FERS

FERS or the Federal Employee Retirement System is the retirement system applicable to the employees that fall under the US civil service. Its inception can be dated back to January 1, 1987 when it replaced the CSRS.

What’s Your Vision For Retirement?

January 8, 2024 /by rick viader

ï»¿While it’s never too early to start thinking about retirement, a frequent misconception is that it simply means putting as much money away as possible. Of course, financial savings are an essential part of a sound retirement strategy, but that shouldn’t be the primary focus.

According to a retirement planning expert, a non-financial aspect of retirement planning is essential: your retirement vision or how you envision yourself living once you’re no longer working.

The author of The No-Regrets Retirement Roadmap, financial advisor Anthony Delauney, CFP, says one’s retirement goal is what “impacts emotions in retirement.” According to Delauney, it covers activities that a retiree may want to do in retirement.

While the items on one’s retirement wish list may not be directly financial, they certainly have financial consequences, which is why Delauney is so keen on urging folks to create one for themselves. He claims that recognizing what (and whom) a person values in life can help them plan their retirement, which will question how they set up their financial plans.

For example, transitioning from a homebody to a globetrotter after retirement will necessitate financial planning to make that lifestyle viable. However, before making any decisions, it’s critical to assess whether that’s something that someone wants for themselves.

So, where do you begin when sketching out your retirement plans? “It’s critical for people to take a step back and consider what brings them consistent joy in their lives,” Delauney says. When you take a non-financial approach to retirement planning, you should focus on those joy-producing people, activities, and places.

Many people have a structure that they follow over their working years. They may wake up and go to bed at the same time, begin working at a specific hour, and have such a long to-do list that they don’t have much free time. At the same time, Delauney advises maintaining some structure in retirement (whether through volunteering, part-time employment, or hobby groups). How individuals arrange their lives is ultimately up to them and their vision.

Consider the following three retirement scenarios as an example:

1. Prefer staying at home, spending time with one’s family, and traveling occasionally.

2. Wishing to sell one’s existing house and buy a retirement home where one can reside while volunteering at a local shelter.

3. Want to spend as many years as feasible in a different country each season.

Each of these three eventualities has its own set of financial consequences. According to Delauney, this reality emphasizes the importance of identifying a retirement vision early in life. When you know how you want your retirement to appear, you can estimate how much it will cost to make your retirement vision a reality.

Contact Information:
Email: [email protected]
Phone: 9568933225

Bio:
Rick Viader is a Federal Retirement Consultant that uses proven strategies to help federal employees achieve their financial goals and make sure they receive all the benefits they worked so hard to achieve.

In helping federal employees, Rick has seen the need to offer retirement plan coaching where Human Resources departments either could not or were not able to assist. For almost 14 years, Rick has specialized in using federal government benefits and retirement systems to maximize retirement incomes.

His goals are to guide federal employees to achieve their financial goals while maximizing their retirement incomes.

Can A Part-Time Employment Help You Delay Social Security?

January 1, 2024 /by ali el-sayed

Deferring your Social Security claim is frequently recommended. Why? Based on your specific earnings history, you are eligible for your complete monthly payment after you hit full retirement age (FRA). Depending on your birth year, your FRA will be 66, 67, or somewhere in between. However, for each year you wait to claim Social Security after FRA, your benefits increase by 8%. That increase will last for the remainder of your retirement.

You can no longer accumulate credits that result in increased perks once you become 70. So if your FRA is 67 and you want the highest Social Security income possible, you’ll have to wait three years.

That’s not always an easy undertaking, unfortunately. Many people in their late 60s are unable to work full-time. While working full-time until the age of 70 may not appeal to you, it is worthwhile to consider a partial retirement in which you work part-time. This could be your ticket to delaying Social Security and securing a higher monthly income, which allows you to live even more comfortably in retirement.

The Benefits Of Part-Time Retirement

Not every job is suitable for part-time work. Nonetheless, many fields do. If yours is one of them, it may be worthwhile to consider switching from full-time to part-time employment once FRA arrives. This can enable you to postpone your Social Security claim while still making enough to pay your bills without dipping into your retirement savings.

However, there are certain advantages to partial retirement. Gradually transition into part-time work to obtain a taste of retirement. You’ll experience what it’s like to live on a smaller salary and how easy (or tough) it is to spend your days while you’re not working.

Keep in mind that working is one low-cost way to kill time. If you work less, you may end up spending more money on recreation. That’s a piece of great advice you could use while you’re still employed. Indeed, you’ll would like to keep yourself involved while you are no longer working, which is one of the key reasons it pays to boost your Social Security income.

Both worlds combined

If you intend to boost your Social Security benefits but can’t see yourself spending 40 hours weekly at the office until you’re 70, then partial retirement might be the way to go. What’s more, who knows? If that arrangement works out well, you could opt to keep it even after you’ve turned 70 and are getting monthly Social Security benefits.

Many seniors find that working part-time gives them the best of both worlds: a way to be busy and increase their income without committing to a full-time career. That’s also something to think about for your retirement.

Contact Information:
Email: [email protected]
Phone: 8132032515

Disclosure:
Investment advisory services are offered through BWM Advisory, LLC (BWM). BWM is registered as an Investment Advisor located in Scottsdale, Arizona, and only conducts business in states where it is properly licensed, notice has been filed, or is excluded from notice filing requirements. This information is not a complete analysis of the topic(s) discussed, is general in nature, and is not personalized investment advice. Nothing in this article is intended to be investment advice. There are risks involved with investing which may include (but are not limited to) market fluctuations and possible loss of principal value. Carefully consider the risks and possible consequences involved prior to making any investment decision. You should consult a professional tax or investment advisor regarding tax and investment implications before taking any investment actions or implementing any investment strategies.

What You Should and Should Not Do Regarding Retirement Planning in This Terrifying World

December 28, 2023 /by mack hales

The rate of inflation has reached an all-time high. The S&P 500 index is falling at a rapid pace. War has broken out throughout Europe. Therefore, how many individuals successfully prepare for retirement amid such challenges?

Should they invest with a greater sense of urgency? Perhaps with more caution? Should you go back to work? Work longer? Should we move to a region with lower living costs?

There is no shortage of concerns over how to fund retirement. This is very relevant in current times. The monthly IBD/TIPP survey for April zeroed attention on one obstacle. 40% of respondents said they were most concerned about the expense of healthcare. It was closely followed by their concern for the significance of the economic uncertainty on their savings. For respondents from the senior age group, concerns about taxes and inflation also scored highly among their top fears. The respondents in the youngest age bracket (18 to 24 years) are concerned about taxes and housing expenses.

However, how does one prepare for the future, whether five years from now or 30 years from now, given that the world is making it more challenging to prepare for retirement? “To answer your question in a nutshell: No, you can’t. You can’t make plans with complete assurance,” Ric Edelman, a well-known author, radio commentator, and financial counselor specializing in personal finance made this statement.

Making Plans for Retirement Despite Uncertainty

However, this does not imply that it is impossible to start preparing for retirement right now. Because of the fast pace at which essential aspects have shifted, some of your expectations need to be readjusted. Edelman continued, “It is a pipe dream to believe that you can construct a plan right now that will cover the next thirty years. Instead, you should work on devising a plan that will get you through this time of unpredictability.”

The explanations for this are glaringly obvious. In March, inflation skyrocketed to an annual rate of 8.5%. Since 1981, it was the year that had the highest rise in the cost of living. Only in April, the S&P 500 had a decline of 8.8%. According to data provided by Dow Jones Market, it was the company’s worst April since records began in 1970. So, the value of your 401(k) and your IRA has probably decreased since the beginning of this year. And the same goes for some of your hopes and expectations about retirement.

It Is Time to Take A Defensive Role In The Planning Of Your Retirement

In terms of your preparations for retirement, this indicates that it is now time to take a defensive rather than an offensive stance. You should avoid making significant financial movements or purchasing expensive items until necessary.

According to Judith Ward, a financial counselor and a vice president of the massive mutual fund complex T. Rowe Price, making poor decisions in the present might leave you with less cash, the worth of which could rise in the subsequent rally.

And keep your money invested in diverse funds that already exist. In this manner, you will be able to benefit from the first wave of the subsequent rally, which is often an unexpected spike up. When it comes to individual equities, you should have some cash on hand to be prepared to reinvest when there is a proven rise. Edelman advised those in attendance to “remind themselves that the market has always come back.”

The stock market has recovered from various crises, including global wars, the Great Depression, the Great Recession, the dot-com crash, and other economic downturns. Edelman said, “Do not make costly changes that you can defer for a few months, a year, or even two,” saying that you should not do so. For the time being, sound retirement planning involves getting through the current market doldrums in the best possible form to capitalize on the next bull market when it arrives.

The following are the actions necessary to do it

There are still some “Dos and Don’ts” on the market. Ward encouraged the audience to keep making investments. Especially when it comes to mutual funds, you should fight the urge to convert your investment into cash. Why? During times of extreme market volatility, individual shareholders of mutual funds rarely sell their holdings near the market’s peak. In addition, they seldom, if ever, enter the market when it is at its lowest point. As measured by the S&P 500, the general stock market saw an annualized increase of 7.31% for the decade that concluded on December 31, 2015.

You should keep your stock mutual funds in their current state because the price of shares has dropped. As a result, you will get a greater number of shares for the same amount of money that you are presently contributing to your retirement accounts. Ward states that “it assists in your accounts taking off whenever the market ultimately returns.” The part of your savings portfolio that you use to pay current routine expenditures, whether you’re retired or have huge upcoming needs, is not included in the “stay the course” advice that applies to the long-term component of your portfolio.

Contact Information:
Email: [email protected]
Phone: 7705402211

Bio:
Mack Hales has spent the past 4 decades helping clients prepare for retirement and manage their finances successfully. He also works with strategies that help clients put away much more money for their retirement than they could in an IRA or even a 401k. We involve the client’s CPA and/or their tax attorney to be sure the programs meet the proper tax codes.

Mack works with Federal Employees to help them establish the right path before and after retirement. The goal is to help the client retire worry-free with as much tax-free income as possible and no worries about money at risk of market loss during retirement.

Mack has resided in Gainesville, GA since 1983, so this is considered home. Mack is married to his wife of 51 years, has two boys and five grandchildren.

The Implications of Federal Reemployment on Annuities

December 27, 2023 /by kevin wirth

Those who retire from the government and then return to work may enjoy a significant increase in their annuity.

Unless you’re one of the few who will be allowed to maintain both the annuity and the entire income of your new job, what happens will depend on whether your retirement was voluntary or involuntary and the retirement system you were in. Generally, a retiree’s annuity terminates if he was involuntarily removed from his employment and the new post is permanent in nature, such as a career, career-conditional, or excepted service appointment. However, if the involuntary separation was mandated by law due to age and length of service (or for cause), the annuity continues, and the retiree is treated as if the retirement had been voluntary.

If the separation was involuntary and your annuity was terminated, when you return to work, you’ll have the same status as every other federal employee in an equivalent job and with a similar service history. To put it another way, you’ll take up where you left off. If you leave the government again, your annuity will get reinstated unless you’re entitled to an immediate or deferred annuity based on the new separation.

If, on the other hand, you retired voluntarily, you’ll continue to get your annuity; unless you’re one of the few authorized to draw both entirely, the amount of your annuity will be deducted from your income for the new employment. The decrease will be proportional if you work part-time.

If you received a $26,000 annuity and your new position pays $75,000, your take-home income for the year would be $49,000 ($76,000 – $26,000).

You’ll be eligible for a supplementary annuity if you’re reemployed full-time for at least one year. However, if you work for at least five years, you’ll be entitled to choose a redetermined annuity. That means that you can have your annuity recalculated based on your total number of years of service and your greatest pay base, regardless of when it was earned.

Retirement contributions are needed to get such benefits. They’re mandatory for FERS employees and optional for CSRS employees (CSRS reemployed annuitants have the option of paying the deposit after separation if they want so.) The amount to be paid is the standard portion of your basic wage before the annuity is deducted.

Contact Information:
Email: [email protected]
Phone: 9143022300

Bio:
My name is Kevin Wirth and I have worked in the financial services industry for many years and I specialize in life insurance and retirement planning for individuals and small business owners, with a specialty in working with Federal Employees. I am also AHIP certified to work with individuals on their Medicare planning. You can contact me by e-mail or phone. I look forward to the opportunity of working with you on these most relevant areas of financial planning.

[email protected]
914-302-2300

Disclosure:
These articles are intended for educational purposes only. Please contact your advisors for legal, accounting or investment advice.

How Can I Make the Most of the Opportunities that Social Security Presents to Me and Maximize my Benefits?

December 21, 2023 /by jeff boettcher

When discussing the benefits that come from Social Security, there are a variety of different factors that need to be remembered and taken into consideration. Which of the following do you believe to be the most important benefit?

As of 2022, the most money received in a single month is capped at $4,194. On the other hand, when considered in contrast to the average monthly payment that retirees get, which is $1,657, this is a considerable increase in the amount received. When determining how much of a pension you are entitled to receive, knowing the age at which you become eligible for full retirement is essential.

If you wish to be eligible for the maximum payment, you must continue to have an annual taxable income equal to or greater than the maximum limit. This is required for you to maintain eligibility. The Social Security Administration (SSA) must establish the appropriate amount for each benefit. This task falls within the SSA’s purview. It is accomplished by computing your new average income based on the 35 years you earned the most money throughout your career, then revising those averages to account for inflation. Another option is to calculate your new average income based on the years you made the least money throughout your career.

As a result of shifts in the consumer price index, the barrier undergoes yearly readjustment, and the change may be in either the upward or the downward direction (depending on the situation). The yearly limit permitted, established at $147,000 for the current calendar year, may go no higher. The maximum amount that could be borrowed in 1987 was $43,800, for instance. Despite this, a considerable segment of the population has yearly incomes much below the standard. The good news is that several straightforward approaches are available to increase the amount of money you get from Social Security.

How can I use this information to maximize my Social Security benefits?

Delaying the date on which you are initially eligible to collect benefits from Social Security is one of the most straightforward methods to raise the amount of money you earn from Social Security each month. This is also one of the most obvious ways. When an individual reaches the age of 62, they may be eligible to submit a claim. On the other hand, the amount of benefit you get will always diminish with time and is a constant. If you delay getting your benefits until you are older than 62, your payment will grow by one month per year until you reach the age of 70.

If you cannot wait, the best approach to ensure that you get the maximum amount from your claim is to ensure that you have worked for a cumulative total of 35 years before filing it. This is the best method to guarantee that you receive the maximum amount from your claim. In the end, only a minuscule segment of individuals eligible to receive Social Security benefits apply for all of these payments.

Contact Information:
Email: [email protected]
Phone: 8007794183

Bio:
For over 20 years, Jeff Boettcher has helped his clients grow and protect their retirement savings. “each time I work with my clients, I’m building their future, and there are few things that are more important to a family than a stable financial foundation.”

Jeff is known for his ability to make the complex simple while helping navigate his clients through the challenges of making the right investment decisions. When asked what he is most passionate about professionally, his answer was true to character, “Helping my clients – I love being able to solve their problems. People are rightfully concerned about their retirement income, when they can retire, how to maximize their financial safety and future income.” Jeff started Bedrock Investment Advisors for clients who value a close working relationship with their advisors.

A Michigan native, Jeff grew up playing sports throughout high school and into college. While Jeff is still an ‘aging’ athlete, Jeff will take more swings on the golf course than miles running these days. He creates family time, often with weekly excursions to play golf, a hobby he shares with his three young children.

Getting Rid of the Costs of Disability Insurance

December 20, 2023 /by aaron steele

If your earnings are decreased due to illness or injury, disability insurance can help. These disability insurance tactics will help you want to save money while still getting the security you need.

1. Extend The Elimination Time.

The elimination period is when the insurance provider will begin paying you benefits; the longer it is, the lower your premium will be. This means you’ll need enough savings to support yourself and your family for a set period if you don’t have any income. 90 days and 180 days are the most frequent elimination intervals, but they can be extended if required.

Consider a more extended elimination period if you have a sufficient emergency reserve, additional sources of income such as a working spouse, or your costs are low. You might also want to avoid purchasing short-term disability insurance, ordinarily available through group coverage.

2. Cut The Benefit Period In Half.

If you’re starting out in emergency medicine, you should go for coverage that provides benefits until you reach retirement age, usually 65. You can cut your premium by reducing the benefit term, which is the length of months or years that the disability insurance pays you if you’ve done an excellent job of saving, generating wealth, and reducing debt over your career. In that situation, a five-year benefit duration might be appropriate. Premiums could be reduced by 20-30%.

3. Reduce Your Insurance Coverage.

When you undergo the underwriting procedure to buy disability insurance, the insurance company will typically give you a quote for the highest amount of disability insurance coverage you are eligible for. They will not be able to replace all of your pre-disability earnings. Instead, it’s usually limited to 60% to 70% of your pre-disability salary. But what if your monthly costs are significantly lower than the disability insurance benefit number you were quoted? Instead of taking the highest amount offered, you might choose to reduce your disability insurance benefits. This is dangerous because your expenses may rise due to your disability. In this circumstance, you’ll need a sizable investment portfolio or another source to bridge the gap.

4. Eliminate Riders.

Catastrophic disability coverage, own occupation coverage, cost-of-living adjustments, residual disability coverage, and other riders can be added to the standard disability insurance policy. Several of these riders, such as own occupation coverage, which pays disability benefits even if someone works in another occupation, are, in my opinion, pretty valuable. However, if your goal is to save money on your premium so that you’re more likely to have some disability insurance coverage rather than none, skipping the riders might save you a lot of money.

5. Buy Disability Insurance For A Group.

Disability insurance for individuals is typically more expensive than group insurance. If you work for a hospital system or another EM organization, check your employer’s benefits guide to see if they offer group disability insurance. The premiums for basic long-term disability insurance coverage are sometimes paid for you by your employer. You may, however, be able to acquire additional for a little deduction from your salary.

Contact Information:
Email: [email protected]
Phone: 3604642979

Bio:
After entering the financial services industry in 1994, it was a desire to guide people towards their financial independence that drove Aaron to start Steele Capital Management in 2013. Armed with an extensive background in financial planning and commercial banking coupled with a sincere passion for helping people, Aaron has the expertise and affinity for serving the unique needs of those in transition. Clients benefit from his objective financial solutions and education aligned solely with
helping them pursue the most comfortable financial life possible.

Born in Olympia, Washington, Aaron spent much of his childhood in Denver, Colorado. An area outside of Phoenix, Arizona, known as the East Valley, occupies a special place in Aaron’s heart. It is where he graduated from Arizona State University with a Bachelor of Science degree in Business Administration, started a family, and advanced his professional career.

Having now returned to his hometown of Olympia, and with the days of coaching his sons football and baseball teams behind him, he now has time to pursue his civic passions. Aaron is proud to serve on the Board of Regents Leadership for Thurston County as the Secretary and Treasurer for the Morningside area. His past affiliations include the West Olympia Rotary and has served on various committees for organizations throughout his community.

Aaron and his beautiful wife, Holly, a Registered Nurse, consider their greatest accomplishment having raised Thomas and Tate, their two intelligent and motivated sons. Their oldest son Tate is following in his father’s entrepreneurial footsteps and currently attends the Carson College of Business at Washington State University. Their beloved youngest son, Thomas, is a student at Olympia High School.

Focused on helping veterans and their families navigate the maze of long-term care solutions, Aaron specializes in customized strategies to avoid the financial crisis that care related expenses can create. Experience has shown him that many seniors are not prepared for the economic transition that takes place as they reach an advanced age.

With support from the American Academy of Benefit Planners – an organization with expertise and resources on the intricacies of government benefits – he helps clients close the gap between the cost of care and their income while protecting their assets from depletion.

Aaron can help you and your family to create, preserve and protect your legacy.

That’s making a difference.

Top Ways to Make Retirement Tax Cuts

December 20, 2023 /by mack hales

Whether you’re close to or far from retirement, make sure you have a plan. Saving money is half the battle. To prosper, this corpus must be inflation-proof and tax-free. Most people anticipate outliving their retirement resources. Taxes might reduce their savings. A financial consultant can help you minimize taxes and stretch your retirement money. Let’s reduce retirement taxes.

Retirement tax preparation is vital

Half a lifetime of retirement savings may surprise you. You may have anticipated retirement but not taxes. When planning for retirement, remember taxes. Retirement fund taxes have climbed. Tax hikes are coming. This might deplete your finances faster than intended. Tax slabs may lower your money’s worth. Retirement may be incomeless. This means you’ll stop contributing and start withdrawing. Bad tax planning might deplete your savings. Live freely in retirement by paying less tax. Below are a few important tax-cutting tips.

If you have 401(k), Roth 401(k), brokerage accounts, or IRAs, you need to know how to reduce tax on withdrawals. If you want to pay less tax, here’s a guide with some strategies to cut retirement taxes:

Know what’s taxed

You’ve invested heavily in 401(k), Roth 401(k), IRA, Roth IRA, 403(b), or pensions. Most of these accounts aren’t taxed until retirement. This money isn’t taxable until then. Assume you’ve invested in real estate and tax-advantaged brokerage accounts, shares, and mutual funds. Any capital gain, retired or not, is taxed. Knowing which assets are taxable and how is essential for retirement tax planning. This may decrease your taxes.

Convert your IRA to a Roth IRA

Having an IRA is a simple way to save for retirement. IRAs have many advantages but converting to a Roth IRA may increase them. While an IRA enables you to postpone income tax of up to $6,000 in 2022, a Roth IRA allows you to prepay the same amount. This implies Roth IRA income grows tax-free and withdrawals aren’t taxed. Roth IRA contributions phase off for those with incomes between $129,000 and $144,000 and $204,000 and $214,000. Discuss a Roth IRA for your retirement strategy. Use Paladin Registry’s free search engine to find financial fiduciaries who can assist.

Diversify taxes

Diversifying is a key retirement tax strategy. You should diversify your taxes like your financial portfolio. Diversification reduces losses and tax liabilities. Tax-deferred accounts delay tax payment. This may help if taxes at the time of donation are substantial. Keep more money and pay taxes on it later. Tax-free accounts use after-tax money. This might be useful if the tax bracket is low. You may move to a Roth account if you anticipate being in a higher tax bracket in retirement.

In a nutshell

Beginning retirement and tax preparation early might help you reduce your tax obligation. While you can’t avoid paying taxes, you may lower them using tax-saving tactics and a financial advisor’s advice.

Contact Information:
Email: [email protected]
Phone: 7705402211

Learn Everything About Pension and Its Basics

December 11, 2023 /by jason anderson

A pension is nothing more than a savings account for the future. The money you contribute is invested and accumulated in a savings account that you can access at a later date if you so want. Generally, the first 25% of the money you withdraw from your pension fund is tax-free, while the rest is taxed as income.

A pension is a tax-advantaged investment, and you’ll get tax breaks on the money you put in. As a result, your tax bill will be reduced, boosting your retirement funds.

Investing in a pot of gold is like any other investment. The value of your pot might go up and down just like any other investment. Monitor your pension’s performance and make adjustments to meet your needs.

The impact of taxation (and any tax relief) depends on your specific circumstances and is subject to change in the future. Tax regulations are subject to change.

We encourage you to seek financial advice if you have any questions regarding your pension funds.

What are the fundamentals behind a pension?

As you work, your employer must make contributions to your pension plan. Once you retire, you receive monthly pension payments from the money you’ve saved up over the years. In most circumstances, the amount you receive is determined by a formula. Your age, salary, and number of years with the organization are all factors in the algorithm.

U.S. government regulations govern the operation of pension schemes. These laws dictate how much money corporations must set up for employee pensions each year. A vesting schedule is also in place for pension benefits. They can use either a cliff vesting or a graduated vesting plan.

What are the different forms of pensions?

Personal Pension

A personal pension is one that you designate and fund on your own. Those who do not earn an income and do not work for a company with a pension plan can set up an individual retirement account (IRA). Even if you’re already a member of a company pension or another pension plan, you can still contribute to one.

You should always consult with a financial advisor to get the most out of your pension savings plan. You may set these up on your own or through a financial advisor.

Anyone under the age of 47 will be affected by the 2028 increase in the retirement age to 57. In some cases, you may be able to use your pension benefits before you turn 55.

Workplace Pension

A workplace pension is a retirement savings plan set up by your company. In most cases, you’ll be able to deduct recurring amounts from your paycheck, and your employer will also contribute.

State Pension

When you reach the mandatory retirement age, you may be eligible for the State Pension, a monthly government payment. National Insurance contributions you’ve made determine your age and the quantity of money you’ll get.

Would it be wise for me to invest in a pension plan?

Before signing up for a pension plan, your workplace offers, ensure you properly examine the options available to you. Plans come in various shapes and sizes, and many are better suited to certain types of work or career paths. You may be eligible for pension benefits if you work long enough at a firm. Their pension plans may be ideal for you if you want to continue with them long-term. In contrast to other retirement plans that do not offer guaranteed income, these do.

Make an informed decision about your retirement income. Before that, it is essential to understand your pension plan and the advantages it provides. When planning for your retirement, this knowledge is helpful. To learn more about your company’s retirement benefits, contact a member of the human resources department.

Contact Information:
Email: [email protected]
Phone: 3234811328

Bio:
For over 13 years, Jason Anderson has served as a Personal Financial Advisor, Estate and Retirement Planner, helping to educate individuals from all walks of life and income levels on wise money investment and planning for a comfortable lifestyle and retirement.

Over time, Jason Anderson has become the ‘Go-To’ leading authority on personal financial advising, financial planning, and analysis, as well as retirement planning and financial planning for SMALL BUSINESS OWNERS. He also provides HIGHLY Popular financial education seminars for groups. These financial seminars empower people to more effectively budget, plan, manage their money, and achieve their personal financial goals. As a result of the excellent results, praise, and feedback that their financial seminars have received, the City of Los Angeles, The AFL-CIO union groups, as well as several other organizations, have decided to partner with Jason to more effectively accomplish their mission. He was also honored to be showcased in the November 2014 issue of Forbes Magazine “Americas Financial Leaders” and has been dubbed by the media as ‘The Financial Educator.’

Jason is passionate about the work he does because it brings him joy to help his financial planning and advising clients reach their financial goals. He finds excitement in assisting families in saving and paying for their children’s college education without stress, thanks to the financial plans he designs for them. He also takes pride in witnessing clients reach retirement and enjoy it precisely the way they desire.

Personally, Jason finds joy in being a husband and father of two wonderful children. In his spare time, he enjoys traveling, sports, hiking, and reading.

He works with Employees, Business Professionals, Business Owners, and ‘High Net Worth’ People.

► Like to discuss your personal financial situation?
☏ Call Jason at (323) 481-1328 for a FREE Consultation
✉ Email him at [email protected]

Disclosure:
All annuity and life insurance products are designed to supplement securities as part of an overall plan. The recommendation of annuities and life insurance is not designed to eliminate the need for securities in any way.

House approves 23 Bill for Defense Spending with 4.6% Raise

December 9, 2023 /by jeff boettcher

According to the National Defense Authorization Act for Fiscal Year 2023, as passed in the House, military personnel would start receiving a 4.6 percent pay boost on Jan. 1. This is a result of the Basic Allowance for Housing (BAH), which was increased by 2% as part of the legislation that the House approved on Dec. 8.

Additionally, lawmakers requested that the Pentagon provide a study outlining “a more open, equitable, and adaptable manner” to determine BAH. The BNA (Basic Needs Allowance) cutoff is increasing. Those now making up to 150 percent of the federal poverty level would be eligible.

Other employee-related provisions include:

Increasing funds for commissaries to counteract increasing food and other goods prices.
The creation of a five-year trial program to reimburse service members for some childcare expenses they incur when moving or being assigned to a permanent change of station (PCS).
A decrease in daycare costs for kids of staff members at child development centers.
Expansion of important incentive programs for hiring and keeping employees.

The measure also tackles several other crucial childcare-related concerns, such as:

The need for all branches of the military forces to find methods to enhance childcare services in rural or underserved locations.
The services must also “promote and improve awareness of childcare choices,” according to another criterion.
A research study that contrasts the pay received by childcare providers with that of their civilian peers in their localities.
The release of pertinent My Childcare in Your Neighborhood Program information quarterly.
An evaluation of the viability of including au pairs in the program for in-home childcare.
A briefing to lawmakers on childcare on military sites without child development facilities or with centers that are present but insufficiently sized to offer enough open slots.

The quality of life provisions include $20 million for such organizations that help educate severely challenged children and $50 million to support local organizations that educate military children. Additionally, service members stationed in Alaska would be given training on special duty pay and a travel allowance. Service members may also be eligible to receive up to $4,000 in reimbursement for costs associated with transporting their pets during a permanent change of station movement to or from areas outside the United States.

Detection and prevention policies for sexual harassment would also be improved. A separate trial counsel would be assigned to handle these matters, adding another layer of independence from any command influence.

Such investigations would also be carried out by independent, professional investigators who were not part of the chain of command. Panels for court martials would be drawn at random. Reporting obligations would also increase to execute the New Special Trial Counsel Program. Civil servants would henceforth be permitted to submit enlarged, restricted reports of sexual harassment to eliminate the unrestricted-only status of such complaints.

Spouses would be paid for their relocation costs when asked to transfer their companies during PCS movements. Veterans who are disabled and some spouses may also be eligible for non-competitive appointment power.

The House took some steps to address lingering problems with healthcare. According to the law, the Navy SEAL (sea, air, and land) trainees’ medical care is to be investigated by the Pentagon inspector general. New regulations would ensure accountability for wounded, ill, and injured military personnel during the Integrated Disability Evaluation System (IDES) procedure.

Reducing end-strength authorizations among healthcare professionals would not be permitted by the services. Stockpiles of medications used to treat chronic diseases, such as insulin, would be maintained by implementing measures. Any decision to change the range of treatments offered at military healthcare centers should be communicated to Congress. The designation of “essential casualty facilities” would apply to certain facilities. In such cases, they would have to react to a national emergency. The military health service would establish centers of excellence.

Other clauses include mental health and suicide prevention. Some demanded the creation of a voluntary pilot program for securely keeping weapons owned by private individuals. Others suggested developing a curriculum for certifying mental health professionals knowledgeable about the needs of military members and their families, increasing the confidentiality requirements for service members, and finding ways to increase the number of military behavioral health providers.

Lawmakers are requesting the Government Accountability Office (GAO) to investigate the mental health coverage that TRICARE offers and audit the services provided by the organization’s behavioral health providers.

Contact Information:
Email: [email protected]
Phone: 8007794183

Retirement Planning Terms You Should Know.

December 4, 2023 /by michael crowe

Although you can call quitting work “retirement” at any time, having enough money to sustain your post-work life takes careful planning. In addition to the fundamental financial planning principles such as “pay yourself first” and “save as much as you can,” retirees must be conversant with more specialized phrases and concepts.

Here are some key retirement terms to understand before and after your retirement to ensure you’re on the right track.

1. Required Minimum Distribution (RMD)

When account holders reach a particular age, say 72, they must begin drawing annual distributions from pre-tax retirement accounts such as IRAs or 401(k) plans to enable the IRS to collect taxes on them.

2. Full Retirement Age (FRA)

The age at which you are eligible for your basic Social Security benefit is the full retirement age (FRA). The FRA is 67 for anyone born after 1960. While you can start receiving benefits as early as age 62, your monthly payout will be cut by up to 30%. However, if you delay until you’re 70, your benefits will increase by 8% per year until then.

3. Matching Contributions

Many large companies will match at least a percentage of your 401(k) plan contributions. Your company, for example, can match 100% of the first 5% of your earnings that you put into your account. This can effectively increase the amount you put into your 401(k) each year at no further expense to you.

4. Individual Retirement Account (IRA)

Many employees lack access to a company-sponsored retirement plan, such as a 401(k). Workers may be able to contribute to an individual retirement account (IRA) in this situation. Contributions may be tax-deductible, and money in the account grows tax-free until it is withdrawn in retirement.

5. 401(k) Plan

A 401(k) plan is most likely available if you work for a larger company. Like an IRA, a 401(k) plan enables pre-tax contributions and tax-deferred earnings. 401(k) plans, on the other hand, offer far greater contribution limits and, in most cases, allow for employer matching contributions.

6. Saver’s Credit

The saver’s credit allows you to deduct up to 50% of your contributions to retirement plans such as 401(k)s and IRAs, depending on your income. The credit is capped at $68,000 for joint filers and $34,000 for single taxpayers.

7. Compound Interest

When planning for retirement, the compound interest could be the most significant idea. The more time is available for you to save and invest before retirement, the more time your investment has to compound and increase.

8. Estate Planning

As you get closer to retirement age, estate planning becomes increasingly important. Estate planning is the process of arranging your assets to pass to your heirs according to your intentions.

Contact Information:
Email: [email protected]
Phone: 6023128944

Bio:
Mike was born in Chicago, Illinois on August 13, 1946. He was brought up in the
suburb of Skokie on Chicago’s northwest side and graduated from Niles Township (
East ) high school In 1964. Two years later he joined the US Air Force in November of
1966. After 2 years of Intense training he volunteered for Viet Nam and was sent to
Bien Hoa Airbase, which was 25 miles from Saigon, the nation’s capital. He
volunteered for a number of especially dangerous missions on his days off, such as
flying as a door gunner on a US Army helicopter and as a technical assistant on a
psychological operation on an Air Force O-1E observation aircraft. Capping off his
impressive accomplishments was winning the coveted Base Airman of the Month for
March 1969, a feat which was featured in the Pacific Stars And Stripes newspaper
read by every service man stationed in the Pacific theater of operations. After his
Viet Nam tour of duty he was stationed at Luke Air Force Base in Glendale, Arizona
where he met and married his wife, Lequita.
He graduated from Arizona State University in May, 1973, and after a 30-plus year
career as a financial advisor he joined a number of service organizations including
Easter Seals and Valley Forward, sponsor of EarthFest. He was also involved with the
National Federation of Independent Business and became the longest-serving
chairman of the Leadership Committee ever. He spoke before the ( AZ ) House Ways
and Means & Senate Finance committees. He then joined Disabled American
Veterans ( DAV ) in September of 2015. He rose quickly through the ranks and
became Chapter 8 Commander in May of 2019 where he served with Distinction for 3
years before being “ termed out”. The next year, as Vice Commander, he won the
title of National Champion Recruiter!

Disability Insurance And Retirement Security Go Together

November 28, 2023 /by michael crowe

Most individuals are aware of the advantages of disability insurance in protecting one’s income if they become ill or injured and cannot work. However, in addition to income protection, disability insurance can help protect retirement goals by avoiding early withdrawals. Early withdrawal from retirement plans might be more expensive in the long term due to the loss of retirement savings and tax penalties.

According to the 2022 Insurance Barometer Study, 24% of consumers believe they would use their retirement assets if they became disabled. Only about one-fifth of those polled stated they would use supplemental insurance, disability insurance, or workplace compensation. According to the LIMRA study, most consumers don’t have disability insurance and would have to rely on other sources of financial support, jeopardizing their long-term financial goals.

Interestingly, according to the Barometer Study, retirement planning was the top reason consumers gave for getting disability insurance in 2022, increasing by 6% from January 2020 (27% versus 21%). That indicates that consumers are more aware of the risks a disability can cause to a household’s income and retirement funds.

Other reasons for purchasing disability insurance include knowing someone who was negatively affected because they did not have coverage (27%), joining the workforce (25%), getting married (15%), having a kid (14%), and starting a business (13%).

Currently, only 14% of customers have private disability insurance coverage, a 17-point decrease from an all-time high of 31% in 2012. Almost half (49%) of respondents say a disability would cause financial hardship in their home in six months or less.

Disability Insurance Awareness Month (DIAM) is an industry-wide program coordinated by Life Happens to emphasize the necessity of having enough disability insurance coverage to secure one’s income in the case of illness or injury. Every year, LIMRA is happy to sponsor the DIAM campaign.

Contact Information:
Email: [email protected]
Phone: 6023128944

The Federal Government wants to Improve Retirement Ways: Add Gold to Spend Golden Years with Ease

November 26, 2023 /by todd carmack

People are now looking for better retirement plans to make their future secure. In the U.S., Washington D.C. wants to improve how people live their retirement days; therefore, they want to improve the retirement system. According to a report, the Senate and House of Representatives could sign a $1.7 trillion spending bill for 2023, which is 4,100 pages long. That bill has been planned with the name “Secure 2.0,” which would allow workers to be prepared for their future life after retirement.

Things are getting more strict. Employees should enroll themselves in the plan of retirement to avoid inconveniences later. According to the CNBC report, organizations hiring employees should automatically enroll their employees in the 401(k) plan at a rate of 3% at least but should be at most 10%. It should only be done if they have fewer than ten workers or if they have had their own business for under three years. Moreover, workers should withdraw their RMDs when they reach the age of 73 as soon as 2023 starts. The period would go to 75 in 2033. Right now, the age limit is 72. The fine for not taking RMDs would decrease from 50% to 25%, and in some scenarios, it can reduce further to 10%.

People want to make better plans to ensure the safety of their future. Therefore, to improve their retirement plan, workers can now add an extra $6,500 every year to their account under the 401(k) plan when they reach the age limit of 50. The limit would be increased to $10,000 or 50% more than the regular amount for people aged 60 to 63 in 2023. It has been proven to be very helpful for many employees. They could make a better savings plan once they retire. Also, these catch-up amounts may be increased due to the current inflation going around the globe.

Furthermore, all these catch-up amounts are added to the Roth treatment. This rule does not apply to workers earning $145,000 or less. The plans have also tried to accommodate employees who are paying their student loans. Employers can contribute to the 401(k) plan for their employees who are paying their student loans instead of saving for their post-career days.

Sometimes, employees face emergencies. They would require money to deal with their problems. An innovation has been made to the plan. In emergencies, they have set a new plan for the employees. Therefore, employees can withdraw amounts up to $1,000 from their retirement account in case they have emergency payments to make. Also, they would not have to pay a 10% tax fine for making an early withdrawal if they are under the age of 59. Companies can help their employees by allowing them to create an emergency account. In this way, they will automatically add a certain amount they could withdraw anytime during critical situations. The amount added to the emergency savings account can be $2,500, which would be deducted automatically from their pay.

Employees who work as part-time workers who have been working for two consecutive years for around 500 to 999 hours instead of fulfilling the requirement of three years could be eligible for the company’s 401(k). Workers should have as much as $200,000 for their qualified longevity allowance contract. The current limits of 25% of the value of the retirement accounts and $135,000 are eliminated. A new addition has been made. The bill has eliminated the pre-death distribution requirement for the 401(k) plan and now allows tax-and penalty-free rollovers to Roth IRAs. Many of them are from college saving accounts which have been said to be 529 accounts done under certain conditions. Also, the bill has now included an incentive for small business owners so they can set up a retirement.

A few years ago, the U.S. Department of Labor ruled that employers can consider making climate change investments for their retirement savings plan. It is a change that was made from Trump-era regulations. A report was released in March. It stated that there had been an increase of 76% in the companies in California which have adopted a low-cost, accessible retirement plan. They have done so due to a law requiring the small business to choose the private market option, like 401(k), or they should go through the state-run Cal Savers program.

Contact Information:
Email: [email protected]
Phone: 6232511574

Bio:
Todd Carmack grew up in Dubuque, Iowa, where he learned the concepts of hard work and the value of a dollar. Todd spent years in Boy Scouts and achieved the honor of Eagle Scout. Todd graduated from Iowa State University, moved to Chicago, spent a few years managing restaurants, and started working in financial services and insurance, helping families prepare for the high cost of college for their children. After spending years in the insurance industry, Todd moved to Arizona and started working with Federal Employees, offing education and options on their benefits. Becoming a Financial Advisor / Fiduciary can help people properly plan for the future. Todd also enjoys cooking and traveling in his free time.

Increased Retirement Spending Between Ages 62 and 80

November 26, 2023 /by mack hales

According to research by the Institute for Fiscal Studies, individuals and couples aged 62 to 80 spend more in retirement, disproving the belief that spending decreases with age.

The institute’s study on how spending changes in retirement sheds insight on early retirement spending patterns and refutes the premise that as people age, their spending will reduce.

On average, retirees’ total household spending per person remains relatively steady in real terms during retirement, growing slightly up to age 80 and remaining flat or dropping after that.

Spending rises for people aged 62 to 80

While total spending appears to fall drastically with age, when birth cohort differences are considered by looking at variations within each generation, the link between age and spending seems to be flat or even slightly increasing in some cases.

The IFS discovered considerable disparities in spending between five-year cohorts, especially between those born in 1934-38, 1939-43, and 1944-48, showing the necessity of accounting for generational changes when looking at age profiles of spending.

For people born in 1939-43, the average weekly spending at age 67 was $291, rising to $313 at age 75 – just under 1% a year or 7% when adjusted for inflation.

Individuals born in 1924-28 spent $234 a week at age 82, declining 6% to $220 at age 88, or 1% per year.

Holiday spending increases then decreases in the mid-eighties

Some costs diminish during retirement, but others rise because spending patterns change as people grow older.

Per-person spending on meals at home falls when appetite declines with age, possibly due to diminished activity or illness.

Spending on eating outside the home grows in retirement and declines when people reach their 80s. Spending on cars, alcohol, and tobacco decreases in retirement.

Holiday expenditures rise until the early 80s and start declining in the mid-80s, whereas motoring costs fall rapidly from the late-70s as people drive less.

The IFS reported that 57% of 82-year-olds born in the years 1924-28 spend money on automobiles and 19% on vacations.

The younger group spends 83% on vehicles and 41% on vacations. The IFS discovered noteworthy age patterns in these two retirement spending categories, which take up a relatively significant portion of spending in early retirement.

The estimated increase in vacation expenditure is considerable: $13.60 per week on average from ages 65 to 80.

Later-born generations usually spend more on leisure and vacations in retirement. These account for 7% of total spending for 65-year-olds born in the years 1924-28 and 11% for the years 1944-48.

The IFS stated this could mean younger and future retirees’ expenditures will grow faster with age than is the case for current retirees.

Increasing household costs in later years

The IFS estimates that people between the ages of 75 and 85 spend $6.70 more each week on household expenses and services.

Andrew Tully, Technical Director at Canada Life, said it’s disturbing that bill expenditure seems to rise after age 75, maybe reflecting the death of a partner and being unable to share household costs.

Becky O’Connor, Head of Pensions and Savings at Interactive Investor, suggested that consumers may assume they won’t spend as much in their 70s and 80s, which turns out to be false.

People think they won’t go out as much or take as many vacations. Even if that’s accurate, unexpected spending requirements can break the budget later in life. If people spend more as they age, they may deplete their pensions too soon.

The IFS also observed disparities in spending patterns among various types of households.

Above-average-income households spend more in their 60s and 70s and less in their 80s.

Increasing salaries imply more people save as they age, the study found. For instance, for individuals born in the years 1939-43, 59% saved at age 67, but that increased to 69% at age 75.

Given that the state pension tends to increase faster than prices, a falling profile of private income may be desirable, especially for people who rely more on the state pension, the IFS stated.

Non-index-linked annuities render people more vulnerable to inflation if they rely on private pension income.

The IFS noted that the death of one partner affects the surviving partner’s spending because shared costs like housing don’t decrease.

The institute cautioned households to assess how such changes will influence income and spending to ensure they have enough resources to cover per-person spending increases.

Future retirees, who are less likely to receive occupational or state pensions with a survivor’s benefit, will have to consider this while selecting drawdown pace and whether to get an annuity with a survivor’s benefit.

That’s crucial given the cost-of-living crisis and inflation. With the cost-of-living situation in everyone’s mind, individuals on fixed incomes, like pensioners, will have fewer levers to pull.

Many who need to are tightening their belts, cutting energy usage, eating out less, and adjusting buying habits, and this will only get worse as inflation rises over the year.

Contact Information:
Email: [email protected]
Phone: 7705402211

Here’s What you should Know About The Thrift Savings Plan

November 21, 2023 /by jason anderson

Most people don’t know the main differences between the IRA, 401(k), and the Thrift Savings Plan. Some financial experts regard the TSP as the best plan for federal retirees.

Therefore, you need to know the TSP-eligible participants, its yearly contribution limit, the operating mechanism, and why the TSP is the best plan. Knowing the TSP rules related to tax and withdrawals is also essential.

TSP and Its Eligible Participants

The Thrift Savings Plan is similar to the 401(k) plan, and public sector workers use both plans. The TSP offers government employees a tax-advantaged plan.

The TSP has above 6 million participants as of 2020, with an asset value of $735 billion under its management.

The TSP has similar rules to the 401(k) plan regarding the contribution amount and government requirements relating to tax and withdrawals. The TSP has a smaller fee of about 0.05% compared to the 401(k) plan. Your entire TSP fund will work for you because of its small management costs. This is why you should put a large amount of your income into the TSP.

You are eligible to participate in the Thrift Savings Plan if you are a uniformed service member (ready reserve or active duty) or a civilian in defined service categories. You are also eligible to participate in the TSP if you are an employee under the Civil Service Retirement System (CSRS) or the Federal Employees Retirement System (FERS).

How the Thrift Savings Plan works

Once you are eligible to participate in the TSP, your employer will likely inform you about TSP participation during the job orientation.

Suppose you want to contribute to your workplace Thrift Savings Plan. You have to decide the income percentage you will be contributing and the specific TSP (Roth or Traditional TSP) you will use for your TSP contribution. You will also determine how you want to invest your funds into the TSP, and you can select the best option that will benefit you in the long run.

You need to understand these two essential things before saving in the TSP:

• Most companies give a match: If you are saving money in this company’s TSP, your retirement account will contain your individual funds and the company funds. The highest match is 5% of your monthly salary.

• TSP offers many tax advantages: You can withdraw your money during retirement without paying taxes, lower your taxable earnings, and pay your taxes upfront with the Thrift Savings Plan. The TSP allows your investment to grow without taxes.

Thrift Savings Plan Contribution Limits in 2022

The TSP contribution limit is similar to that of 401(k). If you are below 50 years by the 2022 end, your maximum TSP contribution in 2022 will be $20,500. This will be your maximum TSP contribution limit even if you divide your TSP contributions between the Roth and Traditional TSP plans.

Those aged 50 years and above have an extra $6,500 as a catch-up contribution. You can access this contribution limit if your employer allows you to make after-tax TSP contributions.

According to the IRS, you can save new money about $61,000 in your TSP this year. For those above 50 years, the maximum amount they can contribute in new money is $67,500.

Although the Thrift Savings Plan receives less attention than the 401(k) plan, if you can access your workplace TSP, you have a higher chance of making tax-advantaged and well-planned retirement savings.

Contact Information:
Email: [email protected]
Phone: 3234811328

Personally, Jason finds joy in being a husband and father of two wonderful children. In his spare time, he enjoys traveling, sports, hiking, and reading.

He works with Employees, Business Professionals, Business Owners, and ‘High Net Worth’ People.

► Like to discuss your personal financial situation?
☏ Call Jason at (323) 481-1328 for a FREE Consultation
✉ Email him at [email protected]

Is It Right to Offer Too Many Health Benefits

November 9, 2023 /by michael crowe

Companies offer health benefits to attract the best employees and retain their workforce. The pandemic has motivated many companies to propose a variety of health benefits. However, despite spending the excellent health benefits, they have yet to go too far with their policies and offers. So, the question is whether benefactors are spending money on suitable approaches or whether these are just flashy gimmicks. Should you offer more health benefits or update the existing ones?

This article will highlight whether companies spend their time and energy on the right policies. Besides, we will tell you how you can make the right choice and not spend unnecessarily on useless policies.

Tips to Improve the Right Benefits:

Your health policies should benefit your employees the most and cost you less. So, here are three tips that can help you modify your health-related policies better.

1. Communicate With Your Employees What They Want:

Several surveys have proved that most employees want improved health, dental, and vision insurance, accompanied by flexible working hours and vacations. Besides, they want less expensive medical treatments and cost-effective prescriptions. However, most companies don’t know that. As a result, they make the mistake of offering too many complex health plans that remain useless for their employees, partly because they are challenging to understand and partially because they don’t fulfill everyday needs.

How To Avoid It?

Well, the answer is simple. First, communicate with your employees directly in a straightforward manner. Then, your employees should be able to understand the health plans without any doubts. The best way is to circulate a questionnaire and ask your employees what they want. According to a survey, for employees, comprehensiveness and cost are the favorite aspects of their health coverage.

2. Focus on the Most Common Health Benefits:

Employees want specific benefits that help them maintain good health at work. Harvard Business Review surveyed 2,000 employees about the health benefits they liked the most. At the top of the list was health insurance, including dental and ENT services, with flexible hours. The bottom of the list included on-site gyms and free fitness or yoga classes – benefits that sound great on paper but often didn’t get used. When asked what they liked least about their jobs, the cost was overwhelmingly cited as a downside. As healthcare needs changed during the pandemic, companies must keep this in mind when developing their benefits programs. Employees want affordable plans that cover their healthcare needs.

Don’t Stay Back in Offering New Health Benefits, But Be Ready to Pivot:

The pandemic has brought an explosion of new offerings – and that’s a good thing. As employees’ needs have changed, so too have what employers should offer. Therefore, you mustn’t fall back on providing new health benefits. First, it’s essential to measure how much employees use them and their satisfaction regularly.

In 2021, “39% percent of smaller firms and 58% of larger firms provided or expanded online counseling services for emotional or financial distress, relationship issues, or other stressful situations,” according to the Kaiser Family Foundation.

It suggests that online counseling is becoming a more common part of employer health benefits. But whether these offerings will become a regular part of employer health benefits remains to be seen. As you experiment with health plan offerings, it’s essential to use analytics to determine what is working and what isn’t.

Final Words:

Offer Affordable Health care Plans That Will Keep Your Employees Satisfied.

These days, finding the best healthcare policies for your employees is more complex than ever. That’s why keeping your options open when providing benefits is essential. Some employers offer healthcare through their insurance policies, while others provide their employees the opportunity to purchase individual health insurance policies. Either way, you must ensure that your employees can access affordable plans that cover their healthcare needs.

One way you can do this is by offering employee health savings accounts (HSAs). These accounts allow employees to invest money they earn in them and use the money to pay for medical expenses. It is an excellent way for your employees to get affordable coverage and invest in their long-term health if you’re looking for other ways to provide affordable healthcare benefits.

Contact Information:
Email: [email protected]
Phone: 6023128944

Medicare Deductibles and Premiums Will Decline in 2023

November 3, 2023 /by michael crowe

The projected cost of Medicare in 2023 surprises some younger seniors but not those who have been paying premiums since 2011.

Will Medicare Part B premiums decrease in 2023? Will the Medicare Part B deductible increase in 2023? Yes.

Although a drop in Medicare spending is unusual, it has happened in the past. Medicare began in 1966 with a $50 deductible and a $3 monthly Part B cost. The annual deductible and premiums for Medicare Part B have historically increased or decreased. However, 2012 saw a change in that.

The physician fee formula served as the primary justification for the 2012 cutbacks. Due to the Medicare and Medicaid Extenders Act (2010), the method used to figure out how much Medicare doctors would get paid in 2012 was expected to go down by 29.5%.

Due to the physician fees in that year, both the premium and the deductible reversed course and decreased to the advantage of the beneficiaries. In 2011, the Part B premium was $99.90 per month, which was $15.50 less per month than in 2010. In addition, the yearly deductible decreased to $140 from $162.

Medicare’s monthly Part B premium will drop from $170.10 in 2022 to $164.90 in 2023. In addition, the annual deductible will decrease from $233 in 2022 to $226 in 2019.

Aduhelm, a recently released Alzheimer’s medicine, is the main driver behind the 2023 Medicare adjustments that have been disclosed.

Aduhelm is a costly medication. In preparation for the 2022 Medicare Part B premiums, it was estimated that each patient would spend upwards of $56,000 annually. As a result, Part B premiums increased by $33 over the prior year.

The Part B premium will also increase to $26.30 per month in 2022. Medicare Part B participants also had a $30 rise in their yearly deductible that year, bringing it to $233.

Medicare decided in April of this year to consider just covering Aduhelm for government-approved clinical trials. The yearly deductible and the monthly premiums were both decreased by this policy change. As a result, Medicare beneficiaries will receive cost savings in 2023.

The Centers for Medicare and Medicaid Services published a fact sheet each year outlining fundamental changes to Medicare and Medicaid for the upcoming year.

You might find the following information in this document interesting:

• Starting in 2023, certain Medicare enrollees who are 36 months post kidney transplant and are no longer eligible for full Medicare coverage may elect to continue Part B coverage of immunosuppressive medications by paying a premium.

• The Income-Related Monthly Adjustment Amounts (IRMAA) affect approximately 7% of people with Medicare Part B. In addition, the immunosuppressive medication premium is $97.10 for 2023.

• Those who have had coverage for at least 30 quarters or are married to someone who has had coverage for at least 30 quarters may purchase Part A at a discounted monthly premium cost, which will be $278 in 2023, an increase of $4 from 2022.

Significant changes to Medicare Plans

• Lower Part B deductible

Additionally, the Part B deductible drops by $7 to $226 per year in 2023. As part of the Part B durable medical equipment benefit, members of Medicare who use an insulin pump will no longer be required to pay a deductible as of July 1. The proposed Inflation Reduction Act of 2022 will limit cost sharing for insulin to $35 per month starting in 2023.

• Part A Increase.

There are deductibles for each hospital stay, even though most Medicare members do not pay the Part A monthly premium, which covers skilled nursing facilities, inpatient hospitals, hospices, and some home healthcare services. The Part A deductible for stays in 2023 will be $1,600, a $44 increase from this year.

The monthly premium will also go up for individuals who have not worked long enough to be eligible for Part A without a premium. In 2023, a $7 rise will result in the complete Part A premium being $506 per month. Depending on the beneficiary’s job history or spouse, they may be required to pay the entire Part A payment. Hospital costs should be confirmed with the beneficiary’s Medicare Advantage plan.

Some people in online discussion forums are already complaining that the financial savings for Medicare beneficiaries in 2023 would be negligible. But don’t be negative. Be upbeat. You can use the additional savings to cover the membership fees for the National Active and Retired Federal Employees Association (NARFE) or the American Association of Retired Persons (AARP). Don’t forget to contribute to the American Red Cross as well. Others will greatly appreciate it.

Contact Information:
Email: [email protected]
Phone: 6023128944

How Social Security Reform Can Help Those Disproportionally Affected by Retirement Tax Breaks

October 26, 2023 /by todd carmack

With a Social Security crisis still coming, Congress must approve legislation to prevent the Social Security trust fund from running out of resources by 2034, according to GoBankingRates.com forecasts.

Some reform components urge people to save for retirement on their own. However, according to a new report from the National Institute on Retirement Security, more than half of the tax breaks meant to encourage retirement savings through other vehicles, like defined contribution (DC) plans and Individual Retirement Accounts (IRAs), currently benefit the top 10% of wage earners in the United States â€” not the middle class or lower-income wage earners.

Furthermore, the wealthiest 30% of employees earn 89% of the “present value of tax advantages for DC plans and IRAs,” according to the report.

The report, “The Missing Middle: How Tax Incentives for Retirement Savings Leave Middle-Class Families Behind,” discusses how Social Security fails to help the middle class. It has been found to aid in the reduction of poverty among older Americans, but it doesn’t offer adequate retirement income for the middle class.

Furthermore, because of marginal tax rates, the tax benefits obtained by saving for retirement through alternative methods benefit high earners more. According to the report, when these factors are combined, they result in retirement disparities tied not just to income but also to geography and race.

The report proposes potential remedies such as expanding Social Security through benefit modifications or including lifelong income choices for people who save outside the program. Reforming the tax features of retirement savings might also help motivate retirement savings outside the Social Security system by providing middle-class tax breaks.

Finally, the report proposed that decreasing abuses in the present Social Security system may contribute to the fund’s growth through federal tax revenue.

Contact Information:
Email: [email protected]
Phone: 6232511574

80% of Employees are Asking for this Retirement Benefit

October 21, 2023 /by jason anderson

Even though job openings dropped from July to August, companies may still have to compete for good workers. If you’re looking for a job and your skill set is in great demand, you might still have your pick of desirable offers.

That is a worrisome statistic for any recruiting department attempting to attract and retain talent.

Therefore, how do businesses develop and keep their best workers in the face of some fiercest competition in recent memory? Offering competitive pay and benefits is still at the top of the arsenal. However, another powerful weapon for winning the fight on talent may be hiding in plain sight.

Is the answer to attracting top talent right in front of our eyes?

According to our findings, retirement benefits, commonly disregarded as part of the overall benefits package provided to employees, have captivated the attention of today’s workforce. In particular, more employees are requesting lifelong income alternatives in their retirement plans.

According to the 2022 TIAA Retirement Insights Survey, more employees are very or extremely interested in guaranteed lifetime income inside retirement plans than in 2020 (54% in 2022 vs. 51% in 2020). Also, 48% of employees opine that their enthusiasm has increased during the pandemic.

One factor for the increase in employer interest

Employers are concerned that traditional target-date funds (TDFs) are not adequately preparing their employees for retirement. TDFs cannot guarantee a consistent and predictable income for the rest of one’s life. As a result, they’re looking into the benefits of offering guaranteed lifetime income options, known as annuities, to supplement non-guaranteed retirement income strategies.

Over three-quarters of employers are very interested in a new generation of traditional target-date funds/other asset allocation solutions that can include a lifetime income solution allocation.

Dispelling lifelong income misconceptions

Advisors and consultants can kick off the lifetime income conversation by refuting common annuity fallacies.

Defined contribution plans often include in-plan annuities and are widely acknowledged as a significant lifelong income source. However, some plan sponsors regard annuities as challenging to establish, costly, and unpopular with employees.

Other employers may believe that employees are not yet requesting annuities, which is incorrect. According to Aon, 80% of employees demand guaranteed retirement income, and over 70% of plan sponsors believe that lifelong income options should be incorporated into their DC plan.

How much is lifetime income worth in retirement?

A basic comparison could be helpful here. Many employees buy disability insurance to ensure an income even if they cannot work. People also purchase life insurance to protect their families if they die too young. Converting a portion of your retirement funds to lifetime income is similar. Annuitizing, rather than securing your income during your earning years, protects your income during your retirement years.

Before entering into any default negotiations, benefits departments must have open discussions. This would be whether they want their plan to stay a tax-deferred savings plan or whether they want to take the straightforward steps to upgrade it to a real retirement income plan. If the latter, the first step is to conduct research and select the category of lifetime income solution that best meets the plan sponsor’s objectives.

It is now time for a comprehensive benefits review.

The forthcoming annual enrollment season is an excellent opportunity for plan sponsors to remind employees of the importance of their retirement benefits as part of their overall pay package. While the benefits enrollment period is typically focused on health and welfare benefits, it is also an excellent opportunity to remind employees about the retirement program (s). This includes urging them to do the following:

Participate as much as possible in their retirement plans.
Begin planning a strategy to convert assets to long-term income in retirement and provide ongoing income to loved ones after they pass away.
Make wise decisions now to position them for a confident and secure retirement.
It’s also a good idea to keep reminding them throughout the year.

Note for employees: Listen and react when you highlight the importance of your retirement plan and set out the complete worth of your benefits package. It could mean distinguishing between attracting and maintaining top talent and losing out on top candidates.

Contact Information:
Email: [email protected]
Phone: 3234811328

Personally, Jason finds joy in being a husband and father of two wonderful children. In his spare time, he enjoys traveling, sports, hiking, and reading.

He works with Employees, Business Professionals, Business Owners, and ‘High Net Worth’ People.

► Like to discuss your personal financial situation?
☏ Call Jason at (323) 481-1328 for a FREE Consultation
✉ Email him at [email protected]

Considering retiring soon? How skyrocketing inflation will affect your retirement

October 15, 2023 /by marvin dutton

Inflation. There are no indications that it will slow down any time soon, and there is no quick fix. The timing is, therefore, terrible if you have just retired or are about to retire. Nobody has been concerned about inflation for almost 40 years. A whole generation has never even known how inflation might affect their finances. However, the current inflation rates are the highest since 1982.

Families are worst hurt by price hikes in electricity, autos, housing, and food. But it goes further than that.

Even the costs of travel (flights, lodging, and rental cars), TVs, appliances, and furniture have risen to heights that were unthinkable just a year ago. Everyone will be affected by these exorbitant rates. However, pensioners will be more affected than working families.

The “silent killer” of retirement: inflation

When you have a fixed income, spending more on groceries and gasoline means making trade-offs someplace else. And before you realize it, you can be compelled to choose between purchasing necessities like food or medicine.

Many experts are concerned that the current inflation rate may be worse than we think, while some people think a recession could be coming soon.

The 71st Secretary of the Treasury of the United States and economist Larry Summers have expressed their concern that we are already approaching a point when cutting inflation without triggering a recession will be challenging.

The effects on your nest egg are still felt even at modest inflation rates of 2% or 3%.

Marketwatch claims that a 3% inflation rate would gradually reduce your ability to buy things. For instance, if your retirement budget is $5,000 per month, your purchasing power would decrease to $3,720 a month in 10 years. Your purchasing power would be only $2,760 per month after 20 years.

Therefore, even with a mere 3% inflation rate, your purchasing power might be lost in just 20 years.

Think about what recent inflation rates might quickly do to your retirement savings. But set aside the numbers and consider inflation differently. What did your home cost twenty or thirty years ago? It was significantly less expensive than what someone would pay today, right?

What do you believe the value of your home will be in 20 or 30 years? I think it’s safe to say that it would be worth a lot more. The same is true for every purchase you make, including that brand-new La-Z-Boy recliner, groceries, and gas.

Most retirees encounter difficulties in this area. They set a savings target based on current prices rather than projected prices for the next 20 or 30 years. And this can increase the likelihood that you’ll run out of money in retirement.

But not all the news is negative. You can use a few easy tactics to prevent losing purchasing power to inflation. These techniques may help reduce risk while providing a solid hedge against inflation. The sooner you take concrete action, the better off you’ll be in either case. Nobody can afford to ignore inflation when rates are this high.

Contact Information:
Email: [email protected]
Phone: 2129517376

Bio:
M. Dutton and Associates is a full-service financial firm. We have been in business for over 30 years serving our community. Through comprehensive objective driven planning, we provide you with the research, analysis, and available options needed to guide you in implementing a sound plan for your retirement. We are committed to helping you achieve your goals. Visit us at MarvinDutton.com . Tel. 212-951-7376: email: [email protected].

Can You Retire Just Yet? Three Things to Consider

October 15, 2023 /by jason anderson

You may not be ready to retire unless you’ve prepared for these three realities. The thought of retiring, which may have seemed far away 30 years ago, is now closer. You may not know when to call it a career. Some mistakenly believe they’re ready for retirement. They take the plunge but discover retirement isn’t as carefree as they thought since their retirement plan, or a haphazard imitation of one, had major holes and didn’t meet their requirements and goals.

If you’re close to retiring, consider all the financial ramifications. Here are three things to consider before retiring:

Lifestyle matters

Know what you want to do in retirement, where you want to go, and how you want to feel â€“ confident, secure, free, and in charge. Example: Consider an early retirement vacation to Italy. You’re there for two weeks, but you’re constantly thinking about money â€“ how your investments are doing or how much you’re spending. You’re nervous and not enjoying your ideal vacation. Maybe you can put your worries about money and assets on hold while vacationing. It shows poor planning. If you’re worried about the cost of going out to dinner, purchasing a present, or buying a vehicle, you’re not enjoying retirement as intended.

Predictable cash flow and revenue are crucial

These factors determine a happy retirement. Pensions and Social Security covered most, if not all, of the preceding generation’s living demands. Today, savings fund retirement. Fewer individuals get pensions, the cost of living is rising, Social Security barely meets necessities, much alone desires, and seniors want to do more, which costs more. Create a consistent income flow to fulfill your living necessities. Without dependable financial flow, your retirement lifestyle will depend on turbulent markets.

Without consistent financial flow, your lifestyle will fluctuate with the stock, bond, commodities, or foreign markets. When circumstances are good, you may spend more; when they are poor, you must cut down. This might imply postponing or canceling a trip. Most retirees don’t desire lifestyle fluctuations. Financial advisors can explain the investment and insurance solutions with downside market protection, upside possibility, and predictable income flow.

Taxes can’t be ignored

Many internet retirement calculators are deceptive. These calculators typically ask for an account balance, causing consumers to believe it indicates the precise amount of money they may use. The net tax value is your true balance. The calculators use the before-tax balance to simulate your retirement. After taxes, you have money for your lifestyle. A 401(k) balance of $500,000 may be $350,000 after taxes. A $500,000 Roth account balance is accessible to spend since it’s not taxed when withdrawn if it’s been at least five years since you first contributed and you’re 59 1/2 or older. Where you put your money and how you invest it, depending on the account’s tax treatment, might affect your retirement.

Contact Information:
Email: [email protected]
Phone: 3234811328

Personally, Jason finds joy in being a husband and father of two wonderful children. In his spare time, he enjoys traveling, sports, hiking, and reading.

He works with Employees, Business Professionals, Business Owners, and ‘High Net Worth’ People.

► Like to discuss your personal financial situation?
☏ Call Jason at (323) 481-1328 for a FREE Consultation
✉ Email him at [email protected]

Tag: FERS

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