Compare and contrast in 1,050 to 1,400 words:

timer Asked: Feb 8th, 2019
account_balance_wallet $9.99

Question Description

A new employee joins your company at age 24 making $40,000 per year. Currently, banks are paying 5% interest on saving accounts, and the rate of return on the company stock is 4% per year. During benefits enrollment, the employee stated that she would like to retire at age 60 with 3 million dollars in her retirement account.

Compare the following retirement options for this particular employee in 1,050 to 1,400 words:

  • 403B
  • 401K
  • Pension
  • Annuities
  • IRA
  • Estate planning

Determine which retirement option(s) you would choose if you were this employee.

Assess the factors that this employee should consider when selecting a retirement plan.

Format your paper consistent with APA guidelines.

Tutor Answer

School: Rice University

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Considering the given scenario new employee joining at the age of 24 making $40,000
each year. At present, bank is paying 5% interest on the savings whereas the rate of return on the
stock investment is 4% per year. The employee wants to retire at the age of 60 with more than 3
million dollars in her retirement account. She has various options foreign investment like 403B,
401K, Pension, Annuities, IRA, Estate planning, etc.
The first option given for the retirement plan investment is 403 b plan. This plan is also
known as a tax-sheltered annuity. It is a retirement plan for particular types of employees like
employees of specific tax-exempt organizations, employees of public school and ministers. The
individual accounts in 403 b plan includes a custodial account, an annuity contract, and a
retirement income account for the employees of Church. The three benefits of the plan includes
there is no need to pay the income tax on allowable contributions till the person begins with the
withdrawals from the plan after retirement, earnings are not taxed until the amount is withdrawn
by the individual, and an individual is eligible to take credit for the elective deferrals according
to the 403 b account. For the female employee who wants to select the plan should fall under any


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