After participating in or viewing the recording of this week’s BigBlueButton discussion session (held on July 14, 2020 beginning at 7:00 PM–see link to BBB on the course’s home page), write at least 150 words providing your answers to these questions:
1) Briefly list at least three topics related to personal finance that were discussed during this week’s BBB session.
2) Do you think social security will be available for you? Why or why not?
3) Other than social security, how will you save for retirement?
4) What are the advantages of having a will?
5) What else about retirement and estate planning would you like to learn?
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Answer preview
Other than social security, there are other plans that I can utilize to save for my retirement. One of them than I can utilize is an employer-sponsored retirement plan. According to Ilmanen, Kabiller, Siegel, & Sullivan (2017), an employer-sponsored plan is designed to help employees save for their retirement. In this plan, both an employee and employer contributions to the savings at the end of each month. The funds are invested on behalf of employees, and they begin to make withdrawals after retirements. Basically, this type of retirement plan is tax-deferred, meaning that a person begins paying taxes immediately after they begin withdrawing their savings. However, there are other plans that taxes are not postponed; instead, retirees make tax free withdrawals. Some of the retirement plans offered by employers include 401 (K) and IRA. An employer usually sponsors a 401(k) plan. It allows an employee to make savings or invest before their income is taxed. The savings are not taxed until they start making withdrawals. IRA is a type of retirement saving plan that helps an employee to save for her retirement, and it offers various tax advantages. The common types of IRA are traditional and Roth. IRA can be the cost-effective, efficient, and beneficial framework of growing retirement funds provided an employee follows the established rules and restrictions.
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