Pre-tax retirement plans have been a favored vehicle of investors and financial advisors for many years. As a financial advisor, I have held the opinion that these plans are one of the, if not the, best way to save for retirement.
As of January 23, 2025 participants in the GM Retirement Savings Plan (RSP 401k) have a new and potentially game changing investment option. The plan now allows participants to open a self directed 401k account through Fidelity (BrokerageLink®). You might be asking what is a self directed 401k and why is this game changing?
Dart Container, a major employer in the Greater Lansing area, has announced plans to lay off 250 workers, 160 of which are from the Mason headquarters. Dart Container's recent announcement of layoffs has undoubtedly caused concern and uncertainty for many. These job losses will most certainly have a significant impact on the Mason community as a whole.
Two things in life are certain: death and taxes, but have you ever considered the impact your death has on the taxability of your things? Depending on how you are saving, you could potentially be passing a tax obligation onto your heirs.
The SECURE ACT was enacted on January 1, 2020. While it has been a few years since the act was passed, the effect of the largest retirement reform since 2006 is still being felt today. One of the major changes was the implementation of new required minimum distribution (commonly known as RMD) rules for Inherited IRAs. I like to call this the death of the Stretch IRA. First, let’s establish that an inherited IRA is when a loved one or family member dies with money left in their IRA, 401K, or even 403B, and you are named as a beneficiary. The funds are passed on to you through a vehicle called an Inherited IRA.
In 2012, McLaren Health Care froze its pension plan. Since then all employees had access to a 403(b) retirement savings plan but the pension plan remained frozen. Last year, McLaren made the decision to terminate the pension plan. The termination of the pension plan is unfolding now.
General Motors has announced they will be offering voluntary buyouts to a “majority” of its U.S. salaried employees. The buyout offer is part of GM’s effort to reach a total of $2 billion in structural cost savings over the next two years. Of which, they expect 30%-50% of that cost savings to occur in 2023
Ford and General Motors are among some of the largest employers here in Michigan. They also happen to be two of just a handful of employers that offer a pension. However, many employees may not understand that the interest rate hikes by the central bank are having a profound effect on how your pension fits into your retirement plan.