All categories

4 years ago

What is one advantage of choosing a target date fund as your primary retirement investment?

Business

1 answer:

Scilla [17]4 years ago

3 0

Answer:

they allow low investments, they are managed by professionals, and they are fairly simple one size fits all plans

Explanation:

Target date funds can be defined as tailored investments, since the retirement plans works with a specific date set. So the investment company knows that they have a certain time to make the assets' value grow. They are very "simple" plans, since the plans should automatically rebalance themselves as the age of the customer increases.

You might be interested in

On June 1, Year 1, Yola Corp. lent Dale $500,000 on a 12% note, payable in five annual installments of $100,000 beginning Januar

sweet [91]

Answer:

C) $10,000

Explanation:

The last interest payment was made on November 1, so by December 31, two months worth of interest is considered receivable.

Interest receivable = principal x interest rate x time periods = $500,000 x 12% x (2/12) = $10,000

By December 31, no principal payments had been done yet.

8 0

3 years ago

Read 2 more answers

What are three ways you can learn more about a company, organization, potential employer, and/or the open position you are apply

xeze [42]

Answer:

- research about it

- Ask questions

- study for it

6 0

3 years ago

An asset was purchased for $138,000 on January 1, Year 1 and originally estimated to have a useful life of 8 years with a residu

kirill115 [55]

Answer:

The third-year depreciation expense: $26,081.25

Explanation:

The company uses straight-line depreciation method, Depreciation Expense per year is calculated by following formula:

Depreciation Expense = (Cost of asset − Residual Value )/Useful Life

Depreciation Expense for year 1 = ($138,000 - $10,500)/8 = $15,937.5

Depreciation Expense for year 2 = ($138,000 - $10,500)/8 = $15,937.5

At the end of year 2,

Accumulated depreciation = $15,937.5+$15,937.5=$31,875

Book vale of the asset = $138,000 - $31,875 = $106,125

At the beginning of the third year, the remaining useful life of the asset was 4 years with a residual value of $1,800.

Third-year Depreciation Expense = ($106,125 - $1,800)/4 = $26,081.25

6 0

4 years ago

Wolf Den Craft Beers projects that it will need $50 million in total assets to meet the sales projection of $65 million. The p

ivanzaharov [21]

Answer:

$5 million

Explanation:

As we know the asset is financed from two capital sources equity and liability.

Using Accounting equations as follow

Assets = Equity + Liabilities

Total Assets Value = Equity Value + ( Account Payable + Accrued expenses + Long-Term Debt )

As we both sides are not equal, asset are more that the sum of equity and liabilities so we need more borrowing to finance the assets.

$50 million = $25 millions + ( $8 million + $2 million + $10 million ) + Additional Borrowing

$50 million = $25 millions + $20 million + Additional Borrowing

$50 million = $45 millions + Additional Borrowing

Additional Borrowing = $50 million - $45 millions

Additional Borrowing = $5 million

7 0

3 years ago

____ is a small category that refers to the goods produced by one business that has yet to be sold to consumers, and are either

lapo4ka [179]

Answer:

The correct answer is: Inventories.

Explanation:

Inventories are real and concrete assets, that is movable and immovable property. These form the commercial flow of a person or a company. These goods are for sale, hence the commercial nature, or for the consumption of goods and / or services. Inventories are made in a certain period of time.

If a company is commercial, its livelihood is always buying and selling, that is, the exchange of goods and services. With the inventory, the company has an exhaustive control of merchandise during the commercial period, and at the end of it it has the “final balance”, that balance is comparable with that of other years and serves to draw conclusions and from there take certain actions depending of the result. When the goods are being counted for a certain economic period, it is necessary that they appear in the “Current Assets” group, this means that it is all merchandise at the cost that is in the hands of a company.

The concept of inventory has to do with accounting, which is a system for controlling and recording profits (income and expenses), as well as economic operations, in this case carried out by a company or association, it reflects the financial movements that they make.

8 0

4 years ago