Financial Education Can Help Your Pre-Retirees With Their Pension Distribution

January 29, 2013
With growing concerns about retirees outliving their retirement savings, one crucial decision that some workers have to make can have a huge impact on their chances of not outliving their nest egg, and that is which pension payout option they select at retirement. This important choice, which is irrevocable once selected, is often misunderstood by employees.  I’ve heard many employees who were planning to overlook a period certain option because they thought the payments would end at the end of the period (such as a 10 year certain and life annuity) if they outlived the time frame or employees who simply ask “What do most people pick?”. Continue reading “Financial Education Can Help Your Pre-Retirees With Their Pension Distribution”

Plan Now For Next Month’s America Saves Week

January 22, 2013

America Saves Week is an annual opportunity for organizations to promote good savings behavior and a chance for individuals to assess their own saving status. We are one month away from this year’s kickoff on February 25, 2013, which is the start of the 7th annual event. The Week is coordinated by America Saves and the American Education Savings Council, which is a program of the Employee Benefit Research Institute and Research Fund. Typically, over 2,000 organizations participate in the Week, reaching millions of people. Continue reading “Plan Now For Next Month’s America Saves Week”

A Centenerian Workforce?

January 15, 2013

Sadly, the oldest U.S citizen in our country died this month at age 114.  The Gerontology Research Group, which verifies age information for Guinness World Records, listed Mamie Rearden’s date of birth as Sept. 7, 1898, and her birth was recorded in the 1900 U.S. Census.  She didn’t spend much time in the workforce since she left her teaching job after having her third child, but she led an interesting life doing volunteer work. According to her daughter, Mamie always counseled that her 11 children should treat others as they wanted to be treated and that included never gossiping or speaking ill of others. We should all follow this motto if that’s what was the secret to her long life.  Continue reading “A Centenerian Workforce?”

Don’t Let Your Workforce Fall Off Their Own Fiscal Cliff This January

January 08, 2013

Now that Congress has mostly averted falling off the fiscal cliff by penning The American Taxpayer Relief Act of 2012, some employees may have a false sense of confidence that the Act only will impact the wealthy.  The message we are hearing is that the middle class has been spared from a tax increase, but that’s not necessarily true.  Your employees will have an unpleasant surprise with their first paycheck of the New Year in 2013 since the temporary reduction of 2% on the employee portion of the Social Security tax that we’ve had for the past two years was allowed to expire.  As of January 1st, the tax increases back to 6.2% on the first $113,700 of earned income.  Continue reading “Don’t Let Your Workforce Fall Off Their Own Fiscal Cliff This January”

What Are Your Financial New Year’s Resolutions?

January 01, 2013

Happy New Year!   A typical tradition is to set New Year’s resolutions to improve our health, wealth, and happiness.  According to www.USA.gov, some of the most common financial resolutions include managing debt and saving money.  Share your own resolutions for 2013 by leaving a comment.

Merry Christmas!

December 25, 2012

Here’s to wishing all my readers a Merry Christmas and a prosperous New Year in 2013!

There REALLY Is No Such Thing As A Silly Question When It Comes To Financial Education

December 18, 2012

Whenever I facilitate a financial education workshop for employee groups, I always encourage the attendees to ask questions that come to mind – no matter how basic or odd they may think the question is. I promise them that there are no silly questions, and I’ve heard quite a few that prove employees are hungry for financial education.  As a financial planner, a benefits specialist, HR representative, or payroll manager, sometimes it is easy to forget that what we talk about every day can seem like a foreign language to your workforce. Here are a few examples:  Continue reading “There REALLY Is No Such Thing As A Silly Question When It Comes To Financial Education”

Year End Tax Tips You Can Share With Your Employees

December 11, 2012

Talk of the fiscal cliff is everywhere these days, so many of your employees may be concerned right now about what will happen to their tax rates.  While no one knows what Congress will ultimately decide regarding next year’s income tax rates, there is one cold, hard fact that isn’t getting much press – the Medicare surcharge.  I wrote about this new surcharge tax last month, which increases the Medicare tax rate from 1.45% to 2.35% on amounts of earned income over $200,000 for single filers and over $250,000 for married filers.  Here are 2 tips you can share with your high income employees who may be in danger of this surcharge: Continue reading “Year End Tax Tips You Can Share With Your Employees”

Help Your Vets this Remembrance Day

December 04, 2012

This week is the 71st anniversary of the attack on Pearl Harbor, which is recognized nationally every December 7th as National Pearl Harbor Remembrance Day, and established by Congress in 1994 (but it is not a federal holiday).  There are very few veterans left who saw active duty in World War II, but there are many younger veterans who have been brave enough to serve our country and may even be found on your workforce roster. You probably do a good job keeping your employees up to date on their benefits menu, but how do those employer-sponsored benefits coordinate with their military benefits?  Continue reading “Help Your Vets this Remembrance Day”

The Retirement Flight Path

November 27, 2012

Were you one of the millions of travelers heading to the airport this past weekend to get home from your Thanksgiving trip?  Luckily, despite a predicted increase in the number of holiday travelers this year, travelers returning home after the long Thanksgiving weekend found generally good weather, few airport delays and even manageable conditions on the nation’s highways, according to the Associated Press.  Continue reading “The Retirement Flight Path”

Can You Change Your Workforce Culture to Increase Their Financial Wellness?

November 20, 2012

No matter how much financial education you provide to your workforce, ultimately it is up to your employees themselves to alter their financial bad habits and focus on improving their financial well-being.  It all starts with creating a culture of accountability, according to best-selling author Roger Connors. I was fortunate to pick up a free copy of his book Change the Culture, Change the Game a few months ago at the SHRM Annual Expo in Atlanta.  Although some of you might disagree, one of the things I like most about attending these conferences is the ability to visit all the vendors’ booths, find out what’s new in the benefits arena, and best of all, collect the freebies and giveaways.  At one of the booths, Roger Connors was autographing his latest book, where he outlines a breakthrough strategy for energizing your workforce and creating accountability for results.  Continue reading “Can You Change Your Workforce Culture to Increase Their Financial Wellness?”

Providing Workplace Financial Education Doesn’t Have to be Taxing

November 13, 2012

With so many upcoming tax law changes, many of which are still up in the air, employees may be starting to feel the financial stress of worrying how these changes will impact them.  Now is a great time to start planning for a year-end tax education workshop for your workforce to help prepare them for the following tax law changes: Continue reading “Providing Workplace Financial Education Doesn’t Have to be Taxing”

Is Now the Time for an In-Plan Roth Rollover?

November 06, 2012

It’s been two years now since the IRS issued Notice 2010-84 to provide guidance on in-plan Roth rollovers for 401(k) and403(b) plans, but have you had many employees take advantage of this option?  The majority of employees I’ve spoken to over the past few years have shied away from doing an in-plan rollover due to the tax implication, with the exception of those employees who had previously made after-tax contributions and could roll those funds to the Roth without much, if any, of a tax hit.  I had tended to agree with many of the employees who couldn’t justify paying taxes on income that had been deferred  with the sole purpose of delaying that same tax, but now with the large tax increases scheduled to take effect in 2013 without congressional action, I am having second thoughts on the benefits of considering an in-plan rollover. Continue reading “Is Now the Time for an In-Plan Roth Rollover?”

Helping Employees Prepare Financially for the Frankenstorm

October 30, 2012

Are your employees prepared to weather a storm?  As Hurricane Sandy rushes toward the mid-Atlantic area today, many companies across the area are telling their workforces to stay home.  But is that enough?  Certainly, employers should be concerned about their employees’ physical well-being, keeping them off the roads and updated on the availability of nearby shelters that employees can go to in case of flooding.  But what about their financial well-being?  Continue reading “Helping Employees Prepare Financially for the Frankenstorm”

When’s the Last Time You Got Good News from the IRS?

October 23, 2012

The IRS has perfectly timed the annoucement of the 2013 pension limitations during National Save 4 Retirement Week, which ends this Saturday.  Notice IR-2012-77   declares the COLA adjustments that will impact the dollar limitations for pension plans and other retirement accounts for tax year 2013 for both employer and employee contributions.  It is important to let your employees know how these increases can help them save more for retirement, so make sure to share this information with your workforce in the messaging format that best fits your workplace culture.  Continue reading “When’s the Last Time You Got Good News from the IRS?”

Does Your Plan Include NS4RW?

October 16, 2012

Although October is usually the month employees are focusing on their health insurance options for next year, it’s good to redirect their attention to a decision that has a much longer term impact then what type of health coverage they’ll have for 2013, and that is how much they are contributing towards their retirement. It’s not a fund ticker symbol or license plate number, but what NS4RW stands for is National Save For Retirement Week, created by Senate Resolution 555 that calls for the week of October 21, 2012 to highlight 3 goals: Continue reading “Does Your Plan Include NS4RW?”

How Much Should Employees Have Saved Up For Retirement So Far?

October 09, 2012

I’ve just come off of a 3 week road trip, where I zig-zagged across the western half of the U.S., speaking to a variety of workforces on planning for retirement.  One common question I heard again and again from many of the mid-career employees was “how much should I have saved up so far?” towards their retirement nest egg.  Similar to my journey as I traveled from one workplace location to another, I knew what the final destination was on the map, but it was just as important to know how many miles I had driven and how many more miles to go, so I would know when I had to stop for gas or take a pit stop.  Continue reading “How Much Should Employees Have Saved Up For Retirement So Far?”

Are You DEVOted to Your Older Workforce?

September 25, 2012

As a pre-teen back in 1978, I remember the first time I watched Saturday Night Live and the musical guest that night was Devo singing Whip It.  Imagine my amazement when my stepson got us free tickets to a concert this weekend to see none other than Devo, who is on tour with Blondie this fall.  The band members may now be eligible for Social Security, but they still got the crowd to their feet with their electric sound.  And who says you can’t teach an old dog new tricks?  The silver-haired band members even wrote a new song this year, Don’t Roof Rack Me, Bro, dedicated to Republican presidential candidate Mitt Romney’s dog incident, which occurred in 1983 when Romney traveled twelve hours with the dog in a crate on his car’s roof rack.  The Devo band members are like many of the oldest of the Baby Boomer generation who refuse to see themselves as old or ready to retire.  You may have a large population of these aging rockers yourself, so how can you help them face the reality of approaching retirement?  Continue reading “Are You DEVOted to Your Older Workforce?”

Is There a Siliver Lining To The Real Estate Bubble Bursting?

September 18, 2012

Could there possibly be a silver lining to the continued downturn in real estate values?  Your employees who are underwater on their mortgages may not think so, but you can be their hero by sharing a secret to help them keep more money in their pocket and less money from being sent to the tax collector.  By tipping off your workforce about appealing their housing assessment, you can actually help them shave hundreds of dollars off of their real estate tax. Continue reading “Is There a Siliver Lining To The Real Estate Bubble Bursting?”