Retirement Plan Essay

Retirement Plan Essay
Mr. Jones thank you for taking the time to sit down with me and some of the members of our team
to discuss your retirement plans as well as your new business venture. After our meetings as well as
follow–up with the team here the following lays our recommendations for your consideration.
Business Entity Based upon your business needs we recommend you form a C Corporation for your
new used car dealership. There are many reasons for this decision not the least of which is tax
purposes. The C Corporation is a separate entity which means the business will pay its own taxes
filing a form 1120 and you will be considered an employee eligible for a salary, bonus, and benefits.
"In order to maintain this limited liability, the corporation's ... Show more content on
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The expenses recorded only when the expenses are paid. This can mask how well or poorly a
business is doing since it is recognizing transactions only when money is being paid or received and
not when sales or purchases are actually made. According to IRS Publication 334 if you will be
having an inventory on hand such as the cars for your used car dealership the you must use the
accrual method. The IRS says that if your business's sales are in excess of $5 million dollars that
accrual accounting must be used. While the initial years of your business may not produce such
sales you will have an inventory of cars that will be sold to the public which then means the sales
number reduces from over $5 million to over $1 million dollars. However, there are some
exceptions such as:
"Qualifying taxpayer: You are a qualifying tax payer if: o Average gross annual receipts for each
prior tax year ending on or after December 17, 1998 is $1 million or less... o Your business is not a
tax shelter...' (IRS Publication 334, 2017).)
"Materials and supplies that are not incidental" (IRS Publication 334, 2017). But with your
corporation these would not be taken into consideration and with your corporation, Mr. Jones, the
recommendation is the accrual method of accounting. With the accrual accounting method, the
revenue is recorded when it is earned and not when the money is received. The expenses are
recorded when they occur not when the payment
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Retirement Plan Proposal and Communication Plan Essay
Retirement Plan Proposal and Communication Plan HRM/324 Retirement Plan Proposal and
Communication Plan Retirement pensions provides a source of retirement income employees can
draw on after they stop working, they have to invest for retirement while they are still on the job
(Lightbulb Financial, 2013). To take advantage of the opportunity to accumulate tax–deferred
earnings and in some cases defer taxes on their contributions as well, employees can participate in
employer–sponsored retirement plans and invest in individual retirement accounts (IRAs) that they
set up on their own (Lightbulb Financial, 2013). This paper will propose several types of retirement
plans that could be offered to employees. In addition, a ... Show more content on Helpwriting.net ...
A 401(k) plan, so named for the section of the Internal Revenue Code describing the requirements,
is a savings plan in which employees are allowed to defer income up to a $12,000 maximum (which
increases by $1,000 a year from 2003 to 2006, with amounts indexed for inflation thereafter)
(Milkovich and Newman, 2008). Employers typically match employee savings at a rate of 50 cents
on the dollar. Defined contribution plans are more popular than defined benefit plans in both small
and large companies (Milkovich and Newman, 2008). Historically these plans are faster to vest (the
companies matched share of the contribution permanently shifts over to employee ownership, and
they are more portable–job hopping employees can take their pension accruals along to the next job)
(Milkovich and Newman, 2008). The second type of plan is an employee stock ownership plan
(ESOP) (Milkovich and Newman, 2008). In a basic ESOP a company makes a tax–deductible
contribution of stock shares or cash to a trust (Milkovich and Newman, 2008). The trust then
allocates company stock (or stock bought with cash contributions) to participating employee
accounts (Milkovich and Newman, 2008). The amount allocated is based on employee earnings
(Milkovich and Newman, 2008). When an ESOP is used as a pension vehicle (as opposed to an
incentive program), the employees receive cash at retirement based upon the stock value at that time
(Milkovich and

Self-Directed Registered Retirement Savings Plans
Aside from simply providing some of your cash as a mortgage and receiving taxable income from
someone, there are other options where you provide a mortgage, which may better suit your long
term plans. SDRRSPs (Self–Directed Registered Retirement Savings Plans) allow you to use cash in
your SDRRSPs to provide mortgages to various people or companies. You can use your imagination
as to who might use these mortgage funds. And it is possible to get high rates of tax sheltered
returns this way. But this may be a unique way to profit. You hold the mortgage on your own house
in that plan. There are some minor restrictions in how this must be set up. For example, you cannot
charge too much or too little an interest rate to yourself. Rates must generally ... Show more content
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However, if you can assess the risk properly, this is often an appropriate dollar amount to provide
someone with a second mortgage! And generally, when a first mortgage may be 2–4%, a second
mortgage may well be 6–9%, which is a respectable rate of return! Suppose you are able to invest
the $36,500 as a second mortgage and can get your mortgagee to agree to a 5–year term, for a 25–
year amortization period, the longest period currently allowed under Canadian law. And, suppose
that you are able to contribute the maximum of $5,500 during each of the next 5 years, for a total
additional contribution of $27,500. Using the 6% rate, you will receive $14,011.80 in principal and
interest from the client and a return of your capital in the amount of $32,793.10 (the original
$36,500 less the client principal payments) for a total of $46,804.90. With your 5 years of
contributions, there will be at least $74,304.90 in your TFSA, more than double! Then using the 9%
rate, you will receive $18,132.60 in principal and interest from the client and a return of your capital
in the amount of $33, 993.15 (the original $36,500 less the client principal payments) for a total of
$52,125.75. With your 5 years of contributions, there will be at least $79.1125.75 in your TFSA,
more than

Retirement Pension Plans
A) Based on FASB.org, there are two types of retirement pension plans that are employer–
sponsored: defined–contribution plan and defined–benefit plan. The different benefits of these plans
show if an employee or an employer has risks in reference with the investment of funds. They also
change the costs for each plan. –Defined–contribution plan accepts contributions to it and allows the
investment of funds saved over time. The contributions are mainly made by the employee, with
some matched by the employer. The most common example is 401K Plan. The employee decides on
the portfolio and investment tactics in order to increase the plan assets. This plan is a low risk and a
low cost to the employer. –Defined–benefit plan promises the amount of ... Show more content on
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FASB created Statement 158 that amended statements 87 and 132 and required different recognition
of gains and losses for underfunded and overfunded pension plans. Large companies faced shortfalls
because they severally underfunded their pension plans and did not recognize it properly. Per
FASB.org, prior accounting standards let the companies recognize an asset or liability "from a
defined benefit postretirement plan, which almost always differed from the plan's overfunded or
underfunded status". A company could delay recognition of certain economic events. The delay was
affecting the changes in plan assets and liabilities; often liabilities were recognized at significantly
less amounts than the underfunded plan showed. A company also could recognize an asset on its
Balance Sheet for the underfunded plan. All information about overfunded and underfunded plans
was taken to the footnotes in the form of reconciliation. This created informational asymmetry and
did not provide full representation of a company's financial situation. FASB Statement 158 required
every company to recognize economic events in the year that they occur, as well as reporting current
funded status as assets and liabilities for the defined–benefit pension plans on company's financial
statements and not in the notes. This Statement is in effect since December

Registered Retirement Savings Plan
Taxation Assignment
Registered Retirement Savings Plan
(RRSP)
Submitted By:
Instructor:
Date:
What is an RRSP?
A Registered Retirement Savings Plan (RRSP) is a tax–deferred account designed specifically for
retirement savings. Any resident of Canada under the age of 71 who has earned income may
establish and contribute to an RRSP. (Edward Jones, 2013)
RRSPs are the Canadian government's way of helping citizens save their money for retirement.
Saving for 30 to 40 years of retirement may seem like a long task, but well–planned contributions
and withdrawals from your RRSP can be a great way to get enough money for when you retire.
Objective
The objective of a RRSP is to provide individuals with an account which they may ... Show more
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The maximum you can take out in one year is $10,000. You won't pay any tax on it as long as you
pay it back over 10 years. This does not include paying for a child's education.
My conclusion is that RRSPs benefit Canadians by reducing their taxes and allowing their savings
to compound tax free. Individual RRSP's are the most common type of RRSP's. RRSP contributions
are deducted from earned income before it is taxed, so the money that you put into an RRSP is not
taxed until it is withdrawn. Taking money out of an RRSP account before retirement can be very
expensive because withholding taxes often apply. The RRSP Home Buyer's Plan allows contributors
to borrow RRSP funds to finance the purchase of a home. Also that it would be the best to start
making contributions early to avoid early withdrawals.
Works Cited
Investopedia. (2009, February 25). Retrieved December 10, 2013, from Investopedia Website:
http://www.investopedia.com/university/rrsp/
Canada Revenue Agency. (2013, January 8). Retrieved December 11, 2013, from Canada :
http://www.cra–arc.gc.ca/tx/ndvdls/tpcs/rrsp–reer/wthdrwls/menu–eng.html
Canada Revenue Agency. (2013, January 3). Retrieved December 10, 2013, from http://www.cra–

arc.gc.ca/tx/ndvdls/tpcs/rrsp–reer/rrsps–eng.html
Edward Jones. (2013). Retrieved December 10, 2013, from Edward

The First Retirement Plan Of The United States Essay
The first retirement plan created in the United States, is one that the majority of us are familiar, the
Social Security Act, signed under law in 1935. Up until 1939, Social Security only paid retirement
benefits to primary workers, which for the most part were men. Age 65 was chosen as the retirement
age because individuals who survived past childhood were likely to live past 65. However, not
everyone benefited from such assistance, even after age 65–agricultural and domestic workers were
excluded from coverage (DeWitt, 2010). The excluded group consisted of roughly half of workers
contributing to the economy, which the majority were African Americans. According to Larry
DeWitt, a public historian from the Social Security Administration, exclusion of such groups was
due to tax–collection procedures and not due to racial bias. Although it may seem as though Social
Security was meant to be the only form of retirement plan for qualified retirees, it was not. During
such time, many individuals strongly depended on their savings as well as on their family. Today,
the certainty of receiving sufficient benefits solely from Social Security for a quality standard of
living after retirement is indefinite. Baby boomers–individuals born post World War II between
1946 and 1964–are beginning to claim their benefits, and given what I have learned in class, the
number of individuals entering the workforce is inadequate to sustain such a large population, thus
such generation will consume

Essay on Speech: IRA Retirement Plans
Speech: IRA Retirement Plans
Saving for Retirement
General Purpose: My general purpose is to persuade.
Specific Purpose: My specific purpose is to persuade the audience to start saving for their retirement
instead of simply relying on Social Security.
Thematic Statement: Starting to save for retirement early has many benefits over Social Security.
Introduction of Speech
I. I took a survey of thirty BSU students, who are employed, to determine how many of them have
started saving for their retirement.
A. Only nine people, out of the thirty responses from various class levels, have started saving for
their retirement.
1. This is understandable because most of us probably think that retirement is something that is eons
away. ... Show more content on Helpwriting.net ...
First of all, allow me to explain what Social Security is.
A. Social Security is a Federal program where they take a percentage from all of the wages earned
by workers in this country.
1. You can see what I mean when you examine your paycheck.
B. The money that is collected is put in a trust fund that provides a monthly income for retired
workers.
II. According to The Heritage Foundation there are several problems to the current Social Security
system.
A. Founded in 1973, The Heritage Foundation is a research and educational institute whose mission
is to formulate and promote public policies based on the principles of free enterprise, limited
government, individual freedom, traditional American values, and a strong national defense.
B. Social Security gives a poor rate of return (Heritage Foundation, 2000).
1. The rate of return varies from person to person.
a. For instance, for the best case scenario, a married couple with two children and a single earner
receives only 4.74 percent if the earner was born in 1932 (Heritage Foundation, 2000).
b. However, none of us were born in 1932 so that percentage decreases to less than 2.6 percent for
those born in 1976 (Heritage Foundation, 2000).
c. Single men do the worst when they only have a rate of return of less than half a percent (Heritage
Foundation, 2000).
C. People are becoming more dependent on Social

Hrm 324 Week 4 Retirement and Communication Plan Essay
Proposed Retirement Plan Marlena Hedine HRM/324 Aug 27, 2013 Proposed Retirement and
Communication Plan An organization can offer several different types of retirement plans to their
employees. There are two types of plans that are most often used such as the Defined Contribution
Plan and the Hybrid Plans. The Define Contribution plans are beneficial not only to employees
retirement needs but also beneficial to the company at the same time. Section 401(k) plans,
Employee Stock Ownership Plans (ESOPs), Profit Sharing Plans, and Stock Bonus Plans. On the
other broad of the spectrum we have the Hybrid Plan or the Cash Balance Plans, which may also be
... Show more content on Helpwriting.net ...
The employer is also responsible for ensuring that there is at least one trustee that would handle the
contribution investment and distribution of the 401(k) plan. Keeping good records of all
contributions that are made and put into the account is very important. Recordkeeping helps to keep
the system accurate and helps track the earning and loses of the investment plan, and the expenses
and benefit distributions to the participants accounts. Employees must have a plan provided to them
from their employer that includes all information on eligibility of the benefits and the requirements.
The advantages and disadvanages should be stated and a short summary of the plan that will be
provided. This is a must in any organization when offering a 401(k) compensation plan. ESOPs
ESOP which also stands for Employee Stock Ownership Plan is a retirement plan that is similar to
profit sharing. A trust fund is set up through the organization and then the organization contributes
new shares to buy new assets or existing stock. An organization is able to borrow money from the
ESOP to make cash payments to replay their loans. When a company is looking to pay off current
debt or expand business this plan could be beneficial. An ESOP plan gives an organization the
flexibility to make the rules and set the requirements of who can gain full access to

The Ontario Retirement Pension Plan
The purpose of this paper is to investigate the creation of the Ontario Retirement Pension Plan and
to argue that it is a necessary and potentially effective way to ensure that workers in the private
sector in Ontario will be able to retire and live comfortably. This conclusion is not made lightly as it
is import to view any broadening of government influence through the most critical of lenses.
However, there is an increasing need for Ontarians to save for retirement and it is becoming more
and more apparent that private pension plans will not be able to meet the needs of most people. This
is because too few people have private pensions and the once that do exist sit on volatile ground. In
order to understand why the ORPP is justifiable policy, it is necessary to understand the scope,
extent and dimensions of the policy problem. With the Baby Boomers in the process of retirement
there are fewer people paying to support the pensions of greater numbers of people. Governments at
the federal, provincial and municipal levels have all made financial promises without taking steps to
ensure that promised programs are adequately funded. This is creating two classes of retirees. The
first are public sector employees with extremely generous tax–payer funded guaranteed pensions.
The second is everyone else– the 80 percent of people who depend on other, far less desirable
means like the Canadian Pension which is drastically underfunded particularly when compared to
the pension

Investing in a Plan for Retirement: Are You Prepared for...
Options for Retirement
The majority of people age 65 or older in the United States are still working in full time positions.
This opens the question if they planned for retirement, or what if anything went wrong while
working? How do they feel about still having to work? Have they taken proper steps in preparing
for retirement? Are they only working to pass time? These are the questions that everyone should be
asking themselves about their own retirement plans, and what they have done to financially prepare
for that stage in their life.
It is never too early to start planning for the retirement. In today's economy there are no guarantees
that there will be sufficient funds coming from Social Security when an individual reaches the time
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In the private sectors retirement packages do not transfer between different companies; therefore if
an employee decides to switch careers after working for twenty years chances are their accrued
benefits package will not be transferred to the new company. Predicting the future is impossible, no
one will know if a company may go bankrupt or expand, but there is a plethora of ways to ensure a
comfortable retirement will be available when that point in life is reached.
Planning, just like saving for the future does not always come natural to a person and a lot of times
has to be recommended by professionals. It takes personal discipline along with dedication to follow
a good retirement plan. In order to achieve personal goals for retirement there has to be a plan of
action to obtain success. Proper planning for retirement will also provide a positive outlook for that
stage of life.
In the beginning stages of planning personal attainable goals should be set. They can be short term
or long term goals, depending on what is necessary to stay on track and maintain focused. Many
retirees consider relocating due to the cost of living expenses at their current location, wanting to
live closer to family, or simply to a place they had always dreamed of spending the rest of their lives
at.
To be able to figure out the amount of income needed, the preferred lifestyle should also be
considered when starting to draft a retirement plan. A financial advisor

401k Retirement Plan
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. The Retirement Crisis Many employees take retirement benefits for granted, but the sad
truth remains that almost half the working population is employed ... Show more content on
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Now that 401k and IRA plans are the sole form of retirement planning, it has become a problem for
Americans to save anything. Employee sponsored 401k plans have become the status quo in
retirement planning but not all employers are able to offer the benefit. The emergence of automated
investment platforms aims to tackling this problem making them easily accessible for businesses of
all sizes. While its effect wont be felt for another few years it's a great first step to addressing the
growing retirement

Preparing For The Life After Retirement Plan
Introduction For every adult in the professional world, preparing for the life after retirement is an
essential strategy that guarantees monetary freedom in the latter stages of life. Therefore, it is
necessary that an individual come up with an effective retirement plan to secure a comfortable
future. Additionally, individuals who develop such a plan in youth will most likely generate the
highest benefit when they retire. It is important to develop a strategy that will enables members of
an organization to successfully plan for their retirement that may be fast approaching or far off.
Retirement Plan Proposal The most uncomplicated condition in creating an effective retirement plan
is ensuring an individual can save part of their current ... Show more content on Helpwriting.net ...
The 401(k) is provided to individuals employed by for–profit organizations while employees such
as teachers may be offered 403(b) (Mears, 2014). Through consistent contributions, an employee
can transfer their 401(k) or 403(b) account from one employer to the next. An alternative option is
the individual retirement accounts (IRAs). In this case, the individual will set up a personal account
with one of the numerous financial corporations or mutual funds companies. Based on federal law,
individuals will set aside part of their salaries to the account it will then be invested with the
possibility of growth over time without being taxed. This may also be categorized along with the
Simplified Employee Pension plan (SEP) where the employer may match the contribution of the
employee or not according to their capability of the organization. This is a valid savings plan
particularly in cases where the employer matches your contribution, which is actually free money.
There is also the option of a health savings account (HSA) that allow individuals to put monies
away for their retirement tax–free. In such cases, an individual will have to make contributions
either as an individual or as a family with those above the age of 55 being allowed to make higher
contributions. Through this saving plan, an individual will also be provided with an

Purpose For A Retirement Plan
Purpose for a Retirement Plan
Retirement Planning is the process of determining retirement income goals and the actions primary
to achieve those goals. It includes identifying the sources of retirement income, estimating future
retirement expenses, managing the assets and implementing a savings plan. A future cash flow
statement is prepared to determine whether the goals can be achieved or not. The primary purpose of
a retirement plan is to provide financial stability so people can leave their full–time jobs after
retirement.
Financial planning is a 6–step process and also examines 6 components. The 6 steps are as follows:
1. Establishing and defining the client–planner relationship: The planner informs the client about the
services to ... Show more content on Helpwriting.net ...
5. Implementing the recommendations: The planner and the client agree on how the
recommendations will be carried out.
6. Monitoring the recommendations: The planner and the client periodically review the situation and
adjust the required recommendations.
The six fundamental components of financial planning are as follows – Financial Management, Tax
Planning, Asset Management, Risk Management, Retirement Planning and Estate Planning.
In this retirement plan, you will see only the retirement related issues addressed as well as the others
you asked me to consider. In this retirement plan, you will see your current situation stated or
described followed by your desired situation and any issues which have presented themselves.
It is important to understand that this initial financial roadmap will not stay "current" forever. It will
become outdated with changes in your goals and objectives, tax laws, and other personal economic
circumstances. Thus, it is important to have your Financial Plan updated on a periodic basis. We
should meet at minimum annually to update; more often if life changes occur. We should also meet
to address other financial planning issues still to be addressed.
Client Profile
The following table summarizes your personal information:
Name Alan Adams Alicia Adams
DOB September 16, 1986 July 12, 1987
Employer Home Depot ABC Legal
Title Department Manager Legal Clerk
Smoking Status Non–smoker Quit 2 years ago
Health In good health In good health

The Retirement Pension Plan ( Cpp ) Benefits? Essay
Turning 60? When is the best age to start Canada Pension Plan (CPP) benefits? As you approach age
of 60, it's time to take benefit of your life long hard work in terms of pension benefits. First, you
need to decide at what age you would like to begin your CPP pension benefits. As this decision will
impact your total pension benefits for the rest of your life, caution is advised. This article will help
you to understand when the best age is to being your Canada Pension Plan (CPP) benefits. Let's
assume that Joey, Chandler and Ross will each turn 60 on 9th Sep 2016. Let's also assume that
according to each of their respective CPP Statements of Contribution, they will each receive $1,000
per month if they start their retirement benefit at the age of 65. The difference though is that Joey,
Chandler and Ross wish to start their pension benefits different ages: Joey at age 60, Chandler at age
65, and Ross at age 70. We will analyze how much will they receive as a CPP benefit each year. We
know that as per Canada Pension Plan if you begin CPP before age 65, your pension benefit will be
reduced by 0.6% per month; and if you begin receiving benefits after age 65, your pension benefit
will increase by 0.7% per month. This means that Joey will have reduction of 36% (60 months ×
0.6%) of CPP benefit per month and Ross will receive 42% (60 months × 0.7%) more of CPP
benefit per month. Chandler will receive the same amount as per his CPP Statement of Contribution
(due to

Possible Retirement Plans
In this report I will be giving you a brief description of three possible retirement plans; and to
compare and contrast each similarity and difference.
A retirement plan is a defined type of pension plan in which an employer/sponsor promises a
specified monthly benefit on retirement that is predetermined by a formula based on the employee's
earnings history, tenure of service and age, rather than depending directly on individual investment
returns. I've chosen to discuss the 401(k), 403(b), and the SEP (Simplified Employee Pension Plan).
A 401(k) is a feature of a qualified profit sharing plan that allows employees to contribute a portion
of their wages to an individual account. To start a 401(k) you are required by your employer to pass
a ... Show more content on Helpwriting.net ...
It's very similar to a 401(k) plan. Just as with a 401(k) plan, a 403(b) plan lets employees defer some
of their salary into an individual accounts. For example, the 403(b) is used primarily by the self–
employed or small business owners. As the employer, you can contribute up to 25 percent of your
income or $53,000, whichever is less, in 2015. These accounts are easier to set up than a solo
401(k).Lastly, a SEP or a Simplified Employee Pension plan can provide an important source of
income at retirement by letting employers set aside money in retirement account for themselves and
their employees. It's a flexible plan if cash flow is an issue. The plan I think would be more
beneficial long–term would be a 401k match which is the best plan and the current plan I have being
a CNA at a nursing facility. When I worked as a cook on Ft. Sam Houston AFB I had a great 401k
plan that when I left that job after 2 and a half years I was granted my pension I so deserved and
helped me thru hard times. To withdraw a pension you have to be willing to give up 20% of your
earning which is roughly $400 or roll it into another 401(k) account with a new employer. A short
term retirement plan I did not list but I would say is a simple IRA account. It has a low contribution
each year, easy to set up and inexpensive. The plan that is best for where I am in life as of today is
the 401k plan. I have it and I've never had any issues with it. I ended up saving more money than I
thought and I am very excited for my upcoming

Retirement Plan For Retirement Plans
Retirement Plans
An example of a type of retirement plan is, the EBRI. They have been conducting Research since
it's founding in 1978. Funding, Capital Markets, Program Coverage, and Participation in income
adequacy is a tool used for Retirement Plans. There are many different types of Retirement Plans.
Such as Defined Benefit Plans, Defined Contribution and Participant Behavior Programs, and
Individual Accounts. There are even ways to protect your plan. Such as Retirement Security
Projection Model. Which is used to model the expected income derived from such things as Social
Security, Gender, and Family Status. To meet the needs of all clients filing for a retirement plan,
valuable tools are used to assess the entire financial picture. Not just Retirement Holdings. Some
companies such as chase, offer both Traditional IRA's and Roth IRA's for those looking to establish
and contribute to a tax–advantage retirement plan. Which will help get an estimate for someone
looking to see how much money they will need for retirement. And both IRA's can be offered due to
being able to maximize advantages of plans. For further depth into IRA's, here is what they are in
general. It's a good choice if one is eligible to make deductible contributions and expect your tax
rate during retirement to be lower than it is in today's economy. Because with this type of
investment the growth in the tax is deferred. You won't pay federal income taxes on your deductible
contributions or any

Retirement Plan Proposal And Communication Plan
Retirement Plan Proposal and Communication Plan
As being part of the HR benefit specialist team, our management team has given our department a
task on coming up and creating a proposal that will include useful information based on an
important topic which revolves around retirement plans that will be offered to the 150 employees
that are employed with this company. As we all can be aware, when dealing with retirement benefits
there are many sources where employees themselves can receive information on this particular
matter which some include Disability Insurance, Social Security Old–Age, IRAs/Roth IRAs,
Employer–sponsor contribution plans just to name a few. From these mentioned resources we will
be discussing and focusing on three important retirement plans that most employees tend to rely on
when working with an employer. Other areas that will also be discussed will be pension plans as
well as contribution plans, profit sharing and last but not least 401K.
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

Benefits Of Retirement Plan Will Fit Financial Needs
Introduction
Choosing which retirement plan will fit financial needs is not always the easiest decision to make.
While investing in both traditional and Roth individual retirement accounts (IRAs) appears to draw
considerable attention, differences in the rules for contributing to and withdrawing from these
retirement plans places individuals and married couples in a predicament. They may choose to
invest in either a traditional or Roth IRA while they may also choose to invest in self–direct, direct
contribution (DB) or defined benefit (DB) plans sponsored by employers. In any case, individuals
and married couples approaching retirement age should carefully consider their own financial needs
before choosing to invest in any retirement ... Show more content on Helpwriting.net ...
Other types of earned income include alimony and military differential pay, but does not include
interest or dividends from investments, income from rental property and pension payments (para. 3).
In terms of contribution limits for individuals and married couples with a Roth IRA, if earned
income for one year is less than the contribution limits, they may only contribute up the total earned
income amount (para. 4). As of 2014, for individuals and married couples under the age of 50, the
annual contribution limit is $5,500. For married couples filing separately, the earned income limit
for making contributions to a Roth IRA is $10,000. Otherwise, a married filing separately does not
have any eligibility for making contributions to a Roth IRA.
Tax Incentives Both traditional and Roth IRAs have generous tax incentives (Spors, para. 3).
However, claiming the tax incentives for either a traditional or a Roth IRA depends on timing. With
traditional IRAs, contributions made to it based on earned income are tax deductible on both state
and federal income tax returns for each year that an individual or married couple contributes (para.
3). Withdrawals made during retirement receive the ordinary income tax rate (para. 3). Roth IRAs,
however, do not provide any tax incentives for any contributions made to the account, though
earnings and withdrawals are mostly tax–free (para. 3). In other words, with traditional IRAs,
contributions do not have

Benefits Of A Quality Retirement Plan
A quality retirement plan can help companies retain top talent and attract highly skilled new
employees to offset the talent loss that comes with an aging workforce.
According to Scott Boyd, SVP, National Platform Distribution and Relationships and head of
Healthcare Solutions for Prudential Retirement, in Hartford, Connecticut. Plan sponsors and their
providers or advisors when discussing retirement plan design tend to have conversations about plan
costs instead, they should consider the more implicit costs of employees not being able to retire.
Boyd tells Plansponsor that it costs employers an estimated $8,500 per year per person and year due
to increased health care and benefits costs and lost productivity. In addition, a lack of mobility for
middle managers may cause them to leave for competitors which could cost anywhere from 100
percent to 300 percent in salary to replace them. "The implicit costs can be bigger than what plan
sponsors spend on their retirement plans," Boyd says.
Prudential trademarked a service it now offers calls DC Optimization. This new product is a process
that now provides plan sponsors with information from defined contribution (DC) actuaries to help
them design an efficient retirement plan that supports their organizations ' business objectives.
Whether that be containing overall business costs, increasing employee participation in a retirement
plan or attracting and retaining the right talent.
Boyd explains that the first step is to do a

Retirement Savings Plan Analysis
Shirl J Green MATH–115 D07 Discussion Board Forum 3 Introduction In this essay, I will attempt
to discuss the interpretation of my discussion board thread's retirement savings plan. In doing so, I
will provide an illustration of the challenges I have encountered while trying to save in today's
society. Also, I will shed light upon various methods by utilizing the place of employment saving
benefits. Strategic Plan To start with, it will take several years to accomplish an adequate saver's
strategic plan that will meet the desired retirement savings that I have selected. I am aware that the
fiscal treasury bills pertain to a yearly announcement of the budgets by the government, and I don't
need to be too cautioned of this economical decision.

The Retirement Plan For Retirement Plans
IV. DISCUSSION AND ANALYSIS
a. Retirements Benefits
Another of the concerns that Louis, Joyce, and Bryan have is they would like a retirement program
that will shelter a substantial portion of their income from taxes. Of the myriad of choices, a
company has for retirement plans, the best tax shelter for the owners is the qualified retirement plan.
With the qualified retirement plan Louis, Joyce, and Bryan would be able to eliminate any current
tax hit on a substantial portion of their income and be able to grow tax–free in a trust that they
manage.
Through this plan the owners would be able to make tax–deductible contributions that would be
based on actuarial calculations that will fund up to 100 percent of his or her highest three years of
compensation or $205,000, whichever is lower. I.R.C. §415(b)(1). The contributions that will be
made into the fund will depend on the age of the owner, which in the case of Louis, Joyce, and
Bryan would be extremely beneficial since they are getting older and hope to retire soon.
The downside to this plan is that it will only work if everyone participates in it. Meaning that all of
the employees have to participate, which can sometimes feel like a burden on the owners. A lot of
times when companies have a lot of non–owner employees, the cost of funding the plans can be
prohibitive and often times make it harder on the owners to actually have the tax shelters that they
are looking for. Because Web–Master Inc., has 10 other employees

Investing Inside A Qualified Retirement Plan
There was a time not so long ago that investing was simple––Stocks, bonds and mutual funds, notes,
and annuities––that was it. Today, investors enjoy access to the same types as investments as in
times past with Real estate, Real Estate Investment Trust 's (REIT 's), Derivatives, Hedge funds,
Currencies and so many more thrown into the mix. Here we will consider Real estate investing, the
different types of real estate to consider and why one serves the investor over another as it relates to
investing inside a qualified retirement plan. Unlike so many other investments, real estate is unique
because it can be leveraged. Banks will lend upwards to 60% percent of the properties value with
non–recourse funds inside retirement plans. Only plans that have a certain income through annual
contributions or large cash flows from wholly owned properties should leverage, especially on
commercial or industrial assets. Generally, there are 3 types of investments: Land,
Commercial/Industrial and Residential. Land is a complex investment that requires a certain level of
expertise, which many investors do not possess, but can provide explosive returns. Investing in land
can require years of negative cash flows before any appreciable gain is realized. As land is
considered, two important rules of land investing comes to mind: 1) The profit made in virtually any
land deal is made the day of purchase, which is to say always buy lower than market; 2) For
everyday a land asset is held in

Benefits Of A Qualified And Nonqualified Retirement Plan...
This discourse will attempt to discuss the concepts of what an executive is, what the difference
between a qualified and nonqualified retirement plan is, the three objectives of a nonqualified plan:
ERISA, funding status, and mandatory retirement age, as well as, nonqualified retirement plans of
supplemental executive retirement plans (SERPs) and excess benefit plans
Who Are Executives? "From a tax regulation perspective, the Internal Revenue Services (IRS)
recognizes two groups of employees who play a major role in a company's policy decisions: highly
compensated employees and key employees" (Martocchio, 2014, pg. 294). Highly compensated
employees refer to the nondiscrimination rules in the employer–sponsored health insurance benefits.
According to Investopedia (2010), a highly compensated employee is an employee who is a five
percent owner of the company or an employee who has received more than 110,000 in
compensations. However, a highly compensated employee can also be defined as an employee
whose pay is at the top twenty percent of the company. "When a company contributes to a defined–
benefit or defined–contribution plan for its employees and those contributions are based on the
employee's compensation, the IRS wants the company to minimize the discrepancy between the
retirement benefits received by highly compensated and lower compensated employees"
(Investopedia, 2010, pg. 1). This is how the breakdown of compensation of allotted to highly
compensated employees. On

Uncle Jack's Retirement Plans
Both Jennie's and her Uncle Jack's retirement plans include health insurance coverage until age 65
and after that, Medicare supplement insurance. Of the ways mentioned in the text to reduce
employer health care costs, which are you familiar with? Which might be a good fit for Jennie
and/or Uncle Jack? Jennie's Uncle Jack has what they call a defined benefit pension plan which is a
retirement program promised a pension based on age and years of service (Mathis, Jackson,
Valentine, & Meglich, 2017, p. 502). Defined benefit pension plan advantage is that Uncle Jack
didn't have to contribute anything just show up for work. Also, the plan allows for the spouse to be a
beneficiary of the funds should the employee take a payment that is less. Therefore,

Retirement Plans Compared To The 1980s
To wrap up, the quality of life for retirees is associated with retirement income retirees, prospective
or actual, might achieve or have upon leaving the workforce. The underlying rationale of retirement
plans, social security and pensions, is one which is informed by broader political, economic, social,
cultural and psychological factors. The current paper highlights some underlying causes for, effects
on, opportunities in and challenges encountered with retirement plans as expanded in the 1980s and
in comparison to the 2000s. Three major conclusions can be drawn based on the literature review: 1)
policy overlaps exist between different agencies and organizations offering retirement plans for
early and on–time retirees, 2) negative economic

The First Retirement Plan Of The United States
The first retirement plan created in the United States, is one that the majority of us are familiar, the
Social Security Act, signed under law in 1935. Up until 1939, Social Security only paid retirement
benefits to primary workers, which for the most part were men. Age 65 was chosen as the retirement
age because individuals who survived past childhood were likely to live past 65. However, not
everyone benefited from such assistance, even after age 65–agricultural and domestic workers were
excluded from coverage (DeWitt, 2010). The excluded group consisted of roughly half of workers
contributing to the economy, which the majority were African Americans. According to Larry
DeWitt, a public historian from the Social Security Administration, exclusion of such groups was
due to tax–collection procedures and not due to racial bias. Although it may seem as though Social
Security was meant to be the only form of retirement plan for qualified retirees, it was not. During
such time, many individuals strongly depended on their savings as well as on their family. Today,
the certainty of receiving sufficient benefits solely from Social Security for a quality standard of
living after retirement is indefinite. Baby boomers–individuals born post World War II between
1946 and 1964–are beginning to claim their benefits, and given what I have learned in class, the
number of individuals entering the workforce is inadequate to sustain such a large population, thus
such generation will consume

Financial Recommendations For A Prosperous Working Life As...
As a recent graduate, there are many financial recommendations that I need to take into
consideration for a prosperous working life as well as retirement plan. I have read many articles
regarding financial recommendation for recent graduate students and learned a great deal which I 'll
apply as soon as I enter the workforce. This project will help me outline different and crucial
financial recommendations that will benefit me as well as my future family. In this paper, I will
discuss financial recommendations that apply to recent graduate, which will involve different topics
such as emergency funds, insurance needs, saving for long–term goals as well as a proper retirement
plan. As recent graduate, first thing to do after graduation ... Show more content on Helpwriting.net
...
In order to accumulate emergency funds, several tips I need to take into account and apply them in
my daily life. First, I need to set up an automatic deduction from my paycheck that goes directly to
saving account. By doing so, it will allow me to forget and ignore the deduction amount and only
focus of the remaining of my paycheck. Second, eliminate any impulse buying that could affect my
paycheck (Allebrand, C). Third, maintain a spending book that would help in keep recording of my
spending to eliminate any overspending. Fourth renegotiation almost everything, from internet bill,
phone bill, asking for discount on stores to even asking for less interest rate on credit card and
reduction on insurance rates (Peterson, L).
However, most employers provide health insurance, which is part of the premium, is paid by
employees. So, having health insurance is mandatory to avoid any risk of high cost of medical
expenses. Medical cost is expensive and it can hurt me financially if health problems arise. Also
renter insurance is important as well since for at least 7–10 year I'll be living in rental apartment.
Renter insurance will allow me to insure all my personal belongings in case of fire or burglary. Auto
insurance is mandatory since almost everywhere is required to get auto insurance, which it is a wise
choice in case of accidents. When it comes to life insurance I think it's too early to get one
especially after graduation but it's a future plan

Purpose For A Retirement Plan
RETIREMENT PLANNING
CASE STUDY (PART 3)
Purpose for a Retirement Plan
Retirement Planning is the process of determining retirement income goals and the actions primary
to achieve those goals. It includes identifying the sources of retirement income, estimating future
retirement expenses, managing the assets and implementing a savings plan. A future cash flow
statement is prepared to determine whether the goals can be achieved or not. The primary purpose of
a retirement plan is to provide financial stability so people can leave their full–time jobs after
retirement.
Financial planning is a 6–step process and also examines 6 components. The 6 steps are as follows:
1. Establishing and defining the client–planner relationship: The planner informs the client about the
services to be provided and defines his or her responsibilities along with the responsibilities of the
client.
2. Gathering client data and determining goals: The planner learns about the client's financial
situation, goals and risk tolerance. This primarily involves gathering all the data.
3. Analyzing and evaluating client's financial status: The planner analyses the client's financial
situation and determines what must be done in order to achieve the goals of the client.
4. Developing and presenting alternatives to the client: The planner provides the clients with various
alternatives to achieve the goals, based on the information provided by the client. The planner then
reviews the alternatives with the client

Benefits And Benefits Of Retirement Plans
Retirement Plans Companies have the option of selecting the best pension plan for both the
employee and the employer. There are several different types to plans available, but the most
common are defined benefit plans and defined contribution plans. Each plan offers different
incentives for both the employer and the employee, which makes their values different for every
situation. Defined Benefit Plans Large corporations under which the employer promises to pay a
retiree a stated pension, often expressed as a percentage of preretirement pay, which is traditionally
used and known as a defined benefit plans (Cascio, 2013, p. 483). The most common formula for
defined benefit plans couples an employee's years of service and their final average pay, to
determine the amount of their retirement. Employers then pay into the fund each year to cover the
expected benefit payment for the employee. The majority of defined benefit plans calculates
earnings over the last 3 to 5 years of service for a prospective retiree and offers a pension that is
about one–half this amount, which varies from 30 to 80 percent, adjusted for years of seniority
(Milkovich, Newman, & Gerhart, 2014, p. 466). The following is a list of characteristics for defined
benefit plans. Benefits are guaranteed by the Pension Benefit Guaranty Corporation (PBGC) with
some exceptions Employer assumes the risk of investment gains and losses Some plans do not take
into consideration inflation The exact

401 Plan Should Not Be The Retirement Options
Employer matched 401k plan should not be the only retirement options people have its one of a few.
Company pensions are almost a thing of the past many companies are doing away with this benefit
due to cost associated with maintaining this plan. Today most people don't even stay at a job longer
than five years, with this type of turnaround it would make it that much more costly to an
organization to maintain this benefit. The key to addressing the retirement needs of your employees
it to educate them. By providing educational retirement workshops the employee will be better
equip in making informed decisions about retirement. We all know it's never early to plan for
retirement the earlier the better. Young people as young as twenty should have a retirement plan
already under way, when you are educated and informed you put yourself in a better position in the
long run. As the HR professional in charge of informing the employees I would have a meeting
broken into groups by departments. At the meeting I will explain our company's retirement options
company wide. Literature should be distributed explaining the plan how it works and what to expect
when that time comes. Keeping the lines of communication open with the employees is essential;
the employee should understand fully all aspects of the employer sponsored retirement plans.
Outsourcing has grown in popularity in recent year's health care reform along with compliance
challenges are the biggest contributing

Dr. Walden's 8-Step Retirement Plan
Section 1
Dr. Walden's 8 – Step Retirement Plan
Step 1:
Age: 26
Age of retirement: 66 Years left until retirement: 40 Years in retirement: 20
Salary after graduation: $50,000/ year
Percent of salary needed for retirement: 75%
Amount needed per year for retirement: $37,500 Total needed for 20 years of retirement:
$613,178.75
Real interest rate: 2%
(Conservative rate, burden of saving on myself. I am not a risk taker and do not feel confident in
investing in the stock market)
Step 2:
PVA = 37500[1–(1+0.02)^–20/0.02] PVA = $613,178.75
Step 3:
Amount of Social Security payments received each year: $0
Lump sum present value of SS payments: $0
(I am not including Social Security in my analysis because it is difficult to predict what the amounts
are going to be for someone who is 20 years away from retiring.)

Step 4:
Amount of Defined Benefit pension plan: $0
Lump sum of present value: $0
(I am not including Defined Benefits because industrial design entrepreneurship does ... Show more
Planning for my retirement will improve my quality of life. I will be able to travel and maintain my
standard of living. I will be able to enjoy my retirement years without having to work or stress about
finances since I did proper planning, saving, and investing.
What impact will your personal retirement planning have on your immediate family?
Planning for my retirement will provide stability and peace of mind for my immediate family. They
will benefit from the saving and investing that I researched and applied to my future.
What impact will your personal retirement planning have on society? I am not going to depend on
others and on society when I retire because I have planned on saving and investing in order to be
responsible and be able to support myself during retirement.
What impact would there be on the economy if every American had implemented a retirement

The Post Retirement Benefit of Pension Plans
The Post Retirement Benefit of Pension Plans Marcus Womack Intermediate Accounting II (ACC
306) Professor Rick Kwan September 29, 2010 There are several different types of employment
compensation. Salaries and wages that people earn while they are working provide immediate
compensation for services provided and are a key factor in managing one's day to day life. However,
there are also various types of compensation that one can earn from employment after they have
retired from a company. The purpose of these post–retirement benefits is to ensure livelihood for a
person when they are no longer able to work. A pension is one such plan. A pension is an
arrangement–paid in regular installments––to provide people with an income when ... Show more
The market risk that exists is associated with the changes in the value of investments with the plans.
While both types of plans carry market risks, the risks associated with defined benefit plans lies on
the shoulders of the employer while those associated with defined contribution plans are assumed by
the employee. During periods of economic growth the cost of maintaining a pension fund decreases
due to the rising values of investments. Employers are able to contribute less and still meet future
pension obligations. However, when markets go down the employer has to contribute more money
to the plan to ensure that they are able to pay retirees their promised funds. Retirees receive the
same dollar amount of income regardless of market conditions. With defined contribution plans the
risks and rewards are reversed. Since the retiree both assumes risks and reaps benefits, periods of
economic growth cause the retiree's wealth and income to increase and negative market changes
cause the opposite to occur. Employers have agreed to a fixed amount and are unable to adjust their
contributions downwards. In essence, with this type of pension plan the employer does not take on
the risk of their obligation changing unexpectedly, the pension funds being inadequate to meet their
obligation or any added periodic expense of carrying a pension plan. Once retirement occurs, the
company's

Plans for Retirement
Retirement is often in the front of many U.S. workers minds during their later year of employment.
However, the most important undertakings of retirement happen during ones first few years in the
job industry. There are many options available to employees and employers alike, and to make the
proper decision one must have at least a basic understanding of opportunities made accessible to
them. This paper will discuss the individual retirement accounts, pensions plans and the benefits
made available by social security. It will go into depth on the benefits are of a 401k plan and Roth
IRA, the difference between defined benefit and defined contribution pensions, and discuss who is
eligible for certain benefits afforded by social ... Show more content on Helpwriting.net ...
Yet another type of individual retirement plan is the Keogh plan. A Keogh plan differs from IRAs
and 401(k) s in that they are designed for self employed professionals, typically small business
owners. Full time employees of a small business must be included in the plan if they have worked
for the company for at least three years. (3) As with the other retirement plans mentioned, one
cannot take money out of a Keogh until the age of 59 ½ years without penalty. Keogh plans also
allow individuals to put their funds into the plan on a tax free basis, with the individual paying taxes
upon withdrawal. Small business owners can set their own eligibility requirements for employees to
meet in order to take part in a Keogh. For example the employer can require employees to be full
time, to meet a certain age requirement (cannot exceed 21 however), and to have worked for the
company for a set amount of time. (3) Keogh plans are attractive to small business owners because
the funds put into the plan are allowed to grow tax free, however owners who invest in a Keogh plan
need to weigh the costs with the benefits in order to gauge if a Keogh makes economical sense.
Pensions are also an important consideration when making plans for retirement. A pension is similar
to an individual retirement plans as they involve an account that the employee pays into. A pension
is a steady

401 K Retirement Plan Essay
Retirement plan has its advantage and disadvantage. Mostly it is based on the choice of the
participant. It is the right of the member whether to choose it or decline. The 401–k retirement plan
builds on the retirement plan sounds likes to replace for pension, but not. The 401–k plan should not
necessary for all employees because it is beneficial based on age and employment history and no
beneficiary is allowed.
The 401–k plan is useful based on the age and age of employment history. It is right to choice this
plan for the people those are at the age of 45 or more. It is not okay for the people the age of me. It
is not beneficial for me because the company where I am recently working I am not going to spend
my lifetime there. Once I changed my job and withdrew the money from the plan, I have to pay a
huge penalty. I have personal experience with the 401–k retirement plan since I have attended an
orientation about it. As per the orientation it I knew ... Show more content on Helpwriting.net ...
The plan I know like life insurance even some saving plan allows the beneficiaries. Since the
beneficiaries are not allowed so, nobody should be permitted to make a claim if something happens
to the principal planner died. For example, if I invest $ 100000 up to the age of 64 and I died then
nobody from my families are permitted to make a claim. If none of my family shouldn't take
advantage of my saving then why to this kind of saving. Instead of this plan, it is better to buy stock
or bond where at least we are provided with beneficiaries.
Though this is the big project, does not allow any beneficiaries means the program looks like
profitable organization. Maybe this based on active team concerning the average life expectancy of
American people or either based on the death rate of people date at the age between 40 to 50 years.
Thus, this program has its own profitable business, but it's in the opinion of the participant how they
like this plan and also it is not

The Ontario Retirement Pension Plan
2 The discussion in regards to the Ontario Retirement Pension Plan can be one with much debate.
Some would argue that what they would receive will not be enough in their savings to live off of,
paired with ORPP. 1 Employees between the ages of 18 and 70, with the amendment from 18 to 19,
are expected to make a contribution towards ORPP, but are only able to begin collecting their
benefits once they have reached the age of 65. 2 The Canadian Ministry of Finance has conducted
studies on ORPP, where it has been proven that ORPP is not enough to live off of, besides savings
that have been accumulated over the years. While the ORPP is not a tax, the funds that are collected
and further invested will be exclusively used for member 's ... Show more content on
Helpwriting.net ...
Fair contributions to residents of Ontario and their pension is not being made, as well as the issues
with low earners, who will have to pay a full ORPP premium for their earnings. This is because of
income testing for their benefits. Under Ontario 's current system, expanded earning–related
coverage for pensions is a bad deal for those who are low earners. 3 4 Statistics Canada has utilized
a computer model for the purpose of gaining retirement readiness information from households.
This model calculates the net replacement ratio, which is further compared with disposable income
once the person has reached retirement, as well as preretirement. The replacement ratios for each
household 's income is broken down, with a 75% rate being considered tolerable and low. The ideal
rate, however, is above at least 95%. The small percentage of Canadians who have a readiness score
that is under 75% are generally employees with a spotty employment record, or those who have not
yet lived in Canada long enough for a full Old Age Security (OAS) and Guaranteed Income
Supplement (GIS) benefit. Therefore, increasing the overall amount of household savings is going to
do a lot more damage than good. This is because having savings now reduces all disposable income
for the years that are spent working, while additional income for retirement that is generated will
reduce the future GIS entitlement. In fact, the

Safe Harbor Retirement Plan
Are you a business owner who is concerned about attracting and retaining quality employees? Are
you unsure which retirement options you should offer your workforce due to complicated matching
and tax concerns? You're not alone. Many business owners struggle to provide the best retirement
option for both their employees and the business. One option that many businesses are choosing is a
Safe Harbor Retirement Plan. This style of retirement plan is popular because it benefits both the
workers and the business.
A Safe Harbor Retirement Plan is a 401(k) or 403(b) plan where the company makes a specific
contribution to every plan participant. Contribution options are either a flat 3% of total yearly pay to
all employees who are eligible,

Retirement Plan Advisors
Stress About Retirement Readiness is Killing Employee Morale Here's How Plan Advisors Can
Help By Edward Dressel According to a recent retirement confidence study conducted by the
Employee Benefit Research Institute, American workers are stressed about their inability to retire,
but few are doing anything about it. For retirement plan advisors, this is an especially vexing
problem – and, most likely, an urgent call to action. The employers and plan sponsors with whom
you work should know that their employees have one burning, yet simple question when it comes to
retirement: When can I retire – and will I be alright once I do? That nagging concern can
significantly impact employee moral and productivity. With retirement planning at a critically ...
Show more content on Helpwriting.net ...
4. Track the Success of the Plan Finally, employers need to know whether their retirement plan is
really serving their employees so that they, with the plan advisor's help, can identify how to improve
employee participation and retirement outcomes. Make sure to review participation and
contributions by demographic groups to determine changes over time. Gather the information
employers need to know with confidence whether the employees' retirement readiness is improving.
Helping people retire with confidence is a calling for many plan advisors. Specialty software
programs and proven methodologies are available to help plan advisors be more efficient as
business professionals and more effective in their roles as professional counselors and strategic
motivators. When employees see how their actions today will positively impact their financial
futures, they will worry less and be more productive on the job – and that's something that every
smart employer will like.

Retirement Income Plans
TORY BENEFITS The Social Security Act of 1935, with its later amendments, established a system
of providing old age, survivor's, disability, and retirement benefits [EEOC, 2005], which the Social
Security Administration administers. Furthermore, the act is to provide for the general welfare by
establishing a system of Federal old–age benefits, and by enabling the several States to make more
adequate provision for aged persons, blind persons, dependent and crippled children, maternal and
child welfare, public health, and the administration of their unemployment compensation laws; to
establish a Social Security Board; to raise revenue; and for other purposes (Social Security
Administration, 1935). For 2005, social security is supported by a tax of 15.3 percent on income up
to $90,000. If your net earnings exceed $90,000, you continue to pay only the Medicare portion of
the Social Security tax, which is 2.9 percent, on the rest of your earnings (Social Security
Administration, 2005). Employers pay 7.65 percent, the employee pays the other 7.65 percent, and
if an individual is self–employed they pay both halves. VOLUNTARY BENEFITS Retirement
income plans are a benefit, which gives individuals some form of additional income other than
social security after retirement. Retirement income plans are governed by the Employee Retirement
Income Security Act of 1974 (ERISA) and the purpose of the act was to regulate private pension
plans in order to assure that employees who put

Benefits And Benefits Of Retirement Plan Essay
Two thirds of private industry workers have access to some form of retirement plan. The two forms
most common are a defined benefit plan or pension plan and defined contribution plan or an
investment plan such as a 401K. Given the choice, over 40% prefer to participate in the benefit plan
with the larger number of management, professional and related occupations comprising twice the
amount of participants compared to service occupations. Fulltime workers also tool preference with
the benefit plan compared to part time workers. Wages were also determinates for participated,
studies show higher waged earned participated in the programs compared to lower waged earners.
Investments and Savings Vehicles We have all benefited from this new global economy,
interweaving our lives and still maintaining independence and as each of the regional areas send
strong signals sharing similar perceptions of investing in our future interests. Today, we see more
and more government to government interventions with a common goal to offer frustrated
populations robust possibilities for living better with access to public and private investments and
savings through pension programs and retirement plans. Current outlook for Japan and the major
countries of continental Europe shows the aging trend is escalating and public retirement systems
are generous. A small portion is contented, while others seek to more prosperity moving into
retirement. According to The Organisation for Economic

Retirement Plan Essay

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