Should I get long term care (LTC) insurance?
Historically, the family tribe was everything. Family was your support network when times got bad – when food got scarce, when brigands were attacking your village, when there were children in need of adopting, when work needed many hands, when children needed caring for, when you were sick, and when…
Should I cash out my pension?
Last time we talked about why you can’t peer into the future, to see what the value of your lump sum payout would be if you retired on a certain (post-November) date. This time we’ll talk about why you might or might not want to cash out your pension, based…
Did my employer remove the lump sum pension payout option?
If you’re planning to retire at the end of this year, and your pension has both an annuity and a lump sum payout option, you may be confused as to why you can’t look at the lump sum value for your planned retirement date. First, some background. A 403b or…
My employer is paying us back withheld pay, and giving us a thank you bonus, so what?
Many people across the US found their pay cut earlier this year due to COVID-19. Some employers have recovered more quickly than expected. When the two of those intersect, it may result in an employer giving employees back the portion of their salaries withheld earlier in the year. This is…
Can I go for a picnic today?
A rain/retirement parable Question: It’s fall. Can I go for a picnic today? The forecast is great! Thought process: The forecast is great. There’s a 0% chance of rain. Sure, I can go for a picnic. Reality: It didn’t rain today, but it had rained yesterday and the ground was…
How did people used to pay for college? Why has that changed?
We talked about how attending college is now so expensive, they want far more than 4 years worth of money. Specifically, colleges want your (parents and children’s) savings, they want your current income, and they want your future income. Let’s start with some historical perspective. When my mom was headed…
Besides learning about the Expected Family Contribution calculation, what strategies can I use to maximize my college funding?
Being a student of note (academically, athletically, musically, whatever might earn you scholarships) Doing well on college entrance exams such as the ACT or SAT Studying hard in high school so you won’t just get into college, you’ll be prepared to stay in college Earning as many college credits in…
How can I afford to send my child to college?
Or in my case, it was “How can I afford to send my kids to college?”, since I have two of them. It’s a question on a lot of parents’ minds, as we hear about the burgeoning costs of a college education. It was certainly on my mind, when I…
Is it a bad thing that my employer is refusing to participate in the payroll tax deferral?
So first, what is this payroll tax deferral? As part of the CARES act for economic relief during COVID-19, employers can choose to not withhold employee contributions to Social Security (6.2%) or Medicare (1.45%) for some employees, for a while. Is it a bad thing if my employer is refusing…
What is a 403b/401k “true up”?
One of the nice benefits of your employer’s retirement savings plan (403b/401k) is that it likely includes a match. That’s free money your employer contributes, assuming you’re also putting in your money (like 4%). How you elect (=declare to your custodian) the money you are contributing to your own portion…