A lifelong learning plan is a document that outlines an individual’s plans for continuing their education throughout their life. This may include plans for taking courses, attending workshops, or other forms of learning. The purpose of a lifelong learning plan is to help individuals stay current in their field, learn new skills, and keep up … Read more
An automatic rollover is a retirement plan feature that allows participants to automatically rollover their retirement savings from one plan to another. This feature is often used when an employee changes jobs and wants to move their retirement savings to a new employer’s plan. Automatic rollovers can also be used to move retirement savings from … Read more
A systematic withdrawal plan (SWP) allows investors to receive regular payments from their investment portfolio. The payments are typically made on a monthly or quarterly basis, and the amount of each payment is determined by the investor’s investment goals and objectives. There are two main types of systematic withdrawal plans: those that are designed to … Read more
The American Association of Retired Persons (AARP) is a nonprofit membership organization for people aged 50 and over. The organization offers a wide range of benefits and services, including discounts on travel, insurance, and other products and services. AARP also advocates on behalf of older Americans on issues such as Social Security, Medicare, and long-term … Read more
Forced retirement is when an individual is made to retire against their will, typically due to age discrimination. This can happen when an employer enacts a mandatory retirement policy, or when an employee is constructively dismissed due to their age. Forced retirement can have a negative impact on an individual’s financial security, as they may … Read more
Sequence risk is the risk that the order in which investment returns are received will affect the overall outcome. It is a type of investment risk that is often overlooked, but can have a significant impact on portfolio performance. For example, imagine two investors who each have a portfolio of $100,000. Investor A experiences 10% … Read more
Recharacterization is a tax-planning strategy used by investors to change the type of an investment account from one that is taxed at a higher rate to one that is taxed at a lower rate. For example, an investor could recharacterize a traditional IRA into a Roth IRA. The recharacterization must be done within a certain … Read more
An “active participant status” is a designation given to an employee who is actively contributing to a retirement plan. This status is important because it determines whether an employee is eligible to receive certain benefits, such as a 401(k) match from their employer. In order to maintain active participant status, an employee must usually make … Read more
A distribution in kind is a type of distribution from a retirement account in which the account holder receives the assets in the account in the form of physical assets, rather than in cash. This type of distribution can be used to diversify one’s holdings or to avoid having to pay taxes on the account. … Read more
A 408(k) plan is a type of retirement savings plan that is sponsored by an employer. It is similar to a 401(k) plan, but there are some key differences. Contributions to a 408(k) plan are made pre-tax, which means that they are not subject to income taxes. This can help to reduce your overall tax … Read more
