Atessa Benefits

Why Do Companies Keep Traditional Pension Plans?

Only 20% of companies maintain traditional defined benefit pension plans (“DB Plans”). More than 40% of companies provided these DB plans 20 years ago. Outlined below are the main reasons why companies continue to sponsor these plans at all:

1. DB Plans are the best retirement plan for employees. Employers who really care about their [...]

Financial Literacy Education

Retirement decisions affect how we will live for the last third of our life. A firm foundation in reading and mathematics is essential for providing us with the tools that we need to make sound financial decisions later. Deciding to invest in higher education is one of the most important decisions of our lives and [...]

Retiring Broke and Knowing What to Do About It

The majority of people still working today will retire without a traditional (defined benefit) pension plan. Some of them will have substantial balances in 401(k), 403(b), or other personal savings, but most of them will not. Most people will have the promise of Social Security, home equity (which may well recover a lot of its [...]

How much do you need to save for retirement? … It depends!

A new study from the Center for Retirement Research at Boston College concludes that retirement security depends more on the things we can control than on the things we can’t control, like investment returns. The most important things we can control are when we start saving, how much we save and when we retire. The [...]

Get your retirement house in order

Kenneth B. Petersen is an investment adviser and principal of Monterey Private Wealth Inc. in Monterey. He points out 10 financial planning necessities below. While I agree with Kenneth on each of these points, I have added my own comments at the bottom of each of the first 8 points.

1. Have a personal investment [...]

Do you have the right actuary?

Actuaries are educated and trained to analyze risks and determine the financial consequences of these risks. In the case of defined benefit pension plans, they are trained and have experience in the area of retirement risks such as:

• What is the promised benefit stream (amount and duration) for the expected lifetime of the plan?

DOL Issues Rule On Personalized Advice For 401(k)s, IRAs

In yesterday’s Blog I was pointing out the lack of education that 401(k) sponsors (especially small employers) are giving their employees. Today The U.S. Department of Labor (“DOL”) issued a rule to expand access to personalized investment advice for workers in retirement savings plans, Assistant Secretary of Labor Phyllis Borzi said. This is a big [...]

How Will You Take Distributions From Your Retirement Account?

I am very fortunate and grateful to have lived in a generation where I will retire with a combination of several defined benefit pensions, lifetime retiree medical benefits, Social Security and other investment savings. Unfortunately, this is becoming less common each year. Almost all future individuals will eventually have to rely solely on their savings, [...]

Retirement Expense Target

Budgeting is an important component of financial planning and helps you to determine the lifestyle you can afford. Planning without a budget is like driving by always looking in the rear view mirror. It is an accident waiting to happen. You need a Retirement Expense Target to show you where you are going.

A Retirement [...]

Nearing retirement? Is it time to de-risk your investments?

Americans can no longer subscribe to the buy, hold and pray mentality that currently dominates 401(k) investing, especially as they approach retirement. There are no dress rehearsals when it comes to retirement … it has to be right the first time.
I believe that retirees need to de-risk their investments in an orderly fashion [...]