If you work in the public sector or for the government, you’ve probably heard of a type of retirement plan called a Deferred Retirement Option Plan (DROP). A DROP plan allows for an employee to work past their retirement-eligibility date while the employer adds annual, lump-sum payments into an interest-bearing account during that period. Once the employee actually retires, they gain access to the account and all the money in it. It benefits the employer as the employer avoids dealing with an increased pension amount that normally would come with added years of service. It should be noted that DROP Continue reading Public Sector Employee? Look for the DROP!
In an ideal world, you will save more than you need for retirement. Unfortunately, we don’t live in a perfect world and it’s well documented that saving enough for retirement is a struggle for many Americans. For some, whether they admit it or not, outliving their retirement savings can be a real fear. It can seem daunting saving up enough for retirement, considering the cost of living today. Depending on how early you plan to retire, that number can be a fairly high benchmark ($500,000 to $1 million is not unrealistic if you plan on being retired for 20 plus Continue reading Will You Outlive Your Retirement Savings?
I’ve talked about it in the past, but inflation is a very real thing that can and will affect your retirement savings. No, it won’t decimate your retirement savings, but it will decrease the longevity of your nest egg. If you have been working with a competent financial advisor and have done your homework, inflation is probably already a part of your retirement savings plan. However, it can be something that is overlooked when saving as it’s not always obvious unless you take a long-term view of things. There are some easy ways to protect your retirement savings from inflation. Continue reading Beware of Inflation in Retirement