Jared Porter, QKC®, QKA®’s Post

It was fun--well, I don't know if I can call it "fun," but I am kind of a nerd. So, yes, it was fun to do a Cash Balance 101 webinar with my good friend and colleague, Sue Hardy. What is a cash balance plan? I asked AI to explain to me as if I was a High Schooler, what is a cash balance plan?. I think it did a good job! A magical piggy bank! A cash balance retirement plan is like a special savings account your employer sets up for you to help you save money for when you're older and no longer working. Here's how it works, broken down simply: 1. Your Employer Puts in Money: Think of it like your boss depositing money into a piggy bank just for you every year. This is called a "contribution." 2. The Money Grows Over Time: Imagine that the piggy bank has magic powers and makes your money grow every year at a steady rate, no matter what. This growth is like interest, and it’s guaranteed, so the amount in the piggy bank gets bigger even if you don’t touch it. 3. You Get a Statement: At the end of every year, you get a "statement" showing how much money is in your special account now—both what your boss put in and how much it grew. 4. When You Retire, You Have Choices: When you're older and stop working, you can take the money out in a couple of ways: -As a big chunk of cash (called a lump sum). -As a monthly paycheck (called an annuity) that keeps coming for the rest of your life. In short, it's a retirement plan that combines the best parts of a regular savings account and a traditional pension plan, making sure you have money when you're older. Your employer does most of the work, and you get the benefit of having money set aside for the future! https://lnkd.in/ghDgb6mc