FIN 110 Lecture Notes - Lecture 6: Individual Retirement Account, Risk Premium, Market Capitalization
Document Summary
What is a 401k? tax-free retirement savings financial plan offered by employers to entice workers to save for their retirement often matching employee"s deductions. What is a regular pension? form of retirement income for workers gov. or private sectors company pays 10636$ for years of service match payroll deductions for retirements -- also have ss from gov. pension. What is an ira? individual retirement account save for retirement --> not taxed can be started as 401k designed for the tax payer replace income after retirement coming out of a recession-- maerkets alwaus changing. 401k is a tax-free retirement savings financial plan offered by employers to entice workers to save for their retirement, often times by matching an employee"s deductions. Regular pensions were used by the government and the private sector as financial savings tools for longtime workers when they retire, as a means of supplementing social security income. however now days most companies shy away from pensions.
