Retirement Savings Plan Analysis

Wow, having $90,449.99 towards retirement would be pretty nice. Since starting this assignment I have put a lot of thought into increasing the amount I save for retirement. Yesterday I went through the receipts I found in my purse and couldn’t believe the useless items I bought throughout the week. Sometimes I put no thought into spending. We all will have to face retirement at some point and sadly most won’t be ready. Hopefully others in class put a little more thought into the future. Yes, $36,288.57 is a lot of money and can make huge difference in the way retirement is spent. I’m not a risk taker and would probably cry if I lost money. For now I’ll increase the amount I save towards my 401K and increase the amount I

I don’t know much about the planning financially for retirement either. I have not seen an article like this before, but I think it is simple, easy to understand and straight to the point. I would like to share it with my three daughters while they are still young and hopefully it will help them understand what they need to do now for their future.

Despite the $5.5 trillion invested in retirement and savings plans, many Americans are primed for a lower standard of living during their golden years. Since Social Security and defined benefit plans are becoming a thing of the past, Americans are relying heavily on their own investments later in life. Defined benefit plans have given way for the rise of 401k and IRA plans which are defined by contributions of the individual. Employee sponsored programs in 401ks have been flocked to for their flexibility, tax efficiency and high contribution limits when compared to other retirement accounts.

Plea to Congress – Should we keep funding this program or should we cut it? Why or why

Created for the purpose of assisting those of 65 and older, OAS is a pension program that has come a long way compared to when it first started out in 1906. Despite still having some flaws within the program, it has provided some income assistance for those who need it. The program itself has also improved over the years to include things such as: lowering the eligible age and the inclusion of spouse/common-law partner sharings. Overall, OAS has become something much more than a mere idea that was discussed during the day, and marked the starting of change within Canadian society.

On October 24, 1929, the stock market crashed, thus initiating the Great Depression. When the Great Depression began, the United States was the only industrialized country in the world without some form of unemployment insurance or security (“The Great Depression,” 2009). As a result, there was a downturn in spending and investment which led factories and other businesses to slow down production and construction, as well as fire their workers (“The Great Depression,” 2009). During this time period, fewer than 10 percent of workers had any type of private pension plan through work which meant that most individuals had no reliable cash-generating form of retirement security

Would you prefer your employer (or future employer) to provide a defined-benefit retirement plan or a defined-contribution retirement plan? Explain your answer with a few reasons.

A 401K works in a very unique way. If you are to contribute 3% of your pay each year, the company will take 3% of each paycheck and transfer it to your retirement account. Where your money can vest much quicker is if a company will match you $1 for $1. The contributions that you would be paying, the company will match it for each dollar. Your intake going home may go down $100 and your contributions are at $200, the company will match the $200 so you take home $400. In essence, you still lose the $100 but gain another $400. This is very beneficial because over time, the money will vest faster than you think. For example, in three years, you may put it $3500 but your account balance will

In order to better grasp the idea of accounting for pensions, understanding the different intricacies of various plans and their characteristics is a must. For example, there are two types of defined pension plans; a defined contribution plan, and a defined benefit plan. In a defined contribution plan, the employer agrees to contribute to a pension trust a certain sum each period, based on a formula. This formula encapsulates factors such as age, length of employee service, employer’s profits, and compensation level. A common form of this plan is a 401(k) plan. This type of plan only defines what the employer will contribute and makes no promise regarding the ultimate benefits paid out to the employees. As it will be discussed in more depth later, the accounting for this type of plan is rather straight forward and is covered by several

When he move to the new company; as basing on his working experiences and salary, they offered to open a 401ks for him. It was the first time she started to think seriously about retiring, and said that “401ks is a retirement savings account which open by your employer. It takes money from his paycheck every month before taxed are taken out, and the taxes aren’t paid until he retires and withdraw the money from the account; in addition, the 401ks can roll over from previous employer to the new one. However, if he want to take the money out before the retirement age, he has to pay taxes and a certain penalty fee.” Furthermore, the teacher works at school, so she has the pension which is a defined benefit plans guarantee a given amount of monthly

Watching this documentary put into perspective just truly how difficult retirement saving is in today’s times. “Half of all Americans say they can’t afford to save for retirement” (Retirement Gamble). With such as vast amount of citizens being unable to save funds, the workplace is continually being filled up with older individuals. This, in turn, leaves less room for the younger aged working force who is seeking out new job openings. Also, pensions are almost solely a thing of the past, “In 1970, 42% of all Americans had a pension” (Retirement Gamble). Employers are no longer able to provide such benefits, as we have started to live longer and the wage demands have steadily increased as well. Instead, many companies have turned to 401 k plans to help workers plan for retirement. This system encourages the employee to directly invest into their

I always knew that I was not well informed about investing and 401ks or investing, but it was something that I had never bothered to educate myself about. The word “finances” intimidated me and I figured that I would not need to worry about 401ks or a retirement plan for a long time. This documentary showed me that I cannot afford to ignore finance issues and need to educate myself about investing for retirement now, instead of later. This documentary also showed me the consequences that I could face if I keep myself ignorant about the issue of saving for the future.

To summarize that personal finance is important and some serious issues can occur if we don’t manage our money in more conservative ways. In contrary, if we have well prepared and managed our money effectively, we

I will be discussing what long term financial planning is and how to get started. I know that many of you already know, when it comes to money, it gets very complicated. There are 401(k)’s and IRA’s and much more. Our problem is that we have no idea what any of these things mean. That is why I am here today. I want to share with you some information on what it means to plan for the future and how to get

This report is written to devise personal financial plan for Tim & Ellie who are in their late 50’s. This report will consider the early retirement plan of Tim and how it will affects its’s pension expectations so as to devise suitable investment strategy for him. Besides these it will also discuss how Tim’s early retirement will affect Ellie’s financial plan. Finally, it will also provide recommendations to ensure the financial security of the family. The entire analysis will be done by analyzing client’s current status in terms of Goal, Risk Preference, Retirement plan, Current income expenditure and Assets liabilities details.