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Retirement
Like I said before, retirement is the action or fact of leaving one's job and ceasing to work.
Pension Plans
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Pension plans are retirement plans that require an employer to make contributions into a pool of funds set aside for a worker's future benefit. The pool of funds is invested on the employee's behalf, and the earnings on the investments generate income to the worker upon retirement.
401(K) Plans
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A 401(k) is a retirement savings plan sponsored by an employer. It lets workers save and invest a piece of their paycheck before taxes are taken out. Taxes aren't paid until the money is withdrawn from the account.
E.S.O Plans
An employee stock ownership plan is an employee-owner program that provides a company's workforce with an ownership interest in the company. Shares are allocated to employees and may be held in an ESOP trust until the employee retires or leaves the company. Their popularity is growing steadily overtime.
Profit-Sharing Plans
A profit-sharing plan is a defined contribution plan where your employer has discretion to determine when and how much the company pays into the plan. The amount given to each individual account is usually based on the salary level of the employee.
Social Security
Social Security is any government system that provides monetary assistance to people with an inadequate or no income. Your income is based off of how long you work, and the age at which you apply for the Social Security benefits.
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Reviewing Your Plan
Once you have your retirement plan, it is important to review it on a regular basis. You can make sure that your plan is good by making sure that you have goals set, making estimates and calculations, and adjusting your plan if necessary. Below is a video that I found for retirement. It is very helpful in showing you how to save properly and efficiently.
What Is an IRA
An IRA is a personal savings plan that enables workers and their spouses to set aside money for retirement. There is Traditional IRA, which means that contributions to it are tax-deductible, and there is a Roth IRA, which means that contributions aren't tax deductible, and the earnings from the contributions are tax-free.