In a quick sentence a Pension is the accumulation of money for retirement. The contribution of money to a Qualified Pension Plan is with before tax dollars or would be tax deductible. The interest earned or other gains on contributions are tax deferred until taken generally at retirement age. Many Pension Plans, such as the popular 401K, the sponsoring employer will match the employees contributions up to a certain amount. In addition the employee has the option to direct the money in their account into various investment accounts offered by the 401K Plan. Vesting is the amount of time required before the employee has ownership of the money contributed by the employer.
Very General explanation but Hope this Helps. :wink:
Posted: Tue Jan 06, 2009 05:18 am Post Subject:
Pension annuity - how does it work!
It works by providing you with a steady income after retirement.
However, varying degree of annuity plans are available in the market. Some are tuned with the market to earn investment return, which has suffered severe blow during the market crash. Others earn fixed return on their plans, which is often less than the variable return plans, but are secure from the market ups and downs. Hence, the choice is really yours :D
~Jeremy
Posted: Tue Jan 06, 2009 10:39 am Post Subject:
Yes indeed, a Variable Annuity is the epitome of a bloated pig with lip stick and many, many, many people have lost 25% to 40% of their life savings by misguided Broker-Dealers and certifed clueless clown Registered Representatives.
On the other hand, not one,... as is (1) person has yet to lose one dime in either a Traditional FIXED Annuity or a Fixed Indexed Annuity.
Below is a picture of a Variable Annuity and below that is a picture of the Wall Street types that would sell such a thing.
Posted: Tue Jan 06, 2009 11:20 am Post Subject:
Gary, really good point. A benefit of the 401k plan if you have on is that sometimes depending on the situation at hand you may take a loan out against your own 401k plan and for a lot less interest than you would pay to a bank. I think there is some type of interest for doing this but you would be paying it back to yourself from what I understand.
Posted: Tue Jan 06, 2009 01:06 pm Post Subject:
we have annuitants that just came to work for us, they are coming out of state retirement and are allowed to work 95 days a year. Pretty good deal for them. It is great for us because they are already trained, some people want the part time work, it must be hard to retire when you are used to working everyday.
Posted: Mon Jan 05, 2009 09:29 pm Post Subject:
In a quick sentence a Pension is the accumulation of money for retirement. The contribution of money to a Qualified Pension Plan is with before tax dollars or would be tax deductible. The interest earned or other gains on contributions are tax deferred until taken generally at retirement age. Many Pension Plans, such as the popular 401K, the sponsoring employer will match the employees contributions up to a certain amount. In addition the employee has the option to direct the money in their account into various investment accounts offered by the 401K Plan. Vesting is the amount of time required before the employee has ownership of the money contributed by the employer.
Very General explanation but Hope this Helps. :wink:
Posted: Tue Jan 06, 2009 05:18 am Post Subject:
Pension annuity - how does it work!
It works by providing you with a steady income after retirement.
However, varying degree of annuity plans are available in the market. Some are tuned with the market to earn investment return, which has suffered severe blow during the market crash. Others earn fixed return on their plans, which is often less than the variable return plans, but are secure from the market ups and downs. Hence, the choice is really yours :D
~Jeremy
Posted: Tue Jan 06, 2009 10:39 am Post Subject:
Yes indeed, a Variable Annuity is the epitome of a bloated pig with lip stick and many, many, many people have lost 25% to 40% of their life savings by misguided Broker-Dealers and certifed clueless clown Registered Representatives.
On the other hand, not one,... as is (1) person has yet to lose one dime in either a Traditional FIXED Annuity or a Fixed Indexed Annuity.
Below is a picture of a Variable Annuity and below that is a picture of the Wall Street types that would sell such a thing.
Posted: Tue Jan 06, 2009 11:20 am Post Subject:
Gary, really good point. A benefit of the 401k plan if you have on is that sometimes depending on the situation at hand you may take a loan out against your own 401k plan and for a lot less interest than you would pay to a bank. I think there is some type of interest for doing this but you would be paying it back to yourself from what I understand.
Posted: Tue Jan 06, 2009 01:06 pm Post Subject:
we have annuitants that just came to work for us, they are coming out of state retirement and are allowed to work 95 days a year. Pretty good deal for them. It is great for us because they are already trained, some people want the part time work, it must be hard to retire when you are used to working everyday.
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