ABLE Account

  

It's kind of an IRA for people diagnosed with disabilities before the age of twenty-six. The destination for money withdrawn from an ABLE Account is analogous to an educational 529 Plan, where the government's goal was to make it easier for people with disabilities to pay the exorbitantly high health care cost that would allow them to lead a reasonably normal life. If you don't have, and/or have never heard of an ABLE Account, you should count your blessings before you go to bed tonight.

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Finance: What is a 401(k)?51 Views

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Finance a la shmoop... what is a 401k plan? okay say it with me tax deferred savings

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that's it it's really not all that complex for the fancy numbers there all [Complex formula scribbles]

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right well when you make money at work you get to defer the tax that you'll pay

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on your income or earnings to be paid much later in life and you get to invest

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that dough and let it ride tax-free until you take it out of your 401k plan [Money coming out of deferred savings piggy bank]

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brokerage account and then at that point well you'll pay ordinary income tax on

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your gains well the 401k was a part of the tax code

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that was put into motion in the 1980s as the government began to painfully

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realize that Social Security wasn't all that secure and that a whole generation

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of people who had paid money into Social Security wouldn't get anything back so [People protesting outside the white house]

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the government opened the door and made it easy or at least easier for the semi

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wealthier masses to save money for their retirement and this was a new idea at

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the time a whole new concept like a flying car before then it was mama [Man talking and flying car goes by a window]

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corporation who managed the pension money for her employees you know that

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sucking off the corporate teat and all that stuff well it fostered a sense of

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long-term lifetime loyalty to the company and was all just very you know

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IBM like a born in pinstriped blue diapers IBM employee with a hard loyal [Baby boy playing with a flashing rattle]

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workforce working away there toiling in the IBM salt mines for 35 years

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then retiring at 60 and having smoked a lot dying at age 65 and then that was

01:43

all she wrote well that was then this is now it's a different era different

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financial pressures so companies don't generally offer pensions today and they

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don't generally manage them themselves because the cost of buying real talent

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like people who consistently beat the stock market in good times and

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bad managing that 401k money is astronomically expensive and generally [Boxing gloves punching the stock market]

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speaking corporations can't afford to pay those people nine times whatever

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the CEO makes so companies generally contribute some amount of money to a

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401k and then they leave it up to the employees to figure out how they want to

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invest their retirement savings on their own and that's a good thing most of the

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time and you know hopefully it's there when they want to go take it out and

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they need the money when they're old and decrepit like like I'm getting...

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Finance: What is a Pension?
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