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Pastimes : All Clowns Must Be Destroyed -- Ignore unavailable to you. Want to Upgrade?

To: flatsville who wrote (14621)	3/4/2000 5:21:00 PM
From: Ilaine	Respond to of 42523

I wasn't actually searching for pension plans on 10KWizard, I was just noodling around and clicked "institutional holdings" at the bottom of the home page - it must be a feature they are highlighting now, because you also can get to it from a button at the top of the page "13F Analysis". Form 13F is filed by a number of financial institutions, including institutions that manage their own pension plans. I am guessing, although I don't know for a fact, that there are a number of companies that outsource their defined benefit plans. I don't know if you've ever contemplating setting one up, but I have, I am also a lawyer, but the paperwork is unbelieveably boggling. It is a little known fact that defined benefit plans are a fantastic way for a older small business owner with a high dollar income to set up a retirement plan late in life, because there is no set dollar limitation, contributions are only limited by a formula that inputs actuarial info on age, and income, and retirement age, as you can only draw a percentage of income on retirement, but the dollar limit is quite high. My dad, who was a dentist, set one up late in life after his second wife (divorced) ripped off their office pension plan (she was his office manager). He paid everything back, plus penalty and interest, quite a heavy load, but in the meantime hooked up with some good advisors who helped him start over with a defined benefit plan once he started having extra income to put towards retirement. He outsourced it to an outfit that specializes in such things. I looked into it for myself, but in my 40's I can put about as much into a Keogh or SEP, and the administrative costs are far lower. Agreed about the self-directed retirement plans being a major factor in the current investing environment. I suspect that a very large percentage of SI investors are directing investments within their own retirement plans. Anyone who has to actually pay capital gains on trades quickly learns how crazy from a tax standpoint short-term trading is, at least if they are in one of the higher brackets.