1. I NVESTING & R ETIREMENT

2. L EARNING O UTCOMES Section 1: Investing 101 Section 2: Types of Investments Section 3: Employer Benefits & Retirement Plans

3. S ECTION 3

4. E MPLOYEE B ENEFITS P ACKAGE Benefits are various non-wage compensations provided to employees in addition to their normal income. Purpose is to increase financial security for staff Improve worker retention across the organization. Common Employee Benefits Retirement Plans Savings Plans Insurance Leave (Sick, Vacation, etc.) Stock Purchases Educational Reimbursement Incentive Pay Cafeteria Plans When considering a job you should evaluate the benefits package as well as the income level received.

5. E MPLOYER R ETIREMENT P LANS SEP (Simplified Employee Pension Plan Self-employed person may deduct up to 15% of their net profit on the business by investing in a SEP. 401k Retirement savings plan offered by a corporation to its employees. Employee contributes money to the 401k from his/her gross pay & money in the account grows tax deferred. In some cases employers will match contributiions 403b Found in nonprofit organizations such as churches, hospitals, and schools (pretty much a 401k)

6. E MPLOYER R ETIREMENT P LANS 457 Deferred compensation, which means you are putting of compensation. Usually this is available for government employees. GIC (Guaranteed Investment Contract) Do Not Use: similar to a CD inside your 401k. Only make 3-4% return Pre-tax contributions Taken from your gross income before taxes. Taxes are due upon withdrawal. After-Tax contributions Taken from your net income after taxes. Not taxes are due upon withdrawal.

7. R OLLOVERS & R ETIREMENT L OANS Rollovers If you leave a job and have money saved in your employer’s retirement plan ALWAYS roll that money into an IRA using a direct rollover Easier to manage Allows you to avoid taxes & penalties. Retirement Loans Never borrow on your retirement plan! NEVER! Even though you pay yourself back some interest – it’s nowhere near what you would have earned if you left it to compound.

8. D ISCUSSION Q UESTIONS : 1. What is the purpose of employer benefits packages? 2. What are the typical components of an employer benefits package? 3. When you leave a job – how can you move the money saved in your employer’s retirement plan without paying taxes/penalties? BE SURE TO ANSWER THESE QUESTIONS – IN DETAIL – AND UPLOAD YOUR RESPONSES TO THE NOTES/PODCAST ASSIGNMENT ON CANVAS.