Unit 5 Discussion Board

Unit 5 Discussion Board - The retirement plan which would...

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Unit 5 Discussion Board Deliverable Length: 2-3 paragraphs Details: You would like to begin (or increase) your savings for retirement. What types of retirement plans (401ks, IRAs, etc.) might be best for your personal situation? Be sure to explain the plan you are interested in and why this is best for you. Objective: Evaluate the appropriateness of major retirement planning programs, such as social security, IRAs, and 401Ks for different situations. This question asks for something which matches your personal situation. Since I don't know what your personal situation is I'll assume from your questions you are a student who doesn't have a full time job yet. Hopefully that fits you.
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Unformatted text preview: The retirement plan which would best fit would be a Roth IRA. I chose this for several reasons. First, I am not currently working at a company with a 401k plan so do not have access to that option. Social security is a plan you are unable to voluntarily contribute to so it isn't really an option if I want to increase my retirement savings. I chose a Roth IRA over an IRA for tax purposes. As I don't earn much money now my tax rate is low. This means it would be better for me to pay taxes on contributions now but be able to withdraw them tax free when I'm in a higher tax bracket. A regular IRA would work the other way around....
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This note was uploaded on 12/30/2009 for the course QWE 65 taught by Professor Qasd during the Spring '09 term at University of Phoenix.

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