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When it comes to managing your retirement, a small mistake can cause a major loss of capital. That is why it's important to speak with a financial advisor who is familiar with your Company's benefits. Schedule a call today..  
 
 
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The Retirement Group


Recent Posts

Inflation - How to Hedge Against it and What it Means for Value

Dec 10, 2021 2:54:28 PM
written by The Retirement Group

The Rise of Inflation


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posted in Inflation, Hedge, Value

Stock Purchase and Cash Deferral Plans: What AT&T Employees Need to Know

Dec 9, 2021 4:04:04 PM
written by The Retirement Group

AT&T's employee perks are made up of a lot of moving pieces. With over 20 years of working with AT&T employees and retirees in Texas and other parts of the United States, we understand how difficult it is to keep track of all your options. A couple good options are AT&T’s employee stock purchase and cash deferral plans.

These plans were made available to AT&T employees who are level three or higher, and the deadline to contribute to those plans was November 30.


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posted in AT&T

New College Cost Data for 2021-2022 Academic Year

Dec 6, 2021 1:20:26 PM
written by The Retirement Group

Every year, the College Board releases new college cost data and trends in its annual report. Although costs can vary significantly depending on region and college, the College Board publishes average cost figures, which are based on a survey of approximately 4,000 colleges across the country.


Over the past decade, average tuition, fee, room, and board costs have increased 11% at public colleges and 14% at private colleges over and above increases in the Consumer Price Index. Here are cost highlights for the 2021-2022 year.1


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posted in College, Cost, Academic

Market Month: November 2021

Dec 3, 2021 10:27:23 AM
written by The Retirement Group

The Markets (as of market close November 30, 2021)

Before reviewing yourcompany 401(k) plan, check out how the market can affect your retirement. Stocks ended November generally lower, with only the Nasdaq able to eke out a gain. The Global Dow and the Russell 2000 each lost more than 4.25%. The Dow fell 3.7% and the S&P 500 dropped 0.8%. The Nasdaq gained 0.3%.


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posted in Market, 2021, November

Supply-Chain Chaos: Holiday Edition

Dec 2, 2021 10:38:45 AM
written by The Retirement Group

The supply chain is the network by which products flow from the factories of suppliers to the inventories of retailers so they can ultimately be purchased by consumers. Corporate supply chains have been under pressure since the pandemic began, but the stress intensified in the latter months of 2021, with demand for goods surging and the holiday season fast approaching.1

 

 


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posted in Chain, Supply

Chevron Rates Rising, Driving Lump Sums Lower

Dec 2, 2021 9:53:16 AM
written by The Retirement Group

It is crucial for Chevron employees, particularly those who reside in Texas, to understand how interest rates can impact your lump-sum.

Chevron interest rates increased by 0.08% in the most influential segment for those who commence their benefit in January 2022. With both short-term and long-term rates rising over the last month, the higher average rate will result in lower lump-sums for those retiring in January. When Chevron employees elect the month they would like to begin their pension, Chevron looks back to the third, fourth, and fifth month's rates to calculate the rates used for the pension disbursement. When interest rates move up or down, your pension lump sum amount will move in an inverse relationship. Through the pandemic, interest rates dropped dramatically which has greatly increased many lump sum payments. This trend culminated in record lows for individuals who commenced their benefits in December of 2020. However, since December, rates have increased, causing a reduction in pension lump-sums.


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posted in Pension, Interest rates, Chevron

RMD Roundup: A Few Key Updates About Required Minimum Distributions

Dec 1, 2021 4:10:02 PM
written by The Retirement Group

As we approach the end of 2021, now might be a good time to take a closer look at a few developments surrounding required minimum distributions (RMDs) for corporate employees in California.

What Are RMDs?
Once you reach age 72, you are required to take minimum distributions from your traditional IRAs and most employer-sponsored retirement plans. (RMDs are not required from an employer plan if you are still working at the company sponsoring the plan and you do not own more than 5% of the company.) You can always take more than the required amount if you choose.

The portion of an RMD representing earnings and tax-deductible contributions is taxed as ordinary income, unless the RMD is a qualified distribution from a Roth account. Failing to take the full amount of an RMD could result in a penalty tax of 50% of the difference.

Generally, RMDs must be taken by December 31 each year. You can delay your first RMD until April 1 following the year in which you reach RMD age; however, you will then need to take two RMDs in one year — the first by April 1 and the second by December 31. (If you reached age 72 in the first half of 2021, different rules apply; see below.)

You may want to weigh the decision to delay your first RMD carefully. Taking two distributions in one year might bump you into a higher income tax bracket for that year.

New RMD Age and a 2020 Waiver Add Complexity
The Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019 raised the minimum RMD age to 72 from 70½ beginning in 2020. That means if you reached age 70½ before 2020, you are currently required to take minimum distributions.

However, there was a pandemic-related rule change in 2020 that might have affected some retirement savers who reached age 70½ in 2019. To help individuals manage financial challenges brought on by the pandemic, RMDs were waived in 2020, including any postponed from 2019. In other words, some taxpayers could have benefitted from waiving both their 2019 and 2020 RMDs.

Anyone who took advantage of the 2020 waiver should note that RMDs have resumed in 2021 and need to be taken by December 31. The option to delay to April 1, 2022, applies only to first RMDs for those who have reached or will reach age 72 on or after July 1, 2021.

New Life Expectancy Tables
The IRS publishes tables in Publication 590-B that are used to help calculate RMDs. To determine the amount of a required distribution, you would divide your account balance as of December 31 of the previous year by the appropriate age-related factor in one of three available tables.

Recognizing that life expectancies have increased, the IRS has issued new tables designed to help investors stretch their retirement savings over a longer period of time. These new tables will take effect for RMDs beginning in 2022. Investors may be pleased to learn that calculations will typically result in lower annual RMD amounts and potentially lower income tax obligations as a result. The old tables still apply to 2021 distributions, even if they're postponed until 2022.

For more information on RMDs, consider speaking with your financial and tax professionals.


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posted in RMDs

The Budget and the Debt Ceiling: Round 2

Nov 22, 2021 3:00:00 PM
written by The Retirement Group

On September 30, 2021, Congress averted a potential federal government shutdown by passing a last-minute bill to fund government operations through December 3, 2021.1 Two weeks later, another measure raised the debt ceiling by just enough to sustain federal borrowing until about the same date.2 Although these bills provided temporary relief, they did not resolve the fundamental issues, and Congress will have to act again by December 3.

Spending vs. Borrowing
The budget and the debt ceiling are often considered together by Congress, but they are separate fiscal issues. The budget authorizes future spending, while the debt ceiling is a statutory limit on federal borrowing necessary to fund already authorized spending. Thus, increasing the debt ceiling does not increase government spending. But it does allow borrowing to meet increased spending authorized by Congress.

The underlying fact in this relationship between the budget and the debt ceiling is that the U.S. government runs on a deficit, and has done so every year since 2002.3 The U.S. Treasury funds the deficit by borrowing through securities such as Treasury notes, bills, and bonds. When the debt ceiling is reached, the Treasury can no longer issue securities that would put the government above the limit.


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posted in budget

Supply-Chain Chaos: Holiday Edition

Nov 22, 2021 10:45:00 AM
written by The Retirement Group

The supply chain is the network by which products flow from the factories of suppliers to the inventories of retailers so they can ultimately be purchased by consumers. Corporate supply chains have been under pressure since the pandemic began, but the stress intensified in the latter months of 2021, with demand for goods surging and the holiday season fast approaching.1


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posted in Chain, Supply

Tax Savings in Your AT&T 401(k) Plan

Nov 12, 2021 8:41:00 AM
written by The Retirement Group

Now that you've made after-tax contributions to your AT&T 401(k) retirement plan, it could be time to go a step further and create a potential tax-free income stream for your retirement.

By changing your after-tax balance to Roth this year, you might effectively avoid paying taxes on future profits.

What is a Roth in-plan conversion?

You may use this tool to convert your 401(k) plan's after-tax balance to Roth funds. Any investment earnings taxes linked with your after-tax contributions must be paid when you convert to Roth savings. If you fulfill all of the conditions, your Roth investments can grow tax-free and be taken tax-free in retirement.


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posted in AT&T

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