How Wealthy Americans Use Cash Balance Plans to Save Millions for Retirement

WSJ Your Money Briefing

The Wall Street Journal

News, Business News

3.8 • 1.6K Ratings

🗓️ 11 March 2025

⏱️ 8 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

Cash balance retirement plans have surged in popularity and now hold $1 trillion of wealth. Wall Street Journal reporter Anne Tergesen joins host Ariana Aspuru to discuss how the plans work and explain how affluent professionals are amassing multimillion-dollar retirement account balances. Sign up for the WSJ's free Markets A.M. newsletter. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

Click on a timestamp to play from that location

0:00.0	With record levels of dry powder available for investment, find out what's in store for private markets in 2025 and beyond.
0:06.9	Listen to crafting capital in partnership with UBS at partners.wS.J.com slash UBS, Spotify and Apple Podcasts.
0:17.8	Here's your money briefing for Tuesday, March 11th.
0:21.2	I'm Mariana Aspuru for the Wall Street Journal.
0:28.1	On top of their 401K plans, many lawyers, doctors, and accountants also have another retirement savings option.
0:36.1	It's called a cash balance plan.
0:38.5	This offers them the ability to sort of tack on this extra plan
0:41.9	and put a whole lot of money into it and leave with as much as $3.5 million.
0:47.8	We'll hear from Wall Street Journal reporter and Turgesson
0:50.2	about how they're using these plans to build wealth after the break.
1:02.7	Americans love using their credit cards, the most secure and hassle-free way to pay.
1:07.4	But DC politicians want to change that with the Durban Marshall Credit Card
1:11.1	Bill. This bill lets corporate megastores pick how your credit card is processed, allowing
1:16.5	them to use untested payment networks that jeopardize your data security and rewards. Corporate
1:21.7	megastores will make more money and you pay the price. Tell Congress to guard your card
1:26.9	because Americans lose when politicians choose.
1:30.3	Learn more at guard your card.com.
1:38.0	Hi earners may have a secret weapon for saving millions for retirement.
1:43.1	Cash balance plans. Wall Street Journal reporter and
1:46.8	Turgerson joins me. And what's the biggest difference between a cash balance plan and another
1:53.6	retirement plan like a 401k? So cash balance plans are technically pension plans. So you can think of
2:00.0	them that way. They are structured a little
	...

Please login to see the full transcript.

Previous episode | Next episode

Disclaimer: The podcast and artwork embedded on this page are from The Wall Street Journal, and are the property of its owner and not affiliated with or endorsed by Tapesearch.

Generated transcripts are the property of The Wall Street Journal and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.