With respect to investments, the first task of the corporate sponsor is to set return objectives and broad definitions of characteristics for the investment portfolio that receives the corporate contribution. Setting investment objectives by the corporation for the investment manager or managers was not always considered an important function of the corporate sponsor; objective setting frequently was left to the discretion of the investment manager. However, as funds have grown in size, setting investment objectives has assumed increased importance; written objectives are prepared and then reviewed at regular intervals. Unfortunately, objectives often are stated in very vague terms, such as obtaining the maximum return consistent with prudence. Nevertheless, this problem is getting increased attention, and more specific directions may be expected in the future. (more…)

In December 2002, the U.S. Treasury Department issued some long-awaited guidance to employers about cash balance plans. These proposed regulations, issued under Internal Revenue Code Section 411 (b)(1)(H), prohibit age discrimination employment in benefit accruals and are fairly comprehensive in nature. Although a public hearing on the regulations was held in April 2003, the rules are not yet final as this article goes to press.

In essence, the regulations generally indicate that a company cannot directly or indirectly affect a participant’s benefit accrual based on age. (more…)

If we boil things down to a simple two-part equation, retirement planning is all about managing inflows (income) during your earning years and outflows (expenses) during your retirement years. Of course, retirement means different things to different people at different points in their lives. Rather than a static state, retirement is a dynamic state, changing with life events, financial events, and even your own education as you learn more about concepts and products. The more information you absorb, the more comfortable you feel in being an active participant in the retirement planning process. Your plan for accumulating assets for retirement has to take all of this into account and be flexible enough to adapt to all kinds of changes. (more…)

Older workers of today are healthier, better educated, more highly skilled, and a larger proportion of the labor market than in any previous era. Yet, many employers continue to view older workers through a lens distorted by negative stereotypes that developed during the early days of the industrialization process. High rates of unemployment and a sense that human capital, developed in early adulthood, should be sufficient to see workers through their careers made “shedding” older workers a seemingly affordable solution. The long-term costs of that “solution” are now being realized, not only in terms of the pension liabilities that encumber the finances of firms, but also in terms of the organizational loss that occurs when senior workers disappear. (more…)

The day has finally arrived, you have work for years and now you have to decide if it is the time for an early departure from your company, or continue to work for a few years. The advantages and disadvantages of early retirement are quite simple to understand, to the disappointment of many people. Early retirement advantages are quite simple: you can stop working! The disadvantages or cons of early retirements are a bit more complicated. (more…)

Contact your local agency on aging for a list of senior residences in your area. You may know friends or relatives who live in senior housing. If so, ask them about the place they live and visit them there. You can also use your local phone book to compile a list of nearby senior residences. (more…)

The thought of retire early may be an illusion for some and a punishment for others. Everything is, as the saying goes, depending on how you look at it. First, is it the decision whether retirement is voluntary or forced? Often when companies offer their employee early retirement is not really such an offer since the other option is to be fired. (more…)

For as long as man has left any record of his hopes and aspirations he has expressed his desire for a long life. But as people live longer and more and more of them retire from work what is their potential for living a good life? Can the retirement years be as satisfying as the working years? This is the question facing millions of Americans, and it may be the question which prompted you to take part in a retirement preparation program. (more…)

After I retired, the most often asked questions from friends, former colleagues and even family usually were concerned with how I was spending my “spare time”. It seemed important to the questioners that I was doing something to occupy this new-found non-working time. So I found myself reciting long lists of things I did to fill my spare time, and my most common answer always included an assurance that I was really busy and didn’t have a lot of free time. The truth of it was, I had plenty of free time on my hands, but somehow I was uncomfortable saying so. (more…)

For many people what to do after retirement is a dilemma…make sure you have a plan beforehand.

How many times have you heard…She worked hard all her life and died the year she retired. That sadly can happen to anyone. You have a better chance of having a long, happy retirement if you plan and set goals for things you want to accomplish. (more…)