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Personal Finanace - Investment
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Personal Finance

Whether one likes it or not they must have some knowledge of personal finance and investments. 

Previously many employers offered retirement programs called pension plans, but those types of plans are becoming rare. They are being replaced with 401(k) programs, or a similar type of plan. The two major differences between the plans is who makes the investment decisions and how the benefits are received, as noted in the table below. 

Plan Type

Who Makes Investment Decisions

How benefits are received

Pension Plan

Professional management

Usually a monthly check.

401(k)
403b, PSP, 
457, Etc.

Individual Employees

Individual employees must manage the withdraws from a lump sum.

Pension plans are often referred to as defined benefit programs since the benefit you will receive is defined. Conversely, 401(k) plans are often called defined contribution plans as the amount you contribute into the plan is defined, not what you will receive. With 401(k) programs the amount you’ll receive is contingent upon how you manage your investments both in your working and retirement years. That is why it is to your advantage to have some knowledge of investments.  

Your retirement is in your own hands. We hope we've encouraged you to educate yourself and take charge of your financial future. Don't delay. 

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Personal Finance - Investments