Barbara Worrell and Rita Young are neighbors in Denver. Barbara works as a softw

Question

Barbara Worrell and Rita Young are neighbors in Denver. Barbara works as a software engineer for Creative Games Corporation, a computer game company, while Rita works as an executive for United Manufacturing Company. Both are married, have two children, and are well paid. Before Barbara and Rita joined their respective companies, there had been some employee unrest and strikes. To counteract these problems, their firms had developed job enrichment and employee motivation programs. Of particular interest are the portions of these programs dealing with pensions and retirement.

Creative Games Corporation, the company where Barbara works, has a contributory plan in which 5% of the employees

Explanation / Answer

Reduce the options:: . Investors have an intimidating amount of retirement account choices, each with different rules. While traditional 401(k)s and IRAs are the most common, there are also Roth IRAs, Rollover IRAs, SEP IRAs, Individual 401(k)s, and Simple 401(k)s. Who can actually keep the facts straight? Every time I call customer support about the different options available, everyone seems to give me conflicting advice about the accounts. It would helpful if the government could simplify all the retirement account choices. When the options are simple and everything is clear-cut, the only way companies can gain our business is to offer better terms that actually matter to us. Low cost choices.:: Contributing to a traditional IRA is sometimes cited as a better strategy than putting money in a 401(k) because you have access to just about any type of investment and can shop around for the lowest fees. Why can't 401(k)s have the same choices or be required to offer affordable options such as low cost index funds? When you have access to fee information, it

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