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Retirement Planning

Defined Benefit Plan Definition

A defined benefit plan, also known as a traditional pension plan, is a retirement plan where the employer guarantees a specific annual income for the employee based on various factors. This includes years of service, final salary, and age. The employer bears all the risks associated with funding the plan.

Some defined benefit plans also offer the option for employees to receive a lump-sum payment upon retirement. However, it is important to note that while federal pension insurance protects those who choose the annual income option, those who opt for a lump-sum payment are responsible for managing their funds effectively.

Qualified Retirement Plan

It is designed to provide retirement benefits to employees. A retirement plan, whether Defined Benefit or Defined Contribution, is a crucial component of financial plannin...

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Required Minimum Distribution

A crucial aspect of managing your retirement funds is understanding the concept of Required Minimum Distributions (RMDs). These are mandatory withdrawals from qualified retir...

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Traditional IRA

Traditional Individual Retirement Accounts (IRAs) were created with the intention of incentivizing individuals to save for their golden years. This is achieved through three...

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Target Date Fund

A target date fund is a type of mutual fund that adjusts its risk level based on the investor's target date, usually their estimated retirement date. This is achieved by gra...

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