ECONOMICS
SAVING AND INVESTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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457
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GIC
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401(k)
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403(b)
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Detailed explanation-1: -403(b) Plans A 403(b) plan at T. Rowe Price lets nonprofit or tax-exempt organizations such as churches, hospitals, and schools offer employees an effective, cost-effective way to save for retirement.
Detailed explanation-2: -A 403(b) plan is a type of retirement account for employees at public schools and nonprofit organizations. It’s also referred to as a tax-sheltered annuity plan or TSA plan, meaning employees can make pretax contributions to their accounts.
Detailed explanation-3: -Why is mutual fund investing a good idea for retirement, but not for your emergency fund or short-term savings? Because in short term investments/savings you most likely won’t get the returns you were expecting or hoping for. But for retirement, over time, you get more returns.