#defined-benefit

“Law of the letter” (August 8th) reported on the state of the United States Postal Service and highlighted a simple truth about financial transparency: the cost of defined-benefit retirement plans for public-sector workers is unknowable. Costs generally exceed forecasts and returns generally lag behind them, so initial estimates are often too low. Since defined-benefit plans kick the can of the liability into the future, the full cost of funding those pensions becomes someone else’s problem.

Defined-contribution plans, however, make the cost transparent today. Understanding true costs will help public-sector organisations like the post office price their services better to promote a sustainable business model.

MPs are set for cut backs on their “generous” defined benefit pension plans.

MPs are set for cut backs on their “generous” defined benefit pension plans.

No longer can is it as easy as adding together with your Social Security, savings, and defined-benefit pension should pay you every month.  But after the tech bust in 2000 and the financial collapse of 2008, what do you really have left?  This New York Times article give you some tips on how to calculate your retirement income, and we can help too!

Read More: http://www.nytimes.com/2012/05/10/business/retirementspecial/calculating-your-readiness-to-retire-financially-and-otherwise.html

How CMA may be able to help you: Our investment professionals can help you to maximize your income during retirement regardless of the source.  Using our approach of Retirement Income Analysis, we will analyze all the sources of your retirement savings and help you with ways to increase or more effectively utilized them.

  Contact Us today to see how we may be able to help you.

Capital Management Advisors does not provide tax or legal advice.  Tax and legal information on this website is general in nature and due to the ongoing changes in these areas, we advise that you seek professional advice before acting upon any of the information that you read on this website.

 

This article was originally posted on The New York Times (nytimes.com) by an author unaffiliated with Capital Management Advisors, Inc. As a part of our effort to disseminate important relevant information to our clients, we frequently post articles from other sites on topics of interest. The information posted in this article does not necessarily reflect the views of our firm.  Capital Management Advisors, Inc. is a subsidiary of Consolidated Capital Management.  Please see out Disclosures page for more information.