Pensions & Other Retirement Accounts

July 25, 2024When faced with the death of a parent, many find themselves asking whether they can claim their parent’s retirement funds. Accessing your father’s retirement funds can depend on various factors such as the type of retirement account he held and whether you are a named beneficiary. Typically, accounts like IRAs or 401(k)s allow for beneficiary… read more…

July 19, 2024Federal employees generally receive annuity-based pension funds when they retire. Depending on when you joined the government, this may be supplemented by Social Security and a private savings plan. The amount you receive from these various programs depends, among other things, on how long you worked for the government and at what age you retire. As… read more…

July 12, 2024Navigating the rules and regulations surrounding qualified retirement plans like 401(k)s can be complex, particularly when it comes to required minimum distributions (RMDs). When these mandatory withdrawals are not taken on time or in sufficient amounts, the funds that are not withdrawn will be considered excess accumulation and subject to tax penalties. A financial advisor… read more…

July 11, 2024There are many retirement plans available to help you save for your golden years. 401(k)s, IRAs and Roth IRAs offer unique benefits and tax advantages tailored to different financial goals and employment situations. Choosing the right plan can affect your savings strategy, tax liabilities and overall retirement readiness, which is why carefully comparing the available… read more…

July 11, 2024How thrift savings plans (TSPs) are affected in divorce depends on their value and the overall division of assets. Federal regulations govern how TSP accounts are divided, often involving a court order known as a Retirement Benefits Court Order (RBCO). These orders ensure a fair distribution of retirement savings between spouses, considering various factors like… read more…

July 8, 2024Independent contractors face unique challenges when it comes to retirement planning due to the lack of employer-sponsored plans. The good news is that there are several retirement plan options designed specifically for self-employed individuals, each with unique benefits and consideration. Popular choices include SEP IRAs, SIMPLE IRAs and solo 401(k)s, each offering distinct benefits and… read more…

July 8, 2024Nonprofits have a variety of retirement plan options to help their employees save for the future. Popular choices include 403(b) plans, similar to 401(k) plans but tailored for nonprofit organizations, and 401(a) plans, which offer higher contribution limits. Additionally, SIMPLE IRAs and SEP IRAs cater to smaller nonprofits with simpler administrative requirements. Understanding the specific… read more…

June 27, 2024A self-invested personal pension (SIPP) is a type of pension plan offered in the United Kingdom that allows individuals greater control over their retirement savings by letting them choose and manage their investments. Unlike traditional pension plans, SIPPs provide access to a wide range of investment options. This flexibility can help tailor a retirement strategy… read more…

June 21, 2024Workers with defined benefit pensions may be offered the chance to collect a one-time, lump sum payment instead of monthly pension benefits for life. Making this decision involves evaluating a number of factors, including the lump sum amount, the amount of the monthly payments and the age of the recipient when the offer is made.… read more…

June 19, 2024Consolidating your retirement accounts can simplify your financial planning, reduce fees and provide a clearer picture of your overall savings. By combining multiple accounts into one, you can streamline your investment strategy, make tracking your progress easier and potentially enhance your portfolio’s performance. Whether you have 401(k) plans from previous employers, IRAs or other savings… read more…

June 6, 2024The thought of your company going bankrupt is unsettling, especially if you were expected to receive a lifetime guaranteed income from a defined benefit pension plan. While bankruptcy can throw the future of a pension plan into flux, it doesn’t mean employees are automatically out in the cold thanks to the Pension Benefit Guaranty Corporation… read more…

May 30, 2024Pension trusts are specialized financial arrangements that play a pivotal role in managing and disbursing funds designated for retirement benefits. They come in two primary forms: defined benefit plans (which promise a fixed income post-retirement) and defined contribution plans (where the benefits are influenced by market performance). Understanding the elements of a pension trust can… read more…

May 30, 2024Losing a loved one who served in the military can be an emotionally and financially challenging time for surviving spouses and children. The VA Survivors Pension can serve as a lifeline to eligible survivors by providing a tax-free monetary benefit to help them make ends meet. Surviving spouses and unmarried dependent children of wartime veterans… read more…

May 28, 2024Qualified retirement plans, such as 401(k)s and pensions, can offer significant tax advantages and are subject to strict regulations set forth by the Internal Revenue Code (IRC) and the Employee Retirement Income Security Act (ERISA). These plans are designed to provide a broad range of employees with the opportunity to save for retirement while enjoying… read more…

May 28, 2024Deciding whether to take a $400,000 lump sum or monthly pension benefit of $2,000 requires calculating the relative value of each option. Generally speaking, the sooner you can receive the lump sum, the more value it will have since you can invest it over a longer period. The monthly payment option may be more valuable… read more…

May 23, 2024If you have a pension, your employer will usually give you a choice at retirement: buyout or payments. It’s important to review this carefully. In broad terms, many make this choice based on expected lifetime returns. If you take and invest the buyout, what can you reasonably expect in portfolio returns? How will that expectation… read more…

May 17, 2024When planning for retirement, one of the fundamental decisions you’ll face is how to invest within your individual retirement account (IRA). There are several approaches to selecting investments and managing your account. You could pick individual securities yourself, employ a robo-advisor or work with a financial advisor to construct your portfolio. From there, you can… read more…

May 9, 2024When companies offer a pension, it’s common to give retirees two options: collect the pension as a lifetime monthly payment or receive it as a lump sum at retirement.  Monthly payments over time are the format that most people associate with pensions. However, a lump sum payment can, sometimes, be the better option. Depending on… read more…

April 22, 2024Deciding between taking a lump sum or monthly payments involves assessing a number of factors, including some that are difficult to quantify. The two most important considerations may be when you will receive the lump sum and how long you will live afterward. Getting the lump sum payout sooner increases the lump sum’s value, while… read more…

March 28, 2024Pension maximization is a strategy used by individuals who have a traditional pension plan to potentially increase the amount of retirement income they receive. With traditional pension plans, retirees typically have the option to choose between different forms of payout, such as a single-life annuity or a joint-and-survivor annuity. Pension maximization involves selecting the single-life… read more…

September 29, 2023A personal pension plan is a type of long-term savings scheme where individuals contribute funds that are invested to provide income upon retirement. Unlike workplace pensions, personal pensions are managed by the individual, giving them full control over their retirement savings. It’s a powerful instrument to create a financial safety net for the future, ensuring… read more…

August 10, 2023A pension buyout can be a tantalizing offer from your employer, one that offers either a lump sum or annuity, and in return, you relinquish your claim to future pension payments. It’s a move often employed by companies to cut down expenses and lessen long-term liabilities, turning these into immediate advantages such as reducing administrative… read more…

May 25, 2023Once upon a time, retirement in America was referred to as “a three-legged stool.” The first leg was your expected Social Security benefits, the second leg was your own personal savings and the third was something old-timers called a pension.… read more…

March 30, 2023If you’re looking for more variety when it comes to investing for retirement, you might consider a self-directed IRA (SIDRA). Self-directed IRAs allow you to invest in the usual suspects—stocks, bonds and mutual funds—but you can also use them to… read more…

March 10, 2023A divorce is an unfortunate time in anyone’s life, as it signifies the end of a likely long-term relationship and marriage. However, it’s important to understand the financial ramifications of a divorce as you’re going through one. So if you’re… read more…