401k/Pension
What are the two types of 401k plan?
-There are two basic types of 401(k)s—traditional and Roth—which differ primarily in how they're taxed.
-With a traditional 401(k), employee contributions are pre-tax, meaning they reduce taxable income, but withdrawals are taxed.
-Employee contributions to Roth 401(k)s are made with after-tax income: There's no tax deduction in the contribution year, but withdrawals are tax-free.
What are employee benefits?
any benefits provided to employees in addition to their base salaries and wages
What is earning potential?
The amount a person or company might be able to earn
Should you use your debit or credit card at "sketchy" places such as a gas station
Credit
Simplify:
(9/3)+ 5
8
What are the two types of pension plans?
-There are two main types of pension plans: the defined benefit and the defined contribution plan.
-A defined benefit plan guarantees a set monthly payment for life (or a lump sum payment on retiring).
-A defined contribution plan creates an investment account that grows throughout the employee's working years. The balance is available to the employee upon retiring.
What are three employee benefits required by law?
Consolidated Omni-Budget Reconciliation Act (COBRA)
Disability & Workers' Compensation
Family and Medical Leave Act (FMLA)
Minimum Wage
Overtime
Unemployment Benefits
Why is maximizing your earning potential important?
Maximizing your earning potential will allow you not only more financial freedom, but also an opportunity to better budget and save for big life purchases such as a home, saving for your children's college tuition, or keeping money safe in an emergency fund
Name two features of mobile banking
Answers may vary
What is the greatest common factor of 8 and 12?
4
Who funds a pension?
Employer
What are 3 fringe benefits?
(Anything that will increase the money you bring in)
What is your credit limit and what happens if you go over it?
The amount of money you are allowed to spend on your credit card each month. If you go over this limit, you will get a fee and risk your interest rate going up
What is 25% of 40?
10
With a 401k,
After an employee contributes, what do some employers do?
What is the difference between Monetary (quantitative) value and Qualitative value?
explain
Answers may vary
How can you grow your salary?
Ask for a raise
Get a better paying job
What is the difference between a fixed expense and a variable expense?
Fixed remains the same each month
Variable changes each month
Solve for x:
8x- 17= 4x + 3
x=5
What is the main difference between a pension and a 401k?
A pension plan is funded and controlled by the employer, while a 401(k) is primarily funded by the employee, who may choose how the money is invested
What should you compare your employer package with?
What is a consultant?
If your skills are highly sought-after, think about working on a contract basis as a consultant for companies. For example, if you’re really great at social media engagement and can show results like successful influencer campaigns or increased brand awareness, companies will hire you.
Be careful: you could be violating your work contract if you decide to become a consultant in your current industry, especially if you’re hired by competitors.
What is the difference between a budget and financial records?
Why are they important to have?
Budget=estimate plan each month
Records= what you actually made/spent
They help you keep track of your finances and make sure that you live within your means and don't go in debt
The sum of three times a number and 9 is 21
what is the number?
4