One silver lining in the current bear market is that this could be a good time to convert assets from a traditional IRA to a Roth IRA. Converted assets are subject to federal income tax in the year of conversion, which might be a substantial tax bill. However, if assets in your traditional IRA have lost value, you will pay taxes on a lower asset base when you convert. If all conditions are met, the Roth account will incur no further income tax liability for you or your designated beneficiaries, no matter how much growth the account experiences.
Now Might Be a Good Time for a Roth Conversion
Jul 13, 2022 3:05:26 PM
written by
The Retirement Group
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posted in Financial Planning, Tax, Roth Conversion
The Health of Social Security: Some Good News and Some Bad News
Jul 5, 2022 3:15:00 PM
written by
The Retirement Group
With approximately 94% of American workers covered by Social Security and 65 million people currently receiving benefits, keeping Social Security healthy is a major concern.1 Social Security isn't in danger of going broke — it's financed primarily through payroll taxes — but its financial health is declining, and benefits may eventually be reduced unless Congress acts.
Each year, the Trustees of the Social Security Trust Funds release a detailed report to Congress that assesses the financial health and outlook of this program. The most recent report, released on June 2, 2022, shows that the effects of the pandemic were not as significant as projected in last year's report — a bit of good news this year.
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posted in Financial Planning, Social Security, Health
Up-To-Date Market Week
Jun 28, 2022 2:43:54 PM
written by
The Retirement Group
The Markets (as of market close July 29, 2022)
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posted in Financial Planning, Lump Sum, Pension
Tech Sector Turmoil and the Bear Market
Jun 28, 2022 2:41:14 PM
written by
The Retirement Group
During the intensely volatile first 100 trading days of 2022, the stocks of companies in the S&P 500 index delivered their worst performance since 1970.1 The S&P 500 continued to tumble, and the benchmark index descended into a bear market — typically defined as a sustained drop in stock prices of at least 20% — on June 13, 2022. When the market closed, the S&P 500 had dropped 21.8% from its January 3 peak, and the tech-heavy NASDAQ, already in bear territory, had plunged 32.7% from its November 19, 2021 peak.2
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posted in Financial Planning, Market Volatility, Bear Market
ExxonMobil Q4 Lump-Sum Payments Likely to Fall, Based on Rising Rates
Jun 23, 2022 11:50:45 AM
written by
The Retirement Group
Interest rates are trending upward, and if this trend continues ExxonMobil lump-sum payments will drop again in the fourth quarter of this year. The IRS has recently released the Segment rates for the month of May, recorded at: 3.23% / 4.59% / 4.69%. May's segment rates saw an increase of about 0.3% (in the second segment), which is a substantial jump for a single month. This ongoing trend upward looks to be an early indicator of bad news for ExxonMobil employees opting for a lump-sum in the future.
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posted in Financial Planning, Lump Sum, Pension, Retirement Planning, ExxonMobil, Inflation
Handling Market Volatility with Confidence
Jun 4, 2022 11:45:00 AM
written by
The Retirement Group
Investing in 2019 was fairly easy. The Standard & Poor’s 500 Index (S&P) returned nearly 28% for the year with only a few bumps along the way. Today, however, we're faced with a very different market. More and more uncertainties are seemingly hitting the headlines every day, from the global spread of COVID-19 and its potentially wide-spread economic impact, to a historically low Treasury note, and plummeting oil demand, resulting in a 13% drop in the S&P year-to-date, substantially wiping out gains from the past 12 months.
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posted in Financial Planning, Lump Sum, Pension, Retirement Planning
ExxonMobil Lump-Sum Payments Likely to Decline in Q4 Based on Current Trajectory
May 25, 2022 9:56:18 AM
written by
The Retirement Group
Interest rates are trending upward, and if this trend continues ExxonMobil lump-sum payments will drop again in the fourth quarter of this year. The IRS has recently released the Segment rates for the month of April, recorded at: 3.00% / 4.22% / 4.17%. April's segment rates saw an increase of about 0.5% (in the second segment), which is a substantial jump for a single month. This ongoing trend upward looks to be an early indicator of bad news for ExxonMobil employees opting for a lump-sum in the future.
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posted in Financial Planning, Lump Sum, Pension, Retirement Planning, ExxonMobil, Inflation
PGE and Getting a Retirement VSP? Should You Take It?
May 7, 2022 1:26:52 PM
written by
The Retirement Group
What is it?
In today's corporate environment, cost cutting, restructuring, and downsizing are the norm. We have found many employers are offering their employees early retirement packages. As you near retirement age, you may find yourself confronted with an early retirement offer from PG&E. PG&E may refer to the offer as an early out package or retirement offer or golden handshake or a golden parachute. While many early retirement offers seem attractive at first, it is important for you to review an offer carefully before accepting it to ensure that it is indeed a "golden" opportunity.
Details of the PG&E 2022 VSP:
Participation in the VSP is voluntary and offers the following benefits:
- Lump sum payment equal to 52 weeks of your base salary.
- $10,000 transitional lump sum payment.
- $50,000 retiree medical subsidy to your Retiree Health Account (RHA).
- Prorated 2022 STIP (Short Term Incentive Plan), consistent with Company’s overall STIP program. Participants understand STIP is a discretionary at-risk compensation program.
Typical elements of an early retirement offer
IAn early retirement offer usually consists of severance payments and post-retirement medical coverage coupled with already existing retirement benefits. These may be in the form of healthcare financial incentives or a severance tied to years of service.
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posted in Financial Planning, PG&E
ExxonMobil's 3rd Quarter Interest Rates Released, Pension Lump Sum Payments Likely to Decrease
Apr 20, 2022 4:43:54 PM
written by
The Retirement Group
Want to see our most updated article on ExxonMobil interest rates, click here.
Interest rates are tending upward, if this trend continues it will decrease the value of ExxonMobil employees' pension lump-sums. The IRS has recently released the Segment rates for the month of March, recorded at: 2.44% / 3.71% / 3.94%. Over the course of 2021 and now into 2022, interest rates at ExxonMobil increased significantly, which greatly reduced many lump sum payments. With record low rates culminating in the first quarter of 2021, ExxonMobil employees have since seen a significant increase in interest rates. We saw rates rise consistently in 2021 and with the announcement of March segment rates those waiting until the third quarter will likely see an even further reduction in lump sums. This ongoing trend upward looks be an early indicator of bad news for ExxonMobil employees opting for a lump-sum in the future.
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posted in Financial Planning, Lump Sum, Pension, Retirement Planning, ExxonMobil, Inflation
Interest Rates Jump, Indicating ExxonMobil's Pension Lump Sum Payments May Have Peaked
Mar 25, 2022 11:15:13 AM
written by
The Retirement Group
Interest rates are tending upward, if this trend continues it will decrease the value of ExxonMobil employees' pension lump-sums. The IRS has recently released the Segment rates for the month of February, recorded at: 1.88% / 3.35% / 3.70%. Over the course of 2021 and now into 2022, interest rates at ExxonMobil increased significantly, which greatly reduced many lump sum payments. With record low rates culminating in the first quarter of 2021, ExxonMobil employees have since seen a significant increase in interest rates. We saw rates rise consistently in 2021 and with the announcement of February segment rates those waiting until the third quarter will likely see an even further reduction in lump sums. This recent trend upward looks be an early indicator of bad news for ExxonMobil employees opting for a lump-sum in the future.
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posted in Financial Planning, Lump Sum, Pension, Retirement Planning, ExxonMobil