This week Jim and John look at the various retirement pension plans and their complexities. Jim notes that 401k’s have essentially replaced the defined benefit plan in America. They contrast the various plans when one might be more appropriate than another in different circumstances, and discuss the tax planning considerations as well. Tax laws are complex, and a moving target as well. Despite the complexity of the various plans, Jim notes that the earlier you start investing in them, the better off you are. In addition, it is wise not to rely on a single strategy. Jim uses the case study of Larry and Angie Gillis to illustrate these important concepts.
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