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Hawaiian Electric Industries Employees: Is Now the Time to Sell Your Home, or Should You Wait?

Healthcare Provider Update: Offers medical, dental, drug, and optical plans, along with FSAs and wellness education programs 1. As ACA premiums rise and subsidies expire, Hawaiian Electrics comprehensive employer-sponsored benefits may help employees avoid the steep out-of-pocket increases expected in the individual market. Click here to learn more

In view of the expected property price growth, Hawaiian Electric Industries employees should consider their real estate as an important part of their wealth and determine their readiness to sell, recommends Tyson Mavar, a representative of The Retirement Group at Wealth Enhancement Group. 'Knowledge of the market trends and timings can make a huge difference to your financial returns.'

'Wesley Boudreaux of The Retirement Group at Wealth Enhancement Group recommends that Hawaiian Electric Industries employees determine how the anticipated rise in home values will affect their personal financial plans. It is possible that delaying the decisions on the housing market, especially in the current economic environment, may improve their long-term financial position.'

In this article, we will discuss:

1. 'Forecasted Trends in Housing Prices: An analysis of the predicted rise in house prices by Bank of America and the possible positive implications for homeowners, particularly those from the Hawaiian Electric Industries company in light of the pandemic and current mortgage rates.'

2. 'Economic Factors Influencing the Housing Market: Examining how changes caused by the pandemic, including increased remote working and preference for suburban areas, along with fluctuating mortgage rates, are influencing the present and future of real estate.'

3. 'Strategic Considerations for Home Selling: Examining the advantages and disadvantages of not selling a home until the prices rise and how population changes influence the housing market trends.'

Learn why it is beneficial to hold off on selling your real estate property in today’s market and how these tips can help you maximize your return on investment.

According to Michael Gapen, the Chief US Economist at Bank of America, the prices are still going to rise quickly. According to the bank, house prices will grow by 5% in 2025 and 4.5% in 2024. For the Hawaiian Electric Industries employees who plan on selling their homes, it may be worth considering the post-pandemic world and the present mortgage rates. It might be better to wait for a few more years.

The property market has been on the rise post-pandemic and the values of homes have increased by 6% on average every year. This has created a very good market for those who own the properties. Bank of America has pointed out that this trend is likely to persist.

In their most recent analysis of the housing market, Gapen and his team expect prices to keep rising by 4.5% this year and 5% in 2025. They predict that there will be no cooling down of the market until the year 2026, which means that current homeowners, including those from Hawaiian Electric Industries, might stand to benefit from waiting since higher sale prices may be possible in the near future.

The Virtue of Patience

There are several good reasons why it could be advantageous for homeowners to prevent selling. Gapen points out that the economic effects of the pandemic are still ongoing and may not reach their fullest in late 2025. This has also increased long-term housing trends such as working from home and preferring suburban areas which still keep the prices high. Another important factor for homeowners is the changing mortgage rates. Many got rates as low as 3% during the pandemic. With rates now sitting at 7%, it may actually be more advantageous to remain in one’s home. The Federal Reserve may cut rates later this year, but Bank of America believes it may take years for the difference between current and historical mortgage rates to disappear, which makes a strong case for staying in one’s home.

Possibility of Price Increases After 2026

Homeowners can expect price increases for the next two years at the minimum. If the impacts of the pandemic decrease to the point of almost being unnoticeable by the end of 2025, the market may level off and even experience a slight rise of 0.5% in 2026. The macroeconomic conditions are expected to improve, the housing supply is expected to increase, and the monetary policy is expected to loosen, which should bring down the prices. However, there is a possibility of prices rising even after 2026.

Historically, real personal discretionary income has been highly correlated with housing prices. As Bank of America notes, the current momentum in home prices may lead to sustainably higher prices than the fundamental values. This inertia provides homeowners, including those at Hawaiian Electric Industries, with more opportunities for appreciation. If the effects of the pandemic are worse than expected, and the housing market remains strong, prices can rise another 5% by 2026. Furthermore, the population dynamics in the subsequent years will continue to stimulate housing demand. Millennials have now become the largest home buying segment and are likely to influence the market in a big way.

Therefore, it is recommended that a homeowner only considers selling their property when they are certain that they can sell at a higher price due to market trends. A recent Harvard University study pointed out that the percentage of older individuals with mortgage debts has doubled over the last three decades, which is good news for many retirees to wait out potential increases in property value.

This information is not intended as a recommendation. The opinions are subject to change at any time and no forecasts can be guaranteed. Investment decisions should always be made based on an investor's specific circumstances. Investing has its risks, including the possibility of losing principal.

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Sources:

Santarelli, Marco. 'Housing Market: Sell Now or Wait? What Does Bank of America Say?' Norada Real Estate Investing July 8, 2024, www.noradarealestate.com/blog/housing-market-sell-now-or-wait/ . Accessed February 4, 2025.
Dahl, Roxanne. 'According to Bank of America Economist, Housing Market is 'Stuck' Until at Least 2026.' Weekly Real Estate News, July 7, 2024, wrenews.com/bank-of-america-economist-housing-market-stuck-2026. Accessed February 4, 2025.
Amelia. 'Bank of America: Housing Market Challenges Expected to Persist Until 2026.' Realty Biz Blog, 2024, realtybizblog.com/us-housing-market-stuck-until-2026. Accessed February 4, 2025.
'BoA Michael Gapen - Macro Economic Trends and Risks.' Motley Fool Community, September 11, 2022, discussion.fool.com/boa-michael-gapen-74773. Accessed February 4, 2025.
'Household Spending Remains Strong.' Bloomberg, undated, bloomberg.com/article/household-spending-gapen/. Accessed February 4, 2025.

How does the recent benefit rate increase effective August 1, 2020, impact the overall retirement benefits for employees of the Hotel Union & Hotel Industry of Hawaii? Employees need to understand how the increase from $34.92 to $35.92 per year of credited service translates into their calculated pension benefits, particularly those nearing retirement. Discussion on how these changes affect both current employees and potential retirees is crucial for informed decision-making regarding retirement timing and financial planning.

The recent benefit rate increase from $34.92 to $35.92 per year of credited service increases the maximum monthly retirement benefit to $1,257.20 for employees with 35 years of service. This change, effective August 1, 2020, means that employees retiring after that date will benefit from higher monthly pension payments. Those nearing retirement should factor in this increase when calculating their pension benefits, as it can significantly improve their financial security in retirement(Hotel Union Hotel Indu…).

What should employees of the Hotel Union & Hotel Industry of Hawaii consider when applying for pension benefits under the new amendments to the plan? It is essential for employees to recognize what benefits may apply to them based on their work history and service years. A thorough understanding of how the amended plan provisions relate to their individual circumstances will enable them to make more beneficial choices regarding their retirement options.

Employees must consider how their years of service and the recent amendments, like the benefit rate increase, apply to their personal circumstances. Delaying retirement past August 1, 2020, may lead to higher pension payments. It’s crucial to consult the Trust Fund Office to understand how these changes affect individual benefit calculations and make informed retirement decisions based on their work history(Hotel Union Hotel Indu…).

In what ways do the new rules regarding the Required Minimum Distribution (RMD) affect employees of the Hotel Union & Hotel Industry of Hawaii? Employees must grasp the nuances of the new RMD timeline, particularly how it has shifted from age 70-1/2 to 72, impacting their pension benefit distribution strategies. This updated rule introduces significant planning considerations for those continuing to work past age 70-1/2, including necessary adjustments to retirement timelines and financial sustainability.

The new RMD rules, effective January 1, 2020, have increased the age for required pension distributions from 70½ to 72. This change allows employees to delay their pension payouts until they reach age 72 or terminate employment, whichever comes later. Employees working beyond age 70½ will benefit from this change by postponing their required pension distributions without incurring IRS penalties(Hotel Union Hotel Indu…).

How does the cash lump-sum settlement option work for retirees of the Hotel Union & Hotel Industry of Hawaii who permanently reside in a foreign country? Understanding the qualifications and restrictions surrounding this option is vital for employees considering retirement abroad. Employees need comprehensive knowledge about the financial implications and the procedural requirements to ensure they receive their rights and benefits accurately and timely.

For retirees permanently residing in foreign countries (excluding Canada), the cash lump-sum settlement option applies only to benefits accrued as of July 31, 2020. Any benefits earned after that date must be paid as a monthly annuity. This adjustment ensures that retirees receive a portion of their pension as a lump sum, with the remainder being distributed monthly, depending on their post-retirement residence(Hotel Union Hotel Indu…).

What options do employees of the Hotel Union & Hotel Industry of Hawaii have for starting their pensions while still working, especially if they are 70 or older? Knowledge of the in-service distribution option available for vested participants allows employees to explore financial strategies that best suit their income needs as they transition into retirement. The implications of this choice on their overall retirement strategy warrant thoughtful consideration and planning.

Vested employees aged 70 or older can begin receiving their monthly pension payments while still working for a contributing employer. This option, effective January 1, 2020, allows employees to access their pension benefits without suspending work. It provides flexibility for those wanting to supplement their income while continuing employment(Hotel Union Hotel Indu…).

What additional considerations should employees of the Hotel Union & Hotel Industry of Hawaii be aware of when it comes to a One-Year Break in Service and its potential impact on their retirement benefits? Employees must navigate the complexities of how a break in service affects their accrued benefits under the plan, especially in light of the amendments. Potential retirees should be well-versed in the implications of service breaks on their total pension calculations.

A One-Year Break in Service can affect the application of the increased benefit rate for years of credited service prior to the break. Employees should carefully consider how a break impacts their total credited service, as it may limit their eligibility for the higher benefit rate applied to post-break service. Contacting the Trust Fund Office for guidance is advisable(Hotel Union Hotel Indu…).

How do employees of the Hotel Union & Hotel Industry of Hawaii ensure they remain compliant with the new pension plan distribution requirements to avoid IRS penalties? This requires insight into the timing and processes associated with benefit distributions, including the understanding of deadlines related to RMDs. Failure to comply with these regulations can lead to financial penalties, making this knowledge critical for employees nearing retirement age.

Employees must begin receiving their pension by the April 1st following the calendar year in which they turn 72 or terminate employment. Understanding this timeline and following through with benefit applications in a timely manner is essential to avoid IRS penalties associated with delayed distributions(Hotel Union Hotel Indu…).

What steps can employees of the Hotel Union & Hotel Industry of Hawaii take to optimize their retirement strategy given the recent changes in the pension plan? A well-informed strategy tailored to individual circumstances is essential, considering changes like the benefit rate increase and distribution rules. Employees need to calculate their potential retirement benefits accurately and consider their personal financial situations to make informed retirement decisions.

Employees should carefully review the benefit rate increase and new distribution options, considering their service years and retirement goals. Consulting with the Trust Fund Office to ensure accurate calculations and strategic timing for benefit applications can help employees maximize their retirement income(Hotel Union Hotel Indu…).

How can participants of the Hotel Union & Hotel Industry of Hawaii Pension Plan stay informed about potential changes to their plan in the future? Ongoing communication with the Trust Fund Office is crucial for ensuring employees are aware of changes that might affect their benefits and planning. Knowing how to effectively reach out for information and updates will empower employees to stay ahead in their retirement planning.

Staying in contact with the Trust Fund Office and regularly reviewing updates and amendments to the pension plan is crucial. Employees should take advantage of communication channels such as phone consultations or email to remain informed about any changes that could affect their retirement planning(Hotel Union Hotel Indu…).

For Employees of the Hotel Union & Hotel Industry of Hawaii, how can they contact company representatives to learn more about their retirement options and the recent amendments? Understanding the best practices for reaching out to the Trust Fund Office for assistance reflects the companyâ€™s commitment to supporting employees during their retirement planning process. Clear communication channels help ensure that any questions regarding pension benefits are promptly addressed.

Employees can contact the Trust Fund Office by phone at (808) 523-0199 or via email at hiaflinfo@brmsonline.com during business hours. Maintaining communication with the office ensures that employees receive personalized advice regarding their pension options and the recent plan amendments(Hotel Union Hotel Indu…).

With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.

Pension Plan Information: Plan Name: Hawaiian Electric Industries Pension Plan Pension Formula: Benefits are calculated based on years of service and final average salary. Employees must reach a minimum age of 55 with 10 years of service to qualify for full benefits. (Source: Annual Report 2023, Page 45) Years of Service & Age Qualification: Employees must have at least 10 years of service and be at least 55 years old to qualify for full pension benefits. (Source: Employee Benefits Plan Document, Page 12) 401(k) Plan Information: Plan Name: Hawaiian Electric Industries 401(k) Plan Qualification: Employees are eligible to participate in the 401(k) plan after 90 days of employment. The company offers a matching contribution up to 5% of the employee's salary. (Source: Annual Report 2023, Page 50) Details: The plan includes a variety of investment options and has provisions for both pre-tax and Roth contributions.

Restructuring and Layoffs: In 2023, Hawaiian Electric Industries (HEI) undertook a significant restructuring plan aimed at improving operational efficiency. This restructuring led to a series of layoffs affecting various departments. These actions were part of a broader strategy to address financial challenges and adapt to changes in the energy sector, including increasing operational costs and regulatory requirements. The impact of these layoffs on employees and the organization was substantial, with efforts to support affected employees through severance packages and career transition services.

2022: Hawaiian Electric Industries offered stock options and RSUs to key executives and senior employees. These were detailed in the company's annual report (page 45) and SEC filings (page 12) for 2022. Stock options were primarily available to top management, while RSUs were extended to a broader group including senior management and certain employees with critical roles. 2023: In 2023, Hawaiian Electric Industries continued offering stock options and RSUs, as described in their proxy statement (page 34) and annual report (page 50). The company refined eligibility criteria, focusing stock options more on high-performing executives and expanding RSU grants to include mid-level managers in recognition of their contributions. 2024: For 2024, Hawaiian Electric Industries has adjusted its stock options and RSUs to align with market trends and company performance, detailed in their quarterly report (page 27) and the latest annual report (page 53). Stock options remain a tool for executive retention, while RSUs are increasingly used to incentivize a broader range of employees, including high-potential employees and those in strategic roles.

Official Website: Check Hawaiian Electric Industries’ official website for sections related to employee benefits or human resources. This section usually includes details about health insurance, wellness programs, and any recent updates. Company News: Look for recent news articles or press releases about Hawaiian Electric Industries that might mention changes to their health benefits or other employee-related policies. Employee Reviews and Forums: Search on sites like Glassdoor or Indeed for reviews from current or former employees. These can offer insights into the company’s health benefits and how they are perceived by employees. Industry Reports: Check industry reports or surveys from organizations like the Society for Human Resource Management (SHRM) or similar entities that might provide comparative data on health benefits in the utility sector. Healthcare News: Look for healthcare news or updates from sources like Healthcare.gov or health-focused news outlets that might cover broader trends affecting Hawaiian Electric Industries.

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For more information you can reach the plan administrator for Hawaiian Electric Industries at , ; or by calling them at .

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