The Mind Money Spectrum Podcast

#78. It's not just for executives anymore. Uncover how you too can shelter over $100k a year.

June 08, 2021 Aaron Agte and Trishul Patel Season 2 Episode 26
The Mind Money Spectrum Podcast
#78. It's not just for executives anymore. Uncover how you too can shelter over $100k a year.
Chapters
The Mind Money Spectrum Podcast
#78. It's not just for executives anymore. Uncover how you too can shelter over $100k a year.
Jun 08, 2021 Season 2 Episode 26
Aaron Agte and Trishul Patel

With modern administration measures, pension plans can be an executive's dream come true.

In this episode, Aaron and Trishul discuss the other type of retirement plans, defined benefit plans AKA pensions. They start with the history of pensions and the emergence of ERISA. By calculating the benefit based on age and income, employers can fund significantly more on a pre-tax basis than defined contribution plans such as 401k's. They discuss the cons during the accumulation phase and the pros during the distribution phase. By understanding the math, both employees and employers can make better decisions related to pensions.

Episode References

History of the Pension
What is an ERISA Bond?
IRS: Defined Benefit Plan
Investopedia: Defined Benefit Plan
Unfunded Pension Plan
Qualified vs Non-Qualified Benefit Plans

Podcast Description

Welcome to The Mind Money Spectrum Podcast where your hosts Aaron Agte and Trishul Patel go beyond traditional finance questions to help you explore how to use your money to achieve the freedom you want in life. Aaron is a Financial Planner from the Bay Area, and Trishul is a Wealth Manager on the East Coast. For more information about Aaron, check out GraystoneAdvisor.com. And for more information on Trishul check out InvestingForever.com. We thank you all for listening, and stay tuned for our latest episode on our website, MindMoneySpectrum.com.

Show Notes

With modern administration measures, pension plans can be an executive's dream come true.

In this episode, Aaron and Trishul discuss the other type of retirement plans, defined benefit plans AKA pensions. They start with the history of pensions and the emergence of ERISA. By calculating the benefit based on age and income, employers can fund significantly more on a pre-tax basis than defined contribution plans such as 401k's. They discuss the cons during the accumulation phase and the pros during the distribution phase. By understanding the math, both employees and employers can make better decisions related to pensions.

Episode References

History of the Pension
What is an ERISA Bond?
IRS: Defined Benefit Plan
Investopedia: Defined Benefit Plan
Unfunded Pension Plan
Qualified vs Non-Qualified Benefit Plans

Podcast Description

Welcome to The Mind Money Spectrum Podcast where your hosts Aaron Agte and Trishul Patel go beyond traditional finance questions to help you explore how to use your money to achieve the freedom you want in life. Aaron is a Financial Planner from the Bay Area, and Trishul is a Wealth Manager on the East Coast. For more information about Aaron, check out GraystoneAdvisor.com. And for more information on Trishul check out InvestingForever.com. We thank you all for listening, and stay tuned for our latest episode on our website, MindMoneySpectrum.com.