Which retirement plan would provide a military member a guaranteed income and income from investments?
A.
Pension plan
B.
Thrift savings plan
C.
401k plan
D.
403b plan
A. Pension plan
The retirement plan that would provide a military member a guaranteed income and income from investments is the Thrift Savings Plan (TSP), which is option B. The TSP is a defined contribution retirement savings plan for federal employees, including military members. It offers the potential for investment gains through various investment options, while also offering the option of purchasing an annuity to provide a guaranteed income in retirement.
To determine which retirement plan would provide a military member a guaranteed income and income from investments, we need to consider the options given: a pension plan, a thrift savings plan, a 401k plan, and a 403b plan.
A. Pension Plan: A pension plan is a retirement plan that provides a fixed amount of income to an individual after retirement. It is typically offered by employers, including military branches. Pension plans usually provide a guaranteed income, but they may not involve investments.
B. Thrift Savings Plan (TSP): The Thrift Savings Plan is a retirement savings and investment plan specifically designed for federal employees, including military members. It allows members to make contributions from their salary, and those contributions can then be invested in various funds within the plan. The TSP offers the potential for income from investments, but it does not provide a guaranteed income like a pension plan.
C. 401k Plan: A 401k plan is a retirement savings plan offered by many employers in the private sector. It allows employees to contribute a portion of their salary into the account, which can then be invested in various investment options. While it offers income from investments, a 401k plan does not provide a guaranteed income.
D. 403b Plan: A 403b plan is a retirement savings plan offered to employees of certain non-profit organizations, including public schools and some tax-exempt organizations. Similar to a 401k plan, it allows employees to contribute a portion of their salary and invest those contributions. A 403b plan also does not provide a guaranteed income.
Based on the options given, the retirement plan that would provide a military member a guaranteed income and income from investments would most likely be a combination of A, a pension plan, and either B, a thrift savings plan, or C, a 401k plan, if available. With this combination, the military member would have a guaranteed income from the pension plan, along with the opportunity to generate additional income from investments through the TSP or 401k plan.