401k Paper

User Generated

Puebzrqbzr323

Economics

econ 101

Glendale Community College

Description

Watch video

http://www.pbs.org/wgbh/frontline/film/retirement-...

Read this

http://www.demos.org/sites/default/files/publicati...

Ideally 4 pages

ORIGINAL work, Will be plagiarism checked

I am a 4.0 college student, and it is college app season, so i really need the help to maintain my gpa.

Unformatted Attachment Preview

Written Assignment Assignment: Watch the following PBS Frontline video on the financial industry and its involvement in the 401(k) retirement system and read the accompanying publication: http://www.pbs.org/wgbh/frontline/film/retirement-gamble/ 2 https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&ved=0ahUKEwjFk5Ct- YfUAhVRWWMKHUOCOkQEggmMAA&url=http%3A%2F%2Fwww.demos.org%2Fsites%2Fdefault%2Ffiles%2Fpublications%2FTheRetirements: Demos_0.pdf&usg=AFQjCNETZcJlnkfhUlsT-jvxBtkoMDU Nw&sig2=A2gOZPsbXwtTOlu4pMZCuQ&cad=rja e Write a minimum of at least three pages on the following questions (size 12 font and double spaced). The paper needs to be submitted as a file into Canvas (Vericite) and a physical copy must be submitted as well. Cite all of your sources. For each of your answers I want you to provide clear reasoning detailing your position using concepts and economic logic learned in class and from the textbook. 1) Why is there a market failure in the 401(k) market? (Hint: read chapter 8 and its description of imperfect information) 2) Describe and detail all of the fees/costs associated with a 401(k). 3) Calculate two individuals total amount of retirement assets after 30 years of investing using the following two examples to display and articulate the effect of compounded fees on two different individuals' retirement accounts with the exact same mutual funds. The two mutual funds have the same before expense rate of return, but one mutual fund charges a higher expense ratio than the other. Describe what effect fees have on the two different individuals' retirement assets: (a) Yearly Savings: $15,000, Inflation Rate: 2%, Rate of Return:(8.15%-15%=8%), Expense Ratio of Mutual Fund: .15%, Periods: 30 years (b) Yearly Savings: $15,000, Inflation Rate: 2%, Rate of Return:(8.15%-65%=7.50%) (It is lower than example (a) due to the increased expense ratio), Expense Ratio of Mutual Fund:.65%, Periods: 30 years Use this financial calculator website for the examples: http://www.financeformulas.net/Future-Value-of-Growing-Annuity.html e 4) Describe and come up with your own solution to alleviate the problems with 401(k)s.
Purchase answer to see full attachment
User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

Explanation & Answer

Attached.

401 final
by Prof A

Submission date: 23-Oct-2019 06:54PM (UTC-0500)
Submission ID: 1199084109
File name: 401k_ff_j.docx (37.5K)
Word count: 1109
Character count: 5708

401 final
ORIGINALITY REPORT

5

%

SIMILARITY INDEX

5%

0%

1%

INTERNET SOURCES

PUBLICATIONS

STUDENT PAPERS

PRIMARY SOURCES

1
2

4%

www.mpowercafe.com
Internet Source

1%

fiduciarynews.com
Internet Source

Exclude quotes

On

Exclude bibliography

On

Exclude matches

Off


Running Head: 401 MARKET

1

401k market
Student Name
Institution

401k Market

2

1. Market failure in 401 market.
Market failure is happening at 401 because of several factors. First are the high costs,
lack of education on 401 market among many more.
2. Describe all of the fees/ costs associated with a 401(k)
From 2012, United States Department of Labor executed fresh guidelines on 401k fee.
Fee at 401k falls in three super groups: investment, individual service fee as well as the
administrative as discussed below.

As a member of the organization, the investment fee is probable to the number one
largest fee members pay. Such fees are disclosed in ‘mutual fund prospectuses’ as well as annual
reports. The same fees cover the cost of handling multiple investments.

In addition, mutual funds expose members to what is called a load, an industry word that
easily means commission. This sales charge could be paid before, where it is referred to as the
front-end load. Or, it could be paid during time...


Anonymous
This is great! Exactly what I wanted.

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4

Similar Content

Related Tags