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Healthcare Provider Update: Healthcare Provider for L3Harris L3Harris Technologies typically provides its employees with healthcare benefits through employer-sponsored insurance plans. The exact healthcare provider may vary based on location and specific employee circumstances, but major insurers commonly used include UnitedHealthcare, Anthem, and Cigna. Potential Healthcare Cost Increases in 2026 In 2026, L3Harris and similar employers are facing significant healthcare cost increases. Reports indicate a projected rise of approximately 8.5% in employer-sponsored insurance costs due to multiple inflationary pressures, including rising medical expenses and increased claims. Additionally, if the federal premium subsidies under the Affordable Care Act expire without renewal, employees may see a drastic rise in their out-of-pocket expenses, compounding the financial impact on both the company and its workforce. Employers are likely to respond by shifting more healthcare costs to employees, necessitating a proactive approach to managing these anticipated changes. Click here to learn more
L3Harris employees, considering home equity financing as a strategy, should understand their needs and the implications of home equity loans and lines of credit, advises (Advisor Name) of the Retirement Group, a division of Wealth Enhancement Group. This helps them choose the best way to leverage their home value, he said.
Home equity options can give L3Harris employees significant financial leverage - but there are risks and benefits too, advises (Advisor Name) of The Retirement Group at Wealth Enhancement Group. 'I would suggest they compare terms and costs carefully to protect their financial position and maximize the value of their equity.'
In this article, we will discuss:
1. The Basics of Home Equity Financing: Understanding home equity loans and lines of credit - and how homeowners can use them if they need extra cash.
2. Comparative Analysis of Loans versus Lines of Credit: Learn about fixed home equity loans versus revolving home equity lines of credit - terms and conditions.
3. Financial Implications and Considerations: Experiencing costs, risks and taxes of using home equity for financial need.
And if you are leaving L3Harris and need more emergency funds. Planning on renovating your shabby kitchen? You may be underwater on credit cards or you need to pay for college. Or perhaps you just want the security of having a cash reserve account when you search for a new job after leaving L3Harris to cover your bills. Whether you have a home equity loan or line of credit is up to you - as a homeowner - then you may qualify for one.
Before you sign that dotted line, though, we suggest these L3Harris employees conduct a little research to see if the product or service meets their needs.
But What Is Home Equity Financing Exactly?
Property equity financing is a loan secured by your house equity. That's why most lenders charge higher interest on secured personal loans than unsecured personal loans. You will usually borrow 80% of your equity.
Tip: Mortgage refinancing involves getting a new home mortgage loan and paying off an existing mortgage (or mortgages) on the property.
Caution: Since home equity financing is secured by your property, you risk losing it if you default on the contract.Home equity financing could be a loan or a credit line.
Home Equity Loans
A home equity loan is a loan of a fixed amount and term. A typical home equity loan:
The entire loan amount is advanced at the beginning of the term. A fixed interest rate. It requires equal monthly payments of equal amount to repay the loan (including interest) over the specified term.
Lines of Credit - Home Equity.
Some L3Harris employees are curious about what happens when a home equity line of credit is granted. You get revolving credit up to a limit with a home equity line of credit (HELOC). In terms of the loan agreement, you borrow only what you need and pay for only what you need. Typically, a HELOC is:
Write a check or use a credit card against the available balance during the borrowing period. Carries a variable interest rate based on a public economic index plus the lender's margin. Monthly payments may be different based on your outstanding balance and/or the interest rate being charged.
HELOCs come in many flavors. For those L3Harris clients who are considering one: What should they ask for:
How frequently is the interest rate changed? Which adjustment limit dictates the maximum rate change per adjustment? Where does the total interest rate ceiling (lifetime cap) lie? How long is the loan good for? Can it be renewed? Those monthly payments will be for interest only or principal will be paid as well? Is there a balloon payment due at the end of the loan term? Is the loan convertible to a fixed rate, fixed term loan?
Caution: Several HELOCs limit the required monthly payment amount, but not the interest rate adjustment. In such plans, L3Harris clients must understand that payment limits can cause negative amortization in rising interest rate periods. Any monthly payment that would be less than the interest paid on that month would add the unpaid interest to your principal and your outstanding balance would grow despite your continued monthly payments.
What Are The Costs?
The cost is another common question L3Harris customers ask. Oftentimes the fees associated with a home equity loan or line of credit are comparable to those of a mortgage. They consist of:
Application charge Fee for property appraisal Points (1 point equals 1 percent of the loan amount or lending limit) The costs of closing can include attorney, title inquiry, and mortgage preparation/filing fees.
Using a home equity loan or line of credit may be an option for 60-year-olds needing extra cash in retirement, according to an EBRI study in August 2022. Nearly three out of four retirees with a mortgage had outstanding mortgage debt, so drawing on home equity through loans or lines of credit could help them pay for their needs. And the EBRI study also showed that homeowners using home equity financing had greater retirement savings than non-users - indicating that leveraging home equity could be a smart financial move during retirement planning.
A HELOC could also charge an annual maintenance fee and/or transaction fee for each withdrawal.
These L3Harris employees shop around before committing to a plan. Interest rates and other fees vary by lender. When comparing costs, you can not compare the annual percentage rate (APR) of two plans - especially if one is a home equity loan and the other is a HELOC. Points and financing fees are included on a home equity loan (second mortgage) but not on a HELOC annual percentage rate (APR). Compare total expenses.
Tip: The Truth in Lending Act gives you three days to cancel the contract if your primary home is collateral for the home equity financing plan. You must cancel the contract by writing. The lender then releases any security interest in your home and refunds the fees you paid.
Other Considerations
More Factors our L3Harris customers Need to Know Before Taking a home equity loan or line of credit:
When you sell the property you repay the equity loan or credit line. If you sell soon after getting financing, the cost of financing might reduce your profit on the sale. A home equity line of credit can be pricey if only a small amount is withdrawn. A home equity financing agreement may prohibit you from leasing your home out.
What Is Best-A Loan or A Line of Credit?
Whatever works best for you, there is no magic number or formula - just a general rule of thumb. You could get a home equity loan if you need a fixed amount of money at once for something like kitchen remodeling or paying off other high-interest debts.
Example(s): Your contractor estimates USD 35,000 for remodeling your kitchen. You take out a home equity loan because you'll use the entire amount over the two-month project period. For 15 years at a fixed interest rate of 7.25 percent, you will pay USD 320 per month in whole dollars. Your interest expense is USD 22,510. Get a HELOC if you need an undetermined amount over a period of years (e.g., college fund or cash reserve account).
Example(s): You convert the HELOC to a USD 47,000 home equity loan at 7.25 percent with a 10-year term when your child graduates. Your monthly payment is USD 551, and interest will total USD 19,214 over the life of the loan. When you add this to the annual interest charges on your HELOC for the four years your child attended college, your interest payments total USD 26,103.
Example(s): When your child started college, you would have owed USD 429 on a USD 47,000 home equity loan at a fixed rate of 7.25 percent for 15 years - and paid USD 30,228 in interest.
The Tax Impacts of Home Equity Financing.
Some home equity financing plans let you deduct interest on up to USD 100,000 (USD 50,000 if filing separately) of the principal you borrow. Interest you pay is generally deductible regardless of how the loan or line of credit proceeds are used (unless used to purchase tax-exempt vehicles). That is, the loan or line of credit is not needed to purchase, construct or improve a home.
Imagine your house as an investment chest full of items you've accumulated over time. Like a chest, you can unlock its potential through home equity loans and lines of credit. Consider a home equity loan like a key to the chest that gives you access to a certain amount of money upfront to help you pay for big expenses like renovating your kitchen. In contrast, a home equity line of credit is like a magic wand that lets you withdraw money whenever you want to pay for something like college for your kid or unexpected expenses in retirement. As a treasure chest can provide financial flexibility and security, home equity financing lets you draw on the value of your home to meet your changing financial needs.
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Sources:
1. Investopedia : 'Should You Use a Home Equity Loan for Retirement Savings and Investing?' Investopedia. Accessed [date]. https://www.investopedia.com .
2. Boldin : 'Should You Secure a Home Equity Loan Before You Retire?' Boldin. Accessed [date]. https://www.boldin.com .
3. HomeLight : 'Using Your Home Equity for Retirement Income: 5 Options to Explore.' HomeLight. Accessed [date]. https://www.homelight.com .
4. LendEDU : Kirste, Eric, CFP®. 'HELOCs for Seniors: Should You Tap Home Equity for Retirement?' LendEDU. Accessed [date]. https://www.lendedu.com .
5. Experian : Hayes, Marianne. 'How to Use Your Home Equity for Retirement Income.' Experian, 5 Feb. 2023. https://www.experian.com .
What specific factors should L3Harris Technologies employees consider when determining the most suitable form of pension benefit at retirement? Employees of L3Harris Technologies may have various options, such as life annuities, contingent annuities, and lump-sum payouts. Understanding the implications of each option, including tax treatments and benefit guarantees, can be crucial in making a decision that aligns with long-term financial goals. It is also important to consider how the selected form may affect survivor benefits and overall retirement income planning.
Pension Options at Retirement: L3Harris Technologies employees have various pension benefit options to consider at retirement, such as life annuities, contingent annuities, and lump-sum payouts(L3Harris Technologies I…). Each option has different tax treatments, survivor benefits, and guarantees. For example, selecting a life annuity ensures a fixed monthly payment for life, while a lump-sum payout might offer more flexibility but comes with immediate tax implications. Employees should evaluate how each option aligns with their long-term financial goals and whether it provides adequate survivor protection for dependents(L3Harris Technologies I…).
How does L3Harris Technologies determine eligibility for early retirement, and what implications does this have for pension benefits? Employees should familiarize themselves with the criteria for qualifying for early retirement, including age and service requirements. Additionally, understanding the benefits that are available should retirement occur before the standard retirement age can affect financial planning, as these benefits can differ significantly from those available at normal retirement age due to reduction factors or penalties.
Early Retirement Eligibility: L3Harris Technologies determines eligibility for early retirement based on age and years of service. Employees may qualify for early retirement if they are at least 55 years old and have completed 10 years of service(L3Harris Technologies I…). Opting for early retirement can result in a reduced pension benefit due to the longer payment period. These reductions, known as early retirement penalties, affect financial planning since the payout is lower compared to waiting until the normal retirement age(L3Harris Technologies I…).
In what ways do the pension formulas at L3Harris Technologies differ, and how can employees assess which plan is most advantageous for their retirement? Employees participating in the L3Harris pension plan can choose between different formulas, such as the Traditional Pension Plan and the Pension Equity Plan. Assessing which formula may yield higher benefits involves understanding the benefits calculation processes, including how each formula accounts for years of service, salary history, and participation criteria, which can significantly impact total retirement income.
Pension Formulas: L3Harris employees can choose between different pension formulas, such as the Traditional Pension Plan and Pension Equity Plan(L3Harris Technologies I…). The Traditional Plan is based on years of service and final average pay, while the Pension Equity Plan uses a lump-sum formula that accrues value over time. Understanding how each formula calculates benefits is essential for employees to determine which plan will provide higher retirement income, depending on their service years and salary history(L3Harris Technologies I…).
How should L3Harris Technologies employees prepare for the selection of a beneficiary, and what are the potential impacts on their pension benefits? Selecting a beneficiary is an important component of retirement planning. Employees at L3Harris Technologies must understand the implications that come with adding a spouse or other individuals as beneficiaries, including the effect on benefit amounts and how beneficiary selection can influence survivor payouts. Moreover, they should familiarize themselves with the requirements for updating beneficiary information and the legal implications of such designations.
Beneficiary Selection: Choosing a beneficiary is a crucial step for L3Harris employees. Adding a spouse or another individual as a beneficiary may reduce the employee's pension benefit but ensures that a portion of the pension continues after the employee's death(L3Harris Technologies I…). Employees should be aware of the survivor benefit provisions, spousal consent requirements, and the need to regularly update their beneficiary information(L3Harris Technologies I…).
What procedures must L3Harris Technologies employees follow to appeal a denied pension benefit claim, and what timelines should they be aware of? Employees should be well-informed about the steps involved in the appeals process for denied claims, including how and when to file an appeal and the importance of providing adequate documentation. Understanding the statutes of limitations related to claims and appeals can significantly influence the outcomes for employees seeking to reinstate or secure their benefits.
Appealing Denied Claims: L3Harris Technologies employees must follow a formal process to appeal denied pension benefit claims(L3Harris Technologies I…). The process includes submitting an appeal within a specific timeframe and providing supporting documentation. It is important to be familiar with the statute of limitations and administrative remedies to ensure the best chance of success when appealing a decision(L3Harris Technologies I…).
How does L3Harris Technologies handle survivor benefits, and what actions should employees take to ensure that their surviving spouses or partners have access to these benefits? Understanding the components of survivor benefits at L3Harris Technologies is crucial. Employees should learn about the eligibility of their spouses or partners following their death, the type of benefits due, and any actions required to secure these benefits. Familiarity with the plan’s rules surrounding survivor benefits and timelines for elections can also affect the financial security of beneficiaries.
Survivor Benefits: L3Harris offers survivor benefits to spouses or designated beneficiaries(L3Harris Technologies I…). Employees must ensure that their spouse or partner is properly designated to receive these benefits, which may involve selecting an annuity option that provides continued payments to the survivor. Understanding the timelines for making these elections and the rules governing survivor benefits is crucial for securing financial support for loved ones(L3Harris Technologies I…).
What resources are available for L3Harris Technologies employees for receiving personalized retirement counseling, and how can these resources aid in making informed financial decisions? Employees may benefit from accessing professional counseling services or informational resources provided by L3Harris Technologies. These resources can include individual retirement planning sessions that help employees align their pension benefits with their overall retirement strategy, ensuring that they utilize their benefits effectively and are informed about their options.
Retirement Counseling Resources: L3Harris provides personalized retirement counseling services to assist employees with their pension and retirement planning(L3Harris Technologies I…). These resources include individual sessions to discuss how pension benefits fit into overall retirement strategies. By leveraging these services, employees can make well-informed decisions about their financial future(L3Harris Technologies I…).
How can employees of L3Harris Technologies find out more about their eligibility for the Cash Balance Plan and the advantages of this plan over traditional pension formulas? Employees should research what defines an "active Cash Balance Plan Participant" as well as the benefit calculations associated with it. Investigating the elements that set this type of plan apart—specifically regarding lump-sum distributions and the ability to track benefits—can better inform employees about the potential advantages for their future retirement income.
Cash Balance Plan: Employees interested in the Cash Balance Plan can research its advantages over traditional pension formulas. The Cash Balance Plan allows for lump-sum distributions and provides clear benefit tracking, which can be more appealing to employees looking for flexibility and control over their retirement funds(L3Harris Technologies I…).
What impact do potential changes to the L3Harris Technologies pension plan have on current employees, and what steps should they take to stay informed about such changes? Employees should remain vigilant regarding any amendments to the pension plan that could influence their retirement benefits. This includes understanding their rights under ERISA and staying engaged with communication from L3Harris regarding plan updates, ensuring that they are equipped to make timely decisions based on the latest information.
Plan Changes: L3Harris employees should stay updated on any changes to the pension plan, which could impact their benefits(L3Harris Technologies I…). Monitoring communications from the company and understanding their rights under ERISA is essential to making timely decisions based on new plan terms or amendments(L3Harris Technologies I…).
How can employees of L3Harris Technologies contact the Benefits Service Center to address specific questions regarding their pension plan or retirement strategy? It is essential for employees seeking clarity on their pension benefits or retirement planning to know how to reach out to the L3Harris Benefits Service Center. This center acts as a vital resource, and understanding its operations—including contact times, methods of contact, and the types of inquiries that can be addressed—will enable employees to receive the guidance they need regarding their benefits.
Benefits Service Center: L3Harris employees can contact the Benefits Service Center for any questions regarding their pension or retirement strategy. The center provides assistance with understanding pension benefits, resolving issues, and addressing specific inquiries related to retirement planning(L3Harris Technologies I…)(L3Harris Technologies I…).
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