Self-directed defined benefit plans.
Familiar to many as a "pension plan," a defined benefit plan is designed to provide the participant a specific monthly benefit at retirement. This benefit may be stated as an exact dollar amount. A participant is generally not required to make contributions in a private sector fund but most public sector funds require employee contributions. Unlike defined contribution plans, the participant is not required to make investment decisions.
Consider a Preferred Trust Self-Directed Defined Benefit Plan if:
- You’re looking for a plan that guarantees retirement income for you and your employees, and is not dependent on any ability to save.
- You want a plan with little investment risk.
- You or your employees want the ability to make nondeductible voluntary contributions.
- You can make cost of living adjustments.
If you have a Defined Benefit Plan or Pension Plan with your current employer, you can self-direct your funds into alternative investments. Your employer/administrator can add Preferred Trust as an additional investment alternative.
