The retirement plan has both advantages and disadvantages. The 401-k retirement plan is based on the benefits and savings after the retirement age. The decision about the plan is one the hand of the member whether to choose the plan or decline.
401-k plan should be not necessary for all employees.
The retirement plan has both advantages and disadvantages. The 401-k retirement plan is based on the benefits and savings after the retirement age. The decision about the plan is one the hand of the member whether to choose the plan or decline. The 401-k plan is somewhat similar to a pension plan after the retirement plan. The 401-k plan should not be necessary for all employees because it is not beneficial for all employees as it is based on age, duration of employment and also because this plan does not allow any beneficiaries.
The 401-k plan is useful for some employee because it is based on age, duration of employment of a person. The people who are 45 or mores would benefit if they chose this plan. It is not okay for younger people like me. It is not beneficial for me because I do not plan to work indefinitely where I am presently working. Once, I plan to change my job and withdraw my money from the plan I will have to pay a huge penalty. I know a lot about this plan since I have attended an orientation about it. From the orientation, I am aware that this program is based on the duration of employment in a company. If I work for my present company for five years then they will invest the same amount of money for me which matches what put to save from my pay stub. Furthermore, it means if I spend $ 30 from my every pay stub they will invest $ 30 every time I invest though I should be employed with them for at least five years. The employees working less than five years are not supposed to take advantage of an opportunity adding investment from the enterprise. The investment plan for this program is not beneficial for me because I will not work five for this company.
Moreover, this plan does not allow any beneficiaries. The program that I know for example life insurance even some savings plans allow beneficiaries. Beneficiaries are not allowed, and nobody should permit to make a claim if something happens to the principal investor. For example, if I invest $ 100000 till the age of 64 then I died nobody from my family would be permitted to make a claim. If none of my family members can take advantage of my saving than this saving plan would be worthless for me. In this case, it is better to buy stock or bond where at least we are provided with beneficiaries. Another good way to save money rather than involve in this program like open a joint account with family members and save on that account. If I save in my family saving account, at least they can use it whenever they needed.
Though 401-k retirement plan is a popular plan, it does not allow any beneficiary which shows the plans look like a profitable organization. Moreover, this plan is more useful for people for a particular age group above 60, and also for the people who intend to work in a certain place for a long time. So this plan does not work for all, but it is advantageous to selected few.
Looking for a Similar Assignment? Order now and Get 10% Discount! Use Coupon Code "Newclient"
