Pension Plan lump sum payments, also known as “cashouts,” will decline in
2014 due to higher interest rates. The
decrease in the lump sum in 2014 could be substantial. You may be able to avoid the decrease by
rolling over the lump sum payment in 2013, if you are eligible.
One company, Lubrizol, has estimated the change between rolling over the
lump sum in 2013 versus waiting until 2014:
the decrease varies between 20% for an age 50 participant to a 7%
decrease for age 65.
RECOMMENDATION: those who are evaluating whether to roll over
their pension lump sum payments, in general, are advised to take the lump sum
in 2013 instead of waiting. To make sure
this action is right for you, please contact your advisor.
The sport of baseball invented the word “IF.” The Pittsburgh Pirates’ season ended with a
loss to the St. Louis Cardinals in their 5 game series, 3 games to 2. The Pirates actually lead the series 2 games
to 1; and, IF the Card’s Matt
Holliday had not hit a 2 run homer, the Pirates would have won the game 1 – 0
and the series. IF the Pirates
would have beaten the Cards, maybe it would be the Pirates playing in The World
Series instead of the Cards.
I had the
opportunity to take a golf oriented vacation last week to a special place in
Oregon called Bandon Dunes in the same group of 8 guys that travelled to
Dublin, Ireland last year.Even though I
kept an eye on the political events in Washington, the trip was all about the
golf.
The pennant race is over and the good news is the
Pittsburgh Pirates are still alive. They
did not win the Central division championship, but they are in the playoffs as
a “wild-card”. They play Cincinnati on
Tuesday night for a ONE GAME playoff – in Pittsburgh. Continuing with my cautiously optimistic
view, I am focusing on this one game and not looking forward beyond it.
One of the most
exciting events in sports is a “pennant race,” assuming your team is in
it. At the beginning of the season, I
was hoping for merely a winning season for the Pittsburgh Pirates. With that objective met (last week), the next
objective is to make the playoffs and their “magic number” to be a wild-card
team in the playoffs is 6 – any
combination of Pirates victories or Washington National losses totaling 6 will
result in a playoff spot. Yes, I realize
the Pirates are one game behind the St. Louis Cardinals for the National League
Central Division. But, if you know anything
of the past several years of Pirates second half collapses, you know why I am
only cheering for the wild-card playoff spot (for now!). 11 games remain with plenty of opportunity of
both the thrill of victory and the agony of defeat.
Twelve years is not
long enough to get my arms around the events of 9/11. I realized
this when watching some of yesterday’s CNN coverage of all the tragic events of
that day.
What great weather
we had here in Pennsylvania for the weekend.
Perhaps, the last one before Fall.
After all, Labor Day weekend is next weekend. Speaking of “Labor Day,” I read how the
meaning of “Labor Day” has changed over the years.
Labor Day has been celebrated on the
first Monday in September in the United States since the 1880s. The form that
the observance and celebration of Labor Day should take was outlined in the
first proposal of the holiday — a street parade to exhibit to the public
“the strength and esprit de corps of the trade and labor
organizations” of the community, followed by a festival for the recreation
and amusement of the workers and their families. This became the pattern for
the celebrations of Labor Day. Speeches by prominent men and women were
introduced later, as more emphasis was placed upon the economic and civic
significance of the holiday. Still later, by a resolution of the American
Federation of Labor convention of 1909, the Sunday preceding Labor Day was
adopted as Labor Sunday and dedicated to the spiritual and educational aspects
of the labor movement.
Today Labor Day is often regarded
simply as a day of rest and, compared to the May 1 Labor Day celebrations in
most countries. Parades, speeches or
political demonstrations are more low-key, although especially in election
years, events held by labor organizations often feature political themes and
appearances by candidates for office. Forms of celebration include picnics,
barbecues, fireworks displays, water sports, and public art events. Families
with school-age children take it as the last chance to travel before the end of
the summer.
Some teenagers and young adults view it as the last weekend for parties
before returning to school. However, of late, schools have begun
well before Labor Day. In addition,
Labor Day marks the beginning of the season for the National Football League
and NCAA College Football. The NCAA usually plays their first games the weekend
of Labor Day, with the NFL playing their first game the Thursday following
Labor Day.
My birthday occurred about 2 weeks ago. I reached an important milestone age – 62 having plenty of company since 15 million baby-boomer Americans turn 62 annually. I reckoned there has to be benefits other than Social Security (which I intend to defer to age 66) for turning 62, and I found many. Click here for a great article: http://voices.yahoo.com/advantages-turning-age-62-6460500.html
PS: I have no plans to retire. I thoroughly enjoy what I am doing which is why I am still on top of the world.
According to the Society of Actuaries, An average American couple retiring at age 65 today would need a present value lump sum of $293,000 to cover future health insurance premiums and out-of-pocket medical expenses over the remainder of their lives, i.e., expenses not paid by Medicare. For more information, click :
My wife Jo Anne, my daughter Erika, and I visited Pittsburgh during a short vacation Wednesday for the Pirates game and Thursday for the Steelers practice session with a visit to the Phipps Conservatory in between. I am happy to report the city of Pittsburgh was clean, vibrant, and friendly. And, the Phipps Conservatory is an outstanding treasure of botanical experiences. For more information, click: http://phipps.conservatory.org/
