Key Takeaway: A Simple Retirement Plan is an excellent choice for small businesses and individuals seeking an easy-to-understand and administer retirement plan. There are two types of Simple Retirement Plans: the Simple IRA and the Simple 401(k), which have similar contribution limits but differ in eligibility requirements and administration. Employers and employees alike benefit from…
Key Takeaway: Service credit is a measure of the length of time a person has worked in a specific job or career field, and it impacts the retirement benefits they are eligible to receive upon retirement. There are different types of service credit, including service credit for employment, buying and transferring service credit, and military…
Key Takeaway: Retirement income in California is subject to state income tax, and the tax rate varies depending on the source of the income. Some sources are fully taxed, while others receive exemptions or deductions. California residents can claim a retirement income tax exemption if they meet certain eligibility requirements, such as age and income…
Key Takeaways: COBRA, health insurance marketplaces, private health insurance, and Medicare are options for paying for health insurance in early retirement. Each option has its own advantages and disadvantages that should be carefully considered before making a decision. When choosing the best health insurance option, it is important to consider premiums, deductibles, and out-of-pocket costs,…
Key Takeaway: Retirement income can come from various sources, including social security benefits, pension benefits, and personal savings. It’s important to have a diversified retirement income plan. Social security benefits can be a significant part of retirement income for many people. Understanding the rules and claiming strategies can help maximize these benefits. When planning for…
Key Takeaway: The Blended Retirement System (BRS) is a retirement plan that combines elements of the traditional defined benefit plan with features of a defined contribution plan. There are three retirement plan options under BRS: the traditional BRS, opt-in to BRS, and opt-out of BRS. Each option has its own features and benefits. BRS factors…
Key Takeaway: Stay-at-home moms can save for retirement by setting up an IRA or Roth IRA, which allows them to contribute to an individual retirement account and take advantage of tax benefits. Another option for saving for retirement is through a 401(k) plan, which may be available through a spouse’s employer or through self-employment. Maximizing…
Key Takeaway: Loss of control over distribution: Naming a trust as the beneficiary of a retirement plan can lead to loss of control over the distribution of the funds. The trustee may have discretion over how the funds are distributed, which may not align with the original intentions of the account owner. Increased complexity and…
Key Takeaway: Assessing Retirement Needs: Understanding how much money you’ll need in retirement can help you determine your overall savings goals and retirement budget. Creating a Retirement Budget: Calculating your retirement income and allocating your funds towards necessary expenses can help you estimate and control your overall expenses. Adjusting Retirement Budgets: It is important to…
Key Takeaway: A good retirement gift for a police officer should be thoughtful and personalized to the officer’s interests, hobbies, and personality, to make it meaningful and memorable. Police-themed gifts, such as customized badges or challenge coins, are always a popular idea, as they celebrate the officer’s career and service to the community. Commemorative and…
Key Takeaway: Assess your current financial situation: Before creating a retirement savings plan, you need to understand your current financial situation. Calculate your net worth, income, expenses, and debts to determine how much you can realistically save for retirement. Determine your retirement goals: To create a realistic retirement savings plan, you need to determine your…
Key Takeaway: When determining a good monthly income for retirement, it is important to consider factors such as retirement goals and lifestyle, current income and expenses, inflation and cost of living, life expectancy and healthcare costs, as well as social security and other retirement benefits. There are general guidelines and industry standards for determining a…