Kristin Caldwell has just graduated from college and is considering job offers from two companies. Although the salary and insurance benefits are similar, the retirement programs are not. One firm offers a 401(k) plan that matches employee contributions with 25 cents for every dollar contributed by the employee, up to a $10,000 limit. The other firm has a contributory plan that allows employees to contribute up to 10 percent of their annual salary through payroll deduction and matches it dollar for dollar; this plan vests fully after five years. Because Kristin is unfamiliar with these plans, explain the features of each to her so she can make an informed decision.
Answer to relevant QuestionsDavid Cheung is an operations manager for a large manufacturer. He earned $68,500 in 2012 and plans to contribute the maximum allowed to the firm’s 401(k) plan. Assuming that David is in the 25 percent tax bracket, ...Why is it important to check an insurance company’s financial ratings when buying an annuity? Why should you look at past performance when considering the purchase of a variable annuity?1. After taking into account the income that Sophia will receive from Social Security and her company sponsored pension plan, the financial planner has estimated that her investment assets will need to provide her with about ...Describe briefly the importance of these documents in estate planning:(a) Power of attorney(b) Living will(c) Durable power of attorney for health care(d) Ethical will.The two basic techniques of estate planning are(1) Dividing your estate and (2) Deferring income to minimize taxes.Describe and discuss each of these techniques.
Post your question