A deferred compensation plan is a retirement plan that allows employees to defer some of their compensation to a later date. Common types you may already be familiar with are 401(k) and 403(b) plans. If you are a key employee, however, your employer may offer one or more nonqualified deferred compensation plans (NQDC’s).
Target date funds are a popular way to invest money these days. You usually find these funds within your company’s 401(k) plan or maybe yourchildren’s 529 college savings plans. They are often called something like “target date 2040.” The year is tied to the timeframe of your goal.
Any firm that works as extensively with a higher education clientele as we do needs to become familiar with one of the most interesting life insurance and annuity companies out there, the Teachers Insurance and Annuity Association, or TIAA.
If you have a 401(k) through your employer you know that very commonly we actually have investment choices. Let’s say you can choose between a bond fund, stock funds (growth stocks or value stocks), and international stock funds. Your plan provider is required to give you a variety of fund types to diversify between. This is very typical with your 401(k). In addition to these choices you may have a self-directed 401(k) to choose from too.
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