Preparing For The Life After Retirement Plan

There are many advantages of 401 (k) plans, both for employees and their employers. One major important benefit is that the employee has control over how much money they contribute to their account. In addition all employer contributions and any growth in the capital grow tax-free until withdrawal. If the company matches contributions, it's like getting extra money on top of your salary. Also, unlike a pension, all the savings can be moved from one company's plan to the next (or to an individual retirement account) if a participant changes jobs (Neiters). Another benefit can be that employees can reduce their taxes because they are reducing their taxable income while they are working and because they will be in a lower tax bracket when they begin making distributions. "The major cause for the huge popularity of

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not included in the employee’s taxable income for the year. 401(k) contributions are also not taxed until the money is withdrawn, either at retirement or earlier.

Costa, D. L. (1998). The evolution of retirement: Summary of a research project. The American Economic Review, 88(2), 232-236. Retrieved from https://search.proquest.com/docview/233045640?accountid=41759

Health Savings Account (HSA): A Health Savings Account allows individuals to pay for current health expenses and save for future qualified medical expenses on a pretax basis.

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.

FUNDS ARE DEPOSITED PRE-TAX. While this is generally considered a win for the employee, it is also a win for the employer, who pays payroll taxes as well. This could be as much as a ten percent savings.

We recommend that SmartKidz initiate a traditional 401(k) plan. A traditional 401(k) plan is a defined-contribution plan for for-profit organizations. In this plan, employees are allowed to contribute a percentage of their salary before taxes up to a maximum contribution, which is $18,000 as of 2015 (IRS). In addition, employers may choose to add to each employee’s 401(k) plan through matching each individual contribution or providing a one-time lump sum. Each employee has a tax-deferred account where he or she is able to choose where to allocate his or her contributions. For example, mutual funds and target funds are common investment options.

HSAs provide flexibility in both the source of and payment of contributions and they also provide tax incentives (Sedhom, 2008). An individual may make deposits into the account or an employer may make contributions as well. In fact, many employers who do not offer medical plans welcome HSAs as a tool to offer the employee health coverage while avoiding the administrative hassles of traditional health plans (Sedhom, 2008). Hence, HSAs are great for employees who desire an alternative investment choice and are savvy savers (Sedhom,

When people are asked how people will plan or rethink for retirement, the first thing that people will think about, is saving. There are some positive ways to save money, the author suggests to the readers to sign up for 401(k) plan. It is a plan help employees save for retirement, 401(k) should allow anyone to build up a nice nest egg. For example, “In Dave Ramsey’s The Total Money Makeover, for instance, he gives us “Joe and Suzy Average” who invest $7,500 per year ($625 per month) using their tax-free retirement account. They do this from age 30 to 70, getting 12 percent interest per year. At the end, they have $7,588,545 to their names.” When people invest in 401(k) plan, it is safer and more money in retirement and it also has a benefit that you don’t need to pay for tax when you take the money out. Beside 401(k), people prefer to invest money in the stock market for retirement-plan. According to author “ During a recent 40- year period,

Individual Retirement Accounts (IRAs) are another way to save for retirement. They can be used independently or in conjunction with a 401K plan. Funds are deposited after taxes have been withheld so there is no tax due upon withdrawal in retirement. IRA contributions can be withdrawn without penalty if you face a financial hardship such as losing your home or significant medical bills.

The purpose of this paper is to analyze the simplest logical choice that the average hourly worker (AHW) can make for the purposes of having additional sustainable income during the retirement phase of life in conjunction with a private or public retirement pension. The four most common types of retirement plans are the defined-contribution or defined-benefit, commonly known as a 401k plan, traditional individual retirement arrangements (IRAs), ROTH IRAs, and annuities. Of these four choices, the best-suited retirement plan depends on the availability of each plan, along with the amount of yearly contributions that each individual is willing to put into the chosen retirement plan or a combination of plans. “The general principle is that anything you can do to reduce cognitive strain will help, so you should first maximize legibility,” (Kahneman, 2011, p. 63).

We all are currently aging. We live in an again paradox. But, it is what we choose to do with our time while we have it that counts the most. As a young adult, and before this class I was very unaware of the importance of planning your retirement as early as possible. There are many things that go into planning for a successful retirement. Such as, but not limited to: Where will I choose to live? What will I do to stay mentally active? Or even, when will I choose to retire. In this paper, I will go over a plethora of aspects for my personal plan for aging.

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

Feldman & Beehr (2011) presented a 3 stage model for how individuals decide to retire. This combines and organizes a number of theories into categories about future anticipation of retirement, letting go of past work for retirement, and focusing on the present of retirement. Research indicates each stage has been tested and validated. However, this article examines a wide range of studies and theories in order to develop an overarching model.

     As and investor, you are overwhelmed with advice in newspapers, magazines, and mailings discussing what to invest in for a successful retirement nest egg, when to start saving for retirement and who to invest with. There are millions of people who realize that an investment portfolio for retirement is necessary, but do they really understand the investment instruments and the amount they must invest for tomorrow? The subject of retirement is a fascinating area but it also could be a fuzzy subject without the correct amount of knowledge, understanding and professional guidance. The number one question of concern for individuals facing retirement issues is whether or not they