The 4% rule for withdrawals in retirement is a guideline that suggests that you can withdraw 4% of your retirement savings each year without running out of money. This rule assumes that you will invest in a diversified portfolio of stocks and bonds and that you will adjust your withdrawals for inflation. The 4% rule … Read more
Steps, Stages, and What to Consider. What Is Retirement Planning? There are many things to consider when planning for retirement. Here are some steps and stages to help you plan your retirement. Why is retirement planning important? Retirement planning is important for a number of reasons. First, it can help ensure that you have enough … Read more
A nest egg is a sum of money that is set aside to be used for a specific purpose, typically for retirement. The term “nest egg” is often used to describe the money that someone has saved for retirement. For many people, their nest egg is the most important asset they have. It is important … Read more
A top hat plan is a retirement plan that is established and maintained by an employer for the exclusive benefit of a select group of management or highly compensated employees. The employer contributions to a top hat plan are not subject to the same limitations as other retirement plans, such as 401(k)s. As a result, … Read more
A supplemental executive retirement plan (SERP) is a retirement plan that provides benefits in addition to those offered by a company’s regular retirement plan. SERPs are often used to attract and retain top executives by providing them with enhanced retirement benefits. Who is eligible for special retirement supplement? The special retirement supplement (SRS) is a … Read more
The term “pay yourself first” is a financial planning mantra that advocates building up one’s savings and investment accounts before making any other major financial commitments. The logic behind this approach is that by saving and investing first, you will be less likely to spend money on unnecessary things. Additionally, by paying yourself first, you … Read more
What Is an Employee Stock Ownership Plan (ESOP)? An employee stock ownership plan (ESOP) is a retirement plan that provides employees with an ownership stake in the company they work for. Employees typically acquire these shares over time, and they receive them when they retire or leave the company. ESOPs have a number of advantages, … Read more
A qualified automatic contribution arrangement (QACA) is a workplace retirement savings plan that automatically enrolls employees and makes regular contributions on their behalf. Employees can opt out of the plan if they wish, but most do not. The contributions are made to a 401(k), 403(b), or 457 plan, and are invested in a variety of … Read more
The term “retirement readiness” refers to the state of being prepared to retire. This includes having enough saved up in retirement accounts, having a plan for how to withdraw money from those accounts, and having a plan for how to live on a fixed income. What are the five stages of retirement? The five stages … Read more
FIRE Explained: How It Works Financial Independence, Retire Early (FIRE) is a movement that is gaining popularity among people who want to retire early. The FIRE movement is based on the premise that by saving a large percentage of their income and investing it wisely, people can retire much earlier than the traditional age of … Read more
