Saving for Personal Retirement & Teens’ College Costs
When it comes to saving for the future, parents have various choices to make. Individual retirement money and college funds for kids are usually their top priorities. In some cases, parents must make a sacrifice in one of these areas. Research shows that about 90 percent of parents believe higher education is the key to their teens’ future success. However, the rising cost of such education leaves most parents doubtful of having adequate funds to help their kids. Although parents feel strongly about education, research shows that the majority of them put other expenses before their...
Read MoreLong Term Care Burdens Hurting Productivity
Long term care costs are an increasing burden on America’s workers. And the costs are beginning to spill over into the workplace as well, as businesses lose productive employees to the need to care for aging relatives. Even where the worker stays on the job, American employers bear some of the costs of the emerging long term care crisis in the form of reduced productivity, as workers spend more and more time providing direct care for their aging parents. The problem will only increase as the baby boomers head into their retirement years. The costs of long term care, such as assisted...
Read More2012 HSA & FSA Changes to Know About
Health savings accounts and flexible spending accounts are growing in popularity. Many people aren’t aware of the changes that take place in these plans from year to year. It’s important to discuss account details with an agent each year to be fully aware of the current rules or upcoming changes. Flexible Spending Accounts These accounts are sometimes called flexible spending arrangements. They are tax-advantaged accounts that let employees automatically deposit a specific amount of each paycheck into them. Once there are funds in the account, they can be used to pay for current...
Read MoreWhy Good Retirement Programs Are So Important
In the past two years, the number of young American workers who think employer-sponsored retirement programs are important has grown substantially. A recent Towers Watson survey showed that workers believe this especially if they are employed by companies that already offer pension plans. The survey also found a substantial increase in the number of workers who felt that their employers’ retirement programs made a difference in their decisions to accept or decline jobs. These employers offer defined benefit plans, and the noted increase was close to 40 percent. However, the increase...
Read MoreWhen do I have to make mandatory withdrawals from my 403(b) plan?
The mandatory withdrawal rules are a bit more complex for 403(b) accounts than they are for IRAs. (Owners of traditional IRAs have to make mandatory withdrawals after age 70½ whether they are working or not.) You have to start taking yearly withdrawals (RMDs) from your 403(b) once you reach age 70½ … unless you continue to work. If you work past that age, you can delay your first mandatory withdrawal until you retire.1 Now, many educators and non-profit employees have more than one 403(b) as they have worked for multiple colleges, school districts or organizations. In this case, the...
Read More