Author: Marvin Dutton

If your firm has dedicated time and resources to veteran recruitment or is stepping up these efforts, you also have to think of ways to invest in their success once they’ve been hired. Here are some top tips.

Benefits & Policies evaluation

Actions speak louder than words when developing a diverse, engaged workforce. You can take action by offering more tailored benefits to veterans and military-connected individuals. Group life and health insurance can enhance veterans’ government coverage. If you hire or recruit many veterans, you should provide them special perks personalized for their circumstances. Many of these options offer profitable rates, individual customer care, and financial education resources for military-connected employees.

Many industries now allow remote or hybrid work. Make sure military spouses and veterans have flexible work opportunities too. Providing a serving spouse job stability in the face of relocations or allowing a recently-separated veteran to find a permanent home while keeping employment at your company helps employees and lets your company retain top talent regardless of location and lifestyle.

Inform staff about affinity groups and EAPs. Many give veterans direct access to additional resources and incentives, such as mortgage recommendations, gym membership discounts, and physical and mental health help. Show your support by continuously connecting with affinity groups and making their resources available to veteran employees during onboarding and through internal communications.

Promote networking

Many veteran employees will be at a significant transition point in their lives and careers. Using existing talents and structures can make employees feel welcome and supported. If your company employs veterans or military-connected individuals, create a special employee resource group for them. That can help them find mentors, learn about corporate culture, and exchange experiences. Human resources and benefits decision-makers should stay in touch with this group. Their feedback on things like family leave, childcare, and training programs might help identify a need for changes. Your employees will appreciate you actively listening and changing corporate regulations.

Encourage learning

Your organization needs a thorough education program to encourage veteran hiring. Easy access to certificates, college credits, and tuition help is a win-win. They’ll gain skills and confidence in a new job setting or industry, making them an asset to your company. HR and mentors should ask veterans what they want from their careers in the future and support further education.

On-the-job training and development initiatives for new hires of various backgrounds are also important. If you have a network of veteran employees, foster mentorship through training and development initiatives. Discuss these programs with new and old employees. Their experience can guide training and development structure, goals, and metrics.

If you’re still hiring experienced employees, external organizations and affiliates can help. American Corporate Partners can help with mentoring, hiring, and onboarding as you build internal procedures.

Engage with other firms and service organizations

Even if your veteran hiring and engagement program is robust, consider chances to collaborate with local and national service organizations. Countless organizations range from general awareness to industry or issue-specific. Explore affiliate programs with these organizations to determine if they may offer mental health or financial advisory services to your veteran personnel.

Providing annual service hours is another approach to keep staff engaged and strengthen ties to local military and community organizations. That’s a win for local nonprofits, veteran employees wishing to continue active in service, and your company as it grows its role as a change-maker for staff and the community.

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

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

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

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

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

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

Medicare is…complicated. You must be wondering whether to enroll in Original Medicare or a Medicare Advantage Plan, what sort of coverage you’re qualified for, whether to sign up for prescription medication coverage and more.

Medicare open enrollment

Your circumstances determine when you may enroll in Medicare or alter your plan.

If you’ve never had Medicare, the open enrollment period starts three months before you turn 65 and lasts for seven months. That’s also called the initial enrollment period. So, for example, if you’re turning 65 in November, you can enroll from August through March. If you miss this opportunity and sign up later, you’ll be penalized, so plan ahead.

These regulations determine Medicare eligibility:

If enrolled before 65, coverage starts the month you turn 65.

Coverage starts next month if enrolled in the fourth month of the initial enrollment period.

If enrolled in the fifth month of the initial enrollment period, coverage starts two months later.

If you enrolled in the sixth month, coverage begins three months later.

For those currently enrolled, open enrollment for next year, also called the annual election period, is Oct. 15-Dec. 7. You can change plans or enroll at this time. These changes are effective Jan. 1. Annual election changes include:

Original-to-Advantage Medicare switches and vice-versa

Switching between Medicare Advantage plans

Switching between Part D plans

Part D enrollment

Other conditions follow enrollment periods: There are special enrollment periods for those who’ve been through some life changes like losing insurance, moving, qualifying for financial aid, and more. See Medicare.gov for more.

General Medicare enrollment spans from Jan. 1 to Mar. 15. That’s for people who didn’t sign up for Medicare Part A or Part B when first eligible and don’t have a special enrollment period. Coverage for those who sign up during this time starts Jul. 1.

Medicare eligibility:

Medicare enrollment isn’t mandatory. Many still-working Medicare-eligible persons choose not to enroll or delay enrollment. So, which categories of people are eligible for Medicare?

U.S. residents 65 and older are U.S. citizens or have lived in the country for at least five years before applying.

Social Security, Railroad Retirement, and SSDI recipients

Certain patients with end-stage renal illness or Lou Gehrig’s disease

24-month Social Security Disability recipients

If you have more questions, check Medicare.gov for eligibility and the monthly premium calculator.

Medicare plans and coverage types

Original Medicare and Medicare Advantage are the main Medicare programs. Original Medicare is government-funded. Here are some facts about these plans:

They include Medicare Part A (hospital insurance for inpatient care, skilled nursing care, and specific home health and hospice care) and Medicare Part B (doctor and provider services, outpatient care, home health care, durable medical equipment, and some preventive services).

They allow specialist visits without pre-approval.

Premiums, deductibles, and coinsurances are required.

You can enroll in supplemental Medigap insurance to lower out-of-pocket payments.

Medicare Part D prescription medication coverage is not included; instead, it’s solely offered by commercial insurers.

People who have paid Medicare taxes long enough are entitled to free Medicare Part A, but Part B requires premiums.

Private insurance firms manage Medicare Part C, generally known as Medicare Advantage. HMOs, PPOs, and private fee-for-service plans are typical Medicare Advantage programs. General information concerning these plans:

They integrate Parts A and B with dental, eye, and hearing care.

They often cover prescriptions.

They usually involve a particular network of doctors from which you must choose.

They might require a referral for a specialist visit.

Some medication expenditures or services may need approval.

They often have lower out-of-pocket expenses than Original Medicare plans.

Private companies provide two more supplemental insurance plans. Medicare Part D covers prescription medicines. You can buy this supplement insurance with Original or Advantage Medicare plans that don’t cover prescription medication.

Medigap supplements Original Medicare but not Medicare Advantage. Medigap is optional and offered by private insurance companies. These plans cover deductibles, coinsurance, and copays after Original Medicare pays its half. In addition, Medigap insurance may cover expenditures Original Medicare doesn’t, such as care received when abroad.

Each Medigap plan has identical coverage, but rates vary by insurer. Depending on where you reside, you may be able to select from up to ten different Medigap insurance available in your state. Before you get Medigap insurance, do your homework.

What to ask when enrolling in Medicare

Now that you know your Medicare options, ask these questions before enrolling:

What are your health expenses now? First, estimate your yearly out-of-pocket expenses, like premiums, copays, coinsurance, and deductibles. That’ll help you make informed modifications or choices. Then compare the costs of the plans you’re considering and estimate costs for any service you wish to receive.

Which physicians accept Medicare and are in your plan’s network? That might affect your chosen plan since you’ll probably want to keep your trusted providers. This especially applies to Medicare Advantage plans.

Do you have retiree insurance that covers particular health care expenses? For instance, many retirees have medication coverage. In that case, you won’t need Part D and can select Original Medicare over Medicare Advantage.

Do you need any specific coverage? Consider your health and for what you’ll use your insurance. For example, a  Medicare Advantage plan may be beneficial if you need a lot of dental or vision treatments.

What trade-offs are you ready to accept? For example, a Medicare Advantage plan may have higher premiums but lower out-of-pocket expenses. In contrast, Original Medicare offers a more extensive network of physicians and lets you see specialists without a referral.

Can you get cost-reduction programs? If you qualify, use state and federal programs like Medicaid to help pay for Medicare costs.

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

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

COLA at 8.7% in 2023

The Bureau of Labor Statistics (BLS) inflation data are utilized annually to create an automated cost-of-living adjustment (COLA) for employees (BLS).

Inflation has been growing in 2022, one of the most pressing concerns for Americans today. If you are retired or planning to retire, keep an eye on monthly inflation statistics because they impact the annual COLA adjustment for federal retirees and Social Security income. The additional payments will be made available to recipients beginning in January.

The CPI-W index is used to calculate the magnitude of the increase automatically.

COLA  2023, All-Time High Since 1981.

According to the Bureau of Labor Statistics’ most recent 2022 inflation report, inflation was 0.4% higher in September based on the Consumer Price Index for All Urban Consumers (CPI-U). According to the BLS, the all-items index (a different index from the CPI-U) climbed 8.2% during the last year.

The Consumer Price Measure for Urban Wage Earners and Clerical Workers (CPI-W) is the BLS index that many FedSmith readers are interested in. This index has risen 8.5% in the last year.

The CPI-W is the most important index for retirees who receive a federal employee annuity payment. It is also the amount computed for the 2023 COLA for Social Security payments.

It is now at 291.854 on the index.

The average CPI for the third quarter of 2021 was 268.421. This is critical because the yearly COLA is calculated by comparing the year-over-year growth in the CPI-W using the average of the third-quarter months of July, August, and September. This equals an 8.7% rise over the third-quarter average last year.

The greatest COLA rise in the last three decades was 14.3% in 1980. The 2023 COLA increase will be the highest since 1981, when it was 11.2%.

In 1981, inflation was 10.3%, and the annual COLA was 11.2% higher than the current amounts.

Since Obama assumed office, inflation has been on the rise. If the methods used to calculate it haven’t evolved, the current trend could be far more severe than the one observed during Carter’s tenure. In general, modifications in inflation calculations have resulted in lower reported inflation. The updated method shifted the CPI’s idea from assessing the cost of living required to maintain a steady level of life. The revised computation technique considers the cost of living rather than price increases.

According to one source that records this data, the current inflation rate would be around 17% if the earlier calculating technique had been utilized.

Are You Dissatisfied with the Cola Increase?

In 2022, inflation has remained high. As a result, retirees may be surprised by downward revisions to their 2023 COLA expectations, as earlier estimates in 2022 were 11% or higher. The bad news does, however, have a bright side.

COLAs do not fully offset inflation. As a result, the purchasing power of a retired person’s income decreases with time. For example, since 2000, the purchasing power of Social Security income has plummeted by more than 40%.

Retirees benefit financially with lower inflation and lesser COLAs. Because COLAs do not entirely replace the purchasing power of retirement income, lower inflation and lower COLAs usually better retain a retiree’s purchasing power. While huge COLA payments in response to high inflation deliver more funds, each dollar buys less than it did previously. In light of this, seniors should view lowering COLA estimates as great news.

Why Does Your Retirement System Affect Your 2023 COLA?

Retired federal employees who retired via the FERS system will get 1% less than those who retired under the CSRS system in 2023. This is because they receive the full COLA for Social Security while not the full COLA for their pension or annuity.

Beginning in 1987, CSRS was phased away. Less than 100,000 active government employees are still employed under the CSRS system. The majority of federal retirees receive CSRS benefits.

Social Security is not a benefit of the retirement plan for CSRS employees. Some CSRS employees earn Social Security benefits based on jobs other than working for Uncle Sam. However, this is not a mandatory component of the CSRS scheme.

During their federal government careers, FERS personnel can also invest for their future retirement through the Thrift Savings Plan (TSP). The federal government contributes an additional matching amount to the TSP to offer a higher income stream during retirement.

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

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

Whenever it comes to ensuring your financial security in retirement, the FERS annuities are a comparative steal.  

What is a FERS annuity?

In 1986, Congress explicitly created the Federal Employees Retirement System (FERS) for federal civilian employees. Benefits are available under the FERS retirement plan from three main sources:

Two of the three benefits under FERS (TSP and Social Security) will go with you if you leave the federal government before retiring, according to the Thrift Savings Plan (TSP). 

What’s the value of your FERS annuity?

The government and you must make mandatory contributions to the FERS defined benefit plan. You spend less money on this benefit than Uncle Sam does. Your service history (measured in months and years and high-3 yearly pay) determines your FERS annuity. 

If you retire before age 62 and have completed at least 20 years of service, you will earn an annual annuity based on 1%. If you retire after the age of 62 with at least 20 years of service, you will earn an annuity based on 1.1% per year. The 1% component is used for individuals who are 62 years or older but also have fewer than 20 years of service. Employees in particular categories (such as firefighters, police officers, air traffic controllers, etc.) would be paid a larger proportion. 

How much money would you have needed to accumulate on your own to obtain a payout similar to what you will receive from your FERS annuity?

A lot of it! Consider the scenario where you have 30 years of total federal employment and retire before age 62. Your top three salaries are $100,000 annually. Once you turn 62, your FERS pension will be $30,000 per year with a cost-of-living adjustment. The COLA begins to apply when a special category employee retires. 

What amount would you have to save to earn a $30,000 annual inflation-indexed income?

The consensus is that the answer is $750,000. This is based on the so-called 4% rule, which states that if you start taking withdrawals from a lump sum at 4% and adjust them for inflation each year, there is minimal risk of running out of money. The 50 years between 1926 and 1976, encompassing the Great Depression, were used to create this rule. Then, it was compared to withdrawal rates that would protect capital. 

Bill Bengen, the financial planner who conducted the analysis, concluded that there wasn’t any possibility that a person who adhered to the 4% rule would’ve run out of cash in fewer than 33 years, even under exceptionally unfavorable market conditions. In reality, Bengen asserted that a 5% rate could be more practical, reducing the sum that must be amassed for the individual in our case to around $625,000.

According to a recent MetLife analysis, the average retirement fund amount is anticipated to be $450,000. However, for the individual in this scenario, that amount would not be sufficient to match the value of the FERS annuity. 

Would you have been capable of replacing 30% of their pre-retirement salary with savings?

Whenever it comes to ensuring your financial security in retirement, your FERS annuities are a relative steal. 

How your FERS annuity is computed

The first step is to find your current “high-3” – the highest average basic wage you have received during three consecutive years of employment. A federal employee’s high-3 pay is typically the sum of the three most recent years of compensation.

Divide your full creditable years of service by your high-3 average yearly salary, then multiply that result by 1%. 

If your high-3 average is $85,000 and you’ve worked for the government for 30 years, then you qualify. Your FERS annuity would then be $2,125 per month or $25,00 per year. Your annuity will now receive a bonus if you retire after age 62 and have at least 20 years of service. You will multiply your service years and high-3 by 1.1% instead of 1%. As a result, instead of receiving $25,500 per year, as in our previous example, you would now earn $28,050 ($2,337 monthly instead of $2,125).

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

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

Don’t accept less when you might boost your benefit checks and create a more financially secure future.

The Social Security system is not designed to replace private savings, pension plans, and insurance protection. The individual’s own effort, planning, and prudence will provide him with a higher quality of life upon retirement. The system emphasizes thrift and self-reliance while preventing destitution in our national life. 

Contrary to popular belief, Social Security is not a giveaway. It’s a system that working individuals contribute to throughout their careers in exchange for some needed assistance later in life.

Social Security, which provides, on average, approximately 40% of your pre-retirement income, is likewise unlikely to support you. Nevertheless, it’s worthwhile attempting to maximize your benefits, and there are specific methods to do so, so here’s how you may gain an extra 24 percent (or more!) from the program.

The fundamentals of Social Security

Several strategies can boost your Social Security payments, and we’ll focus on one of the most effective here. To set the scenario, everyone has a full retirement age when we can begin receiving the full benefits to which we’re entitled based on our earnings history. For the majority, the full retirement age is 66, 67, or somewhere between those ages.

However, we can begin receiving benefits as early as 62 and as late as 70 – and when we start has a significant influence on the amount of our checks.

How to get an additional 24%– or more

Each year that you postpone starting to receive your benefits after reaching full retirement age, up to 70, your checks will rise by roughly 8%. Delaying from 67 to 70 will increase your benefits by around 24%, enough to transform a $2,000 payment into a $2,480 check and increase yearly benefits from $24,000 to over $30,000. Meanwhile, starting to collect your checks early will diminish them.

Start Collecting at:	Full retirement age of 66	Full retirement age of 67
62	75%	70%
63	80%	75%
64	86.7%	80%
65	93.3%	86.7%
66	100%	93.3%
67	108%	100%
68	116%	108%
69	124%	116%
70	132%	124%

The table shows how some people may be able to increase their benefits by 24% or even 32%.

Think it through

Delaying may appear to be a no-brainer option, but think about the big picture:

If you start collecting later, you’ll get fewer checks overall. But conversely, those who begin early will receive many more checks.

When you start may not matter much for people who have average-length lives, except for your spouse, since the two of you could optimize benefits through a coordinated Social Security plan.

Many individuals just can’t wait until they’re 70 because they need the money now, whether due to a job loss, a health setback, needing to care for a loved one or a lack of savings. Those in bad health may benefit from starting sooner as well.

Delaying your full retirement, if possible, might pay off in ways other than increasing your Social Security payment. You’d be able to save and invest for retirement for a few more years, for example, and your nest egg will have more time to develop. But, of course, it will also have to support you for fewer years.

Delaying Social Security can be accomplished by withdrawing more from other retirement funds, such as IRAs or 401(k)s until the Social Security income stream begins.

Everyone’s situation and decision-making process will be at least slightly different. Therefore, spend some time learning more about Social Security so you can make informed decisions and get the most out of the program.

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

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