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I Need A Pension Plan

We know that for years that planning for retirement was a three legged stool.   Pension plans, social security, and then whatever personal savings and investment plans you could muster up over the course of your lifetime.   With a great deal of uncertainty looming over social security and pension plans dwindling away from large corporations, I continue to stress to people that retirement planning feels more like a pogo stick than it does a stool. Product companies understand that the greatest way to attract customer is figure out how to fill a void in the marketplace.   As investors struggle to figure out the best way to plan for retirement, a fairly new type of fixed product has been gaining traction called a Deferred Income Annuity (DIA).   A deferred income annuity is a newer type of annuity that is essentially a mixture of a single premium immediate annuity and a single premium deferred annuity. With a DIA, the idea behind the vehicle ...

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Take The Lump Sum Or The Pension?

You have spent 20 or 30 years working for the same company and now it is time to retire.    You have put money away in your 401(k) and some other savings, but your really large asset is the pension plan where money has been put away for you all of these years.     Your human resources or benefits department sends you this large packet of information telling you what options you have with your pension.   Unbeknownst to you, they tell you that you can either get one check in a lump sum or they offer you various options if you choose a lifetime pension.  So, what is the best direction to take with your pension plan? Part I- Taking The Pension The first option you have is to take the pension.   One of the things to consider up front is that taking the pension allows you to remove the stress of ever having to manage the money.  Essentially, you are turning ...

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Personal Finance 101 – College Education Planning – What Types Of Savings Vehicles Can You Use? —

Last week I discussed some of the assumptions you should be thinking about when it comes to planning for the goal of paying for your children’s college education.    Once you figure out the important metrics for each child on how much money you need to save monthly, the next step is to determine which of the myriad savings vehicles out there will serve you best in reaching your goal.   Since the tax laws and legal laws are different from state to state, I highly recommend you consult a financial advisor and/or a CPA before you make any final decisions as each of vehicles have tax and/or control implications down the road.    Here are few types of options that you may consider when investing your lump sum or monthly savings. 529 Plan Or Prepaid Plan – 529 Plans are usually where I get the biggest questions when it pertains to college planning.   Essentially, 529 plans are a way to save after-tax ...

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Even the Orthodontist offers coupons!

When you start taking your child to the dentist, life is pretty good . . . until their teeth grow into their mouths. I know technology has made everything smaller today, but is it possible that they have made our kid’s mouths smaller? I have three kid’s and it turns out the dentist ‘recommends’ they all get braces in some way, shape, or form. ...

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