If you're not paying close attention, you might not catch the one word difference in retirement plans, but it's a big one. Benefit vs Contribution - what's the difference and why does it matter so much?
A defined contribution plan means you contribute a defined amount to the account, one your employer may or may not match or also contribute to. Examples include 401K and 403B.
A defined benefit plan means you are getting out an benefit when it comes to retirement. They are a little more straightforward, like a pension.
If you're at a loss over your big retirement picture, Finley Alexander Wealth Management can help you see where you are and where you need to be.
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