Assignment Instructions (Instructions must be followed)

Need to respond to the student’s forum posting (not as a teacher) but provide comments (what you like and agree on in regards to their posting) and also provide additional insight and ask questions either throughout the response or at the end that would help in initiating feedback. Please note that sources must be current sources and Wikipedia and anonymous sources do not count as a source. **Please note that since this is a response back to a student title page is not required, just need to have the response along with references used**

Posting of Student Responding To:

Hello Everyone,

The lesson this week covered the different types of retirement plans. Like the lesson said, many people see all of the different plans as being one in the same, when in reality they are very different. In the text, we learn of two different plans; defined contribution plans and defined benefit plans. The contribution plan is when the organization and the employee contribute to a personalized account throughout your employment, and a defined benefit plan is a set monthly sum given to the retired employee until their death (Martoccio, 2011, p. 114). If I was given the option between the two plans I would choose a defined benefit plan. While both of these plans have their advantages, especially when used together, the benefit plan is the best option for me. I would choose this plan because nothing is being taking out of my paycheck, and I am able to keep more of the money I earn. Also, this is guaranteed money throughout your retirement. In the article Defined Benefit Plans: The Overlooked Retirement Vehicle For Successful Entrepreneurs, the author explains that many organizations are omitting defined benefit plans from their program because it costs them too much money (Sun, 2014, para. 2). There are many advantages to this option. In the article 4 Retirement Plans for Small Business Owners, the author explains that with the defined benefit plan you can contribute a large sum of money and you can combine it with other plans (Berger, 2013, para. 38). With its guaranteed money, its flexibility and the fact that it does not take away from my paycheck, I would choose the defined benefit plan.

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