Financial Planning for Businesses

Entries Tagged as 'retirement plan'

Retirement Plan Rules, Part 4: Employer Pension Plans

An employer pension is getting to be quite rare these days. Pensions are retirement plans that, traditionally, an employer would fund on behalf of the employee. These are quite easy to understand and many of the arbitrary rules are similar, if not the same, as the arbitrary rules for annuities. This is because pensions use [...]

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Will You Outlive Your Investments?

As the largest segment of the nation’s population (78 million baby boomers) looks forward to retirement, one would wonder with a Government so full of debt, if that could possibly affect our nation’s new retirees. Sadly, about 20 million of those 78 million Americans only have a net worth of $50,000 or less which means that they will be relying heavily on Social Security – a system that is already stressed. In June of 2006, the Center for Retirement Research added more unpleasant news. They estimate that nearly 43% of Americans simply aren’t saving enough to live a comfortable retirement. But what is “comfortable”?…

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Retirement Plan Rules, Part 3: Annuities

Annuities are financial products that are designed by life insurance companies. The contract itself is an insurance policy. Annuities can actually be traced back to Roman times when citizens would make a payment and receive an annual stipend in return. Over time, these products become more refined and complex. Governments began using them for anything [...]

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Dear Dave: Do I Own My 401(k)?

An excellent question these days, with the Obama administration opening a glorified Q & A session on whether 401(k) participants should be forced into government treasuries. Listen up folks… Qualified retirement plans are Government-created assets pursuant to Internal Revenue Code (“IRC”) section 401(a) and are held in trust pursuant to IRC §501(a ) and the [...]

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