Question

Steve is choosing between two jobs at Smithsonian museums. One job is funded through the federal government and offers a pension plan. The other job is privately funded and offers a 403(b) plan similar to a 401(k) plan, in which the Smithsonian would contribute 7% of Steve's salary. What factor would make Steve prefer the federal job and pension

Answer 1

All of Steve's grandparents lived to ages over 100 and one even over 110.
Steve expects stock market returns to continue to be over 10% through the next decade.
Steve and his wife plan to relocate to Hawaii when she finishes law school.
Steve's father manages investments and they enjoy discussing investment decisions together.

Answer 2

@JoannaBlackwelder

Answer 3

@sylbot

Answer 4

A and C MAKE SENSE

Answer 5

no sense

Answer 6

Is pension related to the stock market?

Answer 7

nope

Answer 8

The employer's contributions to pensions and 401(k) plans are considered deferred compensation. In other words, the employer does not pay a worker right away but promises to pay years later in retirement. The worker does not pay taxes on deferred pay until after retirement.

Answer 9

What I am seeing indicates that the stock market does influence pension.

Answer 10

b makes sense out of all of them

Answer 11

http://online.wsj.com/news/articles/SB10001424052702304202204579252261223795506

Answer 12

Agreed

Answer 13

2 more

Answer 14

ok