Questions from Personal Finance


Q: What is a defined-benefit plan? What is vesting?

What is a defined-benefit plan? What is vesting? What does it mean to be fully vested?

See Answer

Q: What is a defined- contribution plan? Why are many employers

What is a defined- contribution plan? Why are many employers switching to this type of plan? List some of the benefits a defined-contribution plan offers to employees.

See Answer

Q: Briefly discuss the key retirement planning decisions an individual must make.

Briefly discuss the key retirement planning decisions an individual must make.

See Answer

Q: Discuss the general characteristics of a 401(k) plan.

Discuss the general characteristics of a 401(k) plan. What is a 403(b) plan?

See Answer

Q: Compare and contrast a Simplified Employee Pension (SEP) plan and

Compare and contrast a Simplified Employee Pension (SEP) plan and a Savings Incentive Match Plan for Employees (SIMPLE).

See Answer

Q: Discuss profit-sharing and employee stock ownership plans (ESOPs).

Discuss profit-sharing and employee stock ownership plans (ESOPs).

See Answer

Q: Discuss the choices an employee has to manage a retirement account on

Discuss the choices an employee has to manage a retirement account on leaving an employer.

See Answer

Q: Briefly describe two popular retirement plans for self-employed individuals.

Briefly describe two popular retirement plans for self-employed individuals.

See Answer

Q: Cedrick works for an employer that has a profit sharing retirement system

Cedrick works for an employer that has a profit sharing retirement system. Assuming Cedrick made $133,000 last year, what is the maximum amount his employer can contribute to his retirement account?

See Answer

Q: How much would Barry (from problem 1) have at retirement

How much would Barry (from problem 1) have at retirement if he had started this plan at age 25? Data from Problem 1: Barry has just become eligible for his employer-sponsored retirement plan. Barry...

See Answer