Affluent Savvy
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What stops people from investing?

There are 3 barriers that prevent an individual from investing in the stock market: fear, inequitable access, and insufficient funds. Unfortunately, many courses fail to address these barriers, particularly in schools that host students from underserved communities.

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Thoughts from our collaborators Brian Curcio and Myles Gage – Co-Founders of Rapunzl Investments Although the US Economy is one of the largest in the world, the financial health of millions of Americans remains precarious. 78% of Americans live paycheck-to-paycheck; and less than 20% of adults are confident in their savings. The situation becomes more dire looking at younger generations, who opened their first brokerage accounts in record-numbers during the pandemic. According to the National Bureau of Economic Research, there is a positive correlation between people who participate in the stock market and those who are active participants in a sociable community, which is why we need to provide schools and students with quality education tools.

The Difficulty Of Investing In The Stock Market

There are 3 barriers that prevent an individual from investing in the stock market: fear, inequitable access, and insufficient funds. Unfortunately, many courses fail to address these barriers, particularly in schools that host students from underserved communities. Addressing the initial fear component should be the primary focus of any effective stock market education course because and unfortunately, the efficacy of these courses varies dramatically by students’ socioeconomic status. Without exposure to successful investing strategies and individuals who have benefited from the stock market, investing is incredibly frightening. Despite the rise of commission-free trading platforms, many are still unsure what it means to invest or may feel that they still don’t have enough money to invest. That’s why exposure is critical and it’s imperative that our public education system equips students with an understanding of basic financial principles and provides exposure to the world of investing.

Introducing Rapunzl’s Free Curriculum & Simulator

Rapunzl hopes to solve the other two issues – inequitable access and insufficient funds – by providing a free financial literacy curriculum for high school and college students and scholarship opportunities for top-performing students. We founded Rapunzl, a free simulated trading platform for iOS and Android, to allow students to explore investing in stocks without ever leaving their smartphones. Students can also win scholarship prizes, internship opportunities, and gain exposure to key mentors in the financial services industry. In order to incentivize engagement: students may enter their simulated portfolios each week, month, and quarter for prizes. This pay-to-learn model has been adopted in many states, including New York, Texas, Arizona, and California. The Rapunzl app provides a free curriculum that addresses core personal financial concepts such as credit management, balancing a budget, and understanding capital markets. Our curriculum helps demystify the world of investing by explaining how some financial products are predatory while others can be incredibly beneficial. It also addresses some of the reasons why it’s important to get involved in the stock market and that investing doesn’t need to be scary. Especially when you’re investing in risk-free, simulated competitions that don’t have any cost to enter. Rapunzl’s free simulated trading platform has helped address the lack of engaging financial education tools by working with over 30,000 high school and college students across the country, including programs in Chicago’s South Side and Los Angeles’ Compton-area. We plan to further address these issues by hosting a scholarship competition for students attending Historically Black Colleges & Universities, as well as City and Community Colleges across the country. The best time to learn about investing was yesterday, but getting started today is the next best option. For more information on Rapunzl’s free simulated trading platform, please visit our website or search for Rapunzl on the AppStore or Google Play Store and join for free.

Website: www.rapunzlinvestments.com

iOS: https://apps.apple.com/us/app/rapunzl-invest-compete-win/id1222181232

Android: https://play.google.com/store/apps/details?id=com.rapunzlinvestments.app2

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What happens to pension after someone dies?

When a participant in a retirement plan dies, benefits the participant would have been entitled to are usually paid to the participant's designated beneficiary in a form provided by the terms of the plan (lump-sum distribution or an annuity).

When a participant in a retirement plan dies, benefits the participant would have been entitled to are usually paid to the participant’s designated beneficiary in a form provided by the terms of the plan (lump-sum distribution or an annuity). ERISA protects surviving spouses of deceased participants who had earned a vested pension benefit before their death. The nature of the protection depends on the type of plan and whether the participant dies before or after payment of the pension benefit is scheduled to begin, otherwise known as the annuity starting date. The summary plan description will tell you the type of plan involved and whether survivor annuities or other death benefits are provided under the plan. When a plan participant dies, the surviving spouse should contact the deceased spouse’s employer or the plan’s administrator to make a claim for any available benefits. The plan will likely request a copy of the death certificate. Depending upon the type of plan, and whether the participant died before or after retirement payments had started, the plan will notify the surviving spouse as to: the amount and form of benefits (in other words, lump sum or installment payments under an annuity ); whether death benefit payments from the plan may be rolled over into another retirement plan; and if a rollover is possible, the method and time period in which the rollover must be made.

Publication 554, Tax Guide for Seniors

Publication 560, Retirement Plans for Small Business (SEP, SIMPLE and Qualified Plans)

Publication 575, Pension and Annuity Income

Publication 590-B, Distributions from Individual Retirement Arrangements (IRAs)

Topic 558 - Tax on Early Distributions from Retirement Plans

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