Retirement Plan Selection
Retirement Plan Selection: A new employee joins your company at age 24 making $40,000 per year. Currently, banks are paying 5% interest on saving accounts, and the rate of return on the company stock is 4% per year. During benefits enrollment, the employee stated that she would like to retire at age 60 with 3 million dollars in her retirement account.
Compare the following retirement options for this particular employee in 1,050 to 1,400 words:
- 403B
- 401K
- Pension
- Annuities
- IRA
- Estate planning
Determine which retirement option(s) you would choose if you were this employee.
Assess the factors that this employee should consider when selecting a retirement plan.
Format your paper consistent with APA guidelines.
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Answer preview
There are many options of retirement plans that an employee can opt. Some of the retirement plans include 401(k), 403(b), pension, estate planning, IRA and annuities. An individual employer will take time to find a suitable plan. Before choosing any of the retirement plans, it is imperative for an employee to seek relevant information concerning each one (Hartnett, 2017). In so doing, she will be armed with concrete details of the best plan which will fit her. In this scenario, a 24 years old employee has begun working in a company earning $ 40,000 annually. An employee plans to retire at 60 years old, and that automatically means that he will work for 36 years. At her retirement age, she hopes to have earned three million dollars savings. She can achieve her wishes by doing the following. First…
(1400 words)