A pension (defined benefit plan) promises a specific monthly payment for life based on years of service and final salary. Contrast with defined contribution plans (401(k), 403(b)) where the balance is what you get.
Pensions are becoming rare in the private sector but remain common in government, education, and some legacy corporations. The biggest pension decision you'll ever make is lump sum vs lifetime monthly — and the right answer depends on interest rates, longevity, spousal needs, and trust in the plan sponsor.
An annuity is an insurance contract where you pay a lump sum or premiums and receive guaranteed income — either immediately or starting at a…
A 401(k) is an employer-sponsored retirement plan that lets employees defer pre-tax (or Roth) salary into an investment account. Most employ…
A withdrawal strategy defines how much you pull from your portfolio each year in retirement and how you adjust for market performance, infla…