What are the benefits of 401k/ira accounts

Assignment Help Finance Basics

Reference no: EM13862839

Suppose you have $50,000 in your 401k/IRA retirement account and will not withdraw any time soon because of the 10% withdrawal penalty. For more on 401k and IRA,

https://www.investopedia.com/terms/1/401kplan.asp

https://www.investopedia.com/terms/i/ira.asp

Q1. What are the benefits of 401k/IRA accounts over regular taxable accounts?

Q2. How will "you" allocate $50k between stocks and bonds? Justify your decision.

Note: There's no optimal magical allocation for everyone because it's subject to your individual situation/goal. Explain why your allocation is best for you.

Q3. If the market interest rate increases, is it a good news to the bond investors? Explain.

Q4. If Federal Reserve increases the Fed Funds rate, will the long-term interest rate always increase?

Reference no: EM13862839

Questions Cloud

Aspects of receiving an official label or diagnosis : What are the positive and negative aspects of receiving an official label or diagnosis? From the perspective of the afflicted person? For the family? What about social stigma? Are labels necessary or could we do without them

What will her monthly house payments : 1. An investor wants to save for 5 years for a down payment on a house. She deposits $200 per month into her savings account paying 7% compound monthly. At the end of the 5 years, she places the balance of the savings account as a down payment on a h..

Advantage of any global opportunities available to riordan : advantage of any global opportunities available to Riordan

Magnitude of all ac components : Shows an RC circuit with input voltage x (t) and output voltage y(t). The RC circuit is to be used as a low-pass filter - The value of the capacitor used in the design should be as small as possible.

What are the benefits of 401k/ira accounts : Q1. What are the benefits of 401k/IRA accounts over regular taxable accounts? Q2. How will "you" allocate $50k between stocks and bonds? Justify your decision.

Project requires to create a written budget proposal : The project requires you to create a written budget proposal, a supporting Excel workbook showing your calculations

Describe capital structure of apex : In this exercise you need to describe capital structure of Apex, calculate the weighted average cost of capital (WACC) and define marginal cost of capital. You must indicate how these costs of capital might be used to determine the feasibility of the..

A violation of the gsu honor code : Directions: This problem set covers chapters 6 and 7 in the textbook. Determine or compute an answer for each question/problem. After you have computed an answer for every question, enter your answers online via the “quiz” function entitled “THPS-3 A..

Discuss plato idea about proper way to investigate reality : Discuss Plato's idea about the proper way to investigate reality, and compare his method with the method that is used by modern scientists

User Account

All Pages