Assignment 1: LASA:
Understanding 401(k) and IRAs
For this assignment,
you will prepare a PowerPoint presentation evaluating and explaining the 401(k)
and Individual Retirement Accounts (IRAs) at a local community center, where
you have been invited to speak. The audience will be a group of people who
already work for companies that provide a 401(k) plan, so they are familiar
with the basic concepts. The goal of the presentation is to explain to the
audience the differences between the 401(k) and IRAs. Include the following:
· Explain which account would earn more money
for the investor: a traditional IRA or a Roth IRA. Support your statements with
reasons and examples.
· Describe how people can identify their federal
tax brackets.
· Use the following hypothetical
questions/situations to explain the retirement plans in further detail.
1. If you were to invest $3,500 in traditional
IRA and a Roth IRA, after making adjustments for possible tax deductions, what
would your net contributions be for both the traditional and Roth IRA? Explain
any differences your research shows.
2. Once the traditional IRA or Roth IRA is
established, you decide to invest the proceeds in a mutual fund. Identify the
type of mutual fund you would select. Examples include stocks, bonds, or a
balanced mutual fund. Using the Internet, research and select a specific mutual
fund that meets your desired risk tolerance. You can use examples of mutual
fund companies such as Oppenheimer and Franklin Templeton. Be sure to justify
your selection.
3. Based on the average annual return on the
mutual fund selected, you invest $3,500 for thirty years without withdrawing
any of the proceeds. How large would the balance be at the end of thirty years?
Include your calculations in your presentation.
4. To avoid the process of probate, and ensure
that the balance in this fund transfers upon death to a person of your choice,
explain how this account should be set up to ensure a prompt and direct
transfer.
5. As an employee of an organization, you may
have access to invest in a 401(k) plan. Explain what a 401(k) plan is as well
as its benefits. When one has the option to utilize a 401(k) from an employer,
explain what restrictions are in place to limit 401(k) contribution?
Support your
statements with examples and scholarly references. Remember to include detailed
speakers’ notes to include additional remarks that could be used as a script
when presenting to a live audience.Develop an 8–10-slide presentation in
PowerPoint format. Apply APA standards to citation of sources.
