If you are drawing a public or private pension along with Social Security, you are the beneficiary of a defined benefit. On the other hand, if you are receiving a monthly payout from a retirement plan that you (and perhaps your employer) contributed towards, you are drawing from a defined contribution plan. Both retirement plans have their advantages as well as some disadvantages. Let’s explore both options.
For National Life Insurance Awareness Month, we wanted to share some helpful information about life insurance, including what it is, its different types, and how it can help protect your family in case something happens.
Life insurance policies can offer different benefits to different people depending on where they are in life. Whole-life, Variable universal life, and term are the types of life insurance that people can use to protect their loved ones from a variety of expenses. The more you understand the different options offered the easier it will be to pick a policy that works for you and your loved ones.
Sure, the stock market will fluctuate, but most people believe the market will be higher when they retire compared to where it was when they started saving. Historically, they are correct - But the taxation of these accounts can have you singing a very different tune.
One of the biggest risks you will face in retirement is Taxation. Most people are working with a fixed amount of money in retirement and the money is not only for the beginning years, but it has to last all the way through retirement. Taking the right steps financially, to plan for things like taxes is essential.
Americans are faced with a decision towards the end of their working years on when to take their Social Security benefits. Deciding on when to claim your Social Security benefits will depend on several factors like your personal health and financial situation.