MGMT 1A Lecture Notes - Lecture 15: Defined Benefit Pension Plan, Defined Contribution Plan, Traditional Ira
Document Summary
Mgmt 1a lecture 15 notes - continuation of ira and journal entries for equity securities. Tax effect when withdraw the funds upon retirement. But not if both of the following are true: high income, pension plate part. Retirement: defined benefit plan: i, 2% of your salary / year, this is usually by government agencies, extremely rare, doesn"t exist anymore. In addition to cola: cost of living adjustment c. As a result, the expense they had for this health care plan was larger than their equity. Strategy: dollar for dollar matching up to 5000 10,000 (money doubles, put in as much as paycheck 401k (free money) rest goes into roth ira i. When we buy stock, we have to go through a stockbroker who gets commission. 1) on 11/1 we buy 1000 shares of stock @ share + 2% commission. 2) on 12/31 we receive a dividend, . 50.
