Investment Retirement Analysis

InvestmentRetirement Analysis

InvestmentRetirement Analysis

Thelife at old age may seem to be difficult especially while one has nosource of income or has retired from his or her employment. However,these problems of after employment can be prevented by makingappropriate retirement plans. Retirement plans help individualemployees to invest for their old age (Perkins,2014).For these reasons, as a young potential employee, I have decided tomake my choice of employer by considering the retirement plan optionsavailable in the two opportunities that are, Employer #1 and Employer#2. The table below provides a summary of the analysis of the twoEmployers.

Employer #1

(1.5 points)

Employer #2

(1.5 points)

Name of Company and Company Website

Under Armour Inc.

Hoovers Company

Type of Retirement Plans

Individual Retirement Arrangement plan (IRA)

Simplified Employee Pension plan (SEP)

Employer Match? How much?

Yes. To a great extent.

Yes. Moderate

Vesting Requirements

5 years 40%

8 years 80%

Maximum Amount that can be Invested/Year



Education/Support Services Available?



Who is eligible to participate?

All permanent employees

All permanent employees

When can you withdraw the funds?

Individual employee or the named beneficiary

Individual employee or named beneficiary

Other Important Attributes

Fridge benefit

Adequately secured

SimplifiedEmployee’s Pension (SEP)

Thistype of retirement plan is granted at Hoovers Company. SEP plan willassist me as an employee in putting aside some money in theretirement account. The vest requirement of this particular plan isat 8 years 80%. In retirement plan, vesting refers to ownership. Thismeans that, by getting employed at Hoovers Company I would attain 80%of the ownership of the pensions in 8 years. Other attributesavailable under this option include education services, adequatesecurity among others.

Themain advantage of this method is that it is easy to set up andoperate while the main disadvantage is that, there may be loss ofinformation since under this option, there is no requirement for thefiling by the employer (Perkins,2014).

IndividualRetirement Arrangement (IRA)

Thisparticular option is granted by Under Armour Inc. the attributes ofthis option include 5year 40% vest requirement, all permanentemployees are eligible for the benefit, it has fridge benefitattached to it, among others.

Themain advantage of this option is that it is less costly to administerwhile one of its demerits is that the asset can never be used ascollateral to obtain a loan (Perkins,2014).

Accordingto my analysis of the two options, I can conclude that Employer #2 isoffering the best retirement benefit. This is because SEP has gotmore pros and also its vesting requirement is 8 years for 80% ascompared to that of Employer #1 whose vest period in 5 years 40%.This implies that ownership of retirement benefits is delayed inemployer #1 than in Employer #2.


Thisactivity has helped me to point out the key attributes of retirementplans. This concept is more essential in making a decision andtherefore, every individual should base his/her analysis of theattributes of each available plan to ensure they make prudentdecisions.


Mutual Fund #1 (.5 points)

Mutual Fund #2 (.5 points)

Mutual Fund Name/Symbol

(i.e. Capital Growth Fund) and (i.e. ABCDE) and (i.e. capital appreciation)

Capital Growth Fund (Zacks Mutual Fund Rank)

Capital appreciation (Arena Pharma)

Net Asset Value listed on Assignment #2 (used on last assignment)

(i.e. Price of the fund – 22.45)



NEW – Net Asset Value – collected between April 2nd through April 9th



Stock (1.5 points)

Stock Name and Symbol (i.e. Google Stock GOOG)

Stock Price listed on Assignment #2 (i.e. Price of the stock – 22.45)


NEW – Stock Price – collected between April 2nd and April 9th


Potential Return: (1 point)

If you had purchased 25 shares of stock – what would be the total return on the share price between Assignment #2 and the NEW stock price (not including broker fees)? (i.e. $10/share on Assignment #2 and it is now $15/share potential return = ($15 *25)-($10*25) = $125



Theresearch I carried out on the stock and the mutual funds have provento be profitable. Their performance has remained above average forthe last few weeks. This has significantly indicated a lower risk tothe investors in these assets. The primary goal of investors isalways to maximize returns while minimizing risks (Kieso&amp Weygandt, 2005).The stock and mutual fund’s performance has increased over the pasttwo weeks.

Comparingthis performance to that of an entire market, we can conclude thatthe investment is well diversified and the performance is moderate.My choice of investment decision would remain the same since theyields are moving up for the last one month.


401(k) Resource Guide. (2014). Retrieved March 09, 2015, from IRS:

Perkins, F. (2014). Retirement Plans, Benefits &amp Savings. New Yolk. Pearson .

Arnold G. (2008). Corporate financial management 4th edition. Britain: Pearson Education.

Kieso J. &amp. Weygandt E. (2005). Intermediated accounting. New York: Oxford press.

Retirement Plans – Vesting. (2015). Retrieved March 09, 2015, from IRS:,-Employee/Retirement-Topics-Vesting