Pension vs. 401(k) which is better? In this video I will discuss the pros and cons to each plan and why we moved away from pensions and to 401k plans as a nation. It wasn’t for your benefit it was for the benefit of corporations who wanted to reduce their liabilities. It was a shift from a guaranteed income to one where you are responsible for making your money last.

Want to talk about your situation, feel free to email me or schedule time to discuss.

Sean Moran is a financial advisor specializing in retirement planning, college planning, life insurance, disability insurance, Long Term Care insurance and a holistic approach to your personal finances.

Sean has clients in NJ, TN, VA, TX and would love to help you either locally or virtually.

Sean is an author, former corporate tax professional and entrepreneur. He holds a BS from York College of PA and a Masters of Taxation from Fairleigh Dickinson University.

If you are interested in learning more, you can contact Sean at: smoran@redbarnfinancial.com or schedule a meeting here: calendly.com/spmoran

Red Barn Financial LLC offers securities through Ad Deum Funds, a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitationfor the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and, unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance….(read more)

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When it comes to retirement planning, many people are often faced with the decision of whether to opt for a traditional pension or a 401(k) savings plan. Both options have their own set of benefits and drawbacks, and choosing the right one for your financial situation can be a daunting task. In this article, we will compare the two retirement saving options and discuss which one may be better suited for your needs.

A pension is a retirement plan that is funded entirely by the employer. It provides a guaranteed monthly income during retirement, based on a formula that takes into account your salary and years of service with the company. With a pension, you do not have to worry about managing your investments or market fluctuations, as your employer takes care of all the administrative tasks. This can provide a sense of security and stability for retirees, knowing that they will receive a regular income for the rest of their lives.

On the other hand, a 401(k) plan is a retirement savings account that is funded by both the employer and the employee. Employees contribute a percentage of their salary to the account, and employers may also match a portion of those contributions. A 401(k) offers more flexibility and control over your investments, allowing you to choose where to allocate your funds and potentially earn higher returns. However, this also means that you bear the responsibility of managing your investments and monitoring market performance.

So which option is better? The answer depends on your individual preferences and financial goals.

A pension may be a better choice if you value the security of a guaranteed income stream and do not want to take on the risk of managing investments. It can provide peace of mind for retirees who are looking for a stable and predictable source of income during their golden years.

On the other hand, a 401(k) may be more suitable if you prefer to have more control over your investments and potentially earn higher returns. It allows you to actively manage your retirement savings and make decisions based on your risk tolerance and financial goals.

It’s important to consider your personal circumstances, retirement needs, and preferences when deciding between a pension and a 401(k). Some people may even choose to have both options, diversifying their retirement income sources and enjoying the benefits of both.

In conclusion, there is no one-size-fits-all answer to the question of whether a pension or a 401(k) is better. It ultimately comes down to your individual priorities and financial situation. Whichever option you choose, it’s important to start saving for retirement early and regularly contribute to your account to ensure a comfortable and secure future.