I am in the financial services business, and have been doing this on my own full-time for 1 year, but have done internships and other work experience in this industry since 2002. My wife's father has a very successful financial planning practice that he is wanting to slowly sell to me. He currently has about 800 families that he works with along with a large amount of 401(k) and health insurance that he manages. He wants to only work with his top 50 clients which would leave a lot of clients that I could service and work with. In other words an immediate client base plus I will get 20% of whatever business he produces to insure that I stick around. This would double my income next year and more than double it in coming years. I am good at what I do, but having an established clientele base would be huge for my career. My concerns are living close to family and having potential problems down the road with him and having a falling out. Any advice?
All reservations can be solved in a contractual agreement. That is what they are for. Predict all possible problems in the future and write up a contract that will protect you both in case they happen.
Looking for a good E-book for financial planning?
I'm coming off a bankruptcy this year and I vow to get my finances in order. Is there any good E-books out there for financial planning?
Not free ones. Try "Rich Dad, Poor Dad"... thats pretty good.
Tuesday, February 9, 2010
Monday, February 8, 2010
What does AAR stand for in relation to financial planning or leadership?
I have a test tomorrow on leadership and financial planning and one of the questions is "What does AAR stand for", so if you could tell me then that would be awesome
Pretty sure it's Alternative Reproductive Resources, good luck on the test!
Is a financial planning position good for a college student majoring in accounting?
I'm planning to become a CPA. Currently, I'm in college (1.5yrs left) and work part-time as an accounts payable. Recently I was asked to come work at a CPA firm as an assistant in financial planning. The pay and hours are really good compared to my current job. However, I'm not sure if learning the new things in the financial planning position will stress me out. It's all very new to me. Even though I'm not a brainiac, I am a very hard worker. But is that enough? I just don't want this job to take away too much time away from school. I'll be taking very difficult accounting courses. I was wondering if I should stay at my current job OR take the new job and learn new things. Will this work experience look better on my resume? If i dont take this job, then will there be lots of other opportunities like this after I graduate? Will this get my foot in the door of the CPA world even though I won't be doing any accounting work? EVERY bit of suggestions would be greatly appreciated
You have 1.5 years left. I would ask the company that asked you to take the new position what the chances are if you do take the job then can you become a CPA for the company after graduation? If it's a better position and the same amount of hours, the stress level may be a bit higher, but the experience of moving from Accounts payable to Financial Planning Assistant may be a good choice. First it will demonstrate that you excelled at your first job to be noticed and offered the job as the Assistant. Then, it does show that you have a solid background in Accounts and Financial Planning. Right now you're building a resume and learning how to conduct yourself in the adult world. If the pay is better and the hours are the same, I'd take the new job and learn from it. If you don't like it, you can always look for another Accounts Payable position and return to that field. Furthermore, ask the new company if they will allow you some time for shorter hours during slow seasons so you can concentrate on your studies. If they realize you are balancing school along with their work and showing great promise, you'll probably make a good impression. Negiotiate some terms, know what you can do and cannot do based on the hours you may need for the advanced accounting courses--give your two weeks at your old job if you choose to take it (Leave in good standing as you may need them as a reference) and move forward. It sounds like a fantastic chance, just know what you want and be clear. If the job meshes with your goals, then go for it.
Pretty sure it's Alternative Reproductive Resources, good luck on the test!
Is a financial planning position good for a college student majoring in accounting?
I'm planning to become a CPA. Currently, I'm in college (1.5yrs left) and work part-time as an accounts payable. Recently I was asked to come work at a CPA firm as an assistant in financial planning. The pay and hours are really good compared to my current job. However, I'm not sure if learning the new things in the financial planning position will stress me out. It's all very new to me. Even though I'm not a brainiac, I am a very hard worker. But is that enough? I just don't want this job to take away too much time away from school. I'll be taking very difficult accounting courses. I was wondering if I should stay at my current job OR take the new job and learn new things. Will this work experience look better on my resume? If i dont take this job, then will there be lots of other opportunities like this after I graduate? Will this get my foot in the door of the CPA world even though I won't be doing any accounting work? EVERY bit of suggestions would be greatly appreciated
You have 1.5 years left. I would ask the company that asked you to take the new position what the chances are if you do take the job then can you become a CPA for the company after graduation? If it's a better position and the same amount of hours, the stress level may be a bit higher, but the experience of moving from Accounts payable to Financial Planning Assistant may be a good choice. First it will demonstrate that you excelled at your first job to be noticed and offered the job as the Assistant. Then, it does show that you have a solid background in Accounts and Financial Planning. Right now you're building a resume and learning how to conduct yourself in the adult world. If the pay is better and the hours are the same, I'd take the new job and learn from it. If you don't like it, you can always look for another Accounts Payable position and return to that field. Furthermore, ask the new company if they will allow you some time for shorter hours during slow seasons so you can concentrate on your studies. If they realize you are balancing school along with their work and showing great promise, you'll probably make a good impression. Negiotiate some terms, know what you can do and cannot do based on the hours you may need for the advanced accounting courses--give your two weeks at your old job if you choose to take it (Leave in good standing as you may need them as a reference) and move forward. It sounds like a fantastic chance, just know what you want and be clear. If the job meshes with your goals, then go for it.
Friday, January 15, 2010
Do I get part of my Pension Plan if I quit my job?
What is the best for a young man for long term savings, like unit linked pension plan et al. who offers the be
These days there are many options for pension plans with several riders ; A hordes of never heard names are floating in the market , like Aviva, Max Newyork, AXA besides our age old LIC, UTI. All claim to have best track records and offer the best scheme. I do not know whom to trust and do not understand their statistics of track records. Please tell me what is the best and how to comperhend that.
Let me assume that you are under 30. It is also assumed that you have taken adequate insurance cover. If you have not yet taken risk cover first get a TERM INSURANCE from LIC which is the cheapest form of risk cover. You can insure yourself for a larger amount with a very small premium. As regards tall claims - they are not here for the cause of charity. You can Trust your Old friend. Now let us come to the main part - INVESTMENT. Never mix your investment with insurance. For unit linked plans they charge a hefty amount as allocation charges starting from 25% and above - of the first yr premium. Some even charge this for the first 3 years. So KEEP YOUR INVESTMENTS AND INSURANCE SEPARATE. For investment look for some good MUTUAL FUNDS. They are less risky compared to Stock Market. In the long run they will give you returns far better than the pension plans and those are tax free. Whatever you pick do it in a disciplined way. You can also go for SIPs Systematic Investment Plans. I know the answer is inadequate. More specific questions are welcome Best of luck Myself is an Investment & Ins. advisor
Bank of America 401k and pension plan benefits. What happens after you quit?
So I've been working at bofa for about two years and Ive been putting money into a 401 k and a HDFC pension plan since a little after I started. Unfortunately because of school, Im going to have to leave but I don't know what happens to the money. Do they keep it or do I and get penalized for it.
You will get you keep the money that you put into the 401k. You should check with the HR department about whether or not you will be able to keep the company's contributions. Some have clauses that require you to work there a certain number of years before the company's contributions are yours. Make sure you keep the statements for the 401k plan so that you can keep track of that money.
Do I get part of my Pension Plan if I quit my job?
I live in Ontario, Canada where I worked for a company for 12 years at which I contributed to a pension plan. I quit one year ago, but am wondering if I am entitled to any of the pension plan?
These days there are many options for pension plans with several riders ; A hordes of never heard names are floating in the market , like Aviva, Max Newyork, AXA besides our age old LIC, UTI. All claim to have best track records and offer the best scheme. I do not know whom to trust and do not understand their statistics of track records. Please tell me what is the best and how to comperhend that.
Let me assume that you are under 30. It is also assumed that you have taken adequate insurance cover. If you have not yet taken risk cover first get a TERM INSURANCE from LIC which is the cheapest form of risk cover. You can insure yourself for a larger amount with a very small premium. As regards tall claims - they are not here for the cause of charity. You can Trust your Old friend. Now let us come to the main part - INVESTMENT. Never mix your investment with insurance. For unit linked plans they charge a hefty amount as allocation charges starting from 25% and above - of the first yr premium. Some even charge this for the first 3 years. So KEEP YOUR INVESTMENTS AND INSURANCE SEPARATE. For investment look for some good MUTUAL FUNDS. They are less risky compared to Stock Market. In the long run they will give you returns far better than the pension plans and those are tax free. Whatever you pick do it in a disciplined way. You can also go for SIPs Systematic Investment Plans. I know the answer is inadequate. More specific questions are welcome Best of luck Myself is an Investment & Ins. advisor
Bank of America 401k and pension plan benefits. What happens after you quit?
So I've been working at bofa for about two years and Ive been putting money into a 401 k and a HDFC pension plan since a little after I started. Unfortunately because of school, Im going to have to leave but I don't know what happens to the money. Do they keep it or do I and get penalized for it.
You will get you keep the money that you put into the 401k. You should check with the HR department about whether or not you will be able to keep the company's contributions. Some have clauses that require you to work there a certain number of years before the company's contributions are yours. Make sure you keep the statements for the 401k plan so that you can keep track of that money.
Do I get part of my Pension Plan if I quit my job?
I live in Ontario, Canada where I worked for a company for 12 years at which I contributed to a pension plan. I quit one year ago, but am wondering if I am entitled to any of the pension plan?
How can a company freeze your defined benefit pension plan?
My pension plan is frozen and I have 15 years before I can retire. The money in the account is not accruing It is just sitting there. How can they do that? I can't take my money out and put it somewhere else. So for the next 15 years I have money sitting and not making anything on it.
Looking to lower costs and reduce future funding obligations, many U.S. companies are taking a hard look at the retirement plans they offer to their employees. The harshest scrutiny is being focused on defined-benefit pension plans, which usually reward employees for years of service with a guaranteed monthly retirement benefit. Many employers are deciding that their traditional pension plans are simply too expensive to maintain, and the result is that they are freezing these plans. (To find out more about these plans, see The Demise Of The Defined-Benefit Plan.) For employees - particularly those close to retirement - who spent a number of years with the same employer, a frozen pension plan deal a severe blow to their post-work plans. The guaranteed income they had been anticipating upon reaching retirement age could be reduced significantly as a result of a pension freeze, which may force them to rely on the uncertainties of a 401(k) or some other type of defined-contribution plan. This is the prospect facing millions of employees at companies like Verizon, IBM, Sears and Hewlett-Packard, which are some of the employers that have frozen their defined-benefit plans in 2006. What started as a trickle has picked up speed and is expected to accelerate further with the new Pension Protection Act of 2006 (PPA). (To learn more about the PPA, read Pension Law Could Reduce Your Payout, Pension Protection Act Of 2006 Becomes Law and The Pension Bill: A Wolf In Sheep's Clothing.) What is a frozen pension plan? A frozen pension plan is one that has been amended to discontinue benefit accruals under the plan, although the assets remain in the plan. Certain administrative requirements must continue for a frozen plan, including ensuring that the plan satisfies minimum funding standards. Generally, there are two types of frozen pension plans, a hard freeze and a soft freeze. A "soft freeze" is when benefit accruals that are determined based on years of service are discontinued. This means that years of service after the effective date of the freeze are not factored into determining an employee's benefits under the plan. However, benefits continue to accrue based on increases in covered participants' compensation. An alternative version of the soft freeze is to freeze out a certain class of employees or new participants. Under a "hard freeze", employees will receive the benefits already accrued, but no new benefits are accrued after the date the plan is frozen. Thus, if a worker has spent 20 years with a company and plans to stay for an additional five years until retirement, no pension benefits are accrued during those last five years. Further, no new participants are allowed to participate in the plan. Most companies that freeze pension plans either introduce a 401(k) plan or other defined contribution plan, or enhance an existing plan. Freeze Vs. Termination A pension freeze is different from a pension termination. In a termination, a company must pay out all benefits as soon as administratively feasible, usually no longer than one year after the termination date. Distributions can be made as a lump sum, if permitted under the plan, or by buying employees an annuity that pays benefits over time. Companies in bankruptcy may transfer their pension liabilities to the Pension Benefit Guaranty Corporation (PBGC), a federal government agency that insures pension plans. (For more on the PBGC, see The Pension Benefit Guaranty Corporation Rescues Plans and Lump Sum Versus Regular Pension Payments.) Pension Protection Act of 2006 The Pension Protection Act, as its name implies, was meant to help ensure the financial viability of pension plans following high-profile plan terminations at several airline, steel and other companies. A few of the PPA's provisions, however, have resulted in many businesses either shying away from adopting new defined-benefit plans, or terminating/freezing those that were being maintained. Signed by President Bush in August 2006, the PPA runs more than 900 pages and includes a number of provisions related to retirement plans. These include provisions that allow companies to enroll employees automatically in 401(k) plans, provide investment advice to employees and establish default investment elections. These are viewed as some of the positive provisions. The negative provisions include those that seem to encourage companies to consider freezing or terminating their pension plans. PPA sets much stricter standards for ensuring companies set aside enough capital to fully fund their pension obligations. In particular, PPA gives most pension plans seven years - beginning in 2008 - to make sure their plans are 100% funded. For employers that fail to meet this funding obligation, a 10% excise tax may be levied on the company if the deficiency is not corrected in time. For many companies, this will mean they must accelerate their contributions. While these employers are perm
Looking to lower costs and reduce future funding obligations, many U.S. companies are taking a hard look at the retirement plans they offer to their employees. The harshest scrutiny is being focused on defined-benefit pension plans, which usually reward employees for years of service with a guaranteed monthly retirement benefit. Many employers are deciding that their traditional pension plans are simply too expensive to maintain, and the result is that they are freezing these plans. (To find out more about these plans, see The Demise Of The Defined-Benefit Plan.) For employees - particularly those close to retirement - who spent a number of years with the same employer, a frozen pension plan deal a severe blow to their post-work plans. The guaranteed income they had been anticipating upon reaching retirement age could be reduced significantly as a result of a pension freeze, which may force them to rely on the uncertainties of a 401(k) or some other type of defined-contribution plan. This is the prospect facing millions of employees at companies like Verizon, IBM, Sears and Hewlett-Packard, which are some of the employers that have frozen their defined-benefit plans in 2006. What started as a trickle has picked up speed and is expected to accelerate further with the new Pension Protection Act of 2006 (PPA). (To learn more about the PPA, read Pension Law Could Reduce Your Payout, Pension Protection Act Of 2006 Becomes Law and The Pension Bill: A Wolf In Sheep's Clothing.) What is a frozen pension plan? A frozen pension plan is one that has been amended to discontinue benefit accruals under the plan, although the assets remain in the plan. Certain administrative requirements must continue for a frozen plan, including ensuring that the plan satisfies minimum funding standards. Generally, there are two types of frozen pension plans, a hard freeze and a soft freeze. A "soft freeze" is when benefit accruals that are determined based on years of service are discontinued. This means that years of service after the effective date of the freeze are not factored into determining an employee's benefits under the plan. However, benefits continue to accrue based on increases in covered participants' compensation. An alternative version of the soft freeze is to freeze out a certain class of employees or new participants. Under a "hard freeze", employees will receive the benefits already accrued, but no new benefits are accrued after the date the plan is frozen. Thus, if a worker has spent 20 years with a company and plans to stay for an additional five years until retirement, no pension benefits are accrued during those last five years. Further, no new participants are allowed to participate in the plan. Most companies that freeze pension plans either introduce a 401(k) plan or other defined contribution plan, or enhance an existing plan. Freeze Vs. Termination A pension freeze is different from a pension termination. In a termination, a company must pay out all benefits as soon as administratively feasible, usually no longer than one year after the termination date. Distributions can be made as a lump sum, if permitted under the plan, or by buying employees an annuity that pays benefits over time. Companies in bankruptcy may transfer their pension liabilities to the Pension Benefit Guaranty Corporation (PBGC), a federal government agency that insures pension plans. (For more on the PBGC, see The Pension Benefit Guaranty Corporation Rescues Plans and Lump Sum Versus Regular Pension Payments.) Pension Protection Act of 2006 The Pension Protection Act, as its name implies, was meant to help ensure the financial viability of pension plans following high-profile plan terminations at several airline, steel and other companies. A few of the PPA's provisions, however, have resulted in many businesses either shying away from adopting new defined-benefit plans, or terminating/freezing those that were being maintained. Signed by President Bush in August 2006, the PPA runs more than 900 pages and includes a number of provisions related to retirement plans. These include provisions that allow companies to enroll employees automatically in 401(k) plans, provide investment advice to employees and establish default investment elections. These are viewed as some of the positive provisions. The negative provisions include those that seem to encourage companies to consider freezing or terminating their pension plans. PPA sets much stricter standards for ensuring companies set aside enough capital to fully fund their pension obligations. In particular, PPA gives most pension plans seven years - beginning in 2008 - to make sure their plans are 100% funded. For employers that fail to meet this funding obligation, a 10% excise tax may be levied on the company if the deficiency is not corrected in time. For many companies, this will mean they must accelerate their contributions. While these employers are perm
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