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 [...]
Entries Tagged as 'retirement plan'
Will You Outlive Your Investments?
December 25th, 2012 · No Comments
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”?…
Retirement Plan Rules, Part 3: Annuities
December 25th, 2012 · No Comments
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 [...]
Dear Dave: Do I Own My 401(k)?
September 18th, 2012 · No Comments
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 [...]
Retirement Plan Rules, Part 2: IRAs
June 25th, 2012 · No Comments
An IRA is an “Individual Retirement Account”. The name is somewhat of a misnomer since the account isn’t necessarily “individual” by nature. Perhaps this is a great lead in to the arbitrary definition of the “Individual” in “Individual Retirement Accounts”. An IRA may be part of an employer-based retirement plan (retirement plans that are only [...]