In this assignment, you will be given several different scenarios. You will need to type on a separate sheet of paper which plan type you think would be best for each situation and why you have chosen that plan type. Each scenario will be worth 1 point. There are nine scenarios, so you will receive 1 extra point for turning the assignment in on time. Each scenario will have only one correct answer and you may not use the same plan type for more than one scenario. The plan types that you can choose from are: Straight Defined Benefit Plans Target Benefit Plans ESOP SIMPLE SEP 401(k) 403(b) Profit Sharing Plan Money Purchase Pension

Plan Scenario #5

A manufacturing company has just stumbled into a unique niche market. They once made flag poles for school districts all over the country. But now, they have discovered that they can use the same technology with meaningful enhancements to make drive shafts for very large pieces of equipment. They have recently won several US Navy contracts to construct 100-foot replacement drive shafts for reconditioned submarines. With this new growth opportunity, the company needs to find top-notch talent. They have been recruiting new employees and now have over 150 employees with a need for 30 more with specific engineering talents. They know that they will need to begin offering a retirement plan benefit in order to attract the right people and retain them once they join the company. The owners want the employees to be involved in the saving process and they do not want to bear any investment risk. What plan type is best for this potential client?