Kimberly-Clark Employees: Test Your Knowledge of Financial Basics

Healthcare Provider Update: Healthcare Provider for Kimberly-Clark: Kimberly-Clark does not typically provide direct healthcare services as a core aspect of its business. However, it does offer healthcare products under its brand portfolio, which includes items like medical gloves and protective wear used in various healthcare settings. The company primarily focuses on consumer products in personal care and hygiene, and while it may collaborate with organizations in the healthcare sector, it is not a traditional healthcare provider. Potential Healthcare Cost Increases for Kimberly-Clark in 2026: As we approach 2026, Kimberly-Clark and its consumers may face significant increases in healthcare costs due to anticipated steep hikes in health insurance premiums. The Affordable Care Act (ACA) marketplace is expected to see rate increases exceeding 60% in certain regions, driven by factors such as rising medical costs and potential loss of enhanced federal premium subsidies. Without intervention, these escalating premiums could drastically affect affordability for millions, with some policyholders at risk of experiencing up to a 75% rise in out-of-pocket expenses. This perfect storm of rising costs could pressure both Kimberly-Clark's employees and consumers, impacting the overall demand for its healthcare-related products. Click here to learn more

Retirement planning is essential at any stage - and especially for Kimberly-Clark 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 Kimberly-Clark 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 Kimberly-Clark clients below.

Questions

1. 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

2. Divestiture can remove risk from your portfolio.

A. True

B. False

3. 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.

4. Not all of the money in a bank or credit union account is protected.

A. True

B. False

5. 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.

6. What does APR stand for in debt speak?

A. Actual percentage rate B. Annual personal rate C. Annual percentage rate D. Actual personal return

7. The safest investments are mutual funds.

A. True B. False

8. I've got time to save for my retirement from Kimberly-Clark. That is not something I have to think about right now.

A. True B. False

9. 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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10. What is considered good credit?

A. 85 or above

B. 500 or above

C. B or above

D. 700 or above

Answers

1. 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 Kimberly-Clark that is secure, your spouse's job that is fairly secure (for our Kimberly-Clark 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.

2. 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 Kimberly-Clark clients. You keep losing money.

3. C. Some employers offer a matching program, which is like getting free money to invest. If the Kimberly-Clark 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.

4. 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.

5. D. We recommend our Kimberly-Clark 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.

6. 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 Kimberly-Clark 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.

7. 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 Kimberly-Clark 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.

8. 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!

9. 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.

10. 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:

1. National Council on Aging. 'Addressing the Nation's Retirement Crisis: The 80%.'  National Council on Aging , 30 Aug. 2024,  www.ncoa.org .

2. TIAA Institute-GFLEC. 'Financial Literacy and Retirement Readiness among Workers Age 40 and Older.'  TIAA Institute-GFLEC Personal Finance Index , 2022,  www.tiaa.org .

3. Schroders. 'U.S. Retirement Survey 2021.'  Schroders , 18 Mar. 2021,  www.schroders.com .

4. National Council on Aging. 'Get the Facts on Older Americans.'  National Council on Aging , 2023,  www.ncoa.org .

5. AARP. 'New Retirement Survey.'  AARP , 2024,  www.aarp.org .