Defined Benefit Plans are typically the most complex and expensive plans to administer out of all the types we have discussed in this section. They are designed to provide a certain predetermined benefit to employees when they retire, like a pension plan. Annual...
When it comes to auto insurance, liability limits are the biggest priority. I normally recommend the highest available liability limits, which are typically $250,000/500,000/100,000, and the highest available deductible, which is usually $1,000. If your liability...
An annuity is a unique type of retirement account provided by an insurance company which gives certain guarantees and tax benefits. You can deposit money into an annuity over time or as a lump sum, and the insurance company agrees to make guaranteed periodic payments...
This is a common type of employer-provided retirement plan, especially among large corporations, but it can be set up for any size of company. It is named after subsection 401(k) of the Internal Revenue Code. In 2015 and 2016, the most an employee can contribute is...
SEP stands for “Simplified Employee Pension.” These are popular among high-income self-employed professionals such as doctors or dentists with no employees or only a few employees. As the owner of your company, you can contribute up to 25% of your income, up to a...
Timeless Principles of Financial Security by Adam Dawson, CFP® We put this book at the top of our recommended list because, well, one of our advisors wrote it! This is not your typical financial book. It’s full of real-life stories, including many of Adam Dawson’s own...
SIMPLE stands for “Savings Incentive Match Plan for Employees.” These are popular among small businesses with less than 100 employees because they provide many of the benefits of conventional retirement plans like 401(k)s, but are much simpler and less expensive to...
In order to encourage people to take responsibility for their own retirement savings, the U.S. government has created several types of retirement accounts which provide significant tax benefits if you abide by the strict rules they have imposed on these accounts....
A profit sharing plan is a type of retirement or bonus plan that lets large and small employers share profits with their employees. It's an excellent way to reward employees for a profitable year or quarter, and contributions are tax-deductible. Profit sharing plans...
What is an umbrella? It covers any personal liability that exceeds the limits of auto and homeowners insurance policies. It also covers other types of personal liability, such as libel or slander, but does not cover business-related activities. Coverage options range...