What is a personal pension?How much will it cost? ｜6 Frequently Asked Questions About U.S. Retirement Pension Financial Management

Individual retirement accounts, employer retirement accounts, government employee pension accounts, personal pension accounts...There are various types of retirement savings financial management channels in the U.S. market. These financial management methods do not conflict. In principle, the more financially available, the more the better and the complementarity .

In today’s Q&A column,American Life Insurance GuideInvited Humming Life'sMr. Annuity, Explained in this articleWhat is a personal pension and 6 frequently asked questions about it.

1. What is a personal pension?

Personal pension is a guarantee of continuous and stable cash flow that allows us to receive retirement income every month after we retire.This monthly fund will continue until our death."How long to live, how long to receive", Is the characteristic of personal pension.

Personal pensions and employers (such as companies, schools) provide pensions (401k, 403b), government-provided pensions (social security pensions), and individual pensions (IRAs) form a comprehensive complement.

2. How does the personal pension plan continue to be paid for a lifetime?

Like traditional income-based annuity insurance, personal pensions are ourLife insurance companyIn a signed contract document, the insurance company promised in the contract that it would guarantee to pay us a sum of money and also guarantee to pay us for the rest of our lives until we die.

The financial products in any investment market are different. This type of plan provides long-term income insurance.Avoid the situation of "live too long, but no money".

Personal pension byLife insurance companyCome to guarantee this lifetime income.

According to the amount of money we deposit in our personal pension account, the insurance company guarantees the amount we can receive each month and provides a lifetime guarantee.

Insurance companies are supervised at the state level, and the state insurance guarantee association IGA provides reinsurance to policyholders.When the insurance company defaults or becomes insolvent, the SGA policyholders of the state guarantee fund will compensate.

(The insurance bond associations of each state will reinsurance and settle claims on the insurance account of the insured. The above picture shows the upper limit of claims in each state ©️insurancejournal)

4. How much start-up capital is needed to establish a personal pension?

Although in some states, starting a personal pension plan is only $100, but this may not be conducive to the accumulation of pensions.The earlier we save the personal pension, the more we save, the more we can get when we retire.Many accounts require a minimum deposit to open an account, usually $5,000 USD to open an account, and then deposit each month.

*The annuity interest rate and Cap Rate will change in real time under the influence of the market. The content of this picture is not a guarantee of interest rate.The specific interest rate of annuity insurance products is subject to the latest value released by the insurance company.

However, the start-up amount is small enough, which makes it convenient for us to establish a personal pension at any time. After the establishment, more deposits can be deposited.

5. What is the difference between personal pension and annuity?

Although both personal pensions and annuities are retirement financial channels that guarantee lifetime income, the traditionalIncome annuity, Usually an older policyholder——Close to retirement or already retired——And the one-time investment of an average of about 100,000 US dollars or more policyholders to use.

The personal pension is the younger the better, So that we can gradually increase savings with smaller amounts earlier-this is much like a monthly fixed investment and fixed deposit method, which is the same as the model of depositing money in a savings account or 401(k).

One last question: How much does a personal pension cost?

There are no account opening fees, front-end fees, and ongoing fees for personal pensions.Life insurance companyAfter signing the contract with us, give a guarantee.All costs and expenses incurred, including distribution labor fees, management fees, etc. paid to us every month, are all covered byInsurance companyOfAsset management profitabilityThe decision is reflected in the lifetime pension we withdraw.Again, there are no future or recurring expenses associated with the account for personal pensions.

This sounds a bit weird, how come there is no money?

The money we save in personal pensions is put into their general investment portfolio by insurance companies. Most of this investment portfolio isFixed income investment products, The other part enters other investment products, and the insurance company is responsible for its own profit and loss.

The advantage of this is that through the insurance company, the insurance company bears all the investment risks.If the insurance company's investment portfolio performs poorly in a given year, the insurance company will bear it, not us. (End of full text)

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