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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
If you are a L3Harris employee looking to buy real estate as a part of your retirement planning, then you should know that such an approach has its advantages and disadvantages,' says Michael Corgiat of The Retirement Group, a division of Wealth Enhancement Group.
Brent Wolf from The Retirement Group, a division of Wealth Enhancement Group advises L3Harris employees who want to diversify their retirement portfolio with real estate to focus on due diligence and the local market dynamics.
In this article, we will discuss:
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1. Diverse Retirement Investment Strategies: We compare the conventional stock market investments with the real estate options for retirees and emphasize the tangible benefits and the stability that comes with real estate.
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2. Challenges and Benefits of Real Estate Investment for Retirement: We explore the possible drawbacks, such as problem tenants and repair costs, against the background of healthy rental yields and tax advantages.
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3. Real Estate Retirement Stories: Real tales from four people over the age of 65 who have invested heavily in real estate, including their stories, approaches, and results.
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While on Wall Street, many people save for their retirement, some of the L3Harris employees may decide to own real estate, which is a more tangible asset, with a better curb appeal. Having kitchens, doors, and walls around their nest egg makes retirees more comfortable. These retirement investors like the property rental income and the tax benefits that come with being a landlord even though many still rely on the stock market to fund their retirement. Some of them also derive joy from the process of property rehabilitation.
The Boston College's Center for Retirement Research, in its analysis of Federal Reserve data, reported that in 2022, 10% of American homes belonged to an individual 65 years of age or older who received rental income, while just 7% of households with an individual under 65 years of age did the same. Managing properties is a job during retirement. Tenants may not pay or may cause damage, units may stay vacant, and repairs may be immediate. In addition, the costs of property ownership such as insurance and property taxes are also rising.
L3Harris employees should take these into consideration when investing in real estate. Though there are such problems, there are still many retirees who believe that the advantages are greater than the disadvantages. Due to the years of increasing property values and relatively low mortgage rates, a large number of people are retiring on real estate today.
These four real estate retirees share their experiences, the expenses, the worries, and the pleasures of living off a portfolio of properties.
Josh Bottfeld: San Diego, California.
Properties: 7. Mortgage Debt: $1 million. Annual Spending: $120,000. Josh Bottfeld bought a San Diego studio apartment in 1982 using money he had taken out of his retirement account. At 29, he thought that this would provide retirement money from a portfolio. Several years later, he sold the studio and used the proceeds to buy a house in San Francisco, which he and a friend later sold for $125,000 after purchasing for $103,000.
From these earnings, a three-family home in a gentrifying neighborhood was purchased. By the year 2000, Bottfeld owned fifteen properties in Portland, Oregon, Las Vegas, and San Francisco. He was also able to take advantage of a tax loophole that deferred capital gains taxes while investing in another piece of real estate. In 1997, Bottfeld left his job in human resources to become a realtor.
In 2004, he moved to San Diego to run a real estate company and at 53 he retired after retiring from working and from investments and rentals. During the financial crisis, there was a need to return to work for a short time but in 2012, he retired for good. According to Bottfeld, real estate is a good inflation protector and therefore investment in it is better than in equities. He and his spouse, Brent Butler, currently own three rentals in a San Diego home and 14 units in seven buildings. Property managers receive between 6-10% of the rent to take care of the repair and tenant issues.
He has controlled his expenses, but his house equity is only $8 million after mortgages. His four properties are mortgaged and his fixed interest rates are about 3.5%. He has $4.8 million in equities and other interests including bridge loans that pay 8% to 15% to house flippers. He receives about $20,000 a month in rent, $8,000 a month in bridge loans, and $3,200 in Social Security. His lifestyle includes a Danube River cruise this summer at $10,000 per month in expenses.
Sarah McLane: Stowe, Vermont, and Nantucket, Massachusetts.
Properties: 2. Mortgage Debt: $0. Annual Spending: $100,000. Sarah McLane instead chose to build her fortune for retirement in historic homes in Nantucket and Stowe, Vermont while working on Wall Street. She quit her job in financial services in 2017 to become a builder in Vermont and stopped tracking the stock market. Instead, she focused on real estate, which she knew and could improve.
When McLane withdrew most of her $250,000 retirement funds in 2007 to use as a down payment and remodel an 1813 farmhouse in Stowe, she began her real estate career. She used the money for her house rather than withdraw it from her retirement account and pay the 10% early withdrawal penalty though she had to pay income tax on it. The Stowe property is worth $3 million and was purchased by McLane for $2 million. Her passion for establishing a permanent presence in an area she believes her kids would love drove her to peel off wallpaper and finish wood floors while spending her weekends. In 2018, she spent $1.6 million to purchase a historic Nantucket home and $2.5 million to renovate it to rent it out.
To rent out the Nantucket house during the busiest travel season, she intends to live in Vermont for the summer. She expects to generate $250,000 per year, which will be more than enough to cover her $100,000 in expenses. She also holds $1.3 million in bank accounts with 6% interest. During the winter, McLane plans to rent out her Stowe home and use the rental income to maintain it. She intends to live in Nantucket from fall to spring, claiming that it is the perfect place to retire and that he plans to live there. The house is ideal for her future as it is close to Boston and her grandson and has facilities nearby.
Augusta, Georgia / Bryan Haltermann.
Properties: 12 Mortgage Debt: $2 million Annual Spending: $150,000 Even two years after retiring, Haltermann still goes to the office every day to check on his holdings. The former developer of commercial real estate enjoys walking around his properties and talking to his four employees who manage his properties and responding to emails. Playing tennis on the court and having lunch with friends are his slow pace example. Four decades ago, Haltermann's business started when it paid approximately $50,000 for a 10,000 square foot facility that is currently valued at $500,000.
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He was well versed in historic properties and was able to restore them with significant tax benefits. He bought out his company partner about 15 years ago. After retirement, he invested the $5 million profit from the sale of ten buildings for about $10 million. An additional $5 million represents the value of his remaining rents, house, and vacation property, along with $2 million in low-rate mortgages. His insurance, taxes, and mortgage are all paid for by rental income.
He and his spouse, Alicia, are primarily spending on travel and are spending $150,000 a year, or $50,000 more than they did before retirement. Italy and Spain have been their recent favorite travel destinations. Due to the rising costs and interest rates, Haltermann has no plan to purchase any other real estate.
David Zach: California, Sierra Madre.
Properties: 4 Mortgage Debt: $850,000 Annual Spending: $66,000 David Zach didn't see the need for any other investments and put all of his retirement money into real estate. He preferred tangible and touchable assets. The majority of his assets are held by Zach, who is 63, and they are mostly centered on three lots in Sierra Madre: his house, a rental property nearby, and an auxiliary dwelling unit (ADU) that is currently being constructed. His current rents yield about $7,000 per month, and once the new ADU is finished, he expects to receive an additional $2,000. He is happy with his real estate investment of homes worth approximately $3.3 million and $850,000 low-rate mortgages.
Working about ten hours a month, he sells shower parts through his business and earns $84,000 a year. He spends about $5,500 a month on food, property taxes, and mortgage payments. He has invested all of his money in housing, and he has learned from the experiences. He lost a property to foreclosure 16 years ago, and he incurred $300,000 in losses.
He has kept a lean real estate portfolio, given that labor shortages and inflation have increased the cost of building an ADU to $100,000. Recently, when construction expense overruns forced him to preserve his older cars instead of ordering a new one. His two adult children will help to finance his retirement and inherit his rental properties. In his words, 'buy the worst property in the nicest neighborhood that you can afford.'
These anecdotes demonstrate that although investing in real estate is a work and risk that can produce a steady stream of income in retirement for L3Harris employees. Every investor's journey is unique and reflects that of his or her circumstances and preferences in the path towards retirement financial security and satisfaction. Real estate investments for retirement offer L3Harris retirees substantial tax benefits in addition to stable rental income.
The IRS explains that owners of rental properties may be able to lower their overall tax burden by claiming expenses such as property taxes, mortgage interest, depreciation, and repairs on their taxable income (IRS, 2023). This can be particularly helpful for people trying to reduce their tax liabilities and therefore increase their retirement wealth because it can generate a steadier and more reliable source of retirement income.
References:
1. Dalton, Michael J. Retirement Planning and Employee Benefits. 20th ed., Money Education, 2025. UCLA Extension. www.uclaextension.edu .
2. 'Real Estate Investing for Beginners: 5 Skills of Successful Investors.' Harvard Division of Continuing Education, 2023. professional.dce.harvard.edu.
3. 'Why ASPPA Number So Low and 2012 Budget Number So High?' Center for Retirement Research at Boston College, 2023. crr.bc.edu.
4. 'Retirement Planning Today.' Virginia Commonwealth University, School of Business, 2023. business.vcu.edu.
5. Grainger, Lauren. 'Retirement Planning Today Course Details.' Virginia Commonwealth University, 2023. connect.business.vcu.edu.
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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