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6 Retirement Myths Every USG Corporation Employee Should Rethink

'USG Corporation employees should view retirement planning as an opportunity to enhance long-term clarity and resilience by challenging outdated myths and aligning financial decisions with their personal goals.' – Wesley Boudreaux, a representative of The Retirement Group, a division of Wealth Enhancement.

'For USG Corporation employees aiming to build financial confidence, it can help to realize that retirement success often comes from balancing disciplined financial management with meaningful life choices.' – Patrick Ray, a representative of The Retirement Group, a division of Wealth Enhancement.

In this article we will discuss:

Common retirement myths that may affect financial decisions.
How charitable giving, spending, and debt management can shape retirement strategies.
Overlooked risks, such as fraud, that may be more damaging than market downturns.

There are several myths related to retirement finance that have the potential to jeopardize even the most meticulously crafted financial strategies. Last quarter, for instance, we debunked the idea that bond allocations should match your age and that retirees should never touch principal. Misconceptions about retirement planning, however, go far beyond outdated guidelines.

Here, we look at six common myths that can influence retirement decision-making and aim to dispel them before they affect the financial well-being of USG Corporation employees.

Myth 1: Making a Large Splurge Is Not Acceptable

It's commonly believed that spending large amounts of money too soon in retirement is irresponsible and should be strongly discouraged. This isn't always the case, though.

'Enjoying the results of your hard work is what retirement is all about,' says Wealth Enhancement advisor Wesley Boudreaux. 'One well-considered investment won't ruin your future if you've laid a solid foundation.'

Take the case of a person who has saved $3 million and plans to withdraw roughly 4% annually, which comes to about $120,000 a year. The total balance falls to $2.95 million if the person decides to buy a $50,000 recreational vehicle to realize a lifelong goal. The reward of reaching a significant life goal likely outweighs the $2,000 reduction in the sustainable yearly withdrawal that results from this modification. Intentionality is the fundamental difference: a planned, one-time expense is not the same as ongoing discretionary spending that undermines long-term consistency—a lesson relevant for USG Corporation retirees envisioning lifestyle goals.

Myth 2: You Should Only Give Money to Charities After You Die

Many people believe that bequests are the most effective way to give to charities. However, waiting until death is not always the best course of action, even though donating assets to charity through estate planning is a noble goal.

Carlos Hernandez, a Wealth Enhancement financial advisor, observes, 'The estate tax exemption is almost $14 million per individual today.' ¹ This generally exempts many estates from federal estate tax. The upshot? By waiting until death to donate, you might miss advantages you could have right now.

Giving during one’s lifetime has many benefits. It can reduce an estate's size, lower current taxable income, and provide the personal satisfaction of witnessing charitable contributions in action. Donors can feel the direct effects of their gift while they are still alive by establishing a scholarship, setting up a community shelter, or funding a local program. This can create both tax efficiency and emotional gratification for USG Corporation employees interesting in pursuing long-term philanthropic strategies.

Myth 3: You Should Save Everything for Your Heirs and Spend Less

Although modest spending practices are generally recommended, being overly frugal in retirement might result in regrets and lost opportunities.

According to Boudreaux, 'Far too many people undervalue themselves by treating retirement as just another stage of accumulation. A life well-lived is what your savings are supposed to support.'

Decades of financial resources are meant to be used meaningfully in addition to being preserved. Beyond inheritance, thoughtful financial support can offer advantages such as financing family vacations, helping adult children with a down payment on a house, or contributing to grandchildren's education funds. For USG Corporation workers approaching retirement, these investments in opportunities and experiences may yield greater satisfaction than leaving behind a larger inheritance.

Myth 4: Before You Can Retire, You Must Pay Off Your Mortgage

Although it is a compelling goal, it's not always financially advantageous to enter retirement debt-free.

Hernandez says, 'When properly managed, mortgage debt can be a strategic tool.' Low interest rates may compare favorably to investment returns, and interest is frequently tax deductible. Furthermore, paying off a mortgage with tax-advantaged retirement assets may result in needless taxes and possibly place retirees in a higher tax bracket.

The choice should be based on weighing the prospective growth of unaltered investments against the after-tax cost of holding mortgage debt. While putting money into investment accounts may improve long-term financial results, for certain households, ongoing mortgage payments maintain liquidity and flexibility. For USG Corporation families, the right decision depends on evaluating your broader financial picture rather than making a blanket assumption about debt.

Myth 5: You Should Never Take Out a Reverse Mortgage

Despite their reputation for predatory behavior, ² reverse mortgages are now strictly regulated financial instruments. They can give homeowners 62 years of age or older access to their home equity without necessitating a sale or producing taxable income.

'A reverse mortgage can be helpful for the right retiree—supplementing income, helping cover health care costs, or reducing the need to draw from investments during market downturns,' Boudreaux explains, adding that they are not for everyone.

The proceeds are usually not regarded as taxable income because they are structured as a loan. In some cases, this can result in meaningful tax savings. But careful consideration is essential. Long-term objectives, estate planning factors, and household financial dynamics must all be taken into account when implementing a reverse mortgage. USG Corporation employees should consult trusted advisors before deciding if this tool fits their retirement plan.

Myth 6: Your Greatest Financial Risk Is a Stock Market Crash

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Market downturns frequently make the news, escalating retirement worries. Yet, even though it can be unnerving, volatility isn't always the biggest risk to long-term financial health.

Hernandez says, 'Diversification and careful planning help cushion market downturns. But fraud and scams are among the most underrated threats.'

Con artists commonly use text messages, emails, and phone calls to target older individuals. Scammers take advantage of weaknesses, such as cognitive deterioration, to obtain personal information or money. ³ Financial losses resulting from fraud can quickly damage a retirement fund, frequently more severely than a brief drop in the stock market. USG Corporation retirees should remain cautious by safeguarding personal information, rejecting unverified payment requests, and confirming suspicious communications with trusted advisors.

Retirement Is Individual

Dispelling these six fallacies reveals an important reality: retirement preparation is very personal. Decisions that depend on particular conditions can be oversimplified by general guidelines and recommendations.

Boudreaux highlights that each retiree has distinct objectives, family dynamics, and risk tolerances. 'For this reason, a customized strategy is more important than merely adhering to general myths.'

The objective is to use your savings wisely—to support your lifestyle, your loved ones, and the causes that are most important to you—rather than merely preserving them, Hernandez adds.

Retirement ought to be viewed as a living strategy that is adaptable, flexible, and representative of individual priorities. By moving past outdated beliefs, USG Corporation retirees can approach their financial prospects with clarity, resilience, and the freedom that retirement was intended to offer.

According to recent behavioral finance research, retirees who are financially literate, optimistic, future-oriented, and reward-focused are more proactive in their retirement planning—qualities that can be developed over time. People who possessed these traits were less stressed about money and had a tendency to save more regularly. Even though just about 10% of respondents had all four qualities, the study shows that cultivating them may help enhance retirement results. ⁴

Closing Analogy

Retirement planning is similar to driving across the country. Myths like 'every detour is dangerous,' 'fuel should never be used for a scenic stop,' and 'the journey must end with a perfectly full tank' are examples of out-of-date maps that can lead people astray. Knowing when to share resources along the journey, when to save for unforeseen circumstances, and when to savor a meaningful pause are all essential components of true success. For USG Corporation employees, the path ahead becomes smoother and more rewarding when outdated misconceptions are replaced with well-informed tactics.

Sources:

1. IRS, ' Estate tax ,' October 29, 2024.

2. Bankrate, ' Reverse mortgage scams: What they are and how to avoid them ,' by Kacie Goff, June 9, 2025.

3. FBI, ' Elder Fraud ,' 2025.

4. Goldman Sachs Asset Management, ' Retirement Mindset Matters ,' October 2023.

How does the retirement plan structure at USG Corporation impact both final average earnings participants and cash balance participants, especially regarding their eligibility and benefits accrued over time? In what ways does the differentiation between these two categories influence the retirement outcomes for employees of USG Corporation?

Retirement Plan Structure: USG Corporation's retirement plan differentiates between Final Average Earnings Participants and Cash Balance Participants. Final Average Earnings participants, who joined before January 1, 2011, accrue benefits based on their final average earnings and years of service, which can result in higher benefits for longer-serving employees. Cash Balance participants, who joined after January 1, 2011, have their benefits calculated based on a cash balance account, which grows with contributions and interest credits. These differences affect retirement outcomes, as Final Average Earnings participants may see higher pension payments if they have longer service or higher wages, while Cash Balance participants have more predictable but potentially lower benefits based on their account balance(USG Corporation_Retirem…).

USG Corporation's Retirement Plan allows for different age-specific rules regarding early retirement. How do the "Rule of 90" and "Rule of 82" affect the financial planning of employees considering an early retirement option, and what should they consider regarding their long-term financial security?

Rule of 90 and Rule of 82: The "Rule of 90" allows employees to retire early without a reduction in benefits if their age plus years of service total 90, provided they retire at or after age 62. The "Rule of 82" permits early retirement with reduced benefits for those whose age and years of service total 82. Employees planning early retirement must consider these rules as they directly affect the amount of benefits they receive, making it important to assess how long-term financial security will be impacted, especially if they retire before age 62(USG Corporation_Retirem…).

Could you elaborate on the process through which employees at USG Corporation can change their beneficiaries within the retirement plan? What steps need to be taken, and what are the implications of these changes on the benefits received upon the participant's death?

Changing Beneficiaries: To change beneficiaries, USG Corporation employees must contact Your Benefits Resources™, where they can designate a primary and contingent beneficiary. If married, the spouse must provide notarized consent to name a different primary beneficiary. The process involves completing a form, and any changes affect who receives benefits upon the participant's death. Failing to update the beneficiary could result in benefits being paid to unintended individuals(USG Corporation_Retirem…).

As part of the retirement process at USG Corporation, how are pensionable earnings calculated? What factors are included in this determination, and how might they vary among different employees based on their roles within the organization?

Pensionable Earnings Calculation: Pensionable earnings at USG Corporation include regular pay, shift differentials, and bonuses but exclude items like nonqualified deferred compensation, severance, and stock awards. These earnings are used to calculate benefits based on formulas that take into account an employee’s service years and earnings over the 36 highest consecutive months of the last 15 years of participation(USG Corporation_Retirem…).

How does the automatic enrollment in the USG Corporation Retirement Plan work, and what options do employees have if they initially chose not to participate? What implications might this have for their retirement savings strategy?

Automatic Enrollment and Opting In: Employees at USG Corporation are automatically enrolled in the retirement plan unless they choose to opt out. If employees decide not to participate initially, they can enroll later by contacting Your Benefits Resources™. Failure to participate from the start could result in lower retirement savings due to fewer years of contributions(USG Corporation_Retirem…).

In the context of USG Corporation, what are the potential tax consequences for employees withdrawing their retirement benefits, especially regarding the mandatory withholdings? How might employees effectively manage these tax liabilities when planning for retirement?

Tax Consequences of Withdrawals: Employees withdrawing their retirement benefits from USG Corporation will face mandatory federal income tax withholdings, typically 20% for lump sum distributions, unless the distribution is rolled over into an IRA. Employees must plan for these taxes when withdrawing to avoid unexpected liabilities and ensure they maximize their after-tax retirement income(USG Corporation_Retirem…).

How do employees at USG Corporation access the necessary documents related to their retirement benefits, and what is the process for obtaining copies of these documents if needed? What are the responsibilities of the Plan Administrator in this process?

Accessing Retirement Documents: Employees can access documents related to their retirement benefits through Your Benefits Resources™ online or via phone. If additional copies are needed, employees can request them from the Plan Administrator for a small fee. The Plan Administrator oversees ensuring these documents are provided to participants as required by ERISA(USG Corporation_Retirem…).

What unique provisions exist for USG Corporation employees who experience a break in service? How do these provisions impact their accumulated benefit service and overall benefits upon reemployment?

Break in Service Provisions: USG Corporation allows employees who experience a break in service to retain their accumulated benefits if they are reemployed within one year. If reemployed after one year, their previous service may not count toward future benefits unless they were vested prior to termination. This can affect the total benefits an employee accrues if they leave and later return(USG Corporation_Retirem…).

What options do employees of USG Corporation have for managing their benefits if they return to work after retirement? How does this affect their pension benefits and the overall strategy for maximizing retirement income?

Returning to Work After Retirement: Employees returning to work after retirement at USG Corporation will have their pension payments suspended and recalculated based on additional years of service. This recalculation takes into account prior payments, meaning employees should consider the impact of returning to work on their long-term pension strategy(USG Corporation_Retirem…)(USG Corporation_Retirem…).

How can employees of USG Corporation contact their Benefits Resourcesâ„¢ for more information on their retirement plan options? Are there specific channels preferred for different types of inquiries, and what resources are available to assist them?

Contacting Benefits Resources™: Employees can contact Your Benefits Resources™ via the web or a toll-free number to inquire about retirement plan options. Different inquiries, such as changes to beneficiaries or requesting benefit estimates, can be handled through these channels. Resources such as detailed benefit estimates are available to help employees plan for retirement(USG Corporation_Retirem…).