Finance and Financial Management Commons^™

Cost-Benefit Analysis Of Retirement Plans, Hunter Rhea

Finance Undergraduate Honors Theses

In my research, I’ve compared the cost and benefits of defined benefit and defined contribution plans consisting of 401(k)s, IRAs, 403(b)s, and S&P 500 ETFs. A model was used to forecast future value of plans at retirement based on years till maturity, contribution amounts, and plan type. Based on the results, it’s beneficial for an individual to invest in a diversified mix of retirement plans to reduce the risk associated with one plan. The future value of each plan witnessed a direct increase in value for an increase in contribution amount and years till plan maturity.