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Pay-as-you-go Pension Plan
A pay-as-you-go pension plan is a retirement scheme, where as in which a said contributor can choose how much money they would like to be deducted regularly from either their paycheck, or by perhaps a lump sum to their own retirement fund. The funds they choose to provide goes towards a retirement plan which can be then redeemed upon reaching retirement age. With this type of plan, the contributor can decide how much money they see fit to contribute to the fund. With the funds that are contributed, the contributor will be able to devise a plan on what to invest in, which in turn leaves said contributor as the person mainly responsible for how much the pension can grow. Choosing an investment that is more risky can lead to a bigger return on money however, it is also possible to choose a steady and safe investment in order to have a consistent return on money. Upon reaching the age of retirement, the contributor can choose to have their money paid to them in a lump sum, which means t ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
PAYGO
PAYGO (Pay As You GO) is the practice in the United States of financing expenditures with funds that are currently available rather than borrowed. Budgeting The PAYGO compels new spending or tax changes not to add to the federal debt. Not to be confused with pay-as-you-go financing, which is when a government saves up money to fund a specific project. Under the PAYGO rules, a new proposal must either be "budget neutral" or offset with savings derived from existing funds. The goal of this is to require those in control of the budget to engage in the diligence of prioritizing expenses and exercising fiscal restraint. An important example of such a system is the use of PAYGO in both the statutes of the U.S. Government and the rules in the U.S. Congress. First enacted as part of the Budget Enforcement Act of 1990 (which was incorporated as Title XIII of the Omnibus Budget Reconciliation Act of 1990), PAYGO required all increases in direct spending or revenue decreases to be offset by o ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |