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Cash Balance PlansCash Balance Plans

Investing for retirement can be problematic for professionals in partnerships or other types of closely held firms. Yes, that includes lawyers in law firms. These individuals tend to spend their early careers focused on building their business. By the time they're ready to start saving money for retirement, standard retirement savings vehicles such as 401(k) plans can shelter only a small portion

17 Min Read
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Stephen Lippman & Gregory D. Singer

Investing for retirement can be problematic for professionals in partnerships or other types of closely held firms. Yes, that includes lawyers in law firms.

These individuals tend to spend their early careers focused on building their business. By the time they're ready to start saving money for retirement, standard retirement savings vehicles such as 401(k) plans can shelter only a small portion of their income. The rest is subject to taxes, often in the highest brackets.

Cash balance plans can help. A type of defined benefit retirement plan,1 cash balance plans have much higher annual contribution limits than 401(k)s — nearly 10 times higher for older individuals — enabling participants to build substan...

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About the Authors

Gregory D. Singer

Senior Vice President, Capital Group Private Client Services

Gregory D. Singer is an asset allocation and wealth planning specialist at Capital Group Private Client Services. Prior to joining Capital Group in 2012, Greg was a senior managing director with AllianceBernstein serving in wealth planning, investment and marketing roles. Previously, he was a director for the Pepsi-Cola Company, where he held positions in finance, strategy and marketing. He has also served as the lead strategist for a subsidiary of The Limited and as an M&A analyst for Lehman Brothers. Singer concurrently earned a BS in finance and a BAS in computer science from the University of Pennsylvania, and he holds an MBA in finance from the Kellogg School of Management at Northwestern University. He has published extensively in industry press and academic journals and has been cited in numerous periodicals, including The Wall Street Journal and The New York Times. He is also a member of the investments editorial board for Trusts & Estates magazine. Greg is based in New York.