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Job offers and payoff decisions

Suppose you have two job offers to consider. They are pretty much the same, though one (e.g., from a state government) offers a "defined benefit" pension plan whose payoff reflects your salary and years of service when you retire or otherwise leave the company. The other company offers a 401K plan. Which do you prefer, and why? Do the events of the most recent three years affect your decision (how)?

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In this situation, it would really depend on whether the 401(k) offered was matched by the employer. If there was a matching program, I would take the 401(k) since the defined benefit may be very little ...

Solution Summary

Suppose you have two job offers to consider. They are pretty much the same, though one (e.g., from a state government) offers a "defined benefit" pension plan whose payoff reflects your salary and years of service when you retire or otherwise leave the company. The other company offers a 401K plan. Which do you prefer, and why? Do the events of the most recent three years affect your decision (how)?

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