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'
How To Increase Your Retirement Savings
January 15th, 2013 · No Comments
This year, CNN Money reported that 43 percent of Americans have less than $10,000 saved for retirement. If Americans want to someday live off of their savings, then something must change (and fast). What accounts for such low savings rates? While there are many circumstances that could bring out such low savings rates (loss of [...]
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 [...]
The Truth About Retirement Plans And Government Policy
October 9th, 2012 · No Comments
Last year, the Wall Street Journal Reported: …there is a precedent when it comes to taxing those who have saved what lawmakers think of as “excessive.” From 1987 to 1997 they imposed a 15% excise tax on annual retirement-plan distributions over $150,000. The tax applied even if other rules forced the account holder to withdraw [...]