Auto Enrollment Plan
No, it's not a plan to create a car that you can roll up like a sleeping bag. Instead, it has to do with retirement savings.
The concept is relatively simple, once its broken down. "Auto" is short for "automatic." "Enrollment" refers to signing up for (you guessed it) a retirement plan (which, by the way, provides the "plan" part). So an "auto enrollment plan" is a retirement program where an employer automatically deducts money from an employee's paycheck and puts it into a retirement account, such as an IRA or a 401(k).
The employee can choose to opt out of the program, but if they don't say anything, they will automatically get enrolled.
The general motivation for these programs: people get lazy about retirement. If you leave it up to employees to actively sign up for a plan - go into HR, get the paperwork, fill it out, then bring it back by whatever deadline - they probably will end up binge watching Game of Thrones instead.
So instead of making them do work to get into the program, the employer makes them do work to get out of it. A vast number of people will stay in the program from there, meaning their retirement accounts could be growing even while they watch Ned Stark get his head lopped off.
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Finance: What is a Keogh Plan?64 Views
Finance allah shmoop What is a keogh plan Well basically
it's an ira for self employed people and more or
less like have your own company your own llc Well
then you probably want to sock away some dough without
paying taxes today betting that you'll want to pay him
instead Tomorrow if ever knock on the door of keogh
plan central and you'll save your way to prosperity Sort
of lungs You invest the money well in the market
Well basically the keio works just like an ira If
you makes a hundred grand a year and you pay
thirty five percent tax on that last ten grand that
you make or thirty five hundred box well instead you
could put that ten grand into a keogh plan invested
for however many years until you're an old geezer Think
seventeen and a half plus And hopefully that ten grand
grows a whole lot in an index fund or something
like that Because the market doubles about every seven eight
nine ten years something like that And then when you're
not working i'ii earning ah whole lot less money Well
then you can start withdrawing that money from your keogh
Plan You pay something more like i don't know twenty
percent in taxes at that point because you're taking lesson
pay than you did when you were accumulating wealth like
that thirty five percent So while the fuss to save
just fifteen percent net difference in taxes at thirty five
minutes Twenty there Well it's not that much fuss A
few forms you fill out of filing here and there
and well that's kind of it You go buy an
index fund and sit but more to the point it's
a day discipline That is when you have this wonderful
allure of saving taxes well for most people it's enough
of an incentive to actually save money rather than spend
it and that's a good thing to dio So you
don't end up like this guy living in his suv 00:01:46.432 --> [endTime] you know down by the river
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