Retirement Options
Almost one-third of American workers are failing to prepare themselves for a comfortable retirement, according to a new survey conducted by American Express. The national telephone survey of working adult men and women who had recently left or lost their jobs revealed that 30% did not invest for retirement in their company's 401(k) plan.
The survey also revealed that 16% of these participants rolled their money into an IRA, and the majority of those who rolled their assets said they would make the same decision again. Eleven percent of those surveyed reported that they cashed out of their retirement plan because they needed the money to pay off debt or for everyday living expenses.
While these participants may have felt that these decisions were best for their situations, financial experts would have advised them against going through with their decisions. For example, money invested in a 401 (k) plan is money that grows tax deferred until it's withdrawn, which over time allows an investor to save more money for their retirement.
By law, individuals who withdraw a lump-sum distribution from their 401(k) before age 55 will be assessed a 10% early withdrawal penalty, as well as federal and state income taxes. This means that they will cause serious harm to their retirement funds. However, lack of knowledge and expertise causes many Americans to make poor choices regarding their retirement options.
Saving for retirement is a major challenge for millions of Americans today. With an abundance of retirement options, including tax-deferred retirement plans, 401(k)s and IRAs, investors are often confused about which option will make the most of their savings dollars. This paper aims to provide a review of the fundamental of these powerful retirement options in an effort to provide future retirees with the information needed to start investing in their futures.
This study will examine three major retirement options -- Social Security, 401 (k) plans and IRA Accounts -- in an effort to determine whether one type of option is superior over another. This research will be based on existing literature, which will be collected from a variety of sources, as well as empirical research derived from the opinions of financial professionals. Basically, this paper will reveal whether or not there is a single best retirement option or if different people require different types of investment.
Retirement Options
Chapter One -- Introduction
Statement of the Problem
Purpose of the Study
Scope of the Study
Rationale of the Study
Definition of Terms
Overview of the Study
Chapter Two -- Literature Review
Introduction
All About Social Security
About 401 (k) Plans
How a 401(k) Plan Works
About 401(k) Plans
Advantages of 401 (k) Plans
Maximizing the Potential of a 401 (k) Plan
About IRAs
The Benefits of an IRA
IRAs in a Nutshell
The Traditional IRA
The Roth IRA
Chapter Three -- Methodology
Approach to Study
Data Gathering Method
Database of Study
Validity of Data
Originality and Limitations of Study
Chapter Four -- Data Analysis
Chapter Five -- Summary, Conclusions and Recommendations
Retirement Options
Chapter One -- Introduction
Statement of the Problem
Saving enough money for retirement is one of the greatest financial challenges faced by individuals today. It requires careful planning, a commitment to regular investing, and understanding which retirement options are best for different needs.
According to experts, human beings are distinguished from other species by a unique ability to think ahead and to plan ahead (The Motley Fool 2003)). While this is true, it is also true that many people have a hard time thinking about the long-term future and adequately planning for it. Many people are too busy living in the moment to realize that things have a way of changing quickly.
In this regard, human beings share the immediacy of many other types of animals. Therefore, many people shrug off the tedious task of saving for retirement. However, understanding one's retirement options and planning for retirement are keys to being ready for the future when it becomes the present. According to The Motley Fool (2003): "The younger you are, the more distant is retirement -- and the more power you have at your fingertips in the form of compound returns over time. It's a paradox that you can work to your advantage."
David Braze, a specialist in retirement planning, suggests asking the following questions before looking at various retirement options (The Motley Fool, 2003):
How much will I need for my retirement in order to live comfortably?
What are my goals?
When should...
As Geisel (2004) notes: Income-tax deductions are worth the most to high-bracket taxpayers, who need little incentive to save, whereas the lowest-paid third of workers, whose tax burden consists primarily of the Social Security payroll tax (and who have no income-tax liability), receive no subsidy at all. Federal tax subsidies for retirement saving exceed $120 billion a year, but two thirds of that money benefits the most affluent 20% of
early retirement incentives as a downsizing strategy sUMMARY: This is a thesis that analyzes and studies the use of early retirement incentives as a downsizing strategy by organizations. It has 23 references in APA format. Chapter I- Definition of the Problem Definition of terms-alphabetical order Chapter II- literature Review Health and security Tax deferral Financial targeting Institutional Rationale Employees Impacted Chapter III- Methodology 19-Data collection 19-Data analysis Chapter IV- Data analysis 21-Analysis relevant to research 25-Analysis relevant to research 26-Analysis relevant to research Chapter 5-
Also, this should be seen as a short-term solution for people who are temporarily out of jobs in the U.S. And not as a long-term means to living comfortably. Social Security Benefits Social security benefits help many elderly and disabled people to live a reasonable life. In 2010, more than 53 million Americans received social security benefits that amount to a whopping $703 billion. Out of these, 34 million retired workers
Social Security can be an effective tool in public personnel administration and can benefit common American a great deal if used effectively. Therefore it is imperative to look into the future prospects of the programs and remove loopholes and bottlenecks in its future implementation. Future Under the Social Security plan government is collecting more money today then it is paying out as benefits to citizens. The surplus money remains safe in
…Occupational Stress and Scientific MonitoringLiterature Review2.1 IntroductionThe definition of the term �occupational stress� is derived from the definition of its two constituent words. In this context, occupational refers to anything that is related to the workplace while stress is defined as a natural body reaction from physical, mental or emotional strain in an individual. Thus, occupational stress can be defined as any mechanism by which the body attempts to adapt
Freedom of Association in Malaysia When one talks about the foundation of a powerful civil society, freedom of association is very important for the foundation along with the rule of law, freedom of religion, freedom of expression and free and competitive elections. Freedom of association is also an important part of the pluralistic democracy (Tekle, 2010). The previous communist countries of the Central and Eastern Europe which had been, in the
Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.
Get Started Now