Webinar in Review Blog: Staying Safe with Best Practices

Contributed by: James Brown

In today’s technology environment, information is just a click away. Sadly, bad guys looking for your information are just a click away also. Good security practices can protect you from becoming prey while you are on the Web.

The Center for Financial Planning, Inc.® offers some best practices on how to protect your accounts and your information.

Basic Security Hygiene: (Minute 1:15)

• Prevention

• Updates

• Firewalls

• Safe Browsing

Mobile\Wireless Security: (Minute 6:50)

• Limit your transactions

• Make sure the network is the right network

• ·Turn off what you are not using

Passwords: (Minute 11:10)

• Bad Practices

• Good Practices

Final Solution: (Minute 25:00)

• Your Backup Plan

• Backup best Practices

James Brown is an IT Manager at Center for Financial Planning, Inc.®

Can You Have a Purposeful Retirement?

Contributed by: Sandra Adams, CFP®

It is quite often we find ourselves as financial planners delivering the good news to clients that their financial plans are on solid footing and their retirement goals are on track, only to hear from the client that they still don’t feel that they are “ready” to retire.  These clients, while financially prepared, express that they don’t feel they have put enough planning into the practical side of retirement – what will we do every day that will give our lives meaning, purpose and joy?

A book I found recently gives guidance for clients struggling to design the next phase of their lives. Hyrum Smith, the author of Purposeful Retirement: How to Bring Happiness and Meaning to Your Retirement, provides tips, tools, and stories based on his journey through this very process.  In his words, “The rest of your life can be the best of your life” if you have the right attitude, embrace this stage, and bring enthusiasm to the process.  He finds that folks entering this phase are in one of two camps – those who can’t wait and those who will need to be dragged into it kicking and screaming.  It is important to identify which camp you are in and check your attitude at the door.

Takeaways from “Purposeful Retirement”:

• Being proactive is the key to transitioning well into retirement. If you simply let yourself drift into retirement, you can become lost without the purpose or structure that your work life provided.

• Take charge of planning your next phase by defining your mission, your purpose and core values which will help direct how you spend your time in retirement.

• The book offers options for how to take your purpose and translate it into action on a weekly and daily basis.

• Fear or losing your identity or role is a key fear for many entering retirements. For those folks, asking, “How will I make a difference?” will help fill that gap.

• For many, retirement is not a solo endeavor (we do it with our spouse). The book offers lessons on how to retire well as a couple and make adjustments that may need to be discussed and made to make retirement successful for both of you.

• Just because you are entering into the last phase of your life doesn’t mean you are dead yet! This can be your most successful, joyful, fulfilling phase of your life – if you are intentional and embrace it with enthusiasm.

Financially planning for your retirement is just the first step in the process.  Emotionally and psychologically planning for the last phase of your life may be the more challenging part for some – especially if you don’t want to coast to the end.  “Purposeful Retirement” may be a good place to start, and/or or have a conversation with your financial planner about other ways to help you plan your NEXT best phase of life.  We are always here to help!

Sandra Adams, CFP® is a Partner and Financial Planner at Center for Financial Planning, Inc.® Sandy specializes in Elder Care Financial Planning and is a frequent speaker on related topics. In addition to her frequent contributions to Money Centered, she is regularly quoted in national media publications such as The Wall Street Journal, Research Magazine and Journal of Financial Planning.

Under the Hood: Investment Allocation for 529 Savings Plans

Contributed by: Matthew E. Chope, CFP®

As many parents and grandparents know, 529 plans can be a wonderful strategy for families to help build college tuition savings for their children.  Not only do the plans benefit students, but they also carry advantages for the account creators or donors. The student can potentially enjoy tax-deferred growth with federally tax-free distributions if used for qualified educational expenses. Advantages to the donor include complete control of the account, high contribution limits, and no age restrictions or income limitations to inhibit investing.  It’s no surprise that 529 savings plans have become popular savings vehicles.

Have you ever wondered how 529 college savings plans are invested to meet time-sensitive tuition expenses? 

Age-based investment funds make this challenge easily manageable.  The graph below shows the glide path of equity allocations for 529 savings plans at various ages of the beneficiary from 2010 to 2013.

• Generally, 80% of the portfolio is invested in equities at age 0 and reduces to 10% by the time the beneficiary is enrolled in college.

• Since 2010, plan investment managers have become more conservative in the beginning (age 0) and end (age 19) stages of plans.

• Investment managers have become 6-7% more equity aggressive during ages 5-15 to meet tuition goals.

To meet tuition needs within 18 years, the graph reveals that investment managers are becoming more aggressive during the middle of a student’s investment time horizon, but they are also growing more cautious about preserving money closer to the end of the student’s investment time frame.  Interestingly, the graph also reveals that investment managers still rely on bonds as one of the safest places to preserve money (90% of the portfolio by age 19), despite the negative reputation bonds have received in our current rising rate environment. 

The glide path is designed to allow for an outcome with minimal surprises to all investors, no matter the economic environment when it’s time for college.  Some cycles will end on a poor note with markets crashing, while in other times markets will be soaring as students begin to tap the funds.  Ultimately, the guide path is designed to gradually reduce investors’ risk and exposure to market disruptions in the final years of saving, when investors are closest to needing the money they’ve worked so hard to save.  

Investors should carefully consider the investment objectives, risks, charges and expenses associated with 529 plans before investing. This and other information about 529 plans is available in the issuer's official statement and should be read carefully before investing. Investors should consult a tax advisor about any state tax consequences of an investment in a 529 plan.

As with other investments, there are generally fees and expenses associated with participation in a 529 plan. There is also a risk that these plans may lose money or not perform well enough to cover college costs as anticipated. Most states offer their own 529 programs, which may provide advantages and benefits exclusively for their residents. The tax implications can vary significantly from state to state.

Matthew E. Chope, CFP ® is a Partner and Financial Planner at Center for Financial Planning, Inc.® Matt has been quoted in various investment professional newspapers and magazines. He is active in the community and his profession and helps local corporations and nonprofits in the areas of strategic planning and money and business management decisions.

---

The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete, it is not a statement of all available data necessary for making an investment decision, and it does not constitute a recommendation. Any opinions are those of the author and are not necessarily those of Raymond James.

Fun Money Lessons over Summer Vacation

Contributed by: Robert Ingram

Now that summer is officially here and the kids are out of school, a lot of our attention may be on cookouts, camping, days at the beach, or fun on the water.  Yet, summer vacation can also provide great opportunities for teaching children and grandchildren lessons about money and good financial habits that can grow with them.  

Here are some ideas to get the kids learning about money while enjoying the summer fun:

Make It a Game

Playing games is certainly a fun way for kids (and many adults) to entertain themselves during the summer months. It can also help develop counting and math skills and introduces many money management concepts around earning, spending and saving.  There are so many kinds of games in all different formats.

• Technology is a big part of our daily lives. Children are growing up immersed in the world of smartphones, tablets and computers. The good news is that kids allotted time on those can be spent doing online games focused on building money skills. For example, the website practicalmoneyskills.com offers games for different age groups:

  • Peter Pig’s Money Counter for younger elementary school children

  • Sports-themed Financial Football and Financial Soccer for ages 11 and above

• In the wide universe of smartphone apps, there are thousands of games available. By searching your app store under educational categories, financial, or money games, you can find some hidden gems. A couple of examples recognized by Parents Choice Awards and financial literacy organizations include:

  • Marble Math and Savings Spree for elementary school age children

  • Farm Blitz for pre-teens to young adults

• Although these might seem “low tech,” you can’t forget about the old-fashioned family board games. These include classics like Monopoly, Monopoly Jr, Pay Day, and the Game of Life, or other unique games like Allowance or Acquire. Board games introduce kids of all ages to different financial choices from managing income and spending to making investment decisions. And who doesn’t love a good family game night once in a while?!

Getting the Kids Involved in Decision-Making

• The piggy bank has always been a great way to introduce younger children to the lesson of saving and seeing how small regular contributions can really add up. Finding one that lets kids see what’s inside, helps them understand their progress along the way and keeps them interested. To delve even further, some piggy banks have different slots where kids are able to save their pennies for different purposes. The Money Savvy Pig, for example, has four sections that allow kids to set aside amounts for saving, spending, donating, and investing.

• Family vacation or outings this summer? Get the kids involved in the planning. What activities might you do? What treats or souvenirs could they want? Set some budget guidelines for these categories and have them help you prioritize and decide how you’ll spend the money. Do the kids want to expand the budget? This can be an opportunity for them to set goals of saving some of their allowance, summer job income, or even spare change to use toward those extra budget items.

• Back-to-school shopping can be another great learning opportunity, especially for pre-teens and the teenagers. Rather than scrambling in late August only to see the stack of credit card bills in September, help the kids put together a shopping plan they can own. Work with them on setting up a reasonable budget and making their lists. They can start prioritizing their “needs” vs. “wants” and then figuring out how they can best use their budget. This also gives kids the chance to learn to compare brands, research the best deals, and even find special discounts.

Ideas for the Summer Reading List

For kids that plan to spend some time on their summer break kicking back with a good book, they can add a few titles to their reading list.  There are a ton of great books out there on the subject of money and personal finance. 

A few come to mind that are relatively easy reads and have valuable insights for students and adults alike: 

• “Learn to Earn” by famed mutual fund manager Peter Lynch is aimed particularly at young adults, providing concepts in the basics of investing, the stock market, and business in general. One of Peter Lynch’s investing principles over the years has been “buy what you know,” meaning that many investment ideas can begin with products, services, and brands you know and use. Kids may be able to apply this to things in their own everyday life today such as:

  • What is the latest game they enjoy or what app are they and all of their friends using?

  • They can begin to learn about the companies behind them.

• Two other titles, “The Wealthy Barber” by David Chilton and “The Millionaire Next Door” by Thomas Stanley and William Danko, have also been around for over 20 years now and are still just as relevant today. Both of these books have several lessons about developing simple habits in spending, saving, managing debt and investing. Common themes in each book are:

  • Achieving financial confidence and independence is a process done over time.

  • The concept of wealthy may not fit the image we often have in our head.

Robert Ingram is a Financial Planner at Center for Financial Planning, Inc.®

---

Views expressed are not necessarily those of Raymond James Financial Services and are subject to change without notice. Information contained herein was received from sources believed to be reliable, but accuracy is not guaranteed. Information provided is general in nature. The website link included and apps mentioned are provided for information purposes only.  Raymond James is not affiliated with and does not endorse, authorize or sponsor any third-party web site, app or their respective sponsors.  Raymond James is not responsible for the content of any web site, app, or the collection or use of information regarding any web site's users and/or members. Raymond James Financial Services, Inc. is not affiliated with the above independent organizations.

5 Estate Planning Action Steps to Stay in Control of Your Future

Contributed by: Sandra Adams, CFP®

I recently attended a 2-day training in Elder Mediation.  Coming from a world in which we work with our clients on a regular basis to make sure estate planning documents are in place and up-to-date, I was alarmed to learn that less than 45% of the U.S. adult population has an active will or durable powers of attorney in place (2017 Caring.com Study). Unfortunately, when these documents are not in place, and the adult (at any age) becomes unable to make decisions for themselves, the court must appoint someone...and families aren’t always in agreement.

According to a 2013 AARP report, there was an estimated 1.5 million older adults with court-appointed guardians; record keeping in many constituencies is not accurate nor complete.  A guardian is appointed to make medical and care decisions for someone who is unable to make decisions for themselves; a conservator is appointed to make financial decisions and handle financial affairs for someone who is unable to handle those duties on their own behalf.  And if the family disagrees about who should be appointed to any/either of these roles, they can voluntarily seek mediation to resolve their differences or the court may order mediation.  In many cases, a family member is ultimately appointed to these roles, but in some cases a third party is appointed to serve in these roles as ordered by the court, leaving the fate of the older adult in the hands of someone who doesn’t know them or their wishes well.

Doing the work now to get documents and plans in place can save you and your family unnecessary stress and anxiety in the future, and can help to make sure that the wishes you have for yourself and your future are carried out even if you are no longer the director of those decisions. 

What action steps can you take now to make sure you maintain ultimate control over what happens to you if/when you can no longer make decisions for yourself?

To ensure that you have the ability to name who you wish to make decisions for you when it is time, I recommend taking the following steps:

1. Make sure you have up-to-date estate planning documents and review them often.  The most important documents to have in place during your lifetime are Durable Powers of Attorney — General/Financial AND Health Care (also known as a Patient Advocate Designation).  Additionally, you may want/need to have a Revocable Living Trust and a Will.

2. Consider drafting your Durable Power of Attorney documents as “Immediate” rather than “Springing”.  Immediate Powers of Attorney allow your advocate to act on your behalf immediately or at any time that you need them to, while a Springing Power of Attorney generally requires two doctors to declare you incompetent to make your own decisions before your advocate can act on your behalf.

3. Be clear and specific about your wishes for your future medical care, personal care and handling of your financial affairs.  Put things in writing and communicate your wishes to your family members and/or key people in your life.  Consider a family meeting to discuss your future wishes and ensure that everyone is on the same page.

4. Plan ahead.  It is never possible to plan for every contingency, but if you are able to plan for things that might happen (chronic health issues, incapacity, etc.), you and your finances can have a better chance of surviving.  Document your plans and communicate them to those that may be in charge of handling your affairs in the future if/when you cannot.

5. Put a team in place before it becomes necessary.  Make sure your financial planner, CPA, Attorney, any healthcare professionals and your family know your plan and your wishes and know one another so that they can carry out your plan when you might not be able to give clear directions.

If you or your family have questions or would like guidance on how to get these plans in place, please do not hesitate to reach out.  We are always here to help!

Sandra Adams, CFP® is a Partner and Financial Planner at Center for Financial Planning, Inc.® Sandy specializes in Elder Care Financial Planning and is a frequent speaker on related topics. In addition to her frequent contributions to Money Centered, she is regularly quoted in national media publications such as The Wall Street Journal, Research Magazine and Journal of Financial Planning.

---

The information contained in this blog does not purport to be a complete description of the securities, markets, or developments referred to in this material. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Any opinions are those of Sandra Adams and not necessarily those of Raymond James. There is no guarantee that these statements, opinions or forecasts provided herein will prove to be correct. Raymond James and its advisors do not offer tax or legal advice. You should discuss any tax or legal matters with the appropriate professional.

WEBINAR IN REVIEW: SAFE, or Success After Financial Exploitation

Contributed by: Emily Moore

SAFE is a program created by Dr. Peter Lichtenberg, Ph.D., which is being run by LaToya Hall, MSW, of Wayne State University’s Institute of Gerontology.  SAFE was developed to educate seniors on how to protect themselves from fraud and scams, AND how to pick up the pieces after financial exploitation.

During our recent webinar with LaToya, we learned the basics about financial exploitation targeted to seniors: 

1. What to look for.

2. How to protect yourself and your loved ones.

3. What you can do if you have ever been a victim.

The main goals of SAFE:

1. Free education offered to seniors through presentations.

2. Helping seniors take control of their financial health through an educational four-part financial series.

3. Provide one-on-one services to older adults who have been a victim of scams, helping them to get back on their feet.

Key points to take away from the webinar are some common scams and what criminals specifically look for in targeting older adults. 

Criminals look for seniors because they tend to be more vulnerable. They look for people who are typically lonely and socially isolated. They’re also looking for people who have a regular income (such as receiving Social Security), and older adults who are typically more trusting and polite.

Many of the common scams are successful because they represent organizations considered to be legitimate:  Social Security, Medicare and the IRS. A lot of these are done over the phone or by e-mail. It’s important to remember never to give any information over the phone to an incoming caller or respond to an e-mail requesting your personal information.

Another phone scam is called spoofing, where a person calls the senior but looks like they are calling from another number deemed safe (caller ID might identify them as person’s doctor, bank, etc.), so always make sure to double check on a statement. The safest most effective thing to do is to hang up and call the number you have in your records.

These are only a few of the many scams and tactics LaToya goes over in the “Success after Financial Exploitation (SAFE)” Webinar. To learn more and get information along with the free SAFE services listed above, contact LaToya Hall, SAFE Program Coordinator, at L.hall@wayne.edu or 313-664-2608.

Emily Moore is a Client Service Administrator at Center for Financial Planning, Inc.®

---

Raymond James is not affiliated with and does not endorse the opinions or services of SAFE, LaToya Hall, or Dr. Peter Lichtenberg.

Center Stories: Bob Ingram, Financial Planner

Contributed by: Robert Ingram

Money and finances can be very emotional topics and they can certainly seem confusing in today’s busy and complex world.  We all may have different emotions when it comes to money, emotions that shape how we manage our finances.  To me, financial planning is not just numbers on a spreadsheet or a group of investments in an account.  It is your own evolving roadmap to help guide you in making confident decisions in the face of uncertainties, concerns, or even exuberance.  A strong financial planning relationship is about helping you develop your life goals, truly understanding your personal situation and priorities, and taking steps to make the most of your resources to help achieve your goals.

I hope the video helps you get to know a little more about me and how I work with clients here at The Center.  If I can be a resource for you, please don’t hesitate to contact me!

Robert Ingram is a Financial Planner at Center for Financial Planning, Inc.®

Explaining the What is the “Restore” Option for Pensions, Part 3 of a 3 Part Series on Pensions

Contributed by: Nick Defenthaler, CFP®

Selecting your pension benefit option as you near retirement could quite possibly be the largest financial decision you ever make.  If you’ve received a breakdown of the various ways you can elect to have your pension benefits paid and you’re feeling overwhelmed, you are certainly not alone!  In many cases, employers give you the option to select from upwards of 30 different options that have various survivor benefits, lump-sum payouts, Social Security bridge payments and more.  Is your head spinning yet? 

One of the more appealing pension options that our team is seeing more and more of is the “restore” option.  The restore feature of a pension is a way to protect the person receiving the pension if their spouse dies before them.  If that were the case, the restore option allows the retiree to “step-up” to the higher single/straight life payment.  Similar to the survivor benefit, the restore option is another layer of “insurance” to protect the retiree from being locked into a permanently reduced pension benefit if their spouse pre-deceases them. 

Let’s take a look at an example of the restore feature:

Tom (age 61) is retiring from XYZ Company in several months.  Tom would like to evaluate his pension options to see which payment would be best for him and his wife Judy (age 60).  Tom has narrowed it down to 3 options:

Option 1:

• $45,000/yr single/straight life (no survivor benefit)

  • Payment would cease upon Tom’s passing – $0 to Judy

Option 2:

• $41,000/yr 50% survivor option

  • Judy would receive a $20,500/yr benefit during her lifetime if Tom pre-deceases her

 Option 3:

• $40,200/yr 50% survivor option with “restore” feature

  • Judy would receive a $20,500/yr benefit during her lifetime if Tom pre-deceases her

  • Tom would step-up to a $45,000/yr benefit (straight/single life benefit figure) if Judy pre-deceases him

The more Tom and Judy have discussed their overall financial plan; they are not comfortable selecting the single/straight life option and risking Judy not receiving a continuation of benefits if Tom pre-deceases her.  However, because Judy has had some health issues in the past, they feel the 50% restore payment option makes more sense for their situation because it is very possible that Judy will die before Tom.  They are comfortable with an $800/yr reduction in payment to have the “insurance” of Tom stepping up to the higher single/straight life option if he survives Judy. 

While the restore option for Tom and Judy seems to make perfect sense, there truly is no a “one size fits all” pension option that works for everyone.  Every situation is very unique and it’s important that you evaluate your entire financial picture and other sources of retirement income to determine which pension option is right for you and your family.

Click to see part 1 of pension blogs How to Choose a Survivor Benefit for Your Pension and part 2 What You Need to Know About Pension Benefit Guaranty Corporation or PBGC

Nick Defenthaler, CFP® is a CERTIFIED FINANCIAL PLANNER™ at Center for Financial Planning, Inc.® Nick works closely with Center clients and is also the Director of The Center’s Financial Planning Department. He is also a frequent contributor to the firm’s blogs and educational webinars.

---

The information contained in this blog does not purport to be a complete description of the securities, markets, or developments referred to in this material. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Any opinions are those of Nick Defenthaler, CFP© and not necessarily those of Raymond James. This is a hypothetical example for illustration purpose only and does not represent an actual investment. This is a hypothetical example for illustration purpose only and does not represent an actual investment. Prior to making an investment decision, please consult with your financial advisor about your individual situation. 

Charitable Giving Reminder Due to New Tax Law

Contributed by: Timothy Wyman, CFP®, JD

Are you making charitable contributions in 2018? 

There are three parties to every charitable gift; the charity, you, and the tax man. Due to the increased standard deduction, many folks will NOT receive an income tax benefit when making direct contributions to charities.  For those over the age of 70.5, consideration should be given to making charitable contributions via your IRA. For those under the age of 70.5 you should consider “bunching” your contributions into one year; a donor-advised fund can be quite useful. 

If we have not had an opportunity to discuss either of these strategies, and you expect to make charitable contributions, please feel free to contact our team to discuss your options in making tax-efficient charitable contributions.   

Here are two links to articles outlining the QCD strategy. 

Required-minimum-distribution-update

Qualified-charitable-distributions-giving-money-while-saving-it

Timothy Wyman, CFP®, JD is the Managing Partner and Financial Planner at Center for Financial Planning, Inc.® and is a contributor to national media and publications such as Forbes and The Wall Street Journal and has appeared on Good Morning America Weekend Edition and WDIV Channel 4. A leader in his profession, Tim served on the National Board of Directors for the 28,000 member Financial Planning Association™ (FPA®), mentored many CFP® practitioners and is a frequent speaker to organizations and businesses on various financial planning topics.

---

The information contained in this blog does not purport to be a complete description of the securities, markets, or developments referred to in this material. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Any opinions are those of Timothy Wyman, CFP©, JD and not necessarily those of Raymond James. There is no guarantee that these statements, opinions or forecasts provided herein will prove to be correct. This material is being provided for information purposes only. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Every investor's situation is unique and you should consider your investment goals, risk tolerance and time horizon before making any investment. Prior to making an investment decision, please consult with your financial advisor about your individual situation. You should discuss any tax or legal matters with the appropriate professional.

What You Need to Know About Pension Benefit Guaranty Corporation or PBGC, Part 2 of a 3 Part Series on Pensions

Contributed by: Nick Defenthaler, CFP®

In many cases, the decision you make surrounding your pension could be the largest financial choice you’ll make in your entire life.  As such, the potential risk of your pension plan should be on your radar and factored in when ultimately deciding which payment option to elect.  This is where the Pension Benefit Guaranty Corporation comes into play.

The Pension Benefit Guaranty Corporation or “PBGC” is an independent agency that was established by the Employee Retirement Income Security Act (ERISA) of 1974 to give pension participants in plans covered by the PBGC guaranteed “basic” benefits in the event their employer-sponsored defined benefit plans becomes insolvent.  Today, the PBGC protects the retirement incomes of nearly 40 million American workers in nearly 24,000 private-sector pension plans. 

Municipalities, unions and public sector professions are almost never covered by the PBGC.  Private companies, especially larger ones, are usually covered (click here to see if your company plan is).  Each year, companies pay insurance premiums to the PBGC to protect retirees.  Think of the PBCG essentially as FDIC insurance for pensions.  Similar to FDIC coverage ($250,000) that banks offer, there are limits on how much the PBCG will cover if a pension plan fails.  It's important to note that in most cases, the age you happen to be when your company’s pension fails is the age the PBGC uses to determine your protected monthly benefit. 

For example, if you start receiving a pension at age 60 from XYZ company and 5 years later, XYZ goes under when you’re 65, your protected monthly benefit with the PBGC would be $5,2420.45 – assuming you are receiving a straight life payment (see table below).  As we would expect, the older you are, the higher the protected monthly benefit will be due to life expectancy assumptions.    

*chart is from Pension Benefit Guaranty Corporation website

When advising you on which pension option to choose, one of the first things we'll want to work together to determine is whether or not your pension is covered by the PBGC.  If your pension is covered, this is a wonderful protection for your retirement income if the unexpected occurs and the company you worked for ends up failing.  If you think it will never happen, let’s not forget 2009 when many unexpected things occurred in the world such as General Motors filing for bankruptcy and Ford nearly doing the same.  If your pension is not covered, we'll want to take this risk into consideration when comparing the monthly income stream options to a lump sum rollover option (if offered). 

While PBCG coverage is one very important element when evaluating a pension, we’ll also want to analyze other aspects of your pension as well, such as the pension’s internal rate of return or "hurdle rate" and various survivor options offered. 

As mentioned previously, the decision surrounding your pension could quite possibly be the largest financial decision you ever make.  When making a financial decision of such magnitude, we’d strongly recommend consulting with a professional to ensure you’re making the best decision possible for your own unique situation.  Let us know if we can help!   

Be sure to check out our pension part 1 blog How to Choose a Survivor Benefit for Your Pension posted April 5th and our next blog Explaining What the “Restore” Option is for Pensions posted May 10.

Nick Defenthaler, CFP® is a CERTIFIED FINANCIAL PLANNER™ at Center for Financial Planning, Inc.® Nick works closely with Center clients and is also the Director of The Center’s Financial Planning Department. He is also a frequent contributor to the firm’s blogs and educational webinars.

---

The information contained in this blog does not purport to be a complete description of the securities, markets, or developments referred to in this material. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Any opinions are those of Nick Defenthaler, CFP© and not necessarily those of Raymond James. This is a hypothetical example for illustration purpose only and does not represent an actual investment. This is a hypothetical example for illustration purpose only and does not represent an actual investment. Prior to making an investment decision, please consult with your financial advisor about your individual situation.