when planning for retirement which of the following are key factors to consider? course hero

What are the two popular retirement plans for self-employed individuals?

The two popular retirement plans for​ self-employed individuals​ are: the Simplified Employee Plan​ (SEP) and a​ 401(k) plan Which of the following is not true of Simplified Employee​ Plans?

Which type of pension plan should Thomas consider?

Thomas should consider the​ 403(b) plan He owns a small firm with employees. Which is the best​ selection Thomas should consider the Simplified Employee Pension Plan​ (SEP) or the Savings Incentive Match Plan for Employees plan​ (SIMPLE).

How often should I review my retirement plan?

T/F: Even the best retirement plan needs to be reviewed every few years. Nice work! You just studied 20 terms! Now up your study game with Learn mode. YOU MIGHT ALSO LIKE...

How do defined benefit retirement plans work?

you​ and/or your employer contribute money to a retirement account each pay period A​ defined-benefit plan​ guarantees the employee a specific amount of income when he retires. If an employee is​ vested, he can claim a portion of the retirement money that has been reserved for him. If an employee is fully​ vested,

What are the factors to be considered for retirement planning?

The following 6 factors need to be considered when building your retirement fund:Risk appetite. Your risk appetite might change depending on your commitments and goals at different points of your life. ... Time Horizon. ... Inflation. ... Diversification. ... Affordability. ... Payout mode.

What factors influence the decision of when to retire?

What influences retirement decisions?health status.financial circumstances.attachment to and conditions at work.work-life balance.caring and unpaid work responsibilities.policy context.labour market demand (Haider and Loughran 2001, Williamson and McNamara 2001, Hirsch 2003).

What are five factors that affect the timing of retirement?

The determinants of retirement timing were classified into eight domains: demographic factors, health factors, social factors, social participation, work characteristics, financial factors, retirement preferences, and macro effects.

What is the first step in planning for your retirement?

The 5 steps of retirement planningStep 1: Know when to start retirement planning.Step 2: Figure out how much money you need to retire.Step 3: Prioritize your financial goals.Step 4: Choose the best retirement plan for you.Step 5: Select your retirement investments.

How to save for retirement?

If you’re not saving, it’s time to get started. Start small if you have to and try to increase the amount you save each month. The sooner you start saving, the more time your money has to grow (see the chart below). Make saving for retirement a priority. Devise a plan, stick to it, and set goals. Remember, it’s never too early or too late to start saving.

What to do if your employer doesn't offer a retirement plan?

There are a number of retirement saving plan options available. Your employer may be able to set up a simplified plan that can help both you and your employer.For more information, request a copy of Choosing a Retirement Solution for Your Small Business. (See back panel for more information.)

How to check if you are covered by a pension?

If your employer has a traditional pension plan, check to see if you are covered by the plan and understand how it works. Ask for an individual benefit statement to see what your benefit is worth. Before you change jobs, find out what will happen to your pension benefit. Learn what benefits you may have from a previous employer. Find out if you will be entitled to benefits from your spouse’s plan. For more information, request What You Should Know about Your Retirement Plan. (See back panel for more information.)

What happens if you withdraw your retirement savings?

If you withdraw your retirement savings now, you’ll lose principal and interest and you may lose tax benefits or have to pay withdrawal penalties. If you change jobs, leave your savings invested in your current retirement plan, or roll them over to an IRA or your new employer’s plan.