Daughters pension plan choices
Hi Terry my daughter is a new teacher in Michigan and they have two different retire plans to choose from Defined Contribution Plan vs Pension Plus 2 Plan I have the two explanation of the two to show you but not sure how to attach it she is not sure which plan to go with any help or suggestions?
Terry Says
One plan depends on her level of contributions and her investment choices. That is the defined contribution plan. The second sounds like a more traditional pension, which will be based on years of work.
In general, and without knowing details, if she is young, I’d suggest the defined contribution plan. Presumably of she leaves her job, her contributions will be fully vested and she can roll into anIRA. Hope they also make matching contributions to that plan, and have a low fee structure.
The details are important!