Pension Plan http://www.pensionplan.net Pension planning for retirement Fri, 12 Sep 2008 21:17:07 +0000 http://wordpress.org/?v=2.6.5 en Annuities http://www.pensionplan.net/annuities/ http://www.pensionplan.net/annuities/#comments Fri, 12 Sep 2008 21:17:07 +0000 admin http://www.pensionplan.net/?p=23 Annuities are one of the most popular investment products available today. One reason annuities are attractive is that they can help build more value over time. By providing potential growth that is tax deferred, an annuity’s investment earnings can accumulate and compound untouched by federal, state, or local income taxes until you begin making withdrawals, which is usually after retirement. Keep in mind that withdrawals made from an annuity before age 59 ½ are taxed as ordinary income and may be subject to a 10% federal penalty tax. In addition, the issuing insurance company may also have its own set of surrender charges for withdrawals taken during the initial years of the contract.

In addition to tax advantages, annuities also offer a choice of investment options. These may include fixed accounts, which may help protect principal from market risk, and variable investment accounts in stock and bond portfolios, which offer the potential for higher returns.

Together, these features make annuities attractive to those who seek investments that can help supplement future retirement benefits, and to retirees who want greater control over their income and the flexibility to continue deferring taxes on investment earnings.

]]> http://www.pensionplan.net/annuities/feed/ Pension Plan http://www.pensionplan.net/pension-plan/ http://www.pensionplan.net/pension-plan/#comments Fri, 12 Sep 2008 20:36:56 +0000 admin http://refinance.net/wpcheck-adsense/?p=1 How Much Should You Be Saving for Retirement?
Regardless of your age, saving for retirement should be an important priority in your overall financial plan. Social Security and pension benefits will provide only a portion of your retirement income; you’ll need to fund the rest yourself from personal savings and investments. How much do you need to save to reach your retirement savings goal? Find out by answering the questions below.
1. In how many years do you plan to retire?
2. How many years do you expect to spend in retirement?
3. In today’s dollars, how much will you need in annual income during retirement?
4. What percentage of that income do you expect to be covered by Social Security and pension benefits?
5. How much do you currently have set aside for retirement?
6. Which rate of return is closest to what you will strive to earn on this money from now until retirement?
7. Which rate of return is closest to what you will strive to earn on this money during retirement?

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