) What are three ways of investing for retirement?.
Many individuals have retirement plans called pension plans that provide retirement income. One of the most common types is a 401(k) plan, in which you allow a certain portion of your paycheck to be withheld, and the company matches that amount. Also, most people are eligible for Social Security payments when they reach retirement, social security is paid from the government taking money out of your pay check and this is them repaying you when you need it the most; during retirement. The third method of investing/saving for retirement would be an IRA (individual retirement account) which is a private retirement plan that allows individuals or married couples to save a certain amount of untaxed earnings per year with the interest being tax-deferred.
3.) Graphic Organizer.
Amount of savings depends on .
• How much do you spend on your fixed expenses?.
• What are your reasons for saving?.
• How much interest can you earn on your savings and, therefore, how fast will your savings grow?.
• How much income do you think you will be earning in the future?.
• What degree of risk are you willing to take?.
• How important is it that your savings be readily available in case you need immediate cash?.
• Will your standard of living at retirement depend largely on your accumulated savings?.
4.) If you had money to invest, in which type of account you invest? Why?.
If I had money I would invest into an IRA because at the moment the government likes to spend money out of social security on government controlled programs and it might not be available to me when I need it. Also because an IRA seems to be more flexible then the other types of accounts due to I get to decide how much to put into it each year.
Todd Sherman Wednesday, March 12, 2003.
Economics.
Page 175 2, 3, 4.
2.) How does the principle of voluntary exchange operate in a market economy?.
