Difference between immediate cash and 48 hours.
Pension Plans: Management Company: Santander Pensiones, S.A. EGFP; Custodian Company: Caceis Bank Spain S.A., S.A.; Sponsor Company: Banco Santander, S.A. The DDFP (Documento de Datos Fundamentales para el Partícipe) is available at www.santanderassetmanagement.es Pension plans are products that depend on fluctuations in market prices and other variables, so the plan does not guarantee any profitability.
www.santanderassetmanagement.es Pension plans are products that depend on fluctuations in market prices. The assets of EPSV pension plans are exposed to fluctuations in market prices and other variables. The value of the assets can go down as well as up, so the recovery of the initial capital invested and other variables cannot be assured, so the plan does not guarantee any profitability.
Pension plans are a retirement savings instrument. On this page we tell you in which cases you can redeem the money invested in a pension plan and all the necessary documentation to do so. Here we go!
We can choose whether we want to withdraw all the money at the same time (we would pay a lot in taxes) or do it on a monthly basis, with the installment we want. In this second option, in addition to paying less, the money we leave in the pension plan will continue to benefit from the profitability.
At the moment we redeem the money, we must pay those taxes. However, we must know how to do it in an optimal way to pay less than what we would pay during our working life. We should withdraw our money in installments, and not all at once.
Immediate cashing out schedule
How do I want to redeem my pension plan? Is it better to redeem it little by little, in the form of income, or in the form of capital, making a total redemption of all the vested rights? These are some of the most frequent questions that people ask themselves when they reach retirement age and want to redeem their pension plan and begin to have access to the contributions they have been making over time.
In order to be able to make a decision, the first thing to know is the taxation. Therefore, it is important for you to know that the amounts you receive from the pension plan will be taxed as earned income in the general tax base.
This is so for two reasons: The first is because it is a supplement to the pension and, therefore, it must be added to the same chapter. And the second reason is that, just as when we made the contributions we deducted them from the income of the general base, when we redeem them they will also increase the general base.
The elimination of the 40% reduction for withdrawals in the form of capital came into force on 01/01/2007, but this regime has been maintained for contributions made to the pension plan until 31/12/2006.
An ex-coupon bond is one that does not include the collection rights on the next coupon. Generally the bond “cuts coupon” 48 hours before the income payment date and starts trading without the collection right.
The settlement date is the moment in which the operation becomes effective, this means that it is the moment in which the agreed price is paid and the security is received or, as the case may be, the agreed price is collected and the security is delivered.
These are bonds that do not pay income or amortization during their life. They are issued at par, for a price lower than their face value (at a discount), and at maturity they are amortized at their face value. A yield is obtained from the difference between the investment value and the redemption value.
The IRR, or Internal Rate of Return, is the rate of return that equals the present value of the flows (income and amortization), with the current price of the bond. The higher the price, the lower the IRR. It should be noted that the IRR is an expected return, which depends on these two assumptions: