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Healthcare Provider Update: Intel's Healthcare Provider and Upcoming Costs Intel primarily utilizes benefits through various healthcare providers, with many employees accessing plans from major insurers like UnitedHealthcare, Anthem Blue Cross Blue Shield, and others depending on geographical region and specific plan offerings. As we look ahead to 2026, healthcare costs are anticipated to rise significantly, potentially impacting Intel employees and their families. With ACA premium hikes exceeding 60% in some states and the expiration of enhanced federal subsidies looming, many individuals could see their premiums increase by over 75%. Additionally, a rising trend in medical expenses, driven by inflation and supply chain challenges, coupled with escalating pharmaceutical costs, threatens to further strain household budgets. Consequently, these developments necessitate strategic planning by Intel employees to alleviate the financial burden associated with healthcare coverage in the coming year. Click here to learn more
For Intel employees and retirees, understanding key investment terms like portfolio, stock, bond and mutual funds is important - and working with an expert like Paul Bergeron, a representative of The Retirement Group, a division of Wealth Enhancement Group, can help you tailor a plan that fits your Retirement goals,' he said.
'Intel employees and retirees should understand risk, return and diversification in investing, and Tyson Mavar, a representative of the Retirement Group, a division of Wealth Enhancement Group, can help structure investments to achieve long-term financial security,' he said.
In this article we will discuss:
1. Typical investment components are stocks, bonds and cash.
2. Describe how mutual funds and ETFs diversify and reduce risk for investors.
3. Understand investment terms such as dividends, yield and market trends.
Just left Intel and started investing? You may have heard unfamiliar terms. We therefore created this glossary to help Intel employees and retirees become more confident investors.
Portfolio
The assets of someone or an organization are called a portfolio. A portfolio contains typically several asset classifications including stocks, bonds and cash. That includes your Intel pension, 401(k), lump sum and annuity payments upon retirement. The asset allocation of a portfolio depends typically on investor risk aversion, time horizon and investment objectives.
Stock
Stocks are instruments that represent ownership in a business. Shares in the benefits package for most Intel employees come with time in the workforce. Any shareholder can get a cut of the company's assets and profits. Shareholders are both beneficiaries and losers of their position - they win if the company succeeds and lose money if it fails.See how principal value and return on investment of stocks fluctuate with respect to market conditions. Shares transferred may have a value greater than or lower than their initial price.
Bond
The government agency or corporation is issuing a bond to raise money for current operations or new projects. Investors buying bonds become the issuer's creditors. Bondholders typically get interest payments periodically. Their amounts depend on the coupon rate, which is a fixed annual interest rate. These interest rates could also affect your Intel settlement sum and annuity. Absent issuer default, bondholders should receive the full par value of the bond at the maturity date specified.The principal of bonds may change depending on market conditions. Prematurely redeemed bonds might be worth more or less than their face value.
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Cash
Another investment or asset is cash. It consists of low-risk and liquid alternatives to money and currency.Typical alternatives to currency include savings accounts, certificates of deposit/CDs, and U.S. Treasury bills.The FDIC insures certificates of deposit (CDs) and bank savings accounts with generally fixed interest rates up to USD 250,000 per depositor per insured institution.T-rex securities are backed to the full faith and credit of the government for timely principal and interest payments.
Mutual Fund
It is a grouping of stocks, bonds and / or other securities purchased and / or managed by an investment company on behalf of many investors. The net asset value (NAV) of the underlying securities determines the price at which shares are purchased from and sold back to the investing company at the end of each trading day. Employees of Intel have access to mutual funds managed by competent people and a broad investment mix. Diversification reduces risk but does not ensure a profit or prevent investment loss. Understand diversity to ensure a stress-free Intel retirement.
Exchange-Traded Fund
A portfolio of assets prepared by an investment firm is called an exchange-traded fund (ETF). Unlike mutual funds however, ETF shares can be traded throughout the day on stock exchanges just like individual equities and the price may be higher or lower than the NAV depending on supply and demand. ETFs usually have low expense ratios but you have to pay a commission to buy or sell them - and your overall costs may be higher if you trade frequently.
The return and principal value of mutual funds and ETFs changes with the market. Shares transferred may have a value greater than or lower than their initial price. Check prospectus carefully before investing to understand fund investment objectives, risks, fees and expenses. Read the document before investing.
Dividends
Dividends are distributions by a company of its earnings to its shareholders - typically quarterly - in cash or additional equity shares. The dividend per share is decided by the board of directors of the corporation. An important tax consideration for buyers of Intel dividends with lump sum payments is often not thought of. Many investors consider dividend payments a sign of a company's health and future prospects.
The yield on a dividend investment is high. Lower volatility and more stable returns mean investors must be prepared for periods when dividend payers detract from a stock portfolio. Profitable economic, market and political factors may affect a company's dividend payout. Generally speaking, dividends are unsecured and can be changed or eliminated.
Yield
Usually, the yield on an investment represents the current income received. Yield for a stock equals the sum of all annual dividends divided by the current share price. Yield on a bond: divide the annual interest rate by the current pricing. The return is comprised of price appreciation and depreciation and is not related to yield. Investments with a higher yield target involve more risk.
Index
A statistical composite called an index tracks the long-term evolution of economic conditions (like inflation) or financial markets. Many different indices are available for assessing how an asset performed. The S&P 500 Index is considered representative of the U.S. equity market overall.An unmanaged index does not necessarily reflect investment performance. No one can own an index directly. Past performances do not indicate future results. The real results could be different.
Bear/Bull Market
Typically a bear market involves falling asset prices that drop 20% or more in several major market indexes over a period of months or more. A bull market is a period of rising prices and investor optimism that lasts for months or years. All these market fluctuations could affect investor attitudes and actions.
Added Fact:
Intel employee or retiree looking to learn more about investing should know about required minimum distributions (RMDs). RMDs are the minimum amounts that people must take out of retirement accounts - 401(k)s and traditional IRAs - by age 72, the IRS said in 2023 (IRS, updated 2023). Withdrawing the RMD may be punishable. Intel employees and retirees need to understand RMDs when planning investments and preparing for retirement to avoid IRS penalties and interest rates.
Added Analogy:
Knowing investment terms for Intel employees and retirees is like having an organized toolbox for a craftsman. All terms are tools that help investors navigate the maze of financial markets. Just as a craftsman needs a hammer and a wrench to drive in nails and a wrench to tighten bolts, understanding terms like portfolio, stock, bond, cash, mutual fund, ETF, dividends, yield, index and bear/bull market provides investors with the tools to build a secure and prosperous financial future. Familiarizing themselves with these terms allows Intel employees and retirees to invest like craftsmen - picking the right tool for the job and building a long-term portfolio (Author, Date).
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- 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!
Sources:
1. Johns Hopkins University Human Resources. Retirement Choice Glossary . 2019, hr.jhu.edu/wp-content/uploads/2019/06/RetirementChoiceGlossary.pdf?utm_source=chatgpt.com .
2. Protective Life. 'Retirement Glossary: Terms You Should Know.' Protective Life , 2023, protective.com/learn/retirement-glossary-terms-you-should-know?utm_source=chatgpt.com .
3. Carbon Collective. 'Retirement Planning Glossary | 20 Retirement Terms You Should Know.' Carbon Collective , 2023, carboncollective.co/sustainable-investing/retirement-planning-glossary?utm_source=chatgpt.com .
4. Internal Revenue Service. 'Retirement Topics - Required Minimum Distributions (RMDs).' IRS , 2023, irs.gov/retirement-plans/plan-participant-employee/retirement-topics-required-minimum-distributions-rmds?utm_source=chatgpt.com .
5. Charles Schwab. 'IRA Withdrawals: Required Minimum Distributions.' Charles Schwab , 2023, schwab.com/ira/traditional-ira/withdrawal-rules/required-minimum-distributions?utm_source=chatgpt.com .
How does the Intel Pension Plan define the eligibility criteria for employees looking to retire, and what specific steps must they take to determine their benefit under the Intel Pension Plan?
Eligibility Criteria for Retirement: To be eligible for the Intel Pension Plan, employees must meet specific criteria, such as age and years of service. Benefits are calculated based on final average pay and years of service, and employees can determine their benefits by logging into their Fidelity NetBenefits account, where they can view their projected monthly benefit and explore different retirement dates(Intel_Pension_Plan_Dece…).
What are the implications of choosing between a lump-sum distribution and a monthly income from the Intel Pension Plan, and how can employees assess which option is best suited for their individual financial circumstances?
Lump-Sum vs. Monthly Income: Choosing between a lump-sum distribution and monthly income under the Intel Pension Plan depends on personal financial goals. A lump-sum provides flexibility but exposes retirees to market risk, while monthly payments offer consistent income. Employees should consider factors like their financial needs, life expectancy, and risk tolerance when deciding which option fits their situation(Intel_Pension_Plan_Dece…).
In what ways can changes in interest rates affect the lump-sum benefit calculation under the Intel Pension Plan, and why is it essential for employees to be proactive about their retirement planning concerning these fluctuations?
Interest Rates and Lump-Sum Calculations: Interest rates directly affect the lump-sum calculation, as higher rates reduce the present value of future payments, leading to a smaller lump-sum benefit. Therefore, it's crucial for employees to monitor interest rate trends when planning their retirement to avoid potential reductions in their lump-sum payout(Intel_Pension_Plan_Dece…).
How do factors like final average pay and years of service impact the pension benefits calculated under the Intel Pension Plan, and what resources are available for employees to estimate their potential benefits?
Impact of Final Average Pay and Years of Service: Pension benefits under the Intel Pension Plan are calculated using final average pay (highest-earning years) and years of service. Employees can use available tools, such as the Fidelity NetBenefits calculator, to estimate their potential pension based on these factors, giving them a clearer picture of their retirement income(Intel_Pension_Plan_Dece…).
How should employees approach their financial planning in light of their Intel Pension Plan benefits, and what role does risk tolerance play in deciding between a lump-sum payment and monthly income?
Financial Planning and Risk Tolerance: Employees should incorporate their pension plan benefits into broader financial planning. Those with a lower risk tolerance might prefer the steady income of monthly payments, while individuals willing to take investment risks might opt for the lump-sum payout. Balancing these decisions with other income sources is vital(Intel_Pension_Plan_Dece…).
What considerations should Intel employees evaluate regarding healthcare and insurance needs when transitioning into retirement, based on the guidelines established by the Intel Pension Plan?
Healthcare and Insurance Needs: Intel employees approaching retirement should carefully evaluate their healthcare options, including Medicare eligibility, private insurance, and the use of their SERMA accounts. Considering how healthcare costs fit into their retirement budget is crucial, as these costs will likely increase over time(Intel_Pension_Plan_Dece…).
How can employees maximize their benefits from the Intel Pension Plan by understanding the minimum pension benefit provision, and what steps can they take if their Retirement Contribution account falls short?
Maximizing Benefits with the Minimum Pension Provision: Employees can maximize their pension benefits by understanding the minimum pension benefit provision, which ensures that retirees receive a certain income even if their Retirement Contribution (RC) account balance is insufficient. Those whose RC accounts fall short will receive a benefit from the Minimum Pension Plan (MPP)(Intel_Pension_Plan_Dece…).
What resources does Intel offer to support employees in their retirement transition, including assessment tools and financial planning services tailored to those benefiting from the Intel Pension Plan?
Resources for Retirement Transition: Intel provides several resources to support employees' transition into retirement, including financial planning tools and access to Fidelity's retirement calculators. Employees can use these tools to run scenarios and determine the most beneficial pension options based on their financial goals(Intel_Pension_Plan_Dece…).
What strategies can retirees implement to manage taxes effectively when receiving payments from the Intel Pension Plan, and how do these strategies vary between lump-sum distributions and monthly income options?
Tax Strategies for Pension Payments: Managing taxes on pension payments requires strategic planning. Lump-sum distributions are often subject to immediate taxation, while monthly income is taxed as regular income. Retirees can explore tax-deferred accounts and other strategies to minimize their tax burden(Intel_Pension_Plan_Dece…).
How can employees of Intel contact Human Resources to get personalized assistance with their pension questions or concerns regarding the Intel Pension Plan, and what specific information should they be prepared to provide during this communication?
Contacting HR for Pension Assistance: Intel employees seeking assistance with their pension plan can contact HR for personalized support. It is recommended that they have their employee ID, retirement dates, and specific pension-related questions ready to expedite the process. HR can guide them through benefit calculations and options(Intel_Pension_Plan_Dece…).
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