AboutRichard E. Reyes, CFP Expertise I can provide answers to questions relating to retirement especially relating to; income distribution, tax efficiency, long-term care insurance, life insurance, estate planning, asset protection, variable and fixed annuities, alternative investments and prudent portfolio design.
Experience Through the years Richard has built a reputation as one of Central Florida's premier retirement income specialists by providing sound, unbiased wealth coaching.
We believe that Financial Planning is the problem and Wealth Coaching is the solution. The Wealth Coaching process gives you Peace of Mind, so you can stop worrying about your future. It helps you find happiness as it guides you in the TRUTH of investing, by teaching you how to make wise choices as you journey through your life’s stages. It is all about your relationships and what you value, not your net worth.
Organizations Financial Planning Association
Junior Achievement
Publications Seminole Success Magazine “Retirement Planning”
Seminole Success Magazine “Small Business Snapshot”
The Orlando Sentinel – Ask the Expert Financial Section (Various)
Greater Orlando Broker Agent Magazine “The New It”
Senior Market Advisor “Random Reader, Random Questions”
AuthorThe Dirty Filthy Lies My Broker Taught Me and 101 Truths about Money and Investing
Education/Credentials B.S. University of Florida, Gainesville, FL
CFP Certificate, University of Central Florida, Orlando, FL
Awards and Honors 2005,2006,2007,2008 America's Best Financial Planners
2007 Orlando Business Journals "Top 25" Top Financial Planners in Central Florida
Marie, thanks for your question. A target benefit plan is different from a defined benefit plan in that with the target benefit plan, the monthly payments due at retirement are at the mercy of the performance of the investments. If the performance is better than expected, the employee will receive a higher monthly payment and vice versa.
The second key difference lies in the monthly contributions made into each of the employee accounts, on behalf of the company. With a defined benefit plan, the employer will contribute as much as is necessary on a monthly basis to reach the anticipated goals at retirement. With the target benefit plan, the amount of contribution is set in stone after year 1.
Typically, older employees will benefit the most from a target benefit plan. This is due to the fact that AGE is a key factor in the formula used to determine the monthly contribution amounts by the employer. The greater the age, the less time the employer has to fund the plan adequately. For this reason, older employees receive higher contributions in order to match their retirement goals.
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