3 Discussion Questions, 3 Student Reponses 2 other Assignemnets

ECO110: Taking Charge of Your Economic Future

Week 10 Discussion

Part 1: Retirement

· 3

· 5 Based on what you’ve learned this week about retirement plans, describe something you can do to increase your savings for retirement.

Please respond to at least one classmate.

Part 2: Student Response (Respond to Student)

Dawson Yeager 

RE: Retirement

· 5 This week has highlighted a lot of different methods and ideas that we can take an apply for our own retirement plans. Something we can to increase these savings and prepare for retirement is to start early on saving and contributing to my 401k. My current employer offers the traditional 401k plan and this makes me eligible to contribute pre-tax money which can be a significant advantage. For example, I am hoping to stay in the 12% tax bracket and plan to contribute $100 per pay period. Since the money comes out of your check before the taxes are attached to it, my take home pay only will drop $88 plus the required local and social taxes. The overall goal here for me is to invest more of the income without feeling it as much in the monthly budget.

Being able to start early and get a head start can be very helpful especially as I have just now started to put money away for retirement. The more I can invest while I am younger the more I can allow compound interest to really operate and the money can work on itself. So starting young and if it works for you taking advantage of a 401k with monthly deductions can work well in the tax bracket I am in. Also, if I am ever to leave to a new job or place of employment, there are options on what to do with your 401k account.

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