Comparison of USA-based Retirement Plans and Their Investment Performance by Datapath Limited

Abstract

The primary motive behind the creation of the report is to analyze, compare, summarize, and draw conclusions by closely examining the trust accounting report of different retirement plans of Datapath Ltd. After starting a detailed examination using three different trust accounting reports and comparing them to industry benchmarks. The written explanations have been accompanied by numerical data interpretations, presented in graphical and tabular forms that extend to flow charts. This report offers a comparative analysis of three retirement plans: AAA Industries, Interstate Bank, and Travis Association for the Blind Retirement Plan, focusing on their tax-deferred contributions and performance from 2018 to 2022, including Compound Annual Growth Rate (CAGR), mean return, and standard deviation. All three plans provide tax-deferred contributions, incentivizing employees to save for retirement with pre-tax income. AAA Industries Retirement Plan demonstrates steady growth with a reliable CAGR, consistent mean returns, and volatility insights through standard deviation. In addition, the Interstate Bank Retirement Plan exhibits robust growth with favorable CAGR, and stable mean returns, accompanied by risk assessment through standard deviation. Travis Association for the Blind Retirement Plan maintains consistent growth, satisfactory mean returns, and risk evaluation through standard deviation. These findings underline the significance of informed decision-making in retirement planning and highlight opportunities for participants to achieve their long-term financial objectives. AAA Industry’s Retirement Plan: Moderate volatility (10.74%) offers a balanced approach, appealing to investors seeking moderate risk with the potential for reasonable returns. Interstate Bank SSB 401(k) Profit Sharing Plan & Trust: Lower volatility (8.54%) provides stability, attracting investors to prioritize consistent returns and risk mitigation. Travis Association for the Blind Retirement Plan: High volatility (22.06%) presents elevated risk with the potential for higher gains but also significant losses. Suited for aggressive investors with higher risk tolerance and longer time horizons. Ultimately, investors should align their choices with their risk tolerance, investment objectives, and time horizon. Conservative investors may prefer lower volatility plans, while those seeking higher returns may opt for higher volatility plans. Careful assessment of financial goals and risk appetite is crucial in selecting the most suitable retirement plan.