QUESTION OF THE DAY: How much would I need to save monthly to have $1 million when I retire?
FINCAP FRIDAY: Say “OK” to the 401(k)
You may be wondering, “Where do I start if I want to invest for retirement?” A 401(k) is one of the most popular retirement investment accounts. Watch the video to learn about the advantages of a 401(k) and answer the questions on your worksheet. As your teacher progresses through the slides, answer these questions, just writing A, B, C, or D for questions 1 – 5.
VIDEO: IRA vs. 401(k)
ARTICLE: IRA vs 401(k)
As you learned in the previous FinCap Friday, if your employer doesn’t offer a 401(k), you have other options! Anyone can open a personal retirement account, called an IRA, to get many of the same benefits as a 401(k). Watch the video, read the article, and answer the questions on your worksheet.
To help you complete the COMPARE: Types of Retirement Accounts worksheet, read the article and watch these videos on types of retirement accounts:
- PENSIONS: If you haven’t already, read this article, What is a Pension? Is It All You’ll Need to Retire?
- CHOOSING AN ACCOUNT TYPE OVERVIEW: Watch this from 1:04 to 3:24, Investing Basics: Planning for Retirement
- 401(k): Watch this video, What is a 401(k)?
- Traditional IRA: Watch this video, What is an IRA?
- Roth IRA: Watch 0:43-4:30 of this video, Why I Love Roth IRAs!
LEARNING TARGETS:
- I understand what a 401(k) plan is and its advantages.
- I can explain the options available to them if an employer does not offer a 401(k) plan.
- I can conduct research to compare different types of retirement accounts, including Roth IRAs, traditional IRAs, 401(k)s, and pensions.
