Defined Benefit vs. Defined Contribution Pension Plan

[@romeojulyofficial]

You have done justice to this. Thank you so much.

[@jamesgordon3494]

I don't know if anyone has every told you this before, but your strategic use of different colors in these videos is next level genuis.

[@kumarrajagoolisetty9500]

Hi, before this video I was making judgement between DBP and DCP. Now I understood and can explain the concept, thanks lot👍

[@Janjanmartmart]

How is it I read an entire chapter and don't grasp it, but you explained this as easy as ABC123.👀

[@1notgilty]

Kodak is a perfect example of what NOT to do. They underfunded their pension program for years and invested in their own stock to pump up the stock price which benefitted the company and the big stock holders like the corporate board members. Then the company went bankrupt and the retired employees lost all of their "guaranteed" healthcare and most of their pension benefits. The corporate officers should have been thrown in prison. Instead they are cruising around on their private jets and yachts.

[@hennykills]

This comment makes so much sense a year later wow!

[@1notgilty]

​@@hennykills Yup, the same bunch of Kodak corporate criminals did it again with their insider trading in August 2020 before the $765 million government loan was announced for Kodak to manufacture generic pharmaceuticals. The stock skyrocketed from $2 to $60 and the company's board members made a fortune and then the stock plummeted. They would ALL be in prison if we had a functional Securities and Exchange Commission. Martha Stewart went to jail for a LOT less.

[@tiershall4271]

Preparing for the SPHR. This was explained very well. Thank you!

[@FictionsAndIllusions]

Thanks! This video is very informative and easy to understand.

[@sakkibaba]

Awesome... very few people can speak so clearly.

[@Edspira]

Thanks Saqii!

[@benstevenson4574]

Great explanation of both schemes!! Thanks

[@surajasuresh8232]

Dude... Thnxs a lot... Having my ACCA xam this March and boom! The concepts clear

[@MacyMorganBodine]

Could you make a video going through a pension worksheet and explain how it works?

[@karanmalik7336]

Very nicely explained!!, Thank you so much.

[@realityblooms]

Great simple and to the point! Thanks

[@NexGenSlayer]

You didn't mention that the $3,000 is "yours" only if you're 100% vested in the plan. If its Graded Vesting or even Cliff Vesting, you only own a certain percentage of your employer's matched contributions if it is under a set time period (usually 4-6 years if it's Graded Vesting I believe -- don't quote me on that vesting schedule though, it differs at every company).

[@muffemod]

Yea obviously.

[@benderbendingrofriguez3300]

I hope you did update your Michael McLaughlin account after this video.

[@wendyjing4400]

Thanks for your video, It helps me a lot.

[@Edspira]

Glad to help!

[@PeratchiSelvam]

Nice explanation. Thank You.

[@cassieliang910]

Great! Briefly but informatively!

[@rubyy_j]

Great explanation! Thank you

[@dcggil]

Great description! Thank you!

[@Edspira]

+Carolina Gomez It's my pleasure. Best wishes :)

[@themomenthasarrived160]

so wait, are you saying that they receive 50000 dollars a year or receive a total payment of 50000 dollars?

[@maximusfabius]

annually, until he/she dies)

[@Pheidippides1]

I appreciate your video. What comprises this hypothetical 2%?

[@m.h.3679]

what comprises the 25 years and taking your highest salary? it’s just a way to get to a number the same way for everyone. They could say, take the amount of years you work, 25, multiple it by 2, =50 then multiply that by 1% = 0.5 and then multiply that by your highest wage of 100k and you’d still end up with 50k a year

[@TheMrAineas1]

It's called the accrual rate. The percentage of your salary going towards increasing your Benefit.

[@rob8482]

Makes it understandable, as always!

[@Edspira]

Thanks Robert!

[@pavanifernando4504]

I can't thank you enough!

[@trevorhenning4478]

a 401k is not a DC Pension plan. it is a DC PSP

[@fikrirafhsanjani3109]

In defined benefit pension, So the employee will be get 50 thousand dollars in pension until the employee die?

[@septembexr]

Hey did you get the answer for this bc im questioning the same

[@jackychan8539]

Defined benefit is a complete loss I get 5$ a hr put into my personal account idk see how putting my money into a group fund where the employer can loose it if they go bankrupt is worth risking my ‘personal assets’

[@kamwo183]

Are you Jason Watt?

[@FinalVibes]

Your Michaelmclaughlin account settings are out-of-date.

[@joshuamanampiu6489]

Thank you

[@rhythmsoien8391]

Thankyou Soo Much :)

[@thisisbob1001]

dB ok till company goes bust

[@DinosaurSuccess]

why would anyone want to use defined-benefit? it seems bad for both parties

[@ianjones2335]

It may have a higher present value over defined-contribution. but I see your point. I like the portability of defined contributions.

[@muffemod]

WHY NOT BOTH?!

[@mommy9934]

Buuuuuuuuuuuuuuut !!! Are you paid every month with defined contribution? I understand you put your own money in and everything, but no one ever specifies sharply that you do or don't get paid monthly with DC

[@dorenebonafilia522]

If DC is in 401k you have to start making monthly withdrawals by 70 1/2. But you can start taking out monthly payments at 59 1/2.

[@cigdemckk]

Keşke türkçe alt yazılı olsa...

[@LeslieTzy]

erm why is it cut off at the end?

[@frankgallacher6598]

But lets not lose sight off the issue defined benefit or money purchase pension scheme is a total rip off the company pays a pittance and all the risks are on the employee if they retire with a pension pott off say 3 thousand that's not 3 thousand per year that's what you get from the company you have given the best years off your life too even if you where to pay all your wages live in a tent and eat rice for your lifetime with the company you'll still be lucky to get a decent pension ..but hay there's light at the end off the tunnel at lease your boss will have a golden pension.

[@abcdefgabcdefg3436]

This MF stole his format from khan academy XD. Good info tho.

[@kelvinadams4877]

Thank you for share, i dont see any advantage on giving you money and financial future to a company or wall street market. Basically hope for best in the end. You put you money and truth in other people hand, the first red flag. THE QUICKIEST WAY TO DOUBLE YOUR MONEY IS FOLD IT OVER AND PUT IT BACK IN YOUR POCKET. Will Rogers