Informative Speech - Financial Planning Essay

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.

You may also want to review your current lifestyle. As your needs, income and financial goals change, you should regularly review your lifestyle budget. With retirement drawing closer, now is the best time to adjust your lifestyle and add new funds to your savings account. Cutting out unnecessary expenses and putting the money in your portfolio or 401(k) can boost your retirement account. In addition, money placed in your 401(k) now reduces your tax liability for the next tax

Many of you are aware of the ASM 401k plan available to its employees. Many of you may not be aware. Those of you who are aware may not fully understand all the benefits this type of plan provides for you and your family's future. We intend to change that through providing education as to how the plan works and the associated long term benefits available to participants.

Traditional pension plans were once the gold standard of employer-sponsored retirement plans before IRAs and 401(k)s became more prevalent. If you have such a plan at work, your life expectancy and benefits were calculated to set your payroll and employer contributions. Once fully vested, the pensions are guaranteed to employees or their heirs. There are also special annuity plans called 412(i) or 412(e)3 plans that are funded through insurance. Features of these retirement plans include:

But many people still end up spending all their income and leaving themselves with no savings. With regards to this, Mr.Chilton has a very simple solution, “Save first. Spend the rest.”(Chilton 76). I agree with his lesson to save first as saving first and then spending will make sure you won’t end up spending everything. A similar hypothetical situation would be that you have an assignment due tomorrow but you want to play some video games. In this scenario, it would be wise to finish the assignment first because it is the most important and then play video games with your remaining time. Saving is the same; it is the most important to you need to save first. It doesn’t matter how you save, just save. You can use “Payroll deduction, automatic withdrawal, pre-authorized chequing”(Chilton 77), just save first. As well, you have to save right now and “not in a few months when you’re hoping to finally have time to craft a financial plan(Chilton 77)”. When I get a part-time job in the summer, I will start an automatic savings plan with Tangerine in which Tangerine will deduct money to put into my savings every time I get my pay cheque. This way, I’ll definitely save some of my money before I

A traditional 401(k) is an account in which employees can contribute pre-tax dollars through paycheck deductions that are directly deposited into said account. As a result, employee contributions to a 401(k) are not included in the employee’s taxable income for the year. 401(k) contributions are also not taxed until the money is withdrawn, either at retirement or earlier.

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.

The best route to take when considering a retirement plan must be the Roth IRA. First in this essay, i’ll go over what exactly a Roth Individual Retirement Account is, and then I will explain why it is such a great option, especially for young people who aren’t exactly sure which road to take regarding these. Roth IRA’s are a very tax efficient way to save for your retirement and they have many benefits.

401(k) plans are among the most popular ways for employees to save for retirement. Employers often make matching contributions up to 6% of your salary and, in fact, yours is likely to encourage you to enroll if you haven't already for compliance reasons. The tax incentives and the fact that contributions are automatically taken out of paychecks make this a good way to save up for retirement without really having to think about

But keep in mind that the purpose of a 401(k) is to save for retirement. Take money out of it now, and you’ll risk running out of money during retirement.” (WS2) Now, just because the 401(k) plan is meant for after retirement, this does not mean that you cannot withdraw your savings early. If you decide to stay with a company until you retire, when you pull your 401(k) or saving plan, the only fees you will receive are the taxes owed to the government for holding that money and not including it in your annual income tax statement. If you decide to withdraw a portion of your 401(k), you may face stiff tax consequences and penalties for withdrawing money before age 60. Still, if you’re facing a financial emergency — for instance, your child’s college tuition is almost due and your 401(k) is your only source of available funds — borrowing or withdrawing money from your 401(k) may be your only

As I begin my career, I cannot put as much money into savings and retirement as I would like to. But, as I get older and earn higher up positions, I plan to put more money into my savings and retirement funds. As it is, I am putting five dollars to my retirement each month and five dollars to my retirement each month. Since my monthly income is not very high, my income tax is not as high as it would be if I had a higher salary. Additionally, I allot five dollars each month for things for the home. As said before, I will have a busy schedule and do not plan to be home often, so I do not see the need to set aside a lot of money for things for the

Known as a defined a contribution plan, a 401(k) is one of the most popular types of retirement plans. Normally, you invest in your 401(k) through a payroll deduction. You choose the percent of your salary that you would like invested, and it then comes out automatically from your paycheck. Your paycheck does not actually decrease by that actual amount though because the 401(k) offers a number of tax benefits.

Recent news has shown that politicians want to shift the responsibility on the issue of Social security; no one can find a reasonable way to fix the problems that have come into the light (New York Times August 14, 2010). The politicians keep putting off the inevitable fact that someone will have to take the responsibility and face what years of neglect have caused. Depending on the government, for retirement is not an option that Americans can depend on, the governments own trustees are telling Americans that Social Security is not reliable as a retirement

For 401K plan holders heading into retirement, changing jobs, or leaving a company, a big question looms: what should be done with this type of retirement savings account? Essentially, investors have to choose whether or not to roll the money over into a new account.

To get more into detail when dealing with traditional pensions and their plans those are normally calculated to come up with payments that are given to the employee once coming to a retirement. The 401K is a payout that is based on both the employer and the employee’s contributions as well as the number of interested that has been earned over the period of time. Profit=sharing revolves around the gross sales or even money that has been put out for distribution from the employer to the employees. Now, when dealing with