Business / Taxes / Pension Maximization: Pension maximization is a strategy that begins with selecting a single life annuity for income to be paid from your retirement plan, rather than a joint and survivor annuity. The next step involves using some of your annuity income to buy a life insurance policy. At your death, the annuity income ends and the life insurance death benefit is paid to your beneficiary, often your surviving spouse. You do receive more income from a single life annuity than from a joint and survivor annuity, which translates to a larger pension while you're alive. However, pension max, as this approach is sometimes called, has some potentially serious drawbacks. These include the cost of the insurance premiums, including sales charges, and an increased burden on your beneficiary for turning the death benefit into a source of lifetime income.
Pension Noun Synonyms: benefit, allowance, annuity, subsistence, superannuation, allotment, old-age pension, social security, golden handshake
Technology / Motorcycle / Plunger Suspension: In the 1930’s the "plunger" motorcycle frame suspension began to replace the rigid frames of earlier bikes. This was designed so the rear axle would move up and down two vertical posts to absorb roa MORE
Business / Finance / Simplified Employee Pension (SEP) Plan: The return from investments figured by dividing income plus capital gains by the amount of capital invested. The effect of compounding is not taken into account. MORE