A profit-sharing plan is a type of qualified defined contribution plan in which you, the employer, contribute to the accounts of participating employees. As the name implies, your employer contributions are generally (but not necessarily) tied to your business's profits, allowing employees to "share" in those profits. Annual contributions to the plan may be discretionary (you need not contribute anything at all), or may be based on a specific formula relating to your annual profits.
If you'd like a retirement plan that guarantees a specified benefit level at retirement regardless of investment results, you may want to consider a defined benefit pension plan. A defined benefit plan is a qualified employer-sponsored retirement plan that is funded solely by the employer (in most cases); it's the traditional type of pension plan. A defined benefit pension plan allows the highest potential contribution amount of any plan. These contributions are excluded from income and grow tax deferred. In addition, contributions can be deducted from business income.
Every October, the College Board releases its Trends in College Pricing report that highlights college cost increases for the current academic year along with trends in the world of higher education. While costs can vary significantly depending on the region and individual college, the College Board publishes average cost figures, which are based on its survey of nearly 4,000 colleges across the country.
That's where financial planning comes in. Financial planning is a process that can help you reach your goals by evaluating your whole financial picture, then outlining strategies that are tailored to your individual needs and available resources.
A stock plan is a form of employee compensation that provides you with either stock or an amount of cash that is based on the performance of your employer's stock. There are numerous types of stock plans that your employer can offer, including employee stock ownership plans (ESOPs), restricted stock plans, stock appreciation rights plans, nonqualified stock option plans, and employee stock purchase plans.
A profit-sharing plan is a type of qualified defined contribution plan in which you, the employer, contribute to the accounts of participating employees. As the name implies, your employer contributions are generally (but not necessarily) tied to your business's profits, allowing employees to "share" in those profits. Annual contributions to the plan may be discretionary (you need not contribute anything at all), or may be based on a specific formula relating to your annual profits.
Every October, the College Board releases its Trends in College Pricing report that highlights college cost increases for the current academic year along with trends in the world of higher education. While costs can vary significantly depending on the region and individual college, the College Board publishes average cost figures, which are based on its survey of nearly 4,000 colleges across the country.
An incentive stock option is a right or option granted by the sponsoring corporation to its employees to purchase shares of the corporation's stock at a certain price for a specified period of time, notwithstanding an increase in the value of the stock after the option is granted. It is sometimes referred to as a qualified or statutory stock option.
The old-fashioned common sense of our grandparents still stands as a reliable guide to money. Whether you are digging out of holiday debt or managing substantial assets, the principles are similar and are worth repeating.
