In reality, everyone in the business world should be aware of the details and advantages of having and managing a 401 (k) type savings plan, as it is becoming one of the most popular ways to save for retirement in the United States and many other countries.

a. Starting with $20,000, how much will you have in 20 years if you can earn 5% on your money?

What annual interest rate is needed to produce $200,000 after five years if only $100,000 is invested?

2. If you had a payment that was due you in 5 years for $50,000 and you could earn a 5% rate of return, how much

total of $30,000. Also assume a tax schedule of 10% on the first $10,000 and

There are many different ways to save money and there are different things to save for. A savings plan for an immediate want is apparently different than a savings strategy for retirement. One may choose to select stocks, bonds, or mutual funds for a savings strategy, however, my personal choice is to invest in bonds first, then mutual funds.

401k is a mystery just starting life there many ways it would help you later in life. Retirement threw 401k was something I wasn't really thinking about before I didn't really know much about it thats why i researched it. 401k I knew was a retirement plan i just didn't know how it worked. 401k saves up money for you when you retire. How does 401 k work.?

The semi-annual compounded interest rate is 5.2% (a six-month discount rate of 5.2/2 = 2.6%). (15 points)

Planning for retirement should not be based on Social Security alone, but rather by saving portions of personal earned wages and putting finances into long-term investments. Depending on Social Security as the only income after retiring is an unsafe and undependable way to prepare for retirement. People who contribute to Social Security are mandatorily putting money into the Social Security Reserve; this money is used for older generations that will file for these benefits before the younger people working, in the early 21 century, ever receive a chance. Money controlled by other’s hands will never be a guarantee for a secure future, yet money saved by an individual to put toward personal goals will reward greatly. By taking the time to

The financial industry is an important aspect in every individual’s life. If individuals want a successful retirement, planning accordingly is an important aspect to accomplish this goal. I have been in the financial industry for total of four years. As each year passes by, I have realized the importance of planning accordingly with your finances. I have helped individuals plan their retirement on a daily bases with my current employment, and it has given me a passion to help individuals with their finances. The financial industry is important matter around the world, and I would like to partake in helping individuals planned their retirement successfully. The main reason I decided to join the financial industry is because of the lack of knowledge in the African America community for financial literacy.