Wealth Building: Pensions

Wealth Building with Pensions

At Woodberry Wealth Management & Associates, we provide a variety of wealth building services. We help our clients build financial security, including planning for retirement. Sometimes, adding a pension fund is a great way to secure your finances upon retirement.
For many people, pensions are something to be collected from their employer in the distant future when they are older and no longer working. This may be so. Nevertheless, a pension plan is an investment, so choose carefully. Our team includes qualified pension fund advisors in New York. We will help you decide whether a pension plan is the best option for your wealth building strategy.

Why Choose A Pension Plan?

With pension plans, you are investing your money with an institution that guarantees an annuity or other payment on retirement. An annuity is an investment yielding fixed payment, usually yearly. Each plan has varying provisions regarding benefits, the size and number of payments, and what happens after death. Because of the benefits offered upon death, pensions have become an alternative to life insurance, especially for people in high-risk occupations who are unable to obtain adequate insurance coverage.
(For more information on annuities, visit our annuities service page).

Types of Pension Plans

There are 2 main types of pension plans offered by pension fund advisors in New York: defined benefit and defined contribution.

Defined Benefit

pension plans promise to pay a set amount of retirement income for life. The amount of your pension depends on your income, and the number of years you spent with your employer. In most plans, both you and your employer contribute to the fund.

Defined Contribution

pension plans guarantee contributions, but not retirement income. You are responsible for investing contributions, but your employer may match some of the contributions you make. The amount you gain during retirement depends on how many contributions you make, and the investment returns earned.

What If My Employer Doesn’t Offer Pension Plans?

If your employer has no pension plan, you may ask him or her to investigate Simplified Employee Pension (SEP) plans. Under these, the employer usually makes contributions to an individual retirement account (IRA) in your name. Whether or not you are covered by a company pension, take advantage of the tax benefits and savings potential of an IRA by contributing to one of your own. If you are self-employed, look into the advantages of a Keogh or self-funded SEP plan.
Obtaining a pension plan is a great way to build wealth for your retirement. For knowledgeable pension fund advisors in New York, contact us today for a consultation.