Personal Financial Plan Assignment Example | Topics and Well Written Essays - 1000 words

Personal Financial Plan - Assignment Example The main advantage of the plan is that it encourages investment culture. The disadvantage is lack of flexibility on the side of the employee. The employees have no option of investing in other areas apart from the pre-tax and post-tax basis. The following is a description of Amgen retirement plan description: 401(K) retirement and saving plan Provide a core contribution of 5% as well as a company matching contribution of 100% of staff contributions up to a 5% of eligible pay. Professional, customized financial advisory services to help staff make informed investing decisions specific to their retirement planning strategy at no cost to staff members. The main advantage of the plan is that it provides free investing decisions to employees to allow them to make well-informed investing decisions. The disadvantage of the plan is that some employees may not be eligible thus blocking them out of the plan. The plan gives staff an opportunity to buy Amgen stock at a discount. The plan encoura ges and facilitates employees’ to invest in securities. On the contrary, it may not be flexible enough to facilitate employees’ diverse investment options. Retirement medical saving account Provides staff an opportunity to save for eligible health care expenses after retirement. The main advantage of the plan is that it hedges employees’ medical expenses after retiring. On the other hand, the disadvantage may arise in case the employee does not want to subscribe the plan in case of the existence of another medical plan.