Discussion:
"Pension Plan Management"
1. ) Imagine that you have a choice between a defined benefit plan and a defined contribution plan. Determine two advantages and two disadvantages of each. Select the plan that you prefer and justify your answer with an explanation.
Please use quality research in your internet search. Cite your references.
2.) Please put the following in your own words no citations needed.
As you mentioned, having a defined benefit plan has its pros and cons. Most definitely a pro would be the fact the this particular retirement plan would be fully covered by the employer. The con would be that it is limited and you don't have any decisions on the contribution amount. A defined contribution plan in my opinion would be more beneficial to me in this stage in my life as I would want to be able to control what I invest in. I would want to be able to select a high contribution amount if needed. I also want to understand more on stocks, bonds, etfs,etc so that is a perfect way to gain knowledge to begin watching the stocks.