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Retirement planning is essential at any stage - and especially for General Mills employees trying to navigate changing financial landscapes, says Michael Corgiat of the Retirement Group, a division of Wealth Enhancement Group. So start early, diversify and meet with a financial advisor regularly to review your retirement plan and ensure it's working for you long term, 'she said.'
The NCOA survey shows that robust retirement planning is absolutely necessary for General Mills employees, says Brent Wolf of the Retirement Group, a division of Wealth Enhancement Group. Comprehensive planning now can secure your financial comfort in retirement - so evaluate and adjust your plans with the help of a seasoned financial advisor, 'she said.'
What is it that we will discuss here:
1. Early Retirement Planning - Why It's Important:Learn why planning your retirement early can protect your nest egg financially when you reach your golden years.
2. Personal Finance Fundamentals: A quick exam covering basic personal finance knowledge to gauge your readiness for future financial challenges.
3. Retirement Planning Strategies: Information about effective retirement planning including investment diversification and understanding different retirement accounts.
A survey by the National Council on Aging in 2021 found that 60% of adults over age 60 have not created a retirement plan. This is surprising considering most of those age groups are approaching or retired. Making a retirement plan can prepare people for costs associated with retirement such as healthcare and living expenses. With the proper plan, retirees can grow their retirement savings and have enough to last them through the golden years.
So important is retirement planning - so we created a test to see how well you understand personal finance. This short exam measures your basic knowledge. Learn about our General Mills clients below.
Questions
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How much liquid, low-risk savings should you have for emergencies?
A. One or three months' worth of expenses.
B. Three or six months' worth of expenses.
C. Six or twelve months' worth of expenses.
D. It depends
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Divestiture can remove risk from your portfolio.
A. True
B. False
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What is a key benefit of a 401(k) plan?
A. Yes, you can withdraw money at any time for things like a new car purchase.
B. You pay no tax on some of your compensation through the plan.
C. You might get an employer match - free money - if you qualify.
D. None of the above.
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Not all of the money in a bank or credit union account is protected.
A. True
B. False
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Which of the following is typically the best long-term strategy for you.
A. Investing as conservatively as possible to limit loss possibility.
B. Investing equal amounts in stocks, bonds, and cash investments.
C. Put all of your money in stocks.
D. Too little info.
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What does APR stand for in debt speak?
A. Actual percentage rate B. Annual personal rate C. Annual percentage rate D. Actual personal return
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The safest investments are mutual funds.
A. True B. False
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I've got time to save for my retirement from General Mills. That is not something I have to think about right now.
A. True B. False
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Which benefits are associated with a Roth IRA?
A. A Roth IRA may pay taxes-free in retirement. B. Investors can deduct their Roth IRA contributions from taxes. C. Any reason for withdrawal by investors after five years of holding is tax-free. D. None of the above.
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- Stages of Retirement for Corporate Employees
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- Lump-Sum vs Annuity and Rising Interest Rates
- Internal Revenue Code Section 409A (Governing Nonqualified Deferred Compensation Plans)
- Corporate Employees: Do NOT Believe These 6 Retirement Myths!
- 401K, Social Security, Pension – How to Maximize Your Options
- Have You Looked at Your 401(k) Plan Recently?
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- Worst Month of Layoffs In Over a Year!
- Corporate Employees: 8 Factors When Choosing a Mutual Fund
- Use of Escrow Accounts: Divorce
- Medicare Open Enrollment for Corporate Employees: Cost Changes in 2024!
- Stages of Retirement for Corporate Employees
- 7 Things to Consider Before Leaving Your Company
- How Are Workers Impacted by Inflation & Rising Interest Rates?
- Lump-Sum vs Annuity and Rising Interest Rates
- Internal Revenue Code Section 409A (Governing Nonqualified Deferred Compensation Plans)
- Corporate Employees: Do NOT Believe These 6 Retirement Myths!
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- 11 Questions You Should Ask Yourself When Planning for Retirement
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What is considered good credit?
A. 85 or above
B. 500 or above
C. B or above
D. 700 or above
Answers
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D. It is conventional wisdom to put aside three to six months of living expenses in liquid savings vehicles such as a bank savings account or money market account. But that depends on your specific situation. With a job with General Mills that is secure, your spouse's job that is fairly secure (for our General Mills clients who are married) and other assets, you may only need three months of emergency savings. Or you could be a business owner in a volatile industry and need a year's worth of cash or more to weather rough times.
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B -False. Diversification is a sensible investment strategy that spreads your investment dollars across a variety of securities and asset classes but it does not eliminate risk nor guarantee a profit for our General Mills clients. You keep losing money.
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C. Some employers offer a matching program, which is like getting free money to invest. If the General Mills plan matches your contribution, contribute at least enough to take advantage of that. Some matching programs have a vesting schedule so you gradually get the right to match contributions and earnings on those dollars. If you selected B, you may find this a little deceptive. Contributions to traditional 401(k) plans are tax-deferred but not eliminated entirely. You pay taxes on your contributions and earnings when you take a distribution from the plan. Also, distributions taken before age 59½ could be subject to a 10% tax penalty. Exceptions exist.
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A -- True. The Federal Deposit Insurance Corporation (FDIC) and the National Credit Union Share Insurance Fund (NCUSIF) each insure deposits in federally insured banks and credit unions up to USD 250,000 per depositor, per ownership category (single account, joint account, retirement account, trust account), per insured institution. Neither the FDIC nor NCUSIF covers losses in equities, bonds, mutual funds, life insurance policies, annuities or municipal securities. They do not also insure safe-deposit box contents or Treasury bill investments.
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D. We recommend our General Mills clients consult a financial professional before making a decision about a strategy. Among other things, he or she will consider your objectives, risk tolerance, and time horizon when recommending an appropriate investment strategy for you.
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C. The acronym APR stands for annual percentage rate. This is the rate at which credit card, mortgage, and other loan issuers inform borrowers the approximate annual cost of borrowing funds minus fees and costs. The APR differs from the declared interest rate on a loan, which is usually lower than the APR because fees and other costs are not included. We tell General Mills clients to shop the APRs of different loans to make sound financial decisions. However, compare the APRs for fixed-rate loans versus adjustable-rate loans for mortgages carefully because the APR is not the maximum interest rate a loan may charge.
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B -- False. The capital of many investors is pooled into a basket of securities that are invested for some particular end. With this 'diversification,' mutual funds are usually a good form of risk management. But we remind our General Mills clients that the inherent risk of any mutual fund depends largely on the securities categories that it holds. Pick a mutual fund carefully so its investment objective matches yours. Check out the prospectus for the fund - it contains important information about risks, fees and expenses, and details about specific holdings.
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B -- False. Retirement is decades away but you can invest now for retirement. This is because small amounts like USD 50 per month can add up because of compounding - when your returns actually earn returns themselves. That means your money works for you!
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A. The biggest advantage to a Roth IRA is the tax-free retirement income it provides. The contributions are subject to income limits & are not deductible on a tax basis. After five years of holding, withdrawals are allowed if 'qualified.' Exceptions to this include withdrawals made after the account holder dies, becomes disabled, or turns 59 and a half years old, or when the account holder withdraws up to USD 10,000 (lifetime-maximum) for a first home purchase.
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D. No organization generally defines what constitutes a 'good' credit score because credit scores are calculated differently by different organizations. Generally, though, a credit score of 700 or higher would likely go in the favor of a credit applicant.
Retirement planning is like tending a garden. So much as a gardener would choose the right tools, seeds, and soil for his or her garden, retirees and those approaching retirement should plan for a comfortable retirement with the right investments and health care. Both take patience, attention to detail, and regular maintenance to work properly. Like a garden that makes the gardener happy and fulfilled, a planned retirement can provide security and fulfillment for those who have worked hard all their lives.
Sources:
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National Council on Aging. 'Addressing the Nation's Retirement Crisis: The 80%.' National Council on Aging , 30 Aug. 2024, www.ncoa.org .
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TIAA Institute-GFLEC. 'Financial Literacy and Retirement Readiness among Workers Age 40 and Older.' TIAA Institute-GFLEC Personal Finance Index , 2022, www.tiaa.org .
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Schroders. 'U.S. Retirement Survey 2021.' Schroders , 18 Mar. 2021, www.schroders.com .
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National Council on Aging. 'Get the Facts on Older Americans.' National Council on Aging , 2023, www.ncoa.org .
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AARP. 'New Retirement Survey.' AARP , 2024, www.aarp.org .
How can employees of General Mills, Inc. maximize their benefits under the BCTGM Retirement Plan, and what factors are considered in determining pension amounts for those nearing retirement? This question aims to explore the intricate details of how General Mills, Inc. structures its pension benefits to support employees’ future financial stability. It's important for employees to understand the value of their years of service and how this affects their ultimate pension payout as they approach retirement.
Maximizing Benefits under the BCTGM Retirement Plan: Employees of General Mills can maximize their benefits under the BCTGM Retirement Plan by understanding how their years of service and negotiated benefit levels directly affect the pension they receive. The pension amount is determined by the length of service and a defined benefit formula based on the number of years of Benefit Service accrued. As employees approach retirement, they should consider whether they meet eligibility criteria for early or normal retirement, as these factors influence the ultimate pension payout(General_Mills_2024_Pens…).
What are the eligibility requirements for participating in the BCTGM Retirement Plan at General Mills, Inc., and how does this participation impact future retirement benefits? Employees should be well-informed about what constitutes eligibility to participate in the retirement plan. Understanding criteria such as service length, employment status, and union participation is crucial, as it directly relates to their ability to accrue retirement benefits.
Eligibility Requirements for BCTGM Retirement Plan: To participate in the BCTGM Retirement Plan, employees must be regular employees of General Mills covered by a collective bargaining agreement. Eligibility is automatic after completing a probationary period. Participation impacts future retirement benefits as employees begin to accrue pension benefits based on years of service, which contributes to their final payout during retirement(General_Mills_2024_Pens…).
In what ways does General Mills, Inc. ensure that benefits from the BCTGM Retirement Plan remain protected under federal law, and what role does the Pension Benefit Guaranty Corporation (PBGC) play in this? Knowledge of the protections available can significantly influence employees' assurance in the viability of their pension benefits. It is vital for employees to recognize how federal guarantees work in safeguarding their retirement benefits.
Federal Law Protections and PBGC's Role: The BCTGM Retirement Plan is protected under federal law, ensuring that employees’ retirement benefits are safeguarded. The Pension Benefit Guaranty Corporation (PBGC) insures vested benefits, including disability and survivor pensions, up to certain limits. This protection provides employees with assurance that their pensions are protected, even in the event of plan termination(General_Mills_2024_Pens…).
How does General Mills, Inc. address the complexities of vesting in the BCTGM Retirement Plan, and what can employees do if they are concerned about their vested rights? Vesting is a key concept that affects employees' access to benefits over their careers. Employees need to understand the vesting schedule outlined by General Mills, Inc. and the implications it has on their retirement plans.
Vesting in the BCTGM Retirement Plan: Employees vest in the BCTGM Retirement Plan after completing five years of Eligibility Service or upon reaching age 65. Once vested, employees have a non-forfeitable right to their pension benefits, which means they retain their pension rights even if they leave the company before reaching retirement age(General_Mills_2024_Pens…).
What options are available to employees of General Mills, Inc. if they experience a change in their employment status after being vested in the BCTGM Retirement Plan, and how might this impact their future retirement pensions? This question prompts discussion on the plan's provisions regarding reemployment and what employees should be aware of when considering changes to their employment status.
Impact of Employment Status Changes on Pension: If an employee's status changes after being vested in the BCTGM Retirement Plan, such as leaving the company, they may still be entitled to pension benefits. The plan outlines provisions for reemployment and how prior service years are counted toward future pension calculations. Employees who are reemployed may have their previously earned service restored(General_Mills_2024_Pens…).
How does the BCTGM Retirement Plan at General Mills, Inc. work in conjunction with Social Security benefits, and what should employees be aware of regarding offsets or deductions? This can encompass the interplay between corporate pension plans and governmental benefits, which is critical for employees to plan their retirement effectively.
Coordination with Social Security Benefits: The BCTGM Retirement Plan operates in addition to Social Security benefits. There are no direct offsets between the pension and Social Security benefits, meaning employees receive both independently. However, employees should be aware of how the timing of drawing Social Security and pension benefits may affect their overall financial situation(General_Mills_2024_Pens…).
What steps must employees of General Mills, Inc. take to initiate a claim for benefits under the BCTGM Retirement Plan, and how does the claims process ensure fairness and transparency? A clear comprehension of the claims process is essential for employees to secure their pension benefits. This question encourages exploration of the procedures in place to assist employees in understanding their rights and options.
Claiming Benefits under the BCTGM Retirement Plan: Employees must terminate employment before claiming their BCTGM Retirement Plan benefits. The claims process involves submitting the required forms, and employees must ensure they provide all necessary documentation for a smooth process. The pension is generally paid monthly, with lump-sum options available under specific circumstances(General_Mills_2024_Pens…).
How does the retirement benefit formula of the BCTGM Retirement Plan operate, and what specific factors should an employee of General Mills, Inc. consider while planning for retirement? Delving into the calculations involved in determining retirement benefits is important for employees to understand how their service years and other contributions come together to form their final retirement payout.
Retirement Benefit Formula: The retirement benefit formula is calculated based on the years of Benefit Service and a defined benefit level. As of 2024, for each year of Benefit Service, employees receive $87 per month (increasing to $88 after June 1, 2025). Planning for retirement involves considering how long they will work and the benefit level in place at the time of retirement(General_Mills_2024_Pens…).
What additional resources or support does General Mills, Inc. provide to assist employees in planning their retirement and ensuring they make the most of their benefits offered under the BCTGM Retirement Plan? Understanding the tools and resources available can empower employees to take proactive steps in managing their retirement plans effectively.
Resources for Retirement Planning: General Mills offers resources like the Benefits Service Center and online portals (e.g., www.mygenmillsbenefits.com) to assist employees with retirement planning. These tools help employees understand their benefits, calculate potential payouts, and explore options for maximizing their retirement income(General_Mills_2024_Pens…).
How can employees contact General Mills, Inc. for further information about the BCTGM Retirement Plan or specific queries related to their retirement benefits? This question is crucial so employees know the appropriate channels for communication and can seek clarification on any concerns they may have regarding their retirement planning.
Contact Information for Plan Inquiries: Employees can contact General Mills for more information about the BCTGM Retirement Plan through the Benefits Service Center at 1-877-430-4015 or visit www.mygenmillsbenefits.com. This contact provides direct access to support and answers to questions about their retirement benefits(General_Mills_2024_Pens…).
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