TSP Archives

TSP stands for “Thrift Savings Plan” is an essential component of federal employee retirement savings efforts for federal employees. The Thrift Savings Plan is similar to a 401(k) plan, allowing participants to make contributions on a pre-tax basis. The TSP also has several competitive advantages, such as automatic contributions for certain federal employees, lower costs (compared to most private-market investments) and employer matching contributions.

Social Security: Cost of Living Raise Might Result in Benefits Running Out Sooner

January 26, 2024 /by aaron steele

The most considerable boost in Social Security benefits since 1981 was great news for retirees. However, it also served as a clear reminder that the program is costly, with benefits cuts expected unless it’s retooled in the coming years.

With the announcement of the benefit boost, last week came the word of a tax increase for many Americans, with salaries subject to the Social Security payroll tax scheduled to jump about 9% next year.

Even before the announcement of the cost-of-living adjustment (COLA), the Social Security trust fund was projected to run out of reserves by 2035 if nothing was done. Historically, Social Security reforms haven’t been well received by the public. The question is, does the program require reform, and if so, what changes are coming?

Where Things Are Now

Social Security is a “pay as you go” system, with current income paying current payments. Payroll taxes of 12.4% (employees and employers each pay half, while self-employed workers pay the whole amount) support around 90% of benefits.

However, demographic trends indicate that the revenue stream is under threat, as the number of pensioners rises faster than the number of employees paying taxes. There were 3.4 employees for every Social Security recipient in 2000. Actuaries for the program predict that number will fall to 2.4 by 2030.

That implies more has to be raised from each worker, paid less to each recipient, or do a little of both.

A far lower portion of income is derived through taxes on Social Security benefits, which were initially implemented as part of a reform package in 1983. According to the Social Security website, around 40% of recipients pay taxes on a portion of their payments.

Increasing Payroll Taxes

The expected Social Security shortfall is around 3.4% of taxable payrolls. According to Alicia Munnell, the Center for Retirement Research at Boston College’s director, raising the payroll tax rate by 1.7% for employees and employers would allow everyone to receive full benefits for the next 75 years.

The maximum amount of salaries subject to Social Security payroll tax will increase from $147,000 to $160,200 in 2023. Rep. John Larson (D-Conn.) proposes reinstituting a payroll tax for incomes of $400,00 while simultaneously establishing a minimum payout of 25% over the poverty level. Currently, benefits are calculated based on your 35 highest-earning years, with no minimum.

Increasing the taxable base would increase revenues, especially if the payments didn’t result in extra benefits. However, Johnson is concerned that if it became a terrible deal for higher-income individuals, it would lead to less support for the program. What you receive has always been proportional to what you put in, and if politicians sever that relationship and Social Security is perceived as welfare, support may dwindle.

Increase the Taxable Wage Basis

The maximum wage amount subject to the Social Security payroll tax is linked to a national average wage index and adjusted yearly. The 9% increase for next year is based on the 2021 index, which was boosted when things returned to normal following the pandemic-related shutdowns of 2020.

According to Munnell, one option to increase revenue is to include employer contributions to employee healthcare insurance in the taxable salary base. According to Social Security actuaries, this would lower the 75-year deficit (the timeframe used to determine solvency) by nearly one-third. The plan would tax both employer and employee rates for employer-sponsored group health insurance, so both employees and employers would pay more.

Johnson believes this would make sense because when Social Security was created, practically all of the compensation came in wages, and today more of it comes in benefits.

Increasing the Full Retirement Age (FRA)

The FRA is the age at which you receive 100% of the guaranteed benefits. For most people, that’s 66 or 67. The age was raised from 65 to 67 during the 1983 reforms. Still, the adjustments weren’t implemented for 17 years “to give people time to adjust employment and savings behavior to the fall in benefits, according to Johnson. He also stated that the modifications to the FRA in 1983 resulted in a 12% reduction in benefits.

There has been discussion of increasing the retirement age to 69. That, however, would punish people with physically demanding professions who cannot work longer and may be forced to file for Social Security early. Many people file at the earliest age of 62, resulting in a 30% loss in compensation compared to waiting until FRA.

Trim Benefits

Rather than raising taxes, Andrew Biggs, a senior scholar at the American Enterprise Institute, advocates for measures that gradually reduce benefits for medium and upper-income workers while boosting them for lower-income earners.

“We’re a wealthy country, and it’s not unreasonable to expect Social Security to give a genuine guarantee against poverty in retirement years, which it now doesn’t since there’s no minimum benefit,” said Biggs. “At the same time, retirement savings outside of Social Security have increased considerably across all demographics, demonstrating that medium and upper-income individuals can and will save more for retirement on their own.”

What Happens Next?

Because there is little overlap between Democratic and Republican ideas for Social Security reform, Johnson believes a solution will be reached at the last minute. He thinks the most likely conclusion will be an increase in the taxable wage base and a reduction in benefits for the highest-income recipients.

According to him, part of the issue is that no one will be better off if you’re talking about fixing the program’s finances. So, you either reduce benefits or lower taxes, and neither is an achievement on which to run for reelection.

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.

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.

The 9 Life Transformations That Have An Impact On Social Security Benefit

January 26, 2024 /by todd carmack

Everything in life is not permanent since change is constant in life. However, the social security benefit is about to change. Therefore, regardless of the factors that influence the social security benefits, you will enjoy the positive side of having more income during retirement.

Some factors that influence social security benefits are:

1. Change of name: For instance, if you decide to change your name legally from Claire Martins to Claire John, you should notify and contact the SSA about the changes in your name. It will help avoid errors in remitting your salary or wages into the social security earning file.

You need to present some documents to the SSA to accept your new name and issue your new security card, such as:

• Certificate of naturalization bearing your new name.

• Marriage certificate.

• Divorce decree.

• Court order showing approval of your new name.

2. Change of address: The SSA needs to be informed of your new location to prevent them from sending your monthly check or other valuable documents to a different address. Your relocation from one state to another will not affect your security benefits payouts. However, it can influence your check due to the taxes assigned by the state.

Social security is treated differently in some states.

3. Adoption or extension of the family: If there is a new member in your family, either you adopt or expand your family, the social security administration needs to be informed, as the latest member could be part of the beneficiary of the social security retirement packages.

Your children under 18, unmarried or full-time students in or below grade 12, and children with disability are eligible for the benefits without reducing your retirement benefits.

4. Change of citizenship status: If you satisfy specific required conditions by the SSA as a legal immigrant in the state, you can be eligible for social security benefits. Such conditions include work credits or earned equivalent credits from your work history in your previous country.

As an American citizen, you have the right to receive your benefits if you relocate to one of the eligible countries. However, suppose you decide to leave for some country like Moldova, Kazakhstan, Tajikistan, Belarus, Azerbaijan, Kyrgyzstan, and Uzbekistan, where the SSA cannot make social security payments. In that case, you might not get the benefits.

5. If you receive a pension from your new work not covered under social security: During your years in service, suppose you didn’t pay taxes for social security, the SSA may reduce the widow, spouse or widower benefits by more than 60 percent of the payments you receive as pension from the government. This act is termed government pension offset (GPO).

6. If you are convicted of a crime: if you are found guilty of an offense and sentenced for 30 or more days, the SSA can deprive you of your entire social security benefits. However, the SSA will return your benefits a month after your release once you are acquitted.

7. You are no longer in charge of your social security recipient child: The American government provides social security benefits for children aged 18 and above who are disabled before they are 22 years or continuously disabled. The benefits can last for the time they are incapable of doing any work or until they die from the disability.

8. If you don’t have practical fund management skills: After retirement, you might be the one who can’t control your financial affairs. When you identify this challenge, inform the Social Security Administration. They can help you conduct a discreet investigation and appoint someone who might be your family member, organization, friend, or an individual to assist you in monitoring your benefit affairs. Failure to do so may cause a monthly benefit check delay or errors in your earning record.

9. Suppose the beneficiary dies: For example, if the social security inheritor died in July, you must refund the benefit they paid in August to the social security administration. They are not entitled to social security payouts again.

You can contact the social security administration (SSA) at 1-800-772-1213 if you have any challenges concerning the social security benefits.

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.

You should Get Yourself Ready for a Lengthy Retirement

January 26, 2024 /by rick viader

Everyone has the same hope: to extend their lifespan. Everyone has the hope that they will have a long life. But do we have the financial resources to support such a long life?

Let’s look at a handful of intriguing results from a study conducted in 2022 by Age Wave and Edward Jones so we can go on to prepping.

The pensioners questioned have indicated that they anticipate living a mean of 89 years, and they believe that a pension that lasts for 29 years is perfect.

Nearly a 70th of those polled responded positively to the question of whether they aspire to reach the age of 100. What is the primary motivation behind this wish to live a long life? To have more opportunities to enjoy with their loved ones, including family members and friends.

There is no way for any of us to know how much longer we will continue to exist because none of us can see the future. These ideas, however, have a genuine foundation in truth, thanks to advancements in medical care and a growing understanding of the importance of leading health behaviors.

On the other hand, if you want to spend those additional years with your loved ones and benefit from a longer lifespan, you need to ensure your financial situation is in good form. What steps can you take to ensure that this occurs?

The following are some of the most fundamental actions to take:

– Start saving and investing often and frequently. Even though it has been around for a long time, this bit of financial guidance is still relevant today. The sooner you begin setting money aside and making investments for your golden years, the bigger the potential accumulation will be. Consider the following: If you saved up only $5,000 a year at the age of 25, invested it at an annual rate of return of 6.5 percent, and decided not to make any premature withdrawals, you’d have $935,000 by the day you got to the age of 65.

You will only eventually wind up with $460,000 if you wait until you are 35 years old to begin saving for retirement, and if you received the same 6.5 percent yield (remember, with no premature pulls), you would save. And if you didn’t start putting money down until you were 45 years old, you’d finish up with just over $200,000, assuming the same return of 6.5 percent.

– Be wary of borrowing. When you hit retirement age, you probably do not want to be weighed down by responsibilities. Therefore, while you are still gainfully employed, you should try to eliminate any undesirable obligations, especially those loans that do not offer the monetary advantages of tax-deductible interest charges. The less debt you have, the more money you can put away and invest wisely.

– Continue to evaluate how far you’ve come. You must keep a close eye on the steps you take to realize your objective of having a decent retirement. Your portfolio holdings may see oscillations over the short term, particularly in highly unpredictable capital markets like those we witnessed at the beginning of this year. If you look at the long-term consequences, though, you will have a far better understanding of the predicament you are in.

For instance, during the past ten years, has the growth of your assets been on par with what you had anticipated? And looking ahead, do you believe that you are in great condition, or do you anticipate needing to adjust how you invest your money? Please remember that if you are over 50, you are liable to earn “catch-up” payments to your 401(k) and IRA. These payments enable you to contribute more money than the standard limitations do. As you get closer to retirement, you also might want to consider modifying the mix of investments you hold to reduce the amount of risk you are exposed to eventually.

You may contribute to the attainment of this goal by considering your financial decisions and acting in a way that is in line with your own best interests.

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.

Sin #3 and Your 401(k)

January 20, 2024 /by todd carmack

What dangers should you accept to reach your financial objective, if any? What’s the cut-off point? That’s a simple question, but the answer can be complex.

How much is “enough” depends on a myriad of factors. What’s more important to you: your nest egg, your kids, or something else? Additionally, “enough” is a moving target. When you can retire depends on your age and your financial situation, both of which are subject to change as you get older. Yes, it most likely will.

At 25, aiming for a million-dollar nest egg could be a realistic target. But things may have shifted by the time you get to middle age. Possibly there have been one or more severe economic downturns. Or dramatic rises in prices. Like now, for example. There are constant shifts in the world and economy, from gas and baby formula prices to the possibility of a broader war in Europe. So far, changes haven’t been for the better in many situations. So we went to a recently retired fed, Abraham Grungold, to get his take on things. After a lengthy government job and TSP investment, he recently retired with over a million dollars in his bank account. In his own words:

TSP â€” How much is enough?

Over 100,000 federal workers have become millionaires through the Thrift Savings Plan (TSP). How much money in a TSP would be enough to live comfortably in retirement? Is there a magic number for a secure retirement? Various elements, some of which are unique to each person’s personal and financial circumstances, determine the answer. Note that federal and state tax rates are subject to change. Thus, the numbers in the following two scenarios should be treated as approximations.

An Individual

If you retire at age 62 after 30 years in the federal government and receive an annuity of $30,000, a Social Security payment of $20,000, and a total of $500,000 in your Thrift Savings Plan, you can expect to receive $20,000 year for the next 25 years. Your yearly gross salary is $70,000; once taxes are taken out, you’ll be left with about $55,000. Will your current standard of living be supported by this income?

A Couple

Consider a relationship in which one partner is a federal employee, and both are 62 years old. Furthermore, they have $1,000,000 in their TSP and other retirement accounts.

An annuity of $30,000 is paid to Spouse 1, while Spouse 2 receives $20,000 from Social Security. They plan to spend $40,000 a year, or 4% of their $1,000,000 nest egg, for the next 25 years. They make a combined $110,000 annually before taxes, which amounts to about $85,000. Could they maintain their current standard of living on this salary?

Before retiring, government employees should put as much money as they can into savings and invest aggressively to ensure that they will have sufficient funds to have a comfortable retirement and some funds left aside for unexpected expenses. When I asked several former government employees, they all assured me that they were able to retire comfortably on $2 million. But do you think that’s enough?

Some unexpected events will arise in your life. The following are examples of unforeseen challenges that retirees may face:

Everything’s getting more expensive due to inflation.

Financing for a vacation or secondary residence
Meeting medical and pharmaceutical costs
Spending on grandkids’ higher education
Nursing homes or other facilities providing long-term care

After you have retired, you need to be watchful and keep a close eye on how much money you are spending. Even if they take money out of their tax-deferred savings plans (TSPs), investors still need to make significant investments to ensure they have money set aside for unexpected expenses and that their accounts continue to grow.

Many federal workers have reached out to me as a financial coach with questions about their retirement, TSP, and assets outside the TSP. I think it’s essential for them to have a backup plan in place for when they retire. The best way to prepare for these challenges as a senior is to save as much as possible in a TSP.

Contact Information:
Email: [email protected]
Phone: 7735026467

You Can Now Appeal Your Hospital Observation Status As A Medicare Beneficiary

January 20, 2024 /by rick viader

Hospitals use the term “observation status” when billing Medicare. Unfortunately, it may be detrimental to patients in the hospital who count on Medicare for their healthcare. Even for a few days or overnight, people treated in hospitals may discover they were not admitted as inpatients.

When hospital patients are assigned Observation Status, they may well be charged for healthcare services that Medicare typically covers if they had been admitted as inpatients. For example, patients can be billed for their drugs. As a result, if someone needs to travel to the hospital, they may wish to bring their meds.

Patients will also be unable to acquire Medicare coverage if they require nursing home care following their hospital stay. Medicare coverage only applies to nursing home care for people who have had a 3-day inpatient hospital stay – observation status does not count.

Medicare Part B covers outpatient observation status, while Part A covers inpatient hospital stays. If they are designated as Observation Status, Medicare participants enrolled in Medicare Part A (but not Medicare Part B) will have to pay for their entire hospital bill.

What is the significance of this?

If you visit the hospital, you’ll be admitted as an inpatient, implying that Part A Medicare covers any service you receive. You can also be placed on “observation status,” which means your expenses will be reimbursed by Medicare Part B.

Now, you may be wondering if you can find out your condition before coming to the hospital. This, according to Oh, isn’t quite possible.

This creates confusion and is a big problem because some people don’t know their status or assume they’re covered under Part A while covered under Medicare Part B due to their observation status. These two halves have differing cost-sharing outcomes, which could spark a dispute.

There have been attempts to address this, such as the Notice Act. The hospital must inform patients of their condition under this provision. There’s also the Two-Midnight Rule, which states that a patient is deemed inpatient if they stay in the hospital for two midnights (and therefore covered by Medicare Part A). Even if a person stays over two midnights, they may be under surveillance status.

Medicare patients can now appeal their admission classification, whether admitted as an inpatient or as a patient under observation. People can start the process as soon as they receive their hospital bills.

The Part B deductible will be the most affected if Medigap covers you. The majority of Medigap insurance would cover the remaining costs. If you have Part A, Medigap will cover the difference.

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

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

Here Are Three Ways to Protect Your Retirement Fund from a Downturn

January 14, 2024 /by rick viader

It’s normal to feel uneasy about retiring when the economy could be in a downturn, but there are methods to keep your current standard of living in retirement even if the economy takes a downturn. Inflation is at 40-year highs, interest rates are rapidly rising, and equities have had their worst first half since the 1920s, so investors are understandably nervous. From that viewpoint, let’s take a look at three of the most efficient strategies to sustain your nest egg in retirement and prevent the danger of ever running out of money.

Look into Certain Annuities

If your retirement income is not certain, either via a pension or significant Social Security payments, a single-premium annuity might be a wise investment. If you want to spend retirement living well on a fixed income, you may want to consider annuitizing a part of your stock portfolio.

Some annuities cost too much, while others have too many extra costs or confuse riders. A retiree whose portfolio consists only of equities and bonds may be persuaded to forego annuities after reading this. If you are concerned about market volatility over the next decade or about longevity risk, however, single-premium annuities may make sense to allay the risk of outliving your money in retirement.

Pick Up a Part-time Job

Even tiny sums of income in retirement â€” or the years leading up to it â€” may make a tremendous impact on the degree to which you need to depend on unpredictable assets. Part-time employment may offer income levels in the $10,000 to $20,000 area, which, when paired with Social Security, can go a very long way in relieving the burden on your portfolio.

To use an extreme example, let’s say you can supplement your $30,000 in yearly Social Security income with an additional $20,000 from part-time work. In addition, let’s say you estimate your first year of retirement would need an annual budget of $70,000.

If you were to opt out of part-time employment, the 4 percent guideline for a 30-year retirement would imply a personal savings target of $1,000,000 ($40,000 divided by 4 percent). If you work part-time after retirement, you may cut your portfolio withdrawal need in half, allowing you to live comfortably on half as much money.

Needless to say, little sums of earned revenue count more than they would look.

Delay applying for the Social Security benefits

Delayed Social Security credits are a particularly effective tool for anyone who can afford to wait on filing. Social Security payments increase by 8 percent annually for each year you delay filing for them. In addition, you will get yearly inflation adjustments (sometimes known as cost-of-living adjustments or COLAs) to help offset the impact of inflation on your spending power. This will be helpful if the present inflationary situation lasts longer than expected.

Social Security, for many seniors, operates as a minimum amount of guaranteed income meant to cover basic living expenditures. Investment returns from stocks are volatile, while Social Security is guaranteed for life. The longer you wait to file, the more you’ll finally get, and the less you’ll need to depend on your investment portfolio to fulfill spending demands.

Considering the Next Ten Years

The most a retiree can do is make an educated guess about how things will play out and then prepare accordingly. Rather than depending on just a few sure bets when developing your financial plan for the next ten years, it is in your best interest to take into consideration a variety of potential economic outcomes. Doing so will allow you to achieve far better results. It is a hazardous gamble not to anticipate a decade of outperformance in the economy, but it is not a risky play to anticipate a time of catastrophic economic devastation. Keep a level head and put your attention on improving the factors that are within your direct control.

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

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

Managing Retirement-Related Healthcare Costs

January 14, 2024 /by todd carmack

When people begin planning for retirement, the typical expenses taken into account include housing, utilities, gas, and even food. Unfortunately, retirees fail to consider the increasing cost associated with healthcare costs during retirement. By failing to manage healthcare costs before retiring, aging individuals risk facing an expensive oversight later in life. With healthcare being one of the most costly aspects of retirement, it’s imperative to plan before being slapped with sticker shock at the beginning of your golden years.

In 2021 alone, your average retired couple needed to plan for over $300k in savings to cover the entirety of their healthcare expenses alone. According to a survey conducted by RBC Wealth Management, up to 80% of the individuals surveyed felt they would fail to afford healthcare in retirement. Concern has arisen due to the simple fact that retirement funds are fixed figures. Although it’s essential to understand how health insurance premiums change over the years, it isn’t worth stressing over.

As you age, the expenditures associated with healthcare increase. For example, a couple between 65 and 74 should plan to spend $12k per year. As the couple ages between 75 and 84, it increases to $21k. During your golden years, you may notice that your set retirement income remains the same as healthcare costs rise. For this reason, individuals choose to invest in plans such as a health savings account (HSA) or 401(k).

Planning for future medical costs can mean the difference between enjoying retirement and scrambling to stay on top of your finances. You will be far ahead of the curve by estimating costs ahead of time and putting a healthcare plan into your plan from the beginning. Start by considering your family and medical history, especially if you suffer from a chronic condition or have spent any time smoking.

The location of your retirement is another commonly overlooked factor, but why does it matter? Regarding retirement healthcare, the state where you purchase your policy may offer different benefits to solo and spousal plans. Some families purchase gap insurance to bridge the gap in existing coverage, with options such as COBRA. Gap insurance helps pay for areas traditional insurance providers do not cover, which means it won’t cover 100% of your bill. For example, eye exams, long-term care, and dental or hearing care aren’t covered by Medicare plans and are billed as out-of-pocket expenses without gap insurance.

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

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

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

Converting TSP Money Into Annuities

January 8, 2024 /by aaron steele

An annuity is one of several choices for withdrawals from a Thrift Savings Plan (TSP)â€”payments can be given in lump sums, monthly, or a combination of both. Only a tiny fraction of TSP withdrawals are annuity purchases.

But, before you discard it, learn about its features. For one reason, the TSP’s annuity benefits are more customizable than FERS or CSRS.

The TSP provides three primary forms of annuities:

• Single life annuity – an annuity paid solely to you during your lifetime.

• Joint life with spouse – an annuity given to you and your spouse while you’re both alive. When one spouse dies, the surviving spouse will get an annuity for the rest of their life.

• Joint life with someone that’s not your spouse – an annuity paid to you while you and a person of your choosing (but not your spouse) remain alive. This individual must have a vested interest in you. When one of you dies, the survivor will get an annuity for the rest of their life. Individuals deemed to have an insurable interest in you are the following: a previous spouse, blood relatives or adopted relatives who are closer than first cousins, and an individual with whom you’re living in a relationship that constitutes a common law marriage in countries that allow common-law marriages.

Joint life annuities can offer a 100% or a 50% survivor benefit. That implies that if one of you dies, your monthly payments will either continue in full (100%) or be reduced by half (50%) to you or your joint annuitant.

The basic annuity types can be paired with various annuity features, including growing payouts, cash refunds, and a 10-year guaranteed payout. The monthly payment amount increases by 2% every year with rising payments. Suppose you (or your partner annuitant) die before receiving payments equal to the account balance used to purchase the annuity. In that case, your designated beneficiary will get a cash return equal to the difference between the total of the payments and the annuity purchase value. If you die within ten years of the commencement of your annuity with a 10-year certain payout, your beneficiary receives payments for the remaining of the 10-year term.

Not all features can be coupled with every type of basic annuity. Also, once an annuity is purchased, the money is transferred to a private company. That company, rather than the TSP, provides the benefit.

The calculator at www.tsp.gov allows you to see how a certain amount might translate into income under various scenarios.

If you’re a married participant with an account balance greater than $3,500, the spouses’ rights criteria will apply to your withdrawal option. If you’re a married FERS participant, unless your spouse waives their right to that annuity, they have the right to a joint and survivor annuity with a 50% survivor benefit, level payments, and no cash return feature. If you’re a married CSRS participant, your withdrawal election must be communicated to your spouse by the TSP.

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

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.

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

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

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

Tag: TSP

Social Security: Cost of Living Raise Might Result in Benefits Running Out Sooner

The 9 Life Transformations That Have An Impact On Social Security Benefit

You should Get Yourself Ready for a Lengthy Retirement

Sin #3 and Your 401(k)

You Can Now Appeal Your Hospital Observation Status As A Medicare Beneficiary

Here Are Three Ways to Protect Your Retirement Fund from a Downturn

Managing Retirement-Related Healthcare Costs

What’s Your Vision For Retirement?

Converting TSP Money Into Annuities

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

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

The Implications of Federal Reemployment on Annuities

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

Getting Rid of the Costs of Disability Insurance

Top Ways to Make Retirement Tax Cuts

Learn Everything About Pension and Its Basics

What are the fundamentals behind a pension?

What are the different forms of pensions?

Personal Pension

Workplace Pension

State Pension

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

House approves 23 Bill for Defense Spending with 4.6% Raise

Retirement Planning Terms You Should Know.

Disability Insurance And Retirement Security Go Together

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

TSP & Retirement

Insurance