Asked by Tyler Knight on Jun 01, 2024
Verified
Which of the following is a concern created by shifting the risk of poor investment decisions from the employer to the employee?
A) How can employees weather big downswings in the market, especially when a downsizing occurs near the age of retirement?
B) What will many employees who were eligible for 401(k) s and chose not to participate do when they discover that they have too little money when they retire?
C) What about the many employees who may not have the financial knowledge needed to invest wisely?
D) How will society treat future retirees who do not have the money they need during retirement?
E) all of the above are concerns
Financial Knowledge
Understanding of financial principles, markets, and instruments, crucial for making informed personal finance and investment decisions.
Investment Decisions
Choices made by individuals or entities in allocating resources or capital to opportunities expected to generate returns or growth.
Downsizing
A business strategy involving the reduction of a company's workforce to improve its efficiency and reduce costs.
- Comprehend the incentives and obstacles for employers in instituting benefits for employees.
- Understand the evolving trends and management strategies in employee benefits.
Verified Answer
HS
Henry StevanJun 01, 2024
Final Answer :
E
Explanation :
All of the listed concerns are valid and created by shifting the risk of poor investment decisions from the employer to the employee. Employees may struggle to weather downswings in the market, especially if they experience a downsizing near retirement age. Those who did not participate in 401(k)s may not have enough money to retire comfortably. Additionally, many employees may not have the financial knowledge needed to invest wisely, leading to poor investment decisions. Finally, if a significant number of retirees do not have enough money to support themselves during retirement, it could become a societal issue.
Learning Objectives
- Comprehend the incentives and obstacles for employers in instituting benefits for employees.
- Understand the evolving trends and management strategies in employee benefits.