01:220:110 Study Guide - Final Guide: Pension
21 Dec 2016
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Document Summary
Economics 110 - personal finance and decision making. Starting early: retirement and estate planning: time value of money (chart, estimating retirement expenses. More money spent on food, housing, and medical care than non-retired families. Typical year of retirement - approximately ,000: how much money do you need to allocate to major financial contingencies (e. g. , hospitalization, nursing home, etc. ) at least ,000 annually, major sources of retirement income. Employer pension - employer contributes to your retirement benefits, and sometimes you contribute too: defined-contribution - plan - profit sharing, money purchase, Keogh, or 401(k) - that provides an individual account for each participant. Public pension - social security; people can begin collecting at 62. Personal retirement plans: ira - special account in which the employee sets aside a portion of his or her income; taxes are not paid on the principal or interest until money is withdrawn from the account.
