RPA1- Study Cards latest solution _ Already passed

RPA1- Study Cards latest solution / Already passed Three-legged stool - ANSWER-A company pension, Social Security, and savings Economic problems of old age - ANSWER-Longevity, medical expenses, lack of work, inflation Reverse annuity - ANSWER-An arrangement with a bank where the bank pays the homeowner a monthly amount for equity in the house. Tax advantages of qualified retirement plans - ANSWER-Earnings are not taxed until distribution, Company contributions are current business expenses and tax-deductible, Employee contributions can be made without current taxation Reasons for growth of private retirement plans - ANSWER-Competitive pressures, Wage freeze during WWII, Union demands Business expediency - ANSWER-The theory that it's in the best interest of a business to have a retirement plan Human depreciation concept - ANSWER-The theory that as workers get older, their ability to work declines and companies should pay for this "depreciation" by funding a pension plan. Deferred wage concept - ANSWER-The theory that retirement plans are actually earnings of the e