Mr. Connor, DB plans are very limited and only utilized in very specific circumstances. This is because they are very expensive to the employer and must include all qualified employees. When you can use them however, they are the best tax deferral tool available and are well beyond the reach of creditor claims. Recall the OJ case, and the inability of his creditors to access his DB plan assets.
Hello Mr. Quinn, I was referring to when a plan becomes fully funded and no further contributions are available to the plan beneficiary. There are various techniques to use after this happens but they are more limited in terms of contribution amounts and percentages. Non retirement funds are also needed in most cases as you suggest. A good post and thank you for the topic.
Hello all, this is my first post and I have come to this blog through reference from the NYT article today. My condolences to the family of Mr. Clements and his friends and followers. I am a CPA and have been in private practice for 3 plus decades. In my experience there may be other factors to consider within this important post. There are large difference between the acquisition versus the maintenance of wealth. The maintenance cost of wealth is usually significantly lower than earnings required to fund the acquisitions. In some circumstances, using the formula above may not be a realistic goal. I work primarily in health care, M&A and international taxation. Most physicians I serve average between $ 750k to a1M K per year. To sustain such earnings using a 4% cap rate exceeds 18M in net wealth. In 2025, the maximum Defined benefit asset value allowed at age 65 retirement age is between 3M and 3.5M. This doesn't approach the type of funding needed to sustain this level of income. Another implied assumption above is that people consistently earn similar amounts through the years. Being on the entrepreneurial side of life, this approach is the exception rather than the rule for my professional practice. Most of my clients do NOT consistently earn the same money year over year. I am firmly in the camp of zero debt (on personal assets) as you approach retirement. Reduce, reduce and further reduce debt and monthly overhead as much as possible. Live conservatively and below your means throughout your life. Don't try to keep up with your perception of what your peers are doing, earning or pretending to earn. :) George
Comments
Mr. Connor, DB plans are very limited and only utilized in very specific circumstances. This is because they are very expensive to the employer and must include all qualified employees. When you can use them however, they are the best tax deferral tool available and are well beyond the reach of creditor claims. Recall the OJ case, and the inability of his creditors to access his DB plan assets.
Post: Achieving and maintaining all the retirement income you need for a chosen lifestyle with limited worry.
Link to comment from September 25, 2025
Hello Mr. Quinn, I was referring to when a plan becomes fully funded and no further contributions are available to the plan beneficiary. There are various techniques to use after this happens but they are more limited in terms of contribution amounts and percentages. Non retirement funds are also needed in most cases as you suggest. A good post and thank you for the topic.
Post: Achieving and maintaining all the retirement income you need for a chosen lifestyle with limited worry.
Link to comment from September 25, 2025
Hello all, this is my first post and I have come to this blog through reference from the NYT article today. My condolences to the family of Mr. Clements and his friends and followers. I am a CPA and have been in private practice for 3 plus decades. In my experience there may be other factors to consider within this important post. There are large difference between the acquisition versus the maintenance of wealth. The maintenance cost of wealth is usually significantly lower than earnings required to fund the acquisitions. In some circumstances, using the formula above may not be a realistic goal. I work primarily in health care, M&A and international taxation. Most physicians I serve average between $ 750k to a1M K per year. To sustain such earnings using a 4% cap rate exceeds 18M in net wealth. In 2025, the maximum Defined benefit asset value allowed at age 65 retirement age is between 3M and 3.5M. This doesn't approach the type of funding needed to sustain this level of income. Another implied assumption above is that people consistently earn similar amounts through the years. Being on the entrepreneurial side of life, this approach is the exception rather than the rule for my professional practice. Most of my clients do NOT consistently earn the same money year over year. I am firmly in the camp of zero debt (on personal assets) as you approach retirement. Reduce, reduce and further reduce debt and monthly overhead as much as possible. Live conservatively and below your means throughout your life. Don't try to keep up with your perception of what your peers are doing, earning or pretending to earn. :) George
Post: Achieving and maintaining all the retirement income you need for a chosen lifestyle with limited worry.
Link to comment from September 24, 2025