Some might feel that the practice of continuing to feed tax-deferred retirement funds such as 401(k) plans in an economy where taxes are expected to rise is a bit like buying tickets on a ship that has already sailed and then hoping they can pay extra to rent a paddle boat to try to catch up. We should take note of recent government action that is designed to charm the masses of people who are concerned about dwindling balances in retirement funds and worried about the likelihood of having enough money available to make retirement possible.
Allowing annuities as a choice in retirement fund options is not new, but recent regulations make the process of aligning annuities as a portion of the retirement investment package a more transparent option, giving investors the ability to keep their money in the tax-deferred funds while segregating a portion of the investment into a fixed income annuity. The process is not cut-and-dry, as there are complicated rules determining at what age an annuity payment would begin, what portion of the fund could be allocated in this direction, how the provider can insure against a poor economy, and what would be the appropriate cost for this option. I believe anything that encourages saving is a positive move. Whether this is a viable alternative remains to be seen, but choice is good and annuities provide a security blanket that few other investments can offer.
Prior to this role, Caleb served as the editor of Going Concern since its founding in 2009. During his time as editor, Going Concern quickly became one of the most popular and talked about websites in the accounting profession. He has been named one of Accounting Today's Top 100 Most Influential People every year since 2011 and has been published on numerous websites, including Above the Law, Deadspin, Denver Business Journal, and the Huffington Post.
Caleb is an adjunct professor of journalism the Community College of Denver in Denver, Colorado, where he teaches Internet Media.
Prior to falling bass ackwards into the media business, Caleb spent over five years working in public accounting, with more than three of those years at KPMG. Caleb received a Master of Science in Accounting from Colorado State University and a Bachelor of Science in Business Administration from the University of Nebraska at Kearney.
Caleb spends a lot of time on a bicycle and reading, but never at the same time.