Benefits of a Pension plan

May 16, 2008

  1. jeffery_scott76
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    jeffery_scott76 Expert

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    Could anyone of you get me a brief about the benefits of a Pension plan over the WL plans?

    Regards,
    Jeff
     
  2. LGilmore
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    LGilmore Guru

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    brief... both could be considered part of a comprehensive financial plan that might also include real estate, disability coverage, nonqualified investments, collectables and any other item that has a potential market value.
     
    LGilmore, May 19, 2008
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  3. slushhhpuppie
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    slushhhpuppie Super Genius

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    Briefly... you can stash more income pre-tax using a pension plan.

    Using an age-weighted defined benefit plan with a 401(k) safe-harbor "carve-out" component, I've had clients making $500,000 put away 50% of their income away for retirement. The typical client in this income range will save between $25-35,000 in federal taxes in the first year alone.

    The costs are considerably more than a WL plan. Typically, between 100-150bp advisory fee and the TPA's retainer/fee to write, maintain and keep the plan IRS compliant.
     
  4. Mr. Bill
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    Mr. Bill Guru

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    Again, I fail to see why anyone bothers responding to his questions.
     
    Mr. Bill, May 20, 2008
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  5. slushhhpuppie
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    slushhhpuppie Super Genius

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    Seriously!
     
  6. Mr. Bill
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    Mr. Bill Guru

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    I'm just waiting for "What's a TPA?" which I expect will pop up in about a month...
     
    Mr. Bill, May 21, 2008
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  7. retread
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    retread Guru

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    I agree with you, Bill. This question doesn't even make sense. I have tried to answer some of his questions in other posts thinking it may help others even if it went over his head, but I think this guy is nuts.

    I vote to have him banned from the agent site. His questions betray a complete lack of insurance basics, so he must not be licensed.
     
    retread, May 21, 2008
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