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Healthcare Provider Update: Healthcare Provider for HP Hewlett-Packard, commonly known as HP, offers a variety of health insurance plans through large national insurers including UnitedHealthcare, Aetna, and Anthem. The choice of provider may depend on the region and specific employee benefits plan that HP provides to its workforce. Potential Healthcare Cost Increases in 2026 In 2026, healthcare costs are projected to rise significantly for consumers, particularly those enrolled in Affordable Care Act (ACA) marketplace plans. With some states expecting premium hikes exceeding 60%, many consumers may find their out-of-pocket costs increasing by over 75% due to the expiration of enhanced federal premium subsidies and rising medical costs. Insurers have cited a combination of escalating healthcare expenses and the need for aggressive rate adjustments to maintain profitability as key factors behind these anticipated increases. As this scenario unfolds, it will be crucial for individuals to carefully assess their healthcare options for the coming year. Click here to learn more
'HP 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, HP 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 HP 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 HP or helping pay for your children's college - the components necessary to reach them all require careful management. The best HP financial planning strategies start with assessing your situation holistically and simplifying it by finding the right experts to help you.
High-Net-Worth HP individuals' comprehensive asset allocation. Your life may have a lot of moving parts because you work at a HP 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 HP.
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 HP 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 HP 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 HP. 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 HP.
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 HP 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 HP. 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 HP. 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 HP. 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 HP 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 HP company benefits for the best advice on financial planning. The Retirement Group advisors train to help HP 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 HP. 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 HP, 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 does HP Inc. ensure that the pension plan benefits will remain stable and secure for employees in the future, and what measures are being implemented to mitigate financial volatility associated with these benefits? Employees of HP Inc. should be particularly aware of how the transition of their pension payments to Prudential will affect their financial security and what protections are in place to ensure that these payments are maintained without disruption.
HP Inc. ensures pension plan benefits remain stable and secure by transferring the payment obligations to Prudential, a highly-rated insurance company selected through a careful review by an Independent Fiduciary. This move is aimed at reducing financial volatility associated with HP's pension obligations while maintaining the same benefit amount for retirees. Prudential's established financial stability provides additional security to employees(HP Inc_November 1 2021_…).
What specific details can HP Inc. employees expect to learn in the Welcome Kit from Prudential, and how will these details help them understand their new payment system? HP Inc. pension participants will need to familiarize themselves with the information outlined in the Welcome Kit to make informed decisions regarding their pension benefits going forward.
The Welcome Kit from Prudential will provide HP Inc. employees with instructions to set up an online account, along with details on managing payments, tax withholdings, and other resources. This information will allow employees to familiarize themselves with Prudential’s system and ensure a seamless transition without disruptions(HP Inc_November 1 2021_…).
In what ways does the selection process for Prudential as the insurance provider reflect the commitment of HP Inc. to the well-being of its employees? Understanding the rationale behind this decision will give HP Inc. employees insights into the fiduciary responsibilities and governance processes that protect their retirement benefits.
The selection of Prudential reflects HP Inc.'s commitment to employee well-being, as it involved the Independent Fiduciary conducting an extensive review of insurance providers. Prudential was chosen based on its financial strength and ability to manage pension payments securely, showing HP's focus on protecting retirement benefits(HP Inc_November 1 2021_…).
How will the annuity payments from Prudential differ from the previous pension payments in terms of tax implications and reporting for HP Inc. employees? It is crucial for employees of HP Inc. to comprehend the tax treatment of their new annuity payments to avoid any potential pitfalls in their personal financial planning.
The annuity payments from Prudential will be taxed similarly to the previous pension payments, though employees will receive two separate 1099-R forms for 2021 (one from Fidelity and one from Prudential). For future years, only a single form will be issued. This ensures employees are aware of how to manage tax reporting(HP Inc_November 1 2021_…).
What resources are available to HP Inc. employees seeking assistance regarding their pension benefits, and how can they effectively utilize these resources to address their concerns? Knowing how to access support and guidance will empower HP Inc. employees to manage their retirement benefits proactively.
HP Inc. employees seeking assistance can access live customer support through Fidelity or contact Prudential directly after the transition. Additionally, the Welcome Kit will include important contact information for managing their benefits, making it easy for employees to address concerns(HP Inc_November 1 2021_…).
How can HP Inc. employees verify the financial health and stability of Prudential, and why is this factor important in the context of their pension benefits? Employees must ask how Prudential's financial standing influences their view of long-term pension security and what metrics or ratings they should consider.
HP Inc. employees can verify Prudential’s financial health by reviewing Prudential's annual financial reports, which are publicly available. Prudential’s strong financial ratings were a key factor in its selection, assuring employees of long-term pension security(HP Inc_November 1 2021_…).
What steps should HP Inc. employees take to update their personal information, such as banking details and tax withholding preferences, following the transition to Prudential? Understanding these processes will ensure a smooth continuation of benefits for HP Inc. employees as they adapt to the new system.
Employees do not need to re-submit their personal information to Prudential, as HP will securely transfer all necessary data, including banking and tax withholding preferences. This ensures the continuation of pension payments without the need for employee intervention(HP Inc_November 1 2021_…).
How does HP Inc. plan to address potential changes in the financial landscape that may affect pension benefits, and what role does the insurance contract with Prudential play in this context? HP Inc. employees should be informed about the company's strategic outlook and how it aims to safeguard pension assets against economic uncertainties.
HP Inc. plans to address potential financial changes through its contract with Prudential, which guarantees pension payments will remain the same. Prudential manages these risks as part of its core business, providing added security against economic volatility(HP Inc_November 1 2021_…).
In what circumstances might HP Inc. employees see changes in their net pension payments following the transition to Prudential, despite assurances that payment amounts will remain unchanged? This understanding will help employees manage their expectations regarding future payments and any adjustments they may need to make.
Employees might see changes in their net pension payments due to tax adjustments or changes in withholding instructions, but the gross payment amount will remain unchanged. Any garnishments or other deductions will continue as before, ensuring consistency in payment structure(HP Inc_November 1 2021_…).
How can HP Inc. employees contact the company directly to learn more about the pension transition process, and what channels are available for them to have their questions addressed? Clear communication lines are essential for HP Inc. employees to ensure they receive timely and relevant information regarding their pension situations.
HP Inc. employees can contact the company through the Fidelity support line or directly through Prudential for any questions about the pension transition. The Welcome Kit and other resources will provide contact details, ensuring employees have access to timely support(HP Inc_November 1 2021_…).
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