FAQ

What is retirement investing?
Retirement investing is investing money for your future retirement. Retirement investing is usually involves creating a plan to grow your money while you’re working by setting up various accounts that are tax-deferred or tax-free.

What is a retirement plan?
A retirement plan is a plan for setting aside money so you have money that can be spent after you retire. Traditional retirement plans may include a pension, Social Security, 401(k), and IRA, and an annuity.

How much should I save for retirement?
It depends on how you want to live. Different types of retirement accounts offer different ways to save. To get a better idea of how much money you will need after retirement, you should contact a retirement planning consultant. Our retirement and financial planning company can help you figure out what your need to live comfortably for life.

When should I start saving for retirement?
You should start saving for your retirement as early as possible. The more you plan and save, the better your retirement will be. If you’re getting a late start on your retirement planning, don’t worry. We’ve helped late starters frequently plan for their near future.

How long do I need to work before I’m eligible to receive Social Security retirement benefits?
To be eligible for Social Security retirement benefits, you need to have worked for at least 10 years.

At what age can I begin receiving my retirement benefits?
To receive your Social Security retirement benefits you must be 62 years of age or older. If you retire before the age of 62, you won’t receive your Social Security benefits right away.

What does “vested” mean?
Being “vested” means you are eligible to receive your retirement benefits from a pension plan or an employees’ retirement plan.

What is a qualified retirement plan?
A qualified retirement plan is a pension, profit sharing, or qualified savings plan that is established by an employer for the benefit of the employees. A qualified retirement plan must conform to rules established by the IRS.

Why should I use an investment plan when planning for retirement?
Investment comes with risk and one way to lower that risk is to have a retirement investment plan that combines stocks, annuities, and other low-risk accounts. Not only that, but an investment plan will help you to save the money you need to retire in a shorter amount of time than without one.

What is an annuity?
Annuities are products offered by insurance companies and a low-risk option for retirement. Annuities are paid in different intervals, usually quarterly, annually, or in a lump sum.

What is variable annuity?
Variable annuity is a form of annuity where the amount of income may fluctuate because it’s based on the performance of company’s investments.

How do annuities help my retirement?
Deferred annuities are retirement accounts that are repaid in increments that are guaranteed for a set period of time. These funds are the money you receive after you retire. People see these as a beneficial component to their retirement plans because they are low risk. Plus there’s no limit to the amount of money you can contribute in a given year.

What is joint and survivor annuity?
Joint annuities can pay sums to a married couple, for example, throughout their lifetime, even if one spouse dies. Survivor annuities allow the annuity purchaser to designate a survivor to transfer the wealth they’ve built up in their annuity.

What is an employer-sponsored retirement plan?
An employer-sponsored retirement plan is a retirement plan sponsored by your employer that is tax-favored. Common employer-sponsored retirement plans are 401(k) plans, 403(b) plans, simplified employee pension plans, and profit sharing plans.

What is a 401(k) plan?
A 401(k) plan is an employer-sponsored retirement plan that allows the employee to set aside tax-deferred income for their retirement and possibly be matched by their employer. The employer, however, is not required to do so.

What is a 403(b) plan?
A 403(b) plan is an employer-sponsored retirement plan offered by tax-exempt entities such as churches, charities, and schools. This retirement plan allows the employee to set aside tax-deferred income for their retirement and possibly be matched by their employer. The employer however is not required to do so.

What is an IRA?
IRA stands for Individual Retirement Account. This is a tax-deferred retirement account that permits an individual to put aside money each year. Earnings are tax-deferred until withdrawals begin at the age of 59 ½ or later (you may withdraw earlier but with a 10% penalty). The exact amount is based on the year and your age.

What is a defined benefit plan?
A defined benefit is a retirement plan in which an employee who is retiring will receive a guaranteed retirement amount usually paid out in increments.

What is a fixed income?
Fixed income is an income that pays a specific interest rate such as certificate accounts, Social Security benefits, pension benefits, some annuities or most bonds.

 

The information contained herein is obtained from sources believed to be reliable but its accuracy or completeness is not guaranteed.