Pensions are income streams guaranteed to employees upon their retirement. A Pension is a type of Defined Benefit Plan in which your employer promises to pay you a certain amount every month for the rest of your life.
Employers who are part of the pension plans are sometimes called pensioners. An employer retains the funds in a trust, usually, and everyone’s pension assets are pooled together in what’s called a Pension Fund.
The employer bears the investment risk of the assets, and takes full responsibility to pay the pension amount guaranteed to employees. The amount of the payments depends on many factors, such as your age, your salary, and the amount of years you have worked for the company.
Of course, keep in mind that if your employer goes bankrupt, your pension is usually gone, and the pension liabilities sometimes contribute to such bankruptcies if the employers don’t manage the assets well.
Pensions have been used less in the last 30 years since the advent of 401(k)s and other alternatives. Existing pensions are often closed, meaning they aren’t taking in new employees to the plan, but will continue to administer the existing plan.
Annuities are financial products sold by insurance companies, and they are designed to protect against life expectancy
Social Security benefits are streams of income available for retired workers, their spouses, children and dependents
More complicated wills usually require the help of an attorney who can help you and guide you through the process
Overlays are technical supplements which help to interpret the data of a normal price chart
A margin trade is one where the trader uses other securities or cash as collateral, for a transaction without purchase
The debt-to-equity ratio indicates the relative proportion of a company’s debt to total shareholder equity
Most people recognize this as a “routing number.” The American Bankers Association (ABA) assigns a number to each bank
There is no guaranteed option to make lump-sum distributions from pension plans
Foreign Debt is also called International Debt or External debt. It is the amount of debt that is owed by one country...