Comments for PensionsGroup.net

Comment on How important are pension funds to the American citizenry? by WHAT?

WHAT? — Sun, 18 Jul 2010 20:11:28 +0000

Pension funds are as important to all portfolios. As important as a promise, as social security, and as retirement investments.

Comment on Why should a employer offer a pension plan? by fcas80

fcas80 — Wed, 14 Jul 2010 15:17:58 +0000

Defined benefit pension plans are no longer in vogue. Once the employer promises a certain level of pension benefits, the employer retains the risk if the pension plan is not sufficiently funded, for example if investment returns are worse than expected.

Nowadays it is more common for an employer to offer a defined contribution plan: the employer promises to make a certain contribution, but it is no longer the employer’s risk if the plan is not sufficiently funded for a decent pension.

Comment on Are monthly pension payments better than a partial lump sum amount? by John the Actuary

John the Actuary — Mon, 12 Jul 2010 10:28:43 +0000

Seems like the choice is, fundamentally, whether or not to trade $600/month increasing 2% per year for life or take a $100,000 check right now.

These look to be about actuarially equivalent and the $100,000 appears to include the value of the 2% COLA.

As a result, you should not be concerned with whether or not this is a "fair" deal. Instead consider the other risk issues that could be important to you:

1. Outliving income: the lump sum is based on average life expectancies; Are you healthier or sicker than average. If healthier you’ll want to maximize the life income, lean toward the annuity. If sicker you’ll want the cash as fast as possible, lean toward the lump sum.

2. Spouse’s health/investment knowledge: How important is it to have an income for your spouse after you pass. Will he or she be more comfortable with a monthly income or a large IRA account balance?

3. Risk tolerance in retirement: Are you going to be fully invested in stocks at retirement. Or are you going to set up a balanced portfolio (some stocks/some bonds)? Need to set you return expectations accordingly. 8-10% returns may be right for an all stock portfolio but can you stand a -10% return year for this money? If you blend in bonds, how does that dilute your return?

4. Are there dreams you want to fulfill in the early years of retirement? Lump sum could be helpful funding those: a boat?, a trip around the world?

Comment on Am I entitled to any $$ from my husband's pension funds after divorce? by wendy c

wendy c — Sat, 10 Jul 2010 10:24:03 +0000

?? even if they have ’similiar’ laws or community property, there are still specifics as to where you can file, based on residence requirements. And I have no clue as to how that works, when both parties do not live in the same state. I would have to say that you filing would HAVE to be in CA, and by CA law.
In terms of being entitled to part of the pension.. I was married for over 20 yrs, and I think that was the minimum time by which I had legal claim on that. I did live in CA, and for most of the marriage, was not employed. Of course, I knew that he was a federal employee and has a retirement/ pension. Again, since you live apart, and I don’t know how long.. all that will come into the mix.
I believe many people can handle things themselves, with some good research, AS LONG AS THINGS ARE SIMPLE. Sure does not sound simple, for your case. I honestly think that you would risk losing a lot, if a lawyer didn’t go over all of this with you.

Comment on Is this a good summary of John Toland's, "Adolf Hitler"? by Darth Vader

Darth Vader — Thu, 08 Jul 2010 10:24:31 +0000

yes, the end could be a bit more detailed but other than that, its good.

Comment on Do You Realize Congress Is Bailing Out AIG To Save Their Own Pension Funds? by Freedom Option!

Freedom Option! — Thu, 08 Jul 2010 05:38:05 +0000

ah HAH!

Comment on We have emigrated from the uk to new zealand are we entitled to transfer the state pension? by johno

johno — Tue, 06 Jul 2010 00:48:49 +0000

Your best bet is to talk to a pension transfer expert. There are a couple of links below to start you off.

However, my understanding is that the State pension can’t be cashed in. It can only be deferred.

The New Zealand and UK governments have reciprocal state pension plans. Essentially, you are entitled to a full New Zealand State pension at retirement age by virtue of your residence in the UK and here in New Zealand. However, in order to collect it you have to hand over your UK pension to the NZ government or you can collect your UK pension and, if at the time you collect your pension, the UK pension is lower than the NZ pension then you can claim the shortfall from the NZ government. That is to say the NZ government ‘tops up’ your UK pension thereby guaranteeing that you receive the full value of the NZ state pension regardless of the value of the UK pension. Fortunately, if the UK pension is greater than the NZ pension you are not required to pay the excess back to the NZ government.

Anyway, the above is my understanding from having a parent involved in the process. My original advice holds good. Go to an expert who will be able to give you the definitive answer to your question. Equally, make sure you use an expert to transfer your private pension because the tax rules here can catch you out if you are not very careful.

Comment on Would you want Bernie Madoff to handle your retirement fund or pension? by AHHHH!!!

AHHHH!!! — Sun, 04 Jul 2010 05:37:47 +0000

Of course not…you might as well say would you like to give away your retirement fund or pension?

Comment on how has the rise of pension and mutual funds affected the traditional banking sector? by Brennus

Brennus — Fri, 02 Jul 2010 00:50:55 +0000

It sounds like the silent but deadly movement of rates’ shallow and dark interests are collaborating the bank’s cruel unusual traditions. What am I to do?

Comment on Pension funds, I requested fund from my pension plan over 4 months ago and still have not recieved them? by Judy

Judy — Wed, 30 Jun 2010 00:52:04 +0000

Pension or a 401K?
Keep after it – send a certified letter requesting your funds to your home.
This will help you in the future in case you decide to take legal action.
Get that letter typed tonight.
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