3) There has been much debate on whether or not the Social Security will be an existing program for retirees in the future. Today’s retirees have a much longer …show more content…
One is that some 401(k) plans provide matching contribution to the firm. This means that the matching contribution affects retirement savings of other employees. Another characteristic is tax is deferred on money withdrawn from the account which can affect contribution. Then there is the 403(b) plan which is a defined-contribution plan allowing employees on nonprofit organizations to invest up to $17,000 of their income on a tax-deferred basis.
14) Annuity is a financial contract that provides annual payments over a specified period. The difference between a fixed annuity and a variable annuity is that fixed annuity returns are based on initial investment and variable annuity returns are based on performance of investment. Fixed annuity is best for a short amount of time while variable annuity does not guarantee a specific return over time, making it best for long periods.The main disadvantage of annuity is the high fees associated with it. There are fees such as management fees, surrender fees, insurance fees and