Asynch Activity (Module 5) - Financial wellbeing PDF

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ASYNCH Activiy for human development class. Activity for alternative class day...

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Planning for Financial Well-being in Early to Middle Adulthood The focus on this Asynchronous Activity is on financial planning and retirement (i.e., an important domain of your future self). Please take time to reflect on these questions and think about the relevance of these issues now and in the future. 1. Take a minute to reflect on your retirement. When do you think you will retire? What plans do you have for retirement? Elaborate and be sure to explain why or why not for your responses. 2. Do you think everyone gets the opportunity to retire? Why or why not? What factors contribute to whether or not someone can retire? Please justify/cite your response. 3. Spend some time exploring the retirement calculator - take some time to interact with it based on different life scenarios. What did you find interesting or surprising about this activity? Why do you think it is so important to plan early for retirement? How do you think we can help Americans better prepare for retirement? 4. Watch at least one of the TED talks related to retirement issues: a. Retirement: Longevity and security (Paula McMillan): https://www.youtube.com/watch?v=eTnBEVk1Lbw&ab_channel=TEDxTalks b. Retirement: Isn’t that for old people? (Michelle Silver): https://www.ted.com/talks/michelle_silver_retirement_isn_t_that_for_old_people 5. Respond to the following questions. What were the two most surprising/significant things you took away? What trends are you seeing that are changing retirement? What additional questions do you have about the talk(s) or retirement/pensions in general? 6. Then, find one additional TedTalk from this list that you haven’t seen before and watch it. a. Indicate which TedTalk you watched. What are the two most surprising/significant things you take away? What will you do with this information? Curious and want to learn more? Here are some additional Resources: • • • • •

Retirement expenses worksheet. (Vanguard). https://investor.vanguard.com/calculator-tools/retirementexpenses-worksheet/ Can you afford to retire? (2006, 55 minutes). Frontline PBS: http://www.pbs.org/wgbh/pages/frontline/retirement/ The Retirement Gamble. (2013, 53 minutes). Frontline PBS: https://www.pbs.org/video/frontlineretirement-gamble/ The Pension Gamble. (2021, 54 minutes). Frontline PBS: https://www.youtube.com/watch?v=_r0htm5uHPQ Retirement Planning for Middle-Aged Adults. (2017, Oct). https://blogs.missouristate.edu/gerontology/2017/10/11/retirement-planning-for-middle-aged-adults/

Submit your assignment via Canvas by Friday, Nov 5th @ 11:59pm General Guidance for Successful Completion of Asynchronous Activities:

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To receive full credit, you should demonstrate considerable understanding of the topic, integrate course materials with personal experiences; and provide clarity in thoughts and opinions. (Anticipate approximately 3-4 quality sentences per question.) Typically, the assignment should be about 1-2 pages in length (double-spaced with 1-inch margins, and typed with 12-point Times New Roman or Calibri font) Your name, headings, and question prompts will NOT count toward the page count. Upload to the CANVAS assignment dropbox before the deadline.

HD308: Adult Development Asynchronous Learning during Week 11 Below are some terms and definitions that may be helpful to review before and after learning more via the TedTalks: • Pension: A sum of money paid regularly as a retirement benefit; money paid under given conditions to a person following retirement or to surviving dependents. • Defined Benefit Plan: A pension plan in which the amount of benefits paid to an employee after retirement is fixed in advance in accordance with a formula given in the plan. Note: The amount contributed is fixed, and so is the benefit. • Defined Contribution Plan: A pension plan wherein a certain amount or percentage of money is set aside each year (by either the company and/or the employee) for the benefit of the employee. There are restrictions as to when and how you can withdraw these funds without penalties. Note: There is no way to know how much the plan will ultimately give the employee upon retiring, because only the contribution, not the benefit, is defined. • 401(k): A type of defined contribution retirement account funded through pre-tax payroll deductions. The funds in the account can be invested in a number of different stocks, bonds, mutual funds or other assets, and are not taxed until they are withdrawn. The retirement savings vehicle gets its name from the section of the Internal Revenue Code that describes it: Section 401(k). • Health Benefits: Benefits (compensation in addition to salary) that may be provided to employees for sickness, accidental injury, or accidental death. These benefits generally include payment of hospital and medical expenses. Note: Employers are not obligated to provide health benefits to their workers. When employers do not provide health benefits, increasing numbers of people either cannot afford or choose not to purchase them. • Social Security: A federal benefits program developed in 1935, Social Security is funded through a tax levied on employers and employees. The program includes retirement benefits, disability income, veteran's pension, public housing, and even the food stamp program. • Medicare: A federal program that provides some level of health benefits for people over age 65 or who collect Social Security for [OR INSTEAD OF FOR?] disability. • IRA (Individual Retirement Account): A special type of account that allows investors to make tax-deductible contributions. The money can be invested in stocks, bonds, mutual funds, etc., and the earnings grow tax-free until the account's owner turns 59 1/2 years old. At this time, the account holder is allowed to begin withdrawing money from the account to fund their retirement. Note: Eventual withdrawals are treated as ordinary income and may be subjected to income tax. However, since income is likely less once you retire, you may be taxed at a lower rate. • Roth IRA: Roth IRAs allow investors who do not exceed a specific income level to contribute a limited amount of money toward retirement annually. Unlike the traditional IRA, the contributions are not tax deductible. However, Roth IRA account holders are not taxed when they begin withdrawing money at or before retirement (subject to certain rules and regulations)....