Variable Benefit Plan

If you prefer to ride a tad on the wild side rather than be stuck with a boring fixed income, a variable benefit plan might be for you.

A variable benefit plan is a ticket to riding the bulls and the bears in retirement. Told you it was wild fun.

Variable benefit plans are retirement plans with variable payouts, which depend on how the market is doing. If your portfolio is doing well, you’ll get higher payouts. If the bears are reigning as market kings for now, you’ll be working with a tiny budget in retirement. You can even run this fund yourself. Yeeehaaaw.

The other option is a defined-benefit plan. This one's for squares who don’t want to ride bulls or bears. In order to get this kind of plan, which gives you a fixed income, it’s run by a financial institution or employer. They hold your investments for you and give you a fixed income every month in return, regardless of how the market is doing.