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Healthcare Provider Update: General Mills primarily collaborates with UnitedHealthcare for its employees' healthcare coverage. As we look ahead to 2026, significant healthcare cost increases are anticipated. Factors contributing to this rise include the expiration of enhanced federal ACA premium subsidies and increasing medical costs within the marketplace. Reports indicate that some states might see premium hikes of over 60%, with experts warning that without legislative intervention, many consumers could face steep increases in out-of-pocket healthcare expenses, potentially rising as much as 75%. This scenario presents a notable challenge for both employees and employers as they navigate the shifting landscape of healthcare costs. Click here to learn more
'General Mills employees should review their retirement planning strategies to see if they are keeping pace with the economic environment, as consistent adjustments can help ensure long-term financial security,' says Brent Wolf, a representative of the Retirement Group, a division of Wealth Enhancement Group.
As we navigate changing market conditions, General Mills employees should periodically review their retirement plans and make adjustments where necessary to stay on track for their future goals, 'says Kevin Landis, of the Retirement Group, a division of Wealth Enhancement Group.
In this article, we will discuss:
1. Employee benefits & pension trends.
2. Recent restructuring and layoffs impact retirement plans.
3. 401(k) adjustment tips for dealing with economic shifts.
Those at General Mills might notice how much more complex your financial planning needs get the longer you work there. Although you might have similar goals as other coworkers - saving for retirement after leaving General Mills or helping pay for your children's college - the components necessary to reach them all require careful management. The best General Mills financial planning strategies start with assessing your situation holistically and simplifying it by finding the right experts to help you.
High-Net-Worth General Mills individuals' comprehensive asset allocation. Your life may have a lot of moving parts because you work at a General Mills company. This makes sound financial planning essential. Complete financial planning examines your entire financial picture. It covers investment management, including strategic asset allocation/diversification, tax planning, and retirement planning before and after leaving General Mills.
Estate planning, risk & insurance, cash flow, college funding, executive compensation, and gifting to family and/or charities. And in investment management, a strategic asset allocation is key. You select the appropriate split between stocks, bonds, and other assets based on your financial goals and situation, called strategic asset allocation. Then you diversify within these categories as much as possible. If you took, for example, a 60% stocks 40% bonds allocation, you would have 60% U.S. large-cap stocks, 20% U.S. small and mid-cap stocks, and 20% foreign stocks within the stock band.
You may adjust your asset allocation as the market changes and your investments increase in value. During a bull market, for example, when stocks are outperforming, your stock portion might be 70% of your portfolio instead of 60%. Once this happens, rebalance to your target allocation by selling some stocks and using the proceeds to buy more bonds until you get back to the 60% to 40% split you wanted. You should only adjust your strategic allocation when things get really personal, like when you are retiring from General Mills or having a major life event.
Don't get duped into changing your allocation because of market events. Let your stocks grow during a bull market, but it would increase your overall portfolio risk and leave you overexposed when the market falls. A secondary financial planning consideration for high-net-worth individuals is how to manage taxes. The higher your income and net worth, the greater the tax burden. Think strategically about the kinds of investments and where you hold them to minimize taxes. You might, for example, keep income-producing investments like bonds or bond funds in a tax-sheltered account like an individual retirement account (IRA). Another way to reduce taxes is by giving to a charity or loved ones.
The IRS lets people deduct up to 100% of qualified charitable contributions made in cash to a qualifying charity, and give up to USD 15,000 per person per year without paying gift taxes yourself. Plus, any assets you gift to your beneficiaries today will reduce future estate taxes they will owe. Most investors' financial goal is retirement from General Mills retirement. Some would think that retirement planning should be easier for high-net-worth people - you have more assets to fund your retirement - but that is far from the case. High-net-worth individuals find retirement planning just as complex, if not more complex.
First, figure out how much income you'll need in retirement after leaving General Mills. Starting with your current monthly expenses is good. List all of your expenses as essential or discretionary - utilities and groceries - and those you could live without - restaurant meals and travel. Consider how you want to spend your retirement time as you review your spending. This helps you figure out how your expenses might change when you leave General Mills.
Maybe you spend less on transportation when you don't have to commute to and from work every day but more on travel when you travel through your retirement bucket list. Forecast your expenses as precisely as possible. You can be vague about what you will spend if that helps you out. You can revise your estimate as your retirement plans settle. You know how much you want to spend in retirement and can plan how you'll get that income. You could draw retirement income from investments like retirement and non-retirement savings, Social Security, real estate, or a business.
Like you did with your expenses - essential versus discretionary - you should create two categories of retirement income sources:
fixed and variable. Fixed sources of income have a set amount that you know will be paid out periodically - Social Security, a pension, or an annuity - for example. Variable income comes from sources that change value - like your investments. Your basic retirement expenses once you leave General Mills should ideally be covered entirely by fixed income sources. You'll get maximum flexibility with your retirement spending. When stocks are down, you can trim your discretionary expenses without sacrificing your living space. A second way to maximize your retirement income is managing your taxes during retirement. Retirement accounts are one such tool.
There are two types of retirement accounts:
Traditional, or pre-tax, accounts, and Roth, or after-tax, accounts. Traditional accounts allow you to deduct some contributions today. So you pay no taxes until you take the money out of the account. You can contribute today, but with a Roth account, you can take the money out tax-free when you leave General Mills. The main stumbling block to Roths is the IRS won't let high-income earners contribute. Individuals and heads of households making over USD 144,000 in 2022 can't contribute to Roth IRAs, and those making USD 129,000 or less can make reduced contributions. In 2022, for married couples filing jointly, the income phase-out range is set at USD 204,000, with couples earning more than USD 214,000 no longer contributing.
Saving for retirement in traditional and Roth vehicles, if you can, will help you with taxes when you leave General Mills. Since Roths aren't taxable when withdrawn, you can use them for tax-free income in retirement. Unless you can contribute to a Roth now, you can also talk to a financial advisor about making Roth conversions in lower-income years when you can afford to pay a little more tax in return for more future tax-free income. You can see that good financial planning doesn't stop when you stop working for General Mills. Most likely, you want to pass the wealth you've built up with your family through estate planning. And as complicated as retirement planning is, estate planning for high net worth is just as complex.
Estate planning is about getting as much of your inheritance as possible where you want it. And trust is one of the best tools for this. The types of trusts and customizations available make picking the right one and getting it set up properly a bit of a chore. Work with a financial professional and an attorney to determine the right type of trust and draft the appropriate trust agreement. And you need to insure your assets and income accordingly. This includes getting appropriate health, homeowners, auto, boats, and other vehicle and excess liability coverages. So you got long-term care or life insurance, or both. Maybe those fit your situation? Using a Financial Advisor From The Retirement Group Financial planning for a General Mills employee involves many moving parts.
Hence, many investors choose to work with a financial advisor - but not just any financial advisor. Partner with someone who understands General Mills company benefits for the best advice on financial planning. The Retirement Group advisors train to help General Mills employees develop a customized financial plan to meet your financial goals. The Retirement Group holds its advisors to high ethical and educational standards and demands that they serve their clients' best interests. Our advisors will never recommend an investment unless they are confident it is right for you. How a financial advisor is compensated is also an important factor when choosing one.
Advisor compensation may take one of three forms:
via commissions on investments or products they sell; via an annual, hourly, or flat fee (fee-only advisors); or a combination of fees and commissions (called fee-based advisors). Under a fee-only model, the advisor makes no commissions, so there is no incentive to promote one product over another. Instead of variable and obscure commissions, retainer-based fee models charge clients one fixed fee. That fee varies depending on your goals for wealth management and the services the advisor provides - so you get the personalized service you want.
A fee that is tailored to your needs and goals means your advisor will always work for you. About The Retirement Group The Retirement Group is a national group of financial advisors that works together. We only plan for and design retirement portfolios for corporate employees leaving General Mills. And each representative of The Group has been handpicked by the Retirement Group in select cities throughout the United States. Each advisor was screened for pension expertise, financial planning experience, and portfolio construction knowledge.
TRG believes in teamwork to find solutions to our clients' problems. A conservative investment philosophy guides the team in constructing client portfolios with laddered bonds, CDs, mutual funds, ETFs, annuities, and stocks. They handle retirement, pensions, tax, asset allocation, estate, and elder care issues. This document uses different research tools and techniques. All attempts to estimate future results involve assumptions and judgments and are therefore only tentative estimates. The law, investment climate, interest rates, and personal circumstances will all change and will affect how accurate our estimations are and how appropriate our recommendations are.
Such a plan requires ongoing change sensitivities as well as constant re-examination and alteration of the plan. So update your plan a few months before your expected retirement date and do an annual review. Nothing contained herein shall be construed as an attempt by The Retirement Group, LLC or any of its employees to practice law or accounting. We look forward to speaking with any tax and/or legal professionals you may select regarding the implications of our recommendations. In your retirement years after leaving General Mills, we will keep you updated on issues affecting your retirement via our complimentary and proprietary newsletters, workshops, and periodic updates. Or call us at (800) 900-5867.'
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!
Sources:
1. Financial Samurai. 'How High Net Worth Individuals Invest: Asset Allocation Breakdown.' Financial Samurai , 15 Oct. 2019, www.financialsamurai.com/how-high-net-worth-individuals-invest-asset-allocation-breakdown/ .
2. Right Horizons. 'Asset Allocation: A Guide for High Net Worth Investors.' Right Horizons , 22 Dec. 2024, www.righthorizons.com/asset-allocation-guide-high-net-worth-investors/ .
3. Sensible Money. 'Retirement Benchmarks: Go Beyond the S&P 500 Index.' Sensible Money , 11 Oct. 2024, www.sensiblemoney.com/retirement-benchmarks-go-beyond-sp-500/ .
4. The IFW. 'Smart Strategies for High Net Worth Investing in the Current Market.' The IFW , 27 Sept. 2024, www.ifw.com/smart-strategies-high-net-worth-investing/ .
5. Equirus Wealth. 'Asset Allocation Strategies for High-Net-Worth Individuals.' Equirus Wealth , 17 Nov. 2024, www.equiruswealth.com/asset-allocation-strategies/ .
How can employees of General Mills, Inc. maximize their benefits under the BCTGM Retirement Plan, and what factors are considered in determining pension amounts for those nearing retirement? This question aims to explore the intricate details of how General Mills, Inc. structures its pension benefits to support employees’ future financial stability. It's important for employees to understand the value of their years of service and how this affects their ultimate pension payout as they approach retirement.
Maximizing Benefits under the BCTGM Retirement Plan: Employees of General Mills can maximize their benefits under the BCTGM Retirement Plan by understanding how their years of service and negotiated benefit levels directly affect the pension they receive. The pension amount is determined by the length of service and a defined benefit formula based on the number of years of Benefit Service accrued. As employees approach retirement, they should consider whether they meet eligibility criteria for early or normal retirement, as these factors influence the ultimate pension payout(General_Mills_2024_Pens…).
What are the eligibility requirements for participating in the BCTGM Retirement Plan at General Mills, Inc., and how does this participation impact future retirement benefits? Employees should be well-informed about what constitutes eligibility to participate in the retirement plan. Understanding criteria such as service length, employment status, and union participation is crucial, as it directly relates to their ability to accrue retirement benefits.
Eligibility Requirements for BCTGM Retirement Plan: To participate in the BCTGM Retirement Plan, employees must be regular employees of General Mills covered by a collective bargaining agreement. Eligibility is automatic after completing a probationary period. Participation impacts future retirement benefits as employees begin to accrue pension benefits based on years of service, which contributes to their final payout during retirement(General_Mills_2024_Pens…).
In what ways does General Mills, Inc. ensure that benefits from the BCTGM Retirement Plan remain protected under federal law, and what role does the Pension Benefit Guaranty Corporation (PBGC) play in this? Knowledge of the protections available can significantly influence employees' assurance in the viability of their pension benefits. It is vital for employees to recognize how federal guarantees work in safeguarding their retirement benefits.
Federal Law Protections and PBGC's Role: The BCTGM Retirement Plan is protected under federal law, ensuring that employees’ retirement benefits are safeguarded. The Pension Benefit Guaranty Corporation (PBGC) insures vested benefits, including disability and survivor pensions, up to certain limits. This protection provides employees with assurance that their pensions are protected, even in the event of plan termination(General_Mills_2024_Pens…).
How does General Mills, Inc. address the complexities of vesting in the BCTGM Retirement Plan, and what can employees do if they are concerned about their vested rights? Vesting is a key concept that affects employees' access to benefits over their careers. Employees need to understand the vesting schedule outlined by General Mills, Inc. and the implications it has on their retirement plans.
Vesting in the BCTGM Retirement Plan: Employees vest in the BCTGM Retirement Plan after completing five years of Eligibility Service or upon reaching age 65. Once vested, employees have a non-forfeitable right to their pension benefits, which means they retain their pension rights even if they leave the company before reaching retirement age(General_Mills_2024_Pens…).
What options are available to employees of General Mills, Inc. if they experience a change in their employment status after being vested in the BCTGM Retirement Plan, and how might this impact their future retirement pensions? This question prompts discussion on the plan's provisions regarding reemployment and what employees should be aware of when considering changes to their employment status.
Impact of Employment Status Changes on Pension: If an employee's status changes after being vested in the BCTGM Retirement Plan, such as leaving the company, they may still be entitled to pension benefits. The plan outlines provisions for reemployment and how prior service years are counted toward future pension calculations. Employees who are reemployed may have their previously earned service restored(General_Mills_2024_Pens…).
How does the BCTGM Retirement Plan at General Mills, Inc. work in conjunction with Social Security benefits, and what should employees be aware of regarding offsets or deductions? This can encompass the interplay between corporate pension plans and governmental benefits, which is critical for employees to plan their retirement effectively.
Coordination with Social Security Benefits: The BCTGM Retirement Plan operates in addition to Social Security benefits. There are no direct offsets between the pension and Social Security benefits, meaning employees receive both independently. However, employees should be aware of how the timing of drawing Social Security and pension benefits may affect their overall financial situation(General_Mills_2024_Pens…).
What steps must employees of General Mills, Inc. take to initiate a claim for benefits under the BCTGM Retirement Plan, and how does the claims process ensure fairness and transparency? A clear comprehension of the claims process is essential for employees to secure their pension benefits. This question encourages exploration of the procedures in place to assist employees in understanding their rights and options.
Claiming Benefits under the BCTGM Retirement Plan: Employees must terminate employment before claiming their BCTGM Retirement Plan benefits. The claims process involves submitting the required forms, and employees must ensure they provide all necessary documentation for a smooth process. The pension is generally paid monthly, with lump-sum options available under specific circumstances(General_Mills_2024_Pens…).
How does the retirement benefit formula of the BCTGM Retirement Plan operate, and what specific factors should an employee of General Mills, Inc. consider while planning for retirement? Delving into the calculations involved in determining retirement benefits is important for employees to understand how their service years and other contributions come together to form their final retirement payout.
Retirement Benefit Formula: The retirement benefit formula is calculated based on the years of Benefit Service and a defined benefit level. As of 2024, for each year of Benefit Service, employees receive $87 per month (increasing to $88 after June 1, 2025). Planning for retirement involves considering how long they will work and the benefit level in place at the time of retirement(General_Mills_2024_Pens…).
What additional resources or support does General Mills, Inc. provide to assist employees in planning their retirement and ensuring they make the most of their benefits offered under the BCTGM Retirement Plan? Understanding the tools and resources available can empower employees to take proactive steps in managing their retirement plans effectively.
Resources for Retirement Planning: General Mills offers resources like the Benefits Service Center and online portals (e.g., www.mygenmillsbenefits.com) to assist employees with retirement planning. These tools help employees understand their benefits, calculate potential payouts, and explore options for maximizing their retirement income(General_Mills_2024_Pens…).
How can employees contact General Mills, Inc. for further information about the BCTGM Retirement Plan or specific queries related to their retirement benefits? This question is crucial so employees know the appropriate channels for communication and can seek clarification on any concerns they may have regarding their retirement planning.
Contact Information for Plan Inquiries: Employees can contact General Mills for more information about the BCTGM Retirement Plan through the Benefits Service Center at 1-877-430-4015 or visit www.mygenmillsbenefits.com. This contact provides direct access to support and answers to questions about their retirement benefits(General_Mills_2024_Pens…).
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