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Healthcare Provider Update: Healthcare Provider for Southern California Edison: Southern California Edison (SCE) primarily utilizes Blue Shield of California as its healthcare provider for employees. This partnership enables the company to offer a variety of health insurance options to its workforce, including comprehensive coverage options tailored to meet the diverse needs of its employees. Potential Healthcare Cost Increases in 2026: As the healthcare landscape shifts, Southern California Edison employees may see a significant impact on healthcare costs in 2026. With projected record increases in insurance premiums-some states reporting hikes exceeding 60%-combined with the potential expiration of enhanced federal subsidies, many employees could face out-of-pocket premium spikes exceeding 75%. Factors contributing to this trend include rising medical costs and aggressive rate hikes from major insurers, which underline the importance of strategic planning for healthcare expenses as retirement approaches. Adapting to these changes is essential for maintaining financial stability and ensuring access to necessary healthcare services. Click here to learn more
For Southern California Edison employees looking to stabilize their Retirement portfolio, U.S. Treasury bills can be a low-risk, highly liquid option that can help protect against market volatility and deliver steady returns over time, 'says Brent Wolf, of The Retirement Group, a division of Wealth Enhancement Group.
U.S. Treasury bills can be a safe, liquid investment - especially for Southern California Edison employees looking to balance risk and security in their Retirement savings - says Kevin Landis, of The Retirement Group, a division of Wealth Enhancement Group.
In this article we will discuss:
1. Basic facts about US Treasury bills & their benefits.
2.Strengths & tradeoffs of investing in Treasury bills.
3.ow to buy Treasury bills and their tax considerations.
What Is It?
You need to know U.S. Treasury bills - their benefits - and how to use them in your financial planning as a Southern California Edison employee. Those short-term debt securities are Treasury bills issued by the United States government to fund its operations. Typically T-bills mature one month to one year after issue. Like zero-coupon bonds, T-bills are sold at a discount and return to face value at maturity rather than paying periodic interest. The government is issuing T-bills starting at $100 and increasing by $100 increments.
Although the market is open to anyone, T-bills are typically traded by institutional investors like banks, insurance companies and mutual funds. Using mutual funds that invest in T-bills, like money market funds, is often easier for investors with moderate means. Some employees at Southern California Edison might find that useful in deciding where to spend growth dollars and which of the following options best meets their needs.
Strengths
Safety
Because they are short-term and backed by all the faith and credit of the U.S. government, T-bills are among the safest investments. The short duration means they are among the first debt instruments to reflect changes in interest rates. Thus, T-bills are less prone to inflation and interest rate risk than longer-term investments. Southern California Edison employees may want to consider T-bills when choosing an investment strategy that minimizes risk and puts asset security first.
Liquidity
Need cash? A bank or brokerage house will sell your T-bill on the secondary market (find a buyer) for you. This gives Southern California Edison employees the right to recover their money and guarantees they will never be cashless.
State & Local Taxes Are Not Charged On Income.
These T-bills are especially handy for people with high state income taxes but low federal tax brackets. With their tax advantages, the after-tax return on T-bills may be greater than the after-tax return on equivalent taxable investments that pay the same interest rate.
Tradeoffs
Yield May Not Keep up with Inflation.
T-bills could pay more than passbook and money market accounts, but the yield may not keep pace with inflation.
Opportunity Cost
Riskier long-term investments than T-bills usually offer higher returns.
How to Buy T-Bills
Weekly or monthly Treasury bill auctions occur on the financial markets. Those T-bills can be purchased by Southern California Edison employees for the average price of the winning competitive auction bids. Southern California Edison employees wanting to buy T-bills can contact a brokerage agency. Or you could invest in a money market fund that invests in Treasury securities and include your investment in a pool of professionally managed assets. Yet some of the earnings would go towards covering the fund's management fee and other expenses.
Caution: Even if a money market mutual fund invests only in Treasury bills, its share price is not guaranteed or insured by the U.S. government like a T-bill is. A money market fund attempts to maintain a $1 per share value but you can lose money investing in one.
The Treasury also allows internet direct investments. First, open an account online at www.treasurydirect.gov . When that account is set up, you can use the website to buy securities and make charges to your bank account. The government does not issue a certificate of ownership when a Southern California Edison employee purchases a T-bill directly from the government. Instead, book entries say you are the proprietor.
Tax Considerations
T-Bill Held to Maturity
Treasury bill interest is taxed as ordinary income. A taxpayer and Southern California Edison employee with a T-bill to maturity recognizes no capital gain nor loss. In recovering interest income, proceeds above basis (the discounted amount) are taxed as ordinary income. Also known as interest income, the difference between the discounted purchase price and the face value at maturity is the difference between the discounted purchase price and must be reported when the T-bills mature. A cash-basis taxpayer could generate interest income deferral for one year by buying T-bills with maturity dates in the following year.
T-Bill Sold Before Maturity.
This is again treated as conventional income. When selling a T-bill before maturity, the difference between the purchase price and selling price may include some interest and some short-term capital gain or loss. You might want to think about this as a Southern California Edison employee before you sell your T-bill.
Example(s): Assume John purchases $10,000 in T-bills at $9,760 100 days before maturity. Thirty days after that, he sells them for $9,850. And he has been taxed on a pro rata share of the discount as interest income while he held the securities: $72 = 30/100 x $10,000 - $9,760. The other $18 he got above the purchase price was a short-term capital gain.
Added Fact:
Southern California Edison employees considering putting money into U.S. Treasury bills should consider benefits beyond safety and liquidity. Importantly, Treasury bills are low-correlated with the stock market and thus provide good diversification for retirement accounts. In a study published in October 2018 by the National Bureau of Economic Research (NBER), including Treasury bills in a retirement portfolio can boost its risk-adjusted return during periods of market volatility. This research finds Treasury bills may offer stability and downside protection to Southern California Edison employees wanting to protect their wealth and generate steady retirement income.
Articles you may find interesting:
- 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!
- 401K, Social Security, Pension – How to Maximize Your Options
- Have You Looked at Your 401(k) Plan Recently?
- 11 Questions You Should Ask Yourself When Planning for Retirement
- 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!
- 401K, Social Security, Pension – How to Maximize Your Options
- Have You Looked at Your 401(k) Plan Recently?
- 11 Questions You Should Ask Yourself When Planning for Retirement
- Worst Month of Layoffs In Over a Year!
Added Analogy:
The investment in U.S. Treasury bills is like putting the foundation on your retirement house. Like a solid foundation gives your home stability and peace of mind, Treasury bills give Southern California Edison employees a solid base for their retirement plans. These bills are your investment foundation - they give you security and liquidity. Just as a foundation supports the whole structure, Treasury bills anchor your retirement savings against market volatility. These provide a low-correlation asset that can weather economic storms with consistent returns. Like a well-designed foundation supports your dream house, including Treasury bills in your retirement strategy helps you achieve your long term financial goals - and you can enjoy a worry-free retirement.
Sources:
1. Investopedia Staff . 'Are Treasury Bills a Good Investment for Retirement Savings?' Investopedia , 1 Oct. 2014, https://www.investopedia.com/ask/answers/020515/are-treasury-bills-good-investment-retirement-savings.asp .
2. Investopedia Staff . 'How Are Treasury Bills (T-Bills) Taxed?' Investopedia , 30 Jan. 2015, https://www.investopedia.com/ask/answers/013015/how-are-treasury-bills-taxed.asp .
3. Experian . 'Are Treasury Bonds a Good Investment for Retirement?' Experian , 1 Nov. 2021, https://www.experian.com/blogs/ask-experian/are-treasury-bonds-good-investment-for-retirement .
4. Erin Bendig . 'Why Treasury Bills are a Good Bet.' Kiplinger , 17 Sept. 2024, https://www.kiplinger.com/personal-finance/why-treasury-bills-are-a-good-bet .
5. U.S. Department of the Treasury . 'Treasury Bills.' TreasuryDirect , https://treasurydirect.gov/marketable-securities/treasury-bills/ .
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