Before undertaking an in-depth discussion on the DB Plans in the next post, let me give you some background as to my experiences in pension plans prior to entering the investment management world in the early 1990’s.  

After graduate school in the late 1980’s, I began working at a regional CPA firm in upstate New York.  It was a deep and talented pool of professionals which serviced a diverse client base from many segments of the economy.   I felt very fortunate to learn so much from the principals and supervisors while there.

During my time at the Firm, I audited a number of DB Plans (as well as other types) and became very familiar and interested in the structure and operational mechanisms of them.  I learned that many participants viewed the receipt of a benefit check in combination with social security as the only income they would need. Therefore they felt that the need to save much more wasn’t a priority.  Fortunately for some DB Plan participants this mindset has changed over the past 25 years as they have begun to contribute to 401(k)’s and / or other savings type vehicles.

All of this led me to realize that there was a substantial need for wealth managers with experience in pensions via public accounting combined with an understanding of how to build a portfolio.    Therefore, the next post will focus on what a Plan participant should understand as to the important information that needs to be gathered as well as a case study of hypothetical outcomes.

Tom is the Founder of TRG and has been the President and Chief Investment Officer since 2008.