401(k) Plans Essay, Research Paper
401(k) Plans
There are many economic issues facing the nation today. While some are
extremely important in determining how the economy is balanced, others are not.
Although this is true, that does not necessarily make these lesser important
issues obsolete. Take, for example, the recent issue of corporate leaders
matching contributors to the 401(k) plan with company stock, instead of with
cash. Though this is a relatively National issue, it still greatly affects a
large number of people in foreign areas as well as you and me. Because of this
effect on such a large number of people, it is necessary that this issue be
discussed, as will happen within the next few paragraphs.
In the way that a 401(k) stock matching plan is set up; timing is
everything. In a basic 401(k) plan employees put forth a set amount of dollars
(usually pre-determined personally by the employee) before taxes are withheld
This portion of the employee’s paycheck is put toward his or her retirement.
What some companies prefer to do in order to make the 401(k) plan more
attractive for employees, is to match each employee’s investment in the plan by
a certain percent. Here is where the problem comes in. Though some companies
match contributors either with cash or with a direct credit to the plan, other
companies match with corporate stock. According to Richard Sasanow, a former
assistant of public communications at Ernst and Young, “many experts consider
this to be one of the riskiest investments for a 401 (k)-but may be worth it if
you think your company has a great future.” (Sasanow, 45) A recent survey shows
that 18 percent of all companies made their matching contributions this way.
Now for small, fast-growing businesses this would not seem as much of a risk
since these companies’ stock are generally on the increase. But for some large
corporations, this is a great risk for employees since a lot of their
retirement money is now based on how well the company does.
Some say that because contribution matching is now based on how well the
company does, then employees will strive to do a more efficient job in order to
increase the overall stock price of the company, which, in turn, will increase
the amount of retirement they will receive. Now the problem of timing comes in
again. Mr. Jim Davenport, a Staff Writer for The State Newspaper uses a good
example: “An imaginary worker for an oil company was looking forward to
retiring at the end of the week. His 401(k) is fat and has been getting fatter
thanks to company stock. On Tuesday, an oil tanker has a major spill and the
stock market trashes the company’s stock. By Friday, retirement may look a lot
less attractive.” Because that employee had no role in the oil spill, it is
safe to say that the idea of employees working harder to increase stock prices
is unattainable because of outside forces that employees have no control over.
Now this employee is hurt even though stock prices have been generally rising
over the past few years.
Sasanow agrees: “In the case of companies like PanAm, Eastern Airlines
or Carter Hawley Hale, which all went bankrupt, employees with company stock got
the double whammy because their pension funds went bust and so did their stock.
Though it may seem that employees are virtually powerless against how
their company might invest their money, this is not altogether true. There are
rules set forth from the Internal Revenue Service and the U.S. Department of
Labor that control how employers construct their 401(k) plans. These rules
require companies that run their own retirement plans to act in the best
interest of the employee. This seems like the employees have an advantage over
the employers now. But what the rules don’t say is how specific the company
must be when acting in the best interest of the workers. There are obviously
some specifics that must be compromised should a court case come about.
There are many important economic issues that face the lives of each
American each day. Some are large and some are small. No matter what the size,
it is important to take into account that these issues affect a large number of
people, no matter what the situation. The recent issue of corporate stock
matches is one that has affected a lot of people both locally, nationally, and
internationally. Based on the information gathered, it is safe to say something
needs to be decided on how to handle company matches on 401(k) plans. The best
decision would be to leave it up to the court to decide what is in the best
interest of the people and have every company and employee abide by those
precedents. It seems that is the only fair way.
Bibliography
Sasanow, Richard. The 401 (k) Book. New York: Henry Holt and Company, 1996.
Davenport, Jim. The State. May, 1995
Другие работы по теме:
Savings Essay Research Paper SAVINGSShop around for
Savings Essay, Research Paper SAVINGS: Shop around for a bank that offers you free checking and waives ATM fees if you maintain a low minimum monthly balance in your checking account or in a combination of accounts. This can save you hundreds of dollars a year.
Private Pension Plan Essay Research Paper Private
Private Pension Plan Essay, Research Paper Private Pension System The Current Social Security system should be replaced by a mandatory Private Pension plan. There are different types of investment plans one could choose before or even after they retire. Social Security is what everyone depends on once they retire at 65.
Midsummer Nights Dream Essay Research Paper Love
Midsummer Nights Dream Essay, Research Paper Love is something that will never be defined. No one knows what love is. When Egeus describes it as being ?feign?, and ?cunning?, he is, for the most
Multi Strand Science Essay Research Paper NAME
Multi Strand Science Essay, Research Paper NAME: DUE DATE: YEAR 12 MULTI-STRAND SCIENCE Choose ONE of the following local industries and prepare a resource management case study for that industry.
Hamlet Essay Research Paper Act IV Scene
Hamlet Essay, Research Paper Act IV, Scene vii: Claudius convinces Laertes that he is innocent in Laertes’ father’s death and that Hamlet is to blame. A messenger enters with Hamlet’s letter and Claudius is amazed to find that
Employee Benefits Essay Research Paper Rob BarrBenefits
Employee Benefits Essay, Research Paper Rob Barr Benefits that will come with a job might not make you take the job just because of that. But It could have major influence over your decision. “Flexible scheduling, paid time off, and child care were singled out as key programs that impress job candidates.” (amcity/)3 Employee benefits are becoming a major part of what employees are looking for from their companies.
Future Plans Essay Research Paper Scholarship Essay
Future Plans Essay, Research Paper Scholarship Essay”Did life exist on Mars?”"What would it take to build a spaceship that could travel at the speed of light?”"When will the moon be colonized?”These are just some of the questions that wander through my mind all day. Fascinated by the secrets of the universe, I yearn to uncover mysteries.
Housing Aid Essay Research Paper Interests are
Housing Aid Essay, Research Paper Interests are rising in Orange County on the issue of state and federal housing agencies. There is a big demand for Section 8 housing. There has been discussion of possible plans for housing aid to go to those who qualify.
Communication Essay Research Paper Eye Safety at
Communication Essay, Research Paper Eye Safety at Work Recently the Occupational Safety and Health Administration (OSHA) has undertaken new initiatives to diminish eye injuries at work.. OSHA has plans to set in motion a nationwide information campaign to decrease the over 1,000 eye injuries that occur in American workplace each year.
The TellTale Heart Essay Research Paper Paper
The Tell-Tale Heart Essay, Research Paper Paper on: The Tell-Tale Heart True! nervous very, very dreadfully nervous I had been and am; but why will you say that I am mad? The Tell-Tale Heart, a short story written by Edgar Allan Poe, is about an insane butler who plans to kill the man that he is working for. In the film adaptation the narrator shows us, the viewers, how careful and cunning he is about the way he kills the man he works for.
Minnie Bibble Essay Research Paper Minnie BibbleIn
Minnie Bibble Essay, Research Paper Minnie Bibble In many short stories authors develop the characters by using different ways of characterization. These methods may include both direct and or indirect characterization.In the short story “He Thinks He’s Wonderful,” F. Scott Fitzgerald develops Minnie Bibble in both of these ways.
La Madeleine Church Essay Research Paper La
La Madeleine Church Essay, Research Paper La Madeleine is a church in Paris that started during the reign XV, and designed by Constant d’Ivry using plans based on the St-Louis-des-Invalide church.
Cash Balance Essay Research Paper Cash Balance
Cash Balance Essay, Research Paper Cash Balance Pension Plan In corporate America, the majority of workers have been introduced to pension plans. A pension plan can be defined as a payment, not wages, made regularly to a person (or family) who has fulfilled certain conditions of service and reached a certain age.
Scholarship Essay Research Paper 7500 scholarshipBy David
Scholarship Essay, Research Paper $7,500 scholarship By David Johnson On September 30, 1999, Charles Johnson won a $7,500 scholarship from the Department of Agriculture at Washington State University for being Central High School’s number one student.
Ashley Lenhard Essay Research Paper Ashley LenhardEnglishFinal
Ashley Lenhard Essay, Research Paper Ashley Lenhard English Final Draft I am Ashley Marie Lenhard. I was born on September 27, 1983 at Holy Family Hospital. As an only child of Scot and Ronda Lenhard, planning my future came very early in life. My plans are to further my education after High School by attending a four year University to become a Dental Hygienist.
My Reasons To Go To College Essay
, Research Paper It’s unbelievable how each year, since the beginning of high school, my perfectly laid plans for myself have unavoidably deteriorated. When I entered my freshman year, I had aspirations of being a doctor (something I had wanted to be since I was a child); I was even taking Latin to help with the medical jargon.
Al Gore Essay Research Paper Democratic presidential
Al Gore Essay, Research Paper Democratic presidential candidate Al Gore went to the Florida Supreme Court today to call for an immediate count of some 14,000 disputed Florida ballots. Meanwhile, the Bush team pressed ahead with transition plans, and Florida legislators considered a special session to name electors.
King David Essay Research Paper Journal of
King David Essay, Research Paper Journal of King David I am still grieving over the loss of my son, Absalom. It has been days since his death and I still ache in my heart for him. My wives remind me of his plans to overthrow my throne, and his attack on Jerusalem. I do not need reminded of these plans, and they do not lessen my love for Absalom.
Foot Ball Essay Research Paper SonnetThe player
Foot Ball Essay, Research Paper Sonnet The player was ready to kick the ball The other team waited to receive it He gave it a very powerful hit Coaches were screaming to give the right call
Shakespeare A Plagirist Essay Research Paper Shakespeare
Shakespeare: A Plagirist??? Essay, Research Paper Shakespeare is a Plagiarist I hope that all the spelling is right (these are my notes from school and I can’t read my own writing) If the name is in Green, then it is a land. If the name is in Blue, then the character is male. If the name is in Red, then the character is female.
Social Security Essay Research Paper Social securityThe
Social Security Essay, Research Paper Social security The issue I am addressing today is what to do about social security. There is going to be a large problem with our social security in years to come. Both Al Gore and Bush
Changes In Anal Essay Research Paper A
Changes In Anal Essay, Research Paper A 35 page research paper closely examining the prospects for US-based businesses in Europe. All around the world, nations are forming geographic alliances to help build their share of the world market, but Western Europe is taking one extra “giant step” in their plans for a barrier-free Europe with a common currency in use by the year 2002.
Writing Techniques Essay Research Paper Writing TechniquesAfter
Writing Techniques Essay, Research Paper Writing Techniques After reading Katha Pollitt?s essay ?It Takes Two: A Modest Proposal for Holding Fathers Equally Accountable? and Patricia Mainardi?s essay ?The Politics of Housework?, several writing techniques become apparent in both essays.
Romeo And Juliet Essay Research Paper In
Romeo And Juliet Essay, Research Paper In many dramatic plays there are many points in the story that could have prevented the tragic ending. Such as shown in the play of Romeo and Juliet, by William Shakespeare. The ending of Romeo and Juliet was very tragic. In all there were six deaths. Including that of the star-crossed lovers, Romeo and Juliet.
401K Essay Research Paper 401K the retirement
401K Essay, Research Paper 401K, the retirement savings plan turned 20 this month. It has become the centerpiece retirement vehicle for millions of employees since it was kicked off on January 1, 1981.
Retirement Essay Research Paper RetirementRetirement seems to
Retirement Essay, Research Paper Retirement Retirement seems to be one of the most often overlooked areas of people?s future plan. Simply because it seems so far away, it is an area that is subject to procrastination. People are expected to live longer now than ever before, this is another reason why young adults and teenagers are not worried about saving for their retirement.
My College Plans Essay Research Paper My
My College Plans Essay, Research Paper My College Plans Business Computer Applications 7th Period Sunday, March 30, 1997 Created By: At first I never had wanted to go to college because I didn’t like
Compare And Contrast On The Pearl Essay
, Research Paper Compare and Contrast Essay According to The Pearl, the Indians and the Caucasians had the same plans of their own if they owned the pearl. The pearl meant wealth for the Indians. To the whites the pearl meant more power and wealth. Unlike the Caucasian, the Indians had many reasons for desiring the great pearl.
Geometry Essay Research Paper Geometry was actually
Geometry Essay, Research Paper Geometry was actually first used in ancient Egypt and Babylon at around 2000 BC in both cases. In order for the Egyptians to build such massive structures as the pyramids they had to have made plans for them prior to the actually building, in these plans geometry had to be used.
Crosscultural Communication Barriers Essay Research Paper Thesis
Cross-cultural Communication Barriers Essay, Research Paper Thesis: A number of different factors contribute to cross-cultural communication barriers. This thesis will be proven through the examination of Canada?s past history, current policies and future plans concerning immigration and assimilation of immigrants into Canadian society.
Guns Problem Essay Research Paper These activists
Guns Problem Essay, Research Paper These activists are also taking the guns out of the wrong peoples hands. They work to pass laws that would take the guns from the law-abiding citizens. When we give people the right to defend themselves, criminals start looking for victims who are unable to do so. For this reason we must work to reduce crime in America and look at the problem realistically. develop plans that would address the real problem of crime.
Lady Macbeth Essay Research Paper At the
Lady Macbeth Essay, Research Paper At the start of the play, Lady Macbeth seems to have a very strong character – almost stronger than Macbeth’s – but by the end she is reduced to being afraid of the dark. At the beginning she is Macbeth’s ‘dearest partner of greatness’, but at the end she is his ‘fiend-like queen’.
Medicare Essay Research Paper MEDICAREMany articles
Medicare Essay, Research Paper -MEDICARE- Many articles have been written about the medicare program in Canada. It’s a real intense topic in Canada today. This brief essay is based on the costs of medicare , an introduction to the medicare program, and if our country Canada can afford the medicare program.