A retirement plan has both advantages and disadvantages. The 401-k retirement plan is based on the benefits and savings after the retirement age. The decision about the plans is on the hands of the members whether to choose the plan or decline. The 401-k plan is somewhat similar to a pension plan after the retirement age. The 401-k plan should not be necessary for all employees because it is not beneficial for all employees as it is based on age, duration of employment, and also because this plan does not allow any beneficiaries.
The 401-k plan itself is useful for some employees because it is based on age, and duration of employment of a person. The people who are 45 or more would benefit if they chose this plan. It is not good for younger people like me and not beneficial for me because I
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When I plan to change my job and withdraw my money from the plan I will have to pay a huge penalty. This is highlighted in an article called “Tibble Trouble” by Donna M”. Autuori she writes, “His Example showed how a difference between a 401-k accounts earning 8 percent vs. 6 percent over 40 years for a plan participant who invested $ 5,000 per year would represent a loss of $ 578, 66, or $28,933 per years, for the retiree”(24). Furthermore, from this point, it is clear that a 401-k retirement plan is related to the age of the employee and his or her duration of work in the particular company. Besides this, a 401-k plan is not only for gaining of saving, but it also losing. I know a lot about this plan since I have attended an orientation about it. From the orientation, I am aware that this program is based on the duration of employment in a company. If say, I work for my present company for