The November interest rates, which AT&T uses to determine lump sum values for everyone who retires in 2022 will be released in mid December. Rates increased in November and if that trend holds we could see a reduction in lump-sum values for AT&T employees who retire in 2022. If you decide to stay past December 31st, 2022, you could see a significant reduction in your lump sum. Interest rates are trending upward, and when interest rates rise, lump sums fall. If you believe that interest rates in November 2021 will be higher than November 2020 (Which is likely) you may want to consider retiring before January 1st, 2022. This will allow you to lock in the medical coverage and take advantage of a lower interest rate, which will increase your lump-sum amount.
The November interest rates, which AT&T uses to determine lump sum values for everyone who retires in 2022 will be released in mid December. Rates increased in November and if that trend holds we could see a reduction in lump-sum values for AT&T employees who retire in 2022. If you decide to stay past December 31st, 2022, you could see a significant reduction in your lump sum. Interest rates are trending upward, and when interest rates rise, lump sums fall. If you believe that interest rates in November 2021 will be higher than November 2020 (Which is likely) you may want to consider retiring before January 1st, 2022. This will allow you to lock in the medical coverage and take advantage of a lower interest rate, which will increase your lump-sum amount.
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posted in Healthcare, Pension, Interest rates, AT&T
What is COBRA?
The term "COBRA" is commonly used to refer to certain provisions of Title X of the Consolidated Omnibus Budget Reconciliation Act of 1986. This law provides an opportunity for employees and their dependents who have been covered by an employer-sponsored health insurance plan to continue coverage under circumstances where such coverage might otherwise have been terminated. The covered employee is entitled to COBRA coverage only in cases of termination or reduction in hours. In addition, there are several situations in which an employee's spouse and dependent children may be eligible for COBRA benefits. The duration of COBRA coverage is limited and depends on the reason why existing coverage is being terminated.
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posted in Financial Planning, Healthcare, Lump Sum, Pension, Retirement Planning
Now that comprehensive health-care reform has been signed into law, how will it affect you? While some portions of the law become effective in 2010, other provisions are phased in over time. Nevertheless, it is almost certain that at least some of these reforms will have an effect on you and your family.
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posted in Financial Planning, Healthcare, Lump Sum, Pension, Retirement Planning
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posted in Financial Planning, Healthcare, Lump Sum, Pension, Retirement Planning
