recapguide.com
What is Retirement
When you reach the age of about 60(or in the Futurama world 160)you can retire from your job(Or get put into the Near Death Star). This is when you no longer work because of your age. Hopefully, you have money saved up so you can live your life happily. If not there is a way you can still get money.
Social Security
For most of your life you pay taxes. Some of these taxes go into a big "pot" of money called social security. Some of the money can come from checks. This money is for retirees who need money. They get some of this, about $1400 a month, to pay for basic needs like food, shelter, clothes, and medicine. |
slurmed.com
|
Pension Plans
"A pension plan is any retirement plan offered to a company's employees."-Consumer Education and Economics
In a defined-benefit plan, the company pays the employee a specific amount of money each month. The employee assumes all all investment risk.
In a defined-contribution plan, the employees choose to contribute to a retirement fund that is invested for them. Sometimes the company contributes.
In a defined-benefit plan, the company pays the employee a specific amount of money each month. The employee assumes all all investment risk.
In a defined-contribution plan, the employees choose to contribute to a retirement fund that is invested for them. Sometimes the company contributes.
blogspot.com
401k
plus.google.com
|
A 401k is a type of defined-contribution plan. This plan reduces tax depending on the percentage put into the plan. It can also come with a roll over. This means that when you leave a company, the money gets transferred. The amount depends on the degree to which the employee is vested. Lastly, some plans will match 401k contributions. This means both the employees contributions and the company's matching dollars earn a investment return.
- Consumer Education and Economics |
ESOP
www.geeksofdoom.com
|
This is when a company gives employees shares that cannot be sold until they leave the company or retirement. If the company does well, employees will earn more. If not, employees may loose money. This can be smart because employees know when the company is doing well, but they cannot be sold. There is risk involved.
|