Ted Bauman’s suggested vision of the future
The thought of retirement should be a time and stage in life that people look forward too. It is supposed to be a time to relax and reflect on the labor you have provided and a reward of care in older age for a job well done. That unfortunately is not the reality for many Americans. Society has changed since the days of pensions for many companies. Inflation always plays a big part in the income outcome for those looking to leave the work force. While there are many products to choose to try and help at that next stage of life, Ted Bauman has identified a few that may be better than what is traditional.
Ted Bauman is an editor at Bayan Hill Publishing which sends out letters and write ups on economics, banking and financial services. Ted graduated from Cape Town University in South Africa with a degree in economics. Ted also received his MBA from Georgia State University. Spending 25 years in Africa he has served many business including being a fund manager for low cost housing projects. His knowledge on long term planning for the future has been his focus for a long time.
Ted Bauman believes that over sixty percent of Americans are not prepared for retirement with at least ten thousand or under in savings. The plans that most have through their employer which are 401k plans are good but they put the risk on the employee. These plans are regulated by market fluctuations and take the employee contributing to their future. Some companies do offer a match up to certain amount but there may be other products to consider.
A cash-balanced plan works like a pension plan with some characteristics of a 401K. It does not require employee contributions and places responsibility to manage their own investment choices. The cash balance plan would have the employer making the same contributions as the 401k plan while having the funds managed by professionals. Ted Bauman speaks highly of the cash balanced plans while citing the limitations of the 401k plan suggesting people take a look.