Retirement

Pension plans vs. 401(k)s: Which is better?

Pension plans vs. 401(k)s: Which is better?

by | Retirement

Both pension plans and 401(k) plans are employer-sponsored retirement plans, but there the similarities end. The two plans have different risk levels, investment opportunities, and employee/employer contribution levels.  What is a pension plan? A pension plan is...
How does your pension plan affect retirement?

How does your pension plan affect retirement?

by | Retirement

What is a pension? It’s a question few workers would have asked a generation ago, when pensions were the most common type of retirement plan. Today, pensions have largely been replaced by the 401(k). Only 22 percent of Americans have pension plans, with the majority...
Which is better? SIMPLE IRA vs. SIMPLE 401(k)

Which is better? SIMPLE IRA vs. SIMPLE 401(k)

by | Retirement

SIMPLE plans help small businesses provide retirement plans to their employees while also offering a way for the self-employed to take advantage of the tax benefits of employer-sponsored retirement plans. What does SIMPLE stand for? SIMPLE stands for “savings...
Which is better? Traditional IRAs vs. Roth IRAs

Which is better? Traditional IRAs vs. Roth IRAs

by | Retirement

When you invest in an IRA, you have two choices — a traditional vs. a Roth IRA. The two plans grow funds in much the same way, with one noticeable difference: How your contributions and withdrawals are taxed. Here’s a quick explanation of the differences: What is a...
Which is better, an annuity or an IRA?

Which is better, an annuity or an IRA?

by | Retirement

“Should I buy an annuity with my 401(k) or roll my 401(k) into an IRA?” Many people struggle with the annuity vs. an IRA question as they approach retirement. Before we delve into the pros and cons, it’s important to understand the nature of each type of retirement...