Ted Bauman was born in Washington D.C and raised in Maryland’s eastern shore. He attended the State University of New York at Albany and the J. Mack Robinson College of Business. Later on, he moved to South Africa and attended the University of Cape Town for his postgraduate studies in Economics and History. He settled in South Africa and worked in the non-profit sector for 25 years, providing consultation services to the United Nations, the government of South Africa and the World Bank.
He then relocated to the United States to work for the Habitat for Humanity. In 2013, he joined the Banyan Hill Publishing as an editor. He also writes weekly in the daily newsletter and The Sovereign Investors Daily. Ted Bauman evaluated the significance of a cash-balance plan as an alternative to traditional pension plans. He predicts that older workers and high earning individuals may be on the losing front without the consideration of retirement income alternatives.
According to Bauman, only a third of the American population has saved money for use after retirement. He projected that approximately 75 percent of the population has insufficient retirement savings. Corporations professionally planned for the monthly retirement income for retirees, and for many years, the majority population thought the method as the most secure source of retirement benefits. An alternative approach, the 401 (K) Plan, was recently introduced resulting in the shifting of the retirement risk to individuals. The plan places the burden on the employees to determine the amount of their monthly income to put away for retirement. The employers were simultaneously relieved of the burden of such obligations. The movement of the stock market and the savings amount are the determinants of the value of the 401 (K) account.
Ted Bauman confirms that the new method combines two types of retirement plans, thus providing the hybrid option. Ted Bauman reviews the cash-balance plan citing the advantages from the participants. The older employees may be at a loss since they have limited retirement savings, but the plan promises to topple the retirement funds for long-term pension employees. The traditional plan benefits employees by increasing their contributions, and the participants of this plan may not be willing to support the cash-balance plan.
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