Running Head: Compare Three Rates of 403(b)
Comparison Study of Three Different Rates of Return Factors High, Medium and Low Risk Investment in a 403(b)
Abstract
In this analysis, I assessed investing in a 403(b) retirement plan with looking at the different rates of return. The purpose is to determine how adequate are the savings, accessing savings plan and the longevity meaning living longer to enjoy the money that has been saved by applying the rates. My research hypothesis is the comparison of three different rates of return. I tested the data using the ANOVA test, which is Analysis of Variance. Acknowledging that there are differences in the rates of return I turned to the two sample test for the proportion to show what they are.
Problem
The problem for this analysis was to compare three rates of return from a 403 (b). The three different rate factors chose were high risk, medium risk and low risk. The factors represent the return rates when investing. There are various return rates based on the bank where you place your investments. The main point of this study is to figure out what is the best rate of return on high, medium and low risk investment.
Literature Review
The test that was conducted for the rate of return using a 403 (b), to determined what is the best rate to have. A 403 (b) is a retirement savings plan for educators, non-profit employees, self-employed ministers in the U.S. etc. It is similar to a 401 (k) retirement plan. According to investopedia (403(b), 2013), a 403 (b) plan is for certain employees of public schools, tax-exempt organizations and certain ministers. This research paper discusses the 403(b) retirement plan and communication on managing the plan. The human resource department is the place to receive information about retirement plans for employees. This particular retirement plan provides benefits to the employee when they retire that will secure the employees future. This plan is...