help please no chatgpt used Which are reasons not to depend on Social Security as a retirement plan? Choose all that apply.The Social Security tax is "pay as you go."There is no money in "your account."You cannot collect full retirement benefits until you are 65.The average monthly payout is only $2000 per month.

The social security tax is " pay as you go" . This statement is CORRECT. The Social Security tax is…

Answered: Which are reasons not to depend on…

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter14: Planning For Retirement

Section: Chapter Questions

Problem 4FPE

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A 401(k) plan is a retirement plan offered by many companies. Such plans are tax-deferred savings vehicles, meaning that any deposits you make into the plan are deducted from your current pretax income, so no cur- rent taxes are paid on the money. For example, assume your salary will be $50,000 per year. If you contribute $3,000 to the 401(k) plan, you will only pay taxes on $47,000 in income. There are also no taxes paid on any capital gains or income while you are invested in the plan, but you do pay taxes when you withdraw money at retirement. As is fairly common, the company also has a 5 percent match. This means that the company will match your contribution up to 5 percent of your salary, but you must contribute to get the match. CHAPTER 10 Risk and Return: Lessons from Market History 313 PART 3 Risk and Return The 401(k) plan has several options for investments, most of which are mutual funds. A mutual fund is a portfolio of assets. When you purchase shares…
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An Individual Retirement Account (IRA) is an annuity that is set up to save for retirement. IRAs differ from TDAs in that an IRA allows the participant to contribute money whenever he or she wants, whereas a TDA requires the participant to have a specific amount deducted from each of his or her paychecks.When Shannon Pegnim was 14, she got an after-school job at a local pet shop. Her parents told her that if she put some of her earnings into an IRA, they would contribute an equal amount to her IRA. That year and every year thereafter, she deposited $1,000 into her IRA. When she became 25 years old, her parents stopped contributing, but Shannon increased her annual deposit to $2,000 and continued depositing that amount annually until she retired at age 65. Her IRA paid 6.5% interest.If Shannon Pegnim had started her IRA at age 35 rather than age 14, how big of an annual contribution would she have had to have made to have the same amount saved at age 65? (Round your answer to the…
An Individual Retirement Account (IRA) is an annuity that is set up to save for retirement. IRAS differ from TDAS in that an IRA allows the participant to contribute money whenever he or she wants, whereas a TDA requires the participant to have a specific amount deducted from each of his or her paychecks. When Shannon Pegnim was 14, she got an after-school job at a local pet shop. Her parents told her that if she put some of her earnings into an IRA, they would contribute an equal amount to her IRA. That year and every year thereafter, she deposited $500 into her IRA. When she became 25 years old, her parents stopped contributing, but Shannon increased her annual deposit to $1,000 and continued depositing that amount annually until she retired at age 65. Her IRA paid 7.5% interest. Find the following. (Round your answers to the nearest cent.) (a) The future value of the account $ 519719.69 (b) Shannon's and her parents' total contributions to the account Shannon Shannon's parents (c)…
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When you retire, a key goal is to be able replace about 80% of your pre-retirement income level. Social Security will cover a higher percentage of low earners’ needed replacement income than high earners’ replacement income. True or False
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How much in Social Security taxes should be deducted from Laruen E's check? *round to the nearest penny* How much Social Security will be withheld from Lauren's pay for the 51st pay (next week's pay)? How much in Medicare taxes should be deducted from Laruen E's check? *round to the nearest penny* What is Gabriel J's net (take home) pay? *round to the nearest penny*

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Which are reasons not to depend on Social Security as a retirement plan? Choose all that apply. The Social Security tax is "pay as you go." There is no money in "your account." You cannot collect full retirement benefits until you are 65. The average monthly payout is only $2000 per month.