Retirement Plans

A defined benefit plan, most often known as a pension, is a retirement account for which your employer ponies up all the money and promises you a set payout when you retire.

A defined contribution plan, like a 401(k) or 403(b), requires you to put in your own money.

Annuity: An annuity is a contract between you and an insurance company in which you make a lump sum payment or series of payments and in return obtain regular disbursements beginning either immediately or at some point in the future. The goal of annuities is to provide a steady stream of income during retirement.

Required:

1. How does an annuity equate to a traditional payment? Write 100 words.

2. What are your thoughts about 401(k)-type, e.g. defined contribution plans, vs. traditional pension plans, e.g. defined benefit plans? Write 100 words.

3. Which type of retirement plan do you prefer? Why do you prefer that retirement plan type? Write 50 words.

4. As a cashier of Domonos, what type of retirement plan do you have at your place of employment? Write 50 words.

Please write in your own words. Please don't copy from anywhere.