bus math qrb 501 wk5 qu-2

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Business Math, Ch. 13

Retirement?

Don't panic - learn the rules & start investing! :)

Class, one consideration you need to make when you have not yet started your retirement investing is the fact that you can start small and build gradually if you feel that you need to do that, but getting started is the part where many people fail.  Did you realize that if you're investing in a 401K or similar account through your employer, the funds are taken out pretax, so your taxable income will be lowered?  That's wonderful news because many young people who are just starting to fund their retirement are also single and need a way to reduce their taxable income so taxes don't "eat them alive."

 

Class, don't panic when you are crunching the numbers!  Instead, but be mindful of what benefits your employer offers.  Do they match any portion of your contributions?  Do they offer an employee pension plan in addition to a 401K or other type of investment plan?  Where I work at my full-time job, we are fortunate enough to have an employer sponsored pension plan that is 100% funded by our company.  In addition, they also match a portion of our 401K contributions. Finally, an added bonus for employees who have been with the company 20 or more years and retire at age 55 or older is that they can have health insurance.  I have already invested my 20 years with the company.  In eight more years, I will be eligible to retire with health benefits - and as you know, that's a huge plus!  Honestly, there have been many times in the past that I have been ready to find a new job, but when I crunch the numbers and realize how much added benefit these two benefits provide in the planning for my retirement, I close my mouth and continue on with my work. Innocent

 

For those of you who are thinking of changing jobs or who are in the process of changing jobs now, as you are reviewing future employers, be sure to ask about benefits that will help you build your retirement nest egg!  

 

Samir, in answer to your question, I look at retirement investing the same way I look at grades - anything is better than zero, so get started! You will find that once you get started, you can increase your investments at times that you will barely notice.  For instance, I increase my investment percentage when I receive raises. 

 

Class, check into the retirement benefits your employer offers!  What do they offer? 

 

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