Executive Pension Plans: Tax Free?
Executive Pension Plans: Tax Free?
Why bother risking the wealth you have worked for all your life? Plan wisely, and consider an executive pension plan! There are much better ways for you to save than through a Registered Retirement Savings Plan (RRSP). Save thousands of your corporate taxes this year!
What Can You Do with an Executive Pension Plan?
While there are numerous benefits to having executive pension plans (EPPs), but the most obvious benefit is executive pension plans can dramatically increase your retirement savings, even when compared to an RRSP. Unlike an RRSP where the maximum allowable contribution is limited to the earnings of the individual, an EPP does not have the same limitations. This is especially beneficial to higher income earners where investments will determine how much will be tax-deferred. Contributions made to the pension plan are tax-deductible in Canada, by not only the employee, but deductable by the employer as well!
Are Executive Pension Plans Difficult to Setup?
Before setting up executive pensions, it is commonly recommended that you first consult a certified financial planner, at a brokerage like Ten Star. Consulting with a professional with years experience is advice you can appreciate. Your Ten Star Financial adviser knows that contributions made to the fund allow the participants to make additional contributions as well.
Finding a Financial Planner for Business
When discussing financial options with your adviser, prepare a short list of questions before the meeting. Finding a knowledgeable adviser with experience dealing with the type of financial planning you need, can help you in the long run, so remember to take your time when finding the most appropriate adviser for your needs.
Wesley is a search marketing specialist working together with Ten Star Financial Services, a Canadian insurance broker with specialists dealing with group health benefits at branches nationwide.
Article from articlesbase.com
Categories: Social Security News Tags: Executive, Free, Pension, Plans
Executive Pension Plans: Tax Free?
Executive Pension Plans: Tax Free?
Why bother risking the wealth you have worked for all your life? Plan wisely, and consider an executive pension plan! There are much better ways for you to save than through a Registered Retirement Savings Plan (RRSP). Save thousands of your corporate taxes this year!
What Can You Do with an Executive Pension Plan?
While there are numerous benefits to having executive pension plans (EPPs), but the most obvious benefit is executive pension plans can dramatically increase your retirement savings, even when compared to an RRSP. Unlike an RRSP where the maximum allowable contribution is limited to the earnings of the individual, an EPP does not have the same limitations. This is especially beneficial to higher income earners where investments will determine how much will be tax-deferred. Contributions made to the pension plan are tax-deductible in Canada, by not only the employee, but deductable by the employer as well!
Are Executive Pension Plans Difficult to Setup?
Before setting up executive pensions, it is commonly recommended that you first consult a certified financial planner, at a brokerage like Ten Star. Consulting with a professional with years experience is advice you can appreciate. Your Ten Star Financial adviser knows that contributions made to the fund allow the participants to make additional contributions as well.
Finding a Financial Planner for Business
When discussing financial options with your adviser, prepare a short list of questions before the meeting. Finding a knowledgeable adviser with experience dealing with the type of financial planning you need, can help you in the long run, so remember to take your time when finding the most appropriate adviser for your needs.
Wesley is a search marketing specialist working together with Ten Star Financial Services, a Canadian insurance broker with specialists dealing with group health benefits at branches nationwide.
Article from articlesbase.com
Categories: Canada Pension Tags: Executive, Free, Pension, Plans
Categories: Global Pension Plan Tags: Clock, Plans
Managing Pension Plans: A Comprehensive Guide to Improv
The Investment Performance of Corporate Pension Plans N
 | US $132.75 End Date: Thursday Feb-16-2012 14:21:24 PST Buy It Now for only: US $132.75 Buy it now | Add to watch list |
Portable Pension Plans for Casual Labor Markets NEW
 | US $150.95 End Date: Thursday Feb-16-2012 14:40:31 PST Buy It Now for only: US $150.95 Buy it now | Add to watch list |
Do Your Own Self-Directed Pension Plan Hubert Franz-Josef Bromma
 | US $68.43 End Date: Saturday Feb-18-2012 13:10:37 PST Buy It Now for only: US $68.43 Buy it now | Add to watch list |
Categories: Pension Plans Tags: Comprehensive, Guide, Improv, Managing, Pension, Plans
Agecroft Predicts US Public Pension Funds to Increase Allocation to Hedge Funds at Greater Rate than Corporate Pension Plans
Richmond, VA (PRWEB) May 4, 2010
Agecroft Partners predicts that United States public pension funds will increase their allocation to hedge funds at faster rate than corporate pension plans due to sweeping new corporate pension legislation that is just beginning to take hold in the industry. The new legislation does not directly impact public pension funds. Corporate pension fund allocations have historically targeted a higher risk and return profile than public pension funds, but that may be changing due to the passage of the 2006 Pension Protection Act that became effective in 2008. This was the most dramatic pension legislation in the US since the passage of ERISA back in the early 1970s and the legislation will have major implications for corporate pension funds asset allocation, the structure of corporate pension plans and the retirement burden on society.
Historically a vast majority of defined benefit pension funds used a static discounts rate of approximately 7.5% to 8% to determine the present value of their future liabilities. By keeping the discount rate constant year after year and by amortizing unfunded liabilities over a 20 to 30 year period, it allowed for a fairly consistent required contribution to a defined benefit plan on an annual basis. In order for the pension fund to achieve investment returns equal to the discount rate, pension funds used modern portfolio theory to constructed diversified portfolios along the efficient frontier which allowed them to maximize return for a targeted level of volatility. Over the years, this efficient frontier was enhanced as more asset classes were utilized and through the adoption of alternative investments within their portfolios. Over long periods of time, this investment strategy was effective at reaching their return objectives. In addition, this strategy of maximizing long term returns had reduced the long term cost of funding these defined benefit plans.
The new extensive and complex pension legislation includes two provisions which will alter how many corporate pension fund assets are managed. The first provision effects how companies determine the present value of the future liability stream, which includes many variables, but is dominated by the discount rate. The new regulation states that the discount rate will be derived from a “yield curve” of investment-grade corporate bonds averaged over the most recent 24 months, which is updated on an annual basis. This has had major implications for corporate defined benefit plans. The average discount rate to calculate future unfunded liabilities has been significantly reduced from what corporations have used historically. This has caused their unfunded liability to increase significantly. It has also added significant variability to future pension fund contributions because of the unpredictability of future discount rates. The second provision reduced the time period that corporations could amortize these liabilities from 20 to 30 years down to half that time period. The effect of combining these two provisions has been to significantly increase annual funding for many plans over previous levels at a time when many corporations can least afford to incur additional liabilities.
As a result, many corporate defined benefit plans are moving away from maximizing return by utilizing the efficient frontier strategy of portfolio construction to a liability matching strategy for their portfolio which features a significant increase in their allocation to long duration fixed income securities in order to reduce the variability of annual contributions. Agecroft Partners believes that this increased allocation to long duration fixed income will be funded primarily through a reduction in corporate pension funds allocation to shorter duration fixed income and long only equity managers. Some of the more sophisticated corporate plans might match the duration of their assets to liabilities through the derivative markets which will allow them to continue to manage the underlying portfolio on a total return basis.
Unfortunately, this duration matching strategy for US corporate pension funds will reduce the long term expected returns of their portfolios from the 7.5% to 8% range down to 5% to 6.5% which will significantly increase the expense of these plans. This increased expense will enhance the speed of corporations terminating or freezing their defined benefit plans and replacing them with 401k plans. The problem with 401k plans is that they typically do not provide a large enough lump sum distribution to provide for retirement. Additionally, the average retiree lacks the discipline to spend these assets over their expected life span. The end result may very well be that many individuals will run out of their retirement savings and rely on government program for their retirement needs. Another unfortunate aspect of this new legislation is that many corporations are locking in long duration fixed income portfolios while interest rates are at their lowest point in decades. If the massive government deficient creates inflation causing interest rates to spike these long duration portfolio could lose a significant percent of their value.
Public pension funds will not be affected by this legislation and will have no incentive to move away from the efficient frontier structure of investing. Given most state and local government’s shaky budgets and large unfunded liabilities they need to maximize their investment returns on their portfolios in order to reduce the financial burden on their constituencies. As a result of this we will see a significant divergence between the asset allocations of corporate and public pension funds. The current hedge fund allocation by US pension funds to hedge funds is approximately 3% of their portfolios which is up substantial from a decade ago when it stood at less then 1%. Public pension funds will steadily increase their allocation to alternative investments over the next decade, where hedge funds may represent as much as 20% of their portfolio while corporations will also increase their alternative portfolio, but at a slower rate due to their growing allocation to longer duration fixed income.
# # #
Categories: Pension Protection Act Tags: Agecroft, Allocation, Corporate, Funds, Greater, Hedge, Increase, Pension, Plans, Predicts, public, Rate, than
Managing Pension and Retirement Plans: A Guide for Employers, Administrators, and Other Fiduciaries
Managing Pension and Retirement Plans: A Guide for Employers, Administrators, and Other Fiduciaries
As the U.S. Population ages, retirement is becoming an increasingly important life stage. Pension and retirement plans are crucial to the financial well-being of older citizens and key determinants of their standard of living. Many varieties of pension plans are currently offered, and employers have an interest in these plans because a good pension plan can help an employer attract, retain, and motivate a competent workforce. In some cases, the employer’s financial health can depend significan
List Price: $ 195.00
Price:
Categories: Pension Plans Tags: Administrators, Employers, Fiduciaries, Guide, Managing, Pension, Plans, Retirement
Managing Pension and Retirement Plans: A Guide for Empl
Complete Idiot's Guide 401(K) Retirement Pension Plans
 | US $3.95 End Date: Tuesday Feb-21-2012 9:58:38 PST Buy It Now for only: US $3.95 Buy it now | Add to watch list |
NEW Managing Pension and Retirement Plans: A Guide f...
 | US $205.80 End Date: Monday Feb-27-2012 13:39:53 PST Buy It Now for only: US $205.80 Buy it now | Add to watch list |
New pension plan sweeps California,Los Angeles,bus,retirement pension,1938,CA
 | US $8.99 End Date: Tuesday Mar-06-2012 15:54:27 PST Buy It Now for only: US $8.99 Buy it now | Add to watch list |
Categories: Retirement Pension Plan Tags: Empl, Guide, Managing, Pension, Plans, Retirement
Greenspan Social Security Plans Could Worsen American Retirement Crisis
Greenspan Social Security Plans Could Worsen American Retirement Crisis
HOUSTON, TEXAS (PRWEB) February 27, 2004
Alan Greenspan has proposed retirement benefit reductions to avert a fiscal crisis in America’s Social Security system. America’s retirement system, already drowning in debt and operating with record deficits, is the primary funding source for many retirees. According to retirement planning expert and CPA Jim Trippon, “Greenspan’s cure may be worse than the disease.”
Trippon, who recently completed a multi-year study of American retiree’s, states “Our research found that “21% of people who retired in the past five years have been forced back into the workplace because of inadequate finances.” Trippon offers information on his study and a free subscription to his on-line newsletter at his website www.stayrichforever.com
Trippon believes, “The idea of cutting benefits to a group already in financial crisis makes no sense when there are better alternatives such as reversing the recent millionaire tax cuts which contributed heavily to our new deficits.” Trippon points out that “just last year Congress cut tax rates on the dividends millionaires receive by 60%.” He predicts “Social Security benefit reductions will continue to be a red-hot issue throughout this years election cycle.”
It is well documented that most Americans reach retirement age with little in savings to fall back on. This is why any cut in future Social Security benefits could prove devastating. Trippon found that in spite of the fact that most Americans reach retirement with limited financial resources, about 3% of the population retires as self-made millionaires.
Trippon, the author of the bestselling book “How Millionaires Stay Rich Forever” spent three years interviewing hundreds of retired millionaires and documenting their secrets to avoiding what Trippon calls the “American Retirement Nightmare.”
Jim Trippon is available for interviews. For booking information contact Sarah Choi at 713-661-3806 or Trippon at 713-661-1040.
Publication Data: How Millionaires Stay Rich Forever: Retirement Planning Secrets of Millionaires and How They Can Work For You by Jim Trippon, CPA; Published by Bretton Woods Press LLC and distributed by Midpoint Trade Books; February 2004; 254 pages; $ 21.95; 6 x 9 Hard Cover – Cloth; ISBN: 0-9723389-1-8
# # #
Attachments
©Copyright 1997-2010, Vocus PRW Holdings, LLC.
Vocus, PRWeb and Publicity Wire are trademarks or registered trademarks of Vocus, Inc. or Vocus PRW Holdings, LLC.
Categories: Social Security News Tags: American, could, Crisis, Greenspan, Plans, Retirement, Security, Social, Worsen
India?S Best Pension Plans
India?S Best Pension Plans
Pension means “a fixed sum paid regularly, especially to a person retired from work.” Pension Plans are Individual Plans that gaze into your future and foresee financial stability during your old age. In India a person’s gets two types of retirement plan: immediate annuities and deferred annuities. Choose best pension plans for your retirement day. Mostly pension plans choose by non-government employee, because after retirement they do not get pension from company. These policies are most suited for senior citizens and those planning a secure future, so that you never give up on the best things in life.
Best pension plans offered by insurance companies. A pension plan or an annuity is an investment that is made either in a single lump sum payment or through installments paid over a certain number of years, in return for a specific sum that is received every year, every half-year or every month, either for life or for a fixed number of years. A person putting money in an instant annuity is assured of a regular payment from the insurance company. This payment can be monthly, quarterly, half-yearly or annually, depending upon the way the individual taking the policy wants it to be structured. Immediate annuity thus ensures that the policyholder gets a regular pension.
Pension plans are perfect investment gadget for a person who after retiring from service has received a large sum as superannuation benefit. One can pay for a pension plan either through an annuity or through installments that are annual in most cases.
Pension plans provides 100% of coverage in case of death due to accident; loss of more than one limb or sight in both the eyes or in case of loss of one limb and loss of sight in one eye; 50% coverage in case of loss of one limb or sight in one eye. It provides a cover in the event of life insured being diagnosed as suffering from any of four illnesses specified under the Critical Illness Rider.
LIC Jeevan suraksha:
annuity payable for remainder of life
annuity payable for life with guaranteed period of 5, 10, 15 or 20 years
Joint life and last survivor annuity to the annuitant and his/ her spouse under which annuity payable to the spouse on death of the purchaser will be 50% of that payable to the annuitant
Life annuity with a return of purchase price on death of the annuitant
Life annuity increasing at a simple rate of 3% per annum,
ICICI life pension plan stage:
This plan invests 100% of your money in the portfolio of your choice.
min – max entry age 18-70 yr
max cover ceasing age:- 80 yr
min premium :- 15k p/a .
Article from articlesbase.com
Categories: Social Security News Tags: Best, IndiaS, Pension, Plans
India?S Best Pension Plans
India?S Best Pension Plans
Pension means “a fixed sum paid regularly, especially to a person retired from work.” Pension Plans are Individual Plans that gaze into your future and foresee financial stability during your old age. In India a person’s gets two types of retirement plan: immediate annuities and deferred annuities. Choose best pension plans for your retirement day. Mostly pension plans choose by non-government employee, because after retirement they do not get pension from company. These policies are most suited for senior citizens and those planning a secure future, so that you never give up on the best things in life.
Best pension plans offered by insurance companies. A pension plan or an annuity is an investment that is made either in a single lump sum payment or through installments paid over a certain number of years, in return for a specific sum that is received every year, every half-year or every month, either for life or for a fixed number of years. A person putting money in an instant annuity is assured of a regular payment from the insurance company. This payment can be monthly, quarterly, half-yearly or annually, depending upon the way the individual taking the policy wants it to be structured. Immediate annuity thus ensures that the policyholder gets a regular pension.
Pension plans are perfect investment gadget for a person who after retiring from service has received a large sum as superannuation benefit. One can pay for a pension plan either through an annuity or through installments that are annual in most cases.
Pension plans provides 100% of coverage in case of death due to accident; loss of more than one limb or sight in both the eyes or in case of loss of one limb and loss of sight in one eye; 50% coverage in case of loss of one limb or sight in one eye. It provides a cover in the event of life insured being diagnosed as suffering from any of four illnesses specified under the Critical Illness Rider.
LIC Jeevan suraksha:
annuity payable for remainder of life
annuity payable for life with guaranteed period of 5, 10, 15 or 20 years
Joint life and last survivor annuity to the annuitant and his/ her spouse under which annuity payable to the spouse on death of the purchaser will be 50% of that payable to the annuitant
Life annuity with a return of purchase price on death of the annuitant
Life annuity increasing at a simple rate of 3% per annum,
ICICI life pension plan stage:
This plan invests 100% of your money in the portfolio of your choice.
min – max entry age 18-70 yr
max cover ceasing age:- 80 yr
min premium :- 15k p/a .
Article from articlesbase.com
Categories: Pension Plans Tags: Best, IndiaS, Pension, Plans