Monday, September 13, 1999

INVESTMENT PRIMER

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What does it mean if I am “vested” in my retirement plan?

        That term is used in relation to pension or 401(k) plans. It means an employee (or his or her estate) has rights to all or a part of benefits purchased with the employer's contributions even if the employee doesn't work for this employer at the time of death or retirement.

        How vested you are depends on your seniority. For example, you could have worked for three years and be 80 percent vested (you have the right to 80 percent of your company's contribution), but at five years, you could become fully vested.

        Have you seen an investment term you'd like to understand better? Write to Amy Higgins, The Cincinnati Enquirer, 312 Elm St., Cincinnati 45202. Phone: 768-8373.

       

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Co-signing loans can be risky
ASK THE MONEY PANEL
INVESTMENT PRIMER
MONEY BRIEFING
PEOPLE ON THE MOVE