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Author Archives: Kristina Tahnyak

Avatar photo About Kristina Tahnyak

Tahnya is a Certified Financial Planner and former Investment Advisor turned marketing and communications professional She holds a degree from Concordia University, is debt free and currently works in the field of digital marketing.

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Presidential Candidates And Their Net Worths

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Good Morning DINKS. Thanks to our great friends at Bankrate we have some great information for you today. In celebration of 2012 being an election year Bankrate has compiled a list of some politicians and their net worth. Which politician do you think currently has the highest net worth?

Which presidential candidate is the richest?Bankrate.com

We have previously discussed both the wealth of John McCain as well as the savings habits of President Barrack Obama on DINKS Finance.  Although I don’t personally feel that personal finances should be compared amongst friends, family, or co-workers; I think that it will be interesting to see exactly how our politicians measure up against each other.  Do You Think the Politician with the highest Net Worth is a Democrat or a Republican?

It is reported that the annual salary of the President of the United States is approximately $400,000 per year, but politicians make money in several other ways. Politicians earn a supplementary income aside from their salaries by writing and  selling books, guest speaking at public and private events, as well as doing interviews for magazines, newspapers, and radio shows.

Which Politician Do You Think Has The Highest Net Worth?

5. Republican Rick Santorum is the former Senator of Pennsylvania.  He was the Senator of Pennsylvania from 1995 to 2000.  Rick Santorum’s estimated current net worth is between $526,070 and $2,624997.Rick Santorum receives his income from various sources such as being a contributor to News Corp and a columnist at the Philadelphia Inquirer.  He also receives compensation from having a talk show on Salem Radio.  He receives an income from Universal Health Service stock options.

4. Republican and current Texas Congressman Ron Paul has a current net worth of approximately $1,939,093 to $5,213,999.  Ron Paul earns his secondary income from a very generous pension plan as well as an annual salary from Carona Ltd.

3. Democrat and current President of the United States Barack Obama‘s current net worth is estimated at approximately $2,801,082 to $11,830,000.  President Obama currently earns a secondary income from the advances, sales, and royalties from his 3 books “Dreams from my Father”, “The Audacity of Hope” and “OF Thee I Sing: A Letter to my Daughters”.

2. Republican and former Speaker of the House of Representatives Newt Gingrich has a current net worth of approximately $6,700,000 to $30,135,000.  Newt Gingrich receives dividends from Gingrich Productions as well as The Lubbers Talent Agency which is owned by his daughter.

1. Republican and former Governor of Massachusetts Mitt Romney has an approximate net worth of $190,000,000 to $250,000,000.  Mitt Romney earns capital gains, dividend, and interest income from the corporation Bain Capital.  He earns over $350,000 per year in guest speaker fees, he also earns an annual salary from being on the Board of Directors for Marriott.  He receives royalties from the sales of his book “No Apology: The Case for American Greatness”.

Did you guess right? Did you think that Mr. Mitt Romney was the politician with the highest net worth? Are you surprised the the politician with the highest net worth is a republican?  Being a politician is supposed to be a job in itself, but it seems like it is just a platform for men and women to push their own personal agendas.  Being a politician and a public figure just ensures that the revenue income stream continues flowing when the politicians term ends.  Is that smart business or unethical business practices?

(Infographic by Bankrate)

Friday Roundup: NYC, Investing Wisely, and Making a Budget

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snow treesGood Morning DINKS… I hope that everyone is trying to stay warm during these chilly days.  Even though I am from the cold North East I have to admit that I really hate the cold weather.  From December to March I try to stay inside except for essential reasons like going to work and going grocery shopping.  Maybe it’s just my own personal opinion, but I could definitely live without the cold winter months.

What is your favourite outdoor winter activity?

Today we have gathered the best posts from around the web for your reading pleasure.  There is a little bit of everything today from good business advice and improving your finances to planning your budget and how to invest your money.

I hope that you enjoy these posts.  Have a great weekend DINKS!

– Ultimate Money Blog  helps us earn a second income with some helpful business tips in the post “Make Money Online”

– Financial Samurai  advised us how to have ambition and achieve goals in the post “Always Be The Underdog To Get Ahead”

– PT Money is helping everyone turn their money lives around with an informative series.  He helps us update our virtual lives in the post “Day 20: Spruce Up Your Online Profile” in the 31 Days to Improve Your Financial Life series.

–  Funancials describes his first trip to The Big Apple in the post “Observations from New York City”.  I love this post because I love New York City.  The great thing about the greatest city in the world is that the New York experience is different for everyone.  As you may remember I have been trying to become an American Resident or at least obtain a US Work Visa for over a year now, so if any DINKS work in immigration and could give me some tips I would really appreciate it.  Or better yet, if any DINKS would like to offer me a job in the US I would be more than happy to accept J

– Money Crashers explains the difference in our investment options in the post “What Is Preferred Stock vs. Common Stock – Definition, Pros & Cons”

– Doughroller helps us plan our budget in the post “Cash or Credit – How Should You Pay?”

– Go Banking Rates reminds us to invest into  our Savings Accounts and IRAs with the post “Is Investing With a Discount Broker the Right Option for You?”

Photo by David Blackwell

Do You Have Life Insurance? Tony Steuer Book Review & Giveaway

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questions & answers life insurance bookGood Morning DINKS!  Thanks to our great friend Tony Steuer we have an amazing giveaway for your today.  Actually we have two amazing giveaways for you today, so keep reading to find out how you can enter our Great Insurance Giveaway to win one of two copies of “Questions and Answers on Life Insurance: The Tool Book and The Workbook.”

A very important part of planning our financial lives is preparing for the afterlife.  Choosing the right type of Life Insurance for our needs as well as determining the correct amount of Life Insurance that we need are two very important parts of financial planning.

Questions and Answers on Life Insurance by Tony Steuer helps us do just that.  The Life Insurance Tool Book and Workbook will help us assess our current financial situation as well as determine which amount of life insurance will protect our families in the unfortunate event of a loss of life.

Life Insurance should not be used in order for the survivors to gain a profit.  Life Insurance should be used to cover debt losses and final expenses, as well as sustain the survivor’s current lifestyle.  Life Insurance should not be treated like Lottery winnings.  I know that it’s awful to even think about Life Insurance that way, but unfortunately that is the reality we live in.

I don’t feel that a human life can ever have a price put on it and therefore Life Insurance should be used to replace the income, not the lost life.  If you ask anyone who has ever received an inheritance from Life Insurance I am sure that they will tell you that they would give all the money back if they could have their loved one back in their life.

Some people don’t have Life Insurance because they aren’t worried about what happens after they have moved on into the afterlife. This is an irresponsible attitude, we don’t have an obligation to leave a financial legacy for our family; but we do have an obligation to take care of our own expenses.  The reality of life is that funeral expenses, debt repayments, and final tax expenses are our own personal expenses, even after we are gone.

It can be very hard to determine the amount of Life Insurance that will be required to cover our final expenses as well as provide a sustainable lifestyle for our family after we are gone.  This is why we need The Questions and Answers on Life Insurance Tool Book and Workbook by Tony Steuer.  He helps us evaluate our current financial obligations in order to determine the future amount of Life Insurance required.

I personally have mixed emotions about Life Insurance.  I think it’s a great financial planning tool to ensure that we don’t leave a debt burden for our family.  I definitely think that all essential family owned assets should be covered by Life Insurance if there is a debt attached to them.  The mortgage on our family home and the loan on our family car should be covered by Life Insurance to ensure that they remain property of the family in case of a loss of life.

If one person in the family is the sole financial provider, then I also think that the income should be covered by Life Insurance to ensure that the family is still provided for in the future.  However, I do not think that parents or grandparents etc. should incur the unnecessary costs of Life Insurance premiums just to leave a financial gift to their kids or grandkids.  If someone wants to leave a financial gift or legacy to a family member or friend they should do so with their own assets.

Now It’s Time For Our Giveaway!

We are giving away TWO Copies of “Questions and Answers on Life Insurance: The Tool Book and The Workbook.” by Tony Steuer.  That is TWO winners who will receive TWO books each…are you noticing a theme?

All you have to do to enter our Giveaway is Leave a Comment on this post telling us about the best duo you have ever seen, heard, eaten, or experienced.  It could be Shaq and Kobe or it could be Chicken and Waffles.

Tell us about your favourite Duo and Win!

Pay Off Your Credit Cards Sooner

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paying off credit card debt, credit card debt, getting out of debt

As you may know I have recently turned my financial life around, it is by no means perfect but it is on the right path.  I no longer take money for granted, I always pay my bills on time, and I don’t accumulate debt. I decided to keep one credit card open in order to help rebuild my credit score.  Over the past few years I had a really high income with a really low credit score. That’s because I had a lot of open credit cards that were maxed out to the credit limit.

Keeping one credit card open, using it, and paying it off every month shows financial responsibility; and it has definitely helped improve my credit score.  Closing my (several) other credit cards and making regular payments is not enough to increase our credit score.  In order to build and maintain a good credit score we have to be actively (and responsibly) managing our open credit.

I am not going to lie, calling my credit card companies and asking them to close my existing credit cards because I could no longer afford to have them was very hard and it was also a little bit shameful.  It is very difficult for a young professional with an income of over $100k to admit that she needs help with her finances. But now that my financial life is back on track I definitely don’t regret making those phone calls.  I am actually proud that I was smart enough to ask for help, and I love seeing my credit card balances get lower every month.

I have come to learn that people don’t need to live on credit.  We don’t need 5 credit cards and a line of credit to live.  We don’t have to accept every single credit card that is offered to us, smart money management is knowing when to say no.  All we need in life is to be happy, and being thousands of dollars in debt doesn’t make me happy.

I got into debt because I was careless and spoiled.  I thought that having credit cards made me mature, but it actually just made me irresponsible.  Spending money on materialistic things such as clothes, trips, and food actually showed just how immature and financially irresponsible I was.  I thought that spending money would make me happy, and it did; but only temporarily.

I decided to change my financial spending habits.  I decided to make the conscious decision to start paying off my debt because I was sick of making only the minimum monthly payments.  I was sick of getting my credit card statements in the mail every month and not seeing the balances getting smaller.  I was sick of living pay check to pay check, I wanted to get out of debt.

I cut down my monthly bills and I used the extra money to start paying off my debt.  I called my credit card companies to negotiate lower interest rates, and I set up biweekly pre authorized payments to make sure my debt was being paid down regularly.  Making a realistic debt free date will help us stay focused and become debt free.  It’s easy to achieve a goal when the terms are clearly defined.

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Photo by bfshadow

I Just Cut Up My Credit Card… And Not By Choice!

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cutting up my credit card, credit card, credit card solution

eating credit cards

Good Morning DINKS.  This is an impromptu post, it was not planned but last night something happened to me and I just have to share the story with you along with my feelings.  I am feeling a whole slew of emotions about my recent Credit Card experience and I would love to hear from others who are been in or who are currently in the same situation.

Last night around 7 pm just as I was cleaning up after dinner I received a phone call from The Visa Security Department who wanted to verify some recent transactions on my boyfriend Nicks Visa Card.  We have a joint VISA card but they didn’t want to speak with me, they only wanted to speak with Nick  to verify some suspicious activity on his credit card. They wanted to confirm if he recently used his VISA card to purchase $400 at Home Depot and $500 at a Jewellery Store.

Have You Ever Been The Victim of Credit Card Fraud?

At first I thought that it was a joke, because Nick and I never shop at Home Depot.  Then I thought that maybe Nick was shopping for a Valentine’s Day present/Engagement Ring…but unfortunately I was wrong.  It turns out that both the $400 at Home Depot as well as the $500 at the Jewellery Store were both fraudulent charges.  The worst part of this whole experience is that this is the second time Nicks Visa card has been flagged by the Visa Security Department in the last two months.

I am not sure exactly how Credit Cards are monitored and which transactions get flagged by the Security Department.  We usually don’t make any large purchases on our Visa Cards, but when Nick purchased a new computer after Christmas at Best Buy for over $1000 the transaction was not flagged by the Visa Security Department.

I have mixed emotions about the recent fraud activity on my Visa because I was upset that even with advanced pin and chip technology there were still fraud charges on my Visa twice in the last 3 months.  I was disappointed when I found out that the jewellery store charge was actually fraud.  But I was happy and thankful that the Visa Security department was able to detect unusual spending activity on my Visa card and that they called to verify the recent suspicious transactions.

Did Your Spending Habits Change After the Credit Card Fraud?

Even though the fraud transactions occurred on Nicks Credit Card, Visa advised us that we both have to cut up our Credit Cards and wait for new cards to arrive in the mail.  I don’t mind living without a Visa card for a few weeks, but it’s still a bit frustrating a little bit inconvenient.

I have made my share of financial mistakes in the past and therefore now I only use my Visa Card for transactions that I can afford to pay off in full each month. This helps me stay out of debt and helps to keep a strong credit score.  Sometimes I use my Visa once a week, and sometimes I use it once a month; I usually use my Visa Card to buy groceries or purchase dinner at restaurants.

Now that our Credit Cards had fraud charges on them twice in the last 2 months Nick and I are deciding if we should stop using our Credit Cards throughout the month and only use them once a month at the grocery store.  I am not sure if this is an extreme measure.

If you have ever been a victim of credit card fraud, did your credit card spending habits change?

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Photo by Mike Poresky

Lies Lies and More Lies About Money!

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money lies, money advice, money issues

money lies, money advice, money issues

Good Morning DINKS.  Let me ask you a question “Do you ever lie to yourself?” Let’s be honest with each other, are you honest with yourself about your current financial situation, about your relationship, and about your career ambitions?

MSN Money recently published an article titled “The Worst Money Lies We Tell Ourselves” and it was definitely an eye opener for me.  After reading this article I started thinking about all of the aspects in my life, not only my money but also my relationship, my career, my dreams, and my personal goals.  Can I honestly say that I am truly happy in all aspects of my life? No! But do I fake it sometimes so that I can avoid having to deal with my problems? Yes absolutely!  Think about your money, your career, and your relationship? Are you truly happy or are you currently faking it just a little bit?

What do you think the Number 1 money lie is that people tell themselves? Here are the Worst Money Lies that We Tell Ourselves according to MSN Money

1. “I use my credit card only to get the rewards” NOT TRUE! We use our credit cards for other reasons such as establishing and keeping a good credit score.  We may also have to use our credit cards because we don’t currently have to money to buy our items.  I don’t think that anyone just uses their credit cards to earn rewards; the rewards are just a bonus feature.

2. “I choose to have monthly payments” NOT TRUE! I don’t know a lot of people who choose to have debt (other than their house). We have monthly payments because we can’t afford to pay for everything in a onetime lump sum payment so we charge the purchase on our credit card. Monthly payments allow us to get the things we want now, and pay for them later.

3. “I bought it because it’s Interest Free for 12 months” NOT TRUE! It’s definitely not interest free because if we continue to carry a balance after the interest free period the interest rate can more than make up for the supposed 12 months of being interest free. This is a gimmick used by retailers to get us to shop. It can also create loyalty so we will buy other future items with the same retailer.  There are conditions that usually apply for interest free promotions such as a high credit score.  .

4. “I don’t make enough money to save.” NOT TRUE! If we make money then we can save money. Even saving $10 per month can add up to a large amount of savings over time. If we don’t save our money we will just spend it. If we learn to live without or live on less then we can save more.

5. “It’s on sale” It may be true that the item is on sale, but it’s not true that we need that item.  Buying items on sale should be an added bonus when we need to buy essential items, we should never buy an item just because it is on sale.

6. “But it’s free” NOT TRUE! Nothing is free. This is just another scam used by retailers to get shoppers into the store and persuade them to buy more items. The item you are getting may be free, but the cost is factored into the price of other items.  A classic scam is Free Item with a $50 purchase, or Buy 2 and Get 1 Free.  Well if you didn’t plan on spending $50 or buying 2 other items in the first place then your promotional item is not really free…it did cost you.

7. “I only live once, and I can’t take the money with me” TRUE! However, there are costs associated with death.  If we spend all of our money while we are alive then who is going to pay for our funeral, our debts, and our final taxes after we are gone?

Photo by Pink Sherbert

Friday Roundup: Allowances, Cartoons. Debt and The “F” Word

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Happy Friday DINKS.  Can you believe that it’s already January 20… January is almost over. I feel like I just celebrated New Year’s Eve and in just a few days January 2012 will already be over. I hope that you have all had a great year so far.

Let me ask you a question DINKS… How is it going with your New Year’s Resolutions? Did you make one (or more)? If so what was it and are you sticking to it?

My New Year’s Resolution was to become more active with the Twitter Workout Promise. Now I work out 4 times a week on Tuesdays, Wednesdays, Saturdays, and Sundays.  If you are on Twitter and you want a support group to help you get moving and get active in the New Year then join us at #TwitterWorkoutPromise.  We already have several PF Bloggers who have made the virtual pinky swear to become more active in 2012.

Check Out These Great Posts from around the web:

– Ali Lowell @ Crazy Sexy Credit helps us rebuild and repair our credit in the post “What Makes Crazy Sexy Credit Different from Other Credit Repair Resources?”

– Cait @ Blonde on a Budget organizes and plans the upcoming year in the post “January 2012 Jar & Goals” She is planning her finances a little bit differently this year by giving herself an allowance instead of tracking her daily spending.

– Mr. Fox @ Finance Fox helps us explore our personal talents and turn them into a profitable income stream in the post “Deep Down, We’re All Entrepreneurs”

– Andrea @ So Over Debt helps us discover our inner kid and relate it to our money management in the post “3 Finance Tips I Got from Cartoons”

– Carrie Smith @ Perk Street Financial gives us some helpful financial tips in the post “5 Financial Statistics You Need To Know”

Check Out These Great Posts from our Partners:

– Go Banking Rates wants to know if you consider yourself to be frugal or just a smart money manager in the post “Why I Hate Being Called Frugal”

– Dink Life wonders if your couple could survive on a single income and helps us prepare for the loss of an income in the post “Transitioning from Double Incomes to a Single Income Couple”

– Adaptu asks if you share all of your money as a couple in the post “How to Share Money as a Couple and Still Maintain Your Own Savings”

Have a Great Weekend DINKS!

Photo by JD Hancock

Live on a Budget…Don’t Be Broke!

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budgeting, living on a budget, budget living

Good Morning DINKS.  The secret to always having money is to spend less than we earn.  More money has to be coming in from our income than it is going out from paying our expenses. I am a 31 year old professional who used to love spending money on nice things. Now I still spend money, but I am more careful about how (and on what) I choose to spend my money. I live on a budget because I want to save some of my money every month and not spend it all. I enjoy watching my bank account balances grow instead of watching my closets fill up with useless goods and my credit card balances getting bigger.

Living on a budget has limited my (once excessive) personal spending, but it has not totally eliminated all spending. I still go out for dinner with my friends for special occasions and I still buy new clothes when I need them. The key to living on a budget is to only go shopping when I need to buy something and to only go out for dinner with friends once a month or once every two months. When I tell my friends or coworkers that I don’t have money to go out for dinner or to go on vacation it doesn’t mean that I have $0 in my bank account, it just means that I don’t want to spend money unnecessarily. I no longer live pay check to pay check and therefore when I say that I don’t have money to do something it means that I live on a budget, it doesn’t mean that I am broke.

As a young professional with disposable income I choose to live on a budget so that I can control my spending and save for my retirement. I like to save money so that I can take a dream vacation one a year or once every two years. I don’t mind spending a lot of money if my purchase is worth the cost, I will never again spend a lot of money carelessly just because I want to go shopping. Living on a Budget ensures that I will never be broke. Living on a Budget is about saving money, controlling our spending, achieving our personal goals, and ensuring the stability of our financial future. Think about your last personal goal…Did you achieve it? Think about your budget last month…Did you stick to it?

How To Live on a Budget and Never Be Broke

  1. Shop on sale and splurge on investments. Focus on the long term and make sure that the benefit of your spending will be worth the cost. It’s ok to buy $200 winter boots if they are excellent quality boots and they are going to last for 5 years.
  2. Do not waste anything and don’t over consume. If we don’t need it to live comfortably, stay warm, or keep our belly full then the item is a luxury, not a necessity.
  3. Don’t spend money just because you have it. This is reckless behaviour and it will probably break your monthly budget quicker than you can afford.
  4. Never act broke. Choosing not to spend money is different than not having any money.
  5. Always be in control. Remember that we don’t let our money control us, we control our money.

Photo by Images of Money

Don’t Get Ripped Off at the Garage

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garage advice, garage tips, fixing your car

As you may remember, in 2007 I bought a Honda Civic (actually in 2007 I overpaid for a Honda Civic) and in 2010 I sold it.  I loved my car but I didn’t use it enough to justify the cost.  Some days I miss my Honda Civic but most days I enjoy saving the money.  The purchase price of our car is one expense, but the upkeep and maintenance of our car is a whole other expense.  The problem with car repairs and maintenance is that they cannot always be scheduled, sometimes things happen and we are not financially prepared.

Check out these tips from MSN to make sure that you don’t ripped off the next time you visit your mechanic:

– Battery Problems.  The next time a mechanic tells you that your car battery needs to be replaced, ask for a second opinion or ask to see the battery life report.  Very often mechanics unnecessarily charge to replace a battery when in fact the battery has nothing to do with the problem at hand. I have heard people complain that they paid $300 to get their car battery replaced and their initial car trouble remained to exist.

– A “Tune Up”.  Tune up is a mechanical term for rip you off.  It is a general term used to over charge clients for services that may or may not be rendered.

– Break Pad Replacement.  My Honda may have been new, but before my 2007 Honda Civic purchase I drove several older cars.  Trust me when I say that you will know when your breaks need to be replaced, we don’t need someone to tell us when our breaks need to be changed.  Squeaky breaks do not necessarily need to be replaced, they may just need to be oiled.

– An Oil Change.  I have been told that an oil change should cost no more than $25.  I always took my Honda to the dealership and paid almost double that price.  If you bring your own oil to the mechanic the price can even be cheaper.  Very often a routine oil change can open a mechanical can of worms for them to charge us for sever other (unnecessary) services.

– Your Transmission Problem.  I understand that a transmission is a vital piece of a car, but it is also very often one of the biggest mechanical scams and rip offs at a garage.  Transmission repairs are the automobile equivalent of condo fees on a new construction.  Mechanics can give us a quote to repair or change our transmission before the work starts, but after the job is done it could end up costing us double or triple the initial quote.

– The Lifetime Parts Guarantee.  A Lifetime Guarantee on car parts is like life insurance, we pay the fees but we very rarely enjoy the profits because of fine print. Only specific pieces qualify for coverage and the majority of other pieces are not covered.  A Lifetime Parts Guarantee usually applies to one particular piece of a car part.  We shouldn’t fool ourselves into thinking that we will receive free complete Break Pads or free Mufflers for the rest of the life of our car.

– Replacing Car Parts. We should always ask for our original car parts back when a mechanic tells us that they have been replaced. This ensures that our car part was actually replaced and it also ensures that mechanics are not “replacing” our car parts with other peoples used parts.

– Get a Second Opinion.  Actually I suggest that we get three quotes.  No matter how “urgent” the mechanic tells us that we need the repairs we should always take the time to get a second opinion, it could save us a lot of money.

Photo by RoolRool

How Are You Planning for Retirement?

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retirement planning, retirement, planning for retirement

Good Morning DINKS.  We are all working towards our own personal financial goals and for some of us one of those personal goals may include saving for retirement.  But what does that really mean? For some people saving for retirement means saving what they can afford to save now and for some people saving for retirement means saving a specific amount now so they will have an exact projected about of money in retirement. Let me ask you a question Dinks, have you ever had a retirement projection plan created for you?

Plan for Retirement with a Retirement Projection

A retirement projection plan takes into consideration our current savings as well as our future savings up until our retirement date and projects how much money we will have accumulated by retirement.  This allows us to determine if our current savings will provide the retirement that we have planned.  A retirement projection plan also allows us to see if there are any shortfalls in our current savings strategies and if we have to save more now or if we have to adjust (and lower) our retirement goals.

The best way to plan for retirement is know what to expect and know what we are planning for.  The average person plans to live off of 70% of their current income during retirement. MSN recently released an article about planning for retirement and people’s expectations in retirement.  If we expect but don’t plan for our retirement then our retirement years may end up being a disappointment. My Dad thought that he was going to retire and play Golf 5 days a week.  My Dad didn’t plan for the expensive cost of a Country Club membership or the fact that he would need surgery on both of his shoulders.

Do you know where your income will come from during retirement? Many of us have personal retirement savings but that may not be enough.  Other sources of retirement income can be Social Security as well as our Employer Pension Plan.  However Social Security may only account for up to approximately 35% of our total planned retirement income.

Here are some Facts about Planning for Retirement

A man who retires at 65 should plan for his retirement income to last (as he lives) another 18 years.

A woman who retires at 65 years old should plan for her retirement savings to last for approximately another 21.5 years.

A defined contribution pension plan allows us and our employer to contribute a fixed amount of money with each pay check.  However the amount of money that we have at retirement depends on how we invest and therefore it is not guaranteed.

A defined benefit pension plan allows our employer to make contributions on our behalf and our contributions as an employee are voluntary.  The amount of money that we will receive monthly during retirement is guaranteed.  The calculation formula is based on the number of years that we worked for our employer as well as our annual salary.

Do you have a Pension Plan with your Employer?

Photo by Jurvetson

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