Are 401(k)s a Financial Silver Bullet?

Are 401(k)s a Financial Silver Bullet?

Assessment

Interactive Video

Life Skills, Business

11th Grade - University

Hard

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The video explores the 401(k) retirement plan, highlighting its history, benefits, and drawbacks. Initially designed for tax deferral on bonuses, the 401(k) became popular after the IRS allowed salary contributions. It offers tax benefits and employer matches but comes with risks like investment management and fees. The decline of traditional pensions has made 401(k)s crucial, though they require active participation. Despite challenges, a well-managed 401(k) can be a valuable retirement tool.

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3 questions

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1.

OPEN ENDED QUESTION

3 mins • 1 pt

What are the tax benefits associated with contributing to a 401(k)?

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2.

OPEN ENDED QUESTION

3 mins • 1 pt

How has the prevalence of pensions changed from 1980 to today?

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3.

OPEN ENDED QUESTION

3 mins • 1 pt

What is the median retirement savings balance for working-age households?

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