UGBA 10 Lecture Notes - Lecture 17: Dollar Cost Averaging, Family Life Education, Human Capital

• School: Berkeley
• Department: Business Administration Undergraduate Program
• Course: UGBA 10
• Professor: Banks Cristina

Document Summary

Ability to plan your financial resources and liabilities to achieve your life goals. Transfer of risk from employers to employees. May be a difficult time to invest. Can"t trust brokers to work in your interest . Don"t feel they have enough money to save! Decreasing number of defined benefit pension schemes. Ie. pension depends on number of years you worked. Ie. pension depends on amount you save. Contribution/cost : sum of money paid in by employee and/or company during the working life of the employee. Provides a known post retirement income, generally a percentage of final salary per year of employment with the org. Some plans are closed to new employees. Does not guarantee any specific $ pension. Invests the employee"s contribution (plus usually an employer contribution such as an employer match) to build up a fund that employee can use to meet retirement needs. A db scheme is attractive to employees: .