Boeing 401k Questions
• Is my current VIP allocation right for my retirement goals?
The right financial planning and retirement planning is the first critical step to answering this question.
Determining the right allocation directly impacts when you can retire and how long your retirement account will support you.
Reaching your retirement goals depends on various factors such as when you hope to retire, your risk tolerance, investment horizon, cost of living, your life expectancy, and inflation.
To help you make an informed personal decision about your Boeing VIP allocation Robinswood Financial offers free, no obligation consultations to get you on track and give you a clear understanding of what options you have.
• I am eligible for the pension buyout, should I take it? How will it affect my retirement?
If you are eligible for the Boeing pension buyout, you may be wondering whether you should take it or not. This is a complex decision that depends on your personal and financial situation, as well as your retirement goals. Here are some factors to consider before making your choice:
– The pension buyout is a lump-sum payment that replaces your monthly pension benefits. You will no longer receive any income from Boeing after you take the buyout.
– The lump-sum amount is based on your age, years of service, and salary at the time of the offer. It may be lower than the total amount you would receive if you kept the monthly pension payments for the rest of your life.
– The lump-sum payment is taxable in the year you receive it unless you roll it over to an IRA or another qualified retirement plan. You will also lose the protection of the Pension Benefit Guaranty Corporation (PBGC), which guarantees your monthly pension payments in case Boeing goes bankrupt or defaults on its obligations.
– The pension buyout gives you more control and flexibility over your retirement income. You can invest the lump-sum amount according to your risk tolerance and withdrawal needs. You can also leave it to your heirs if you pass away before spending it all.
– The pension buyout also involves more responsibility. You, or by working with us at Robinswood Financial, will have to manage your own investments and withdrawals, and make sure they last for your lifetime. You will also have to have a strategy for your longevity, inflation, market volatility, interest rates, taxes, and your health, our L.I.V.I.T.H. formula.
Ultimately, the decision to take the Boeing pension buyout depends on your personal preferences and circumstances. Robinswood Financial offers free, no obligation consultations to get you on track and give you a clear understanding of what options you have.
• What is the best pension option for my family?
Choosing the best Boeing pension option for your family depends on several factors, such as your age, health, income, expenses, and retirement goals. There is no one-size-fits-all answer, but here are some general guidelines to help you make an informed decision.
– If you are eligible for the Boeing Pension Value Plan (PVP), you can choose between a lump-sum payment or a monthly annuity. A lump-sum payment gives you more flexibility and control over your money, but also more responsibility and risk. A monthly annuity provides a steady income for life but may not keep up with inflation or your changing needs.
– If you are eligible for the Boeing Traditional Pension Plan (TPP), you can choose between a single-life annuity or a joint-and-survivor annuity. A single-life annuity pays you a monthly benefit for as long as you live but stops when you die. A joint-and-survivor annuity pays you and your spouse a reduced monthly benefit for as long as either of you lives but may not be enough to cover your expenses.
– If you are eligible for both the PVP and the TPP, you can choose a combination of options that best suits your situation. For example, you could take a lump-sum payment from the PVP and a joint-and-survivor annuity from the TPP, or vice versa. You could also take a monthly annuity from both plans, or a lump-sum payment from both plans.
• If I’m offered a voluntary layoff (VLO), does it make sense for me?
If you’re thinking about taking a voluntary layoff from Boeing, there are a few things you should consider. First of all, do you have a plan for what you’ll do after leaving the company? Do you have another job lined up, or are you planning to retire, go back to school, or start your own business? Second, how will the layoff affect your finances? Will you get a severance package, and if so, how long will it last? How will you pay for your health insurance, retirement savings, and other expenses? Third, how do you feel about your current job and career prospects? Are you happy with your work, or are you looking for a change? Do you have the skills and experience to find another job in your field, or do you need to update your resume and network? These are some of the questions you should ask yourself before deciding whether to accept a voluntary layoff. It’s not an easy decision, but it could be an opportunity to pursue your goals and dreams.
• What should I do with my VIP when I retire?
If you have a Boeing VIP account, you may be wondering what to do with it when you retire. Here are some options to consider:
– Keep your account with Boeing. You can continue to enjoy online access. You will also avoid paying taxes or penalties for early withdrawals. However, you will not be able to make any new contributions or take loans from your account.
– Roll over your account to an IRA or another employer’s plan. You can transfer your balance to an individual retirement account (IRA) or another qualified plan, such as your new employer’s 401(k). This way, you can keep your money growing tax-deferred and have more control over your investments.
– Withdraw your account balance. You can cash out your account and receive a lump-sum payment. This may give you immediate access to your money and flexibility to use it as you wish. However, you will be hit with a large income tax bill and possibly a 10% penalty if you are under 59 1/2 years old. Additionally, when you cash out you will lose your tax deferred benefits.
Before you decide what to do with your Boeing VIP account, you should schedule a complementary meeting with us. Robinswood Financial offers free, no obligation consultations to get you on track and give you a clear understanding of what options you have.
• I want to retire from Boeing, but I still plan on working a different job with significant less pay. How does this work into my retirement plan?
If you are thinking about retiring from Boeing, but still want to work in another job with lower income, you may have some questions about how this will affect your retirement plan. Here are some things to consider:
– Your Boeing pension benefits will not change if you retire and work in another job, as long as you do not work for a competitor of Boeing or violate any non-compete agreements. You can start receiving your pension payments as soon as you retire from Boeing or defer them until a later date.
– Your Boeing 401(k) plan will also remain intact if you retire and work in another job. You can continue to make contributions to your 401(k) plan until you reach the annual limit, or until you stop working. You can also withdraw money from your 401(k) plan after you retire, subject to taxes and penalties depending on your age and circumstances.
– Your Social Security benefits may be reduced if you retire and work in another job with lower income. The Social Security Administration applies an earnings test to determine how much of your benefits will be withheld if you earn more than a certain amount before reaching your full retirement age. The earnings test does not apply after you reach your full retirement age, or if you retire in the year you reach your full retirement age.
– Your health insurance options may vary depending on your situation. If you retire from Boeing before age 65, you may be eligible for the Boeing Retiree Health Plan, which offers comprehensive coverage for medical, dental, vision, and prescription drugs. You may also be able to enroll in a Medicare supplement plan or a Medicare Advantage plan after you turn 65. If you work in another job after retiring from Boeing, you may have access to health insurance through your new employer, or through the Health Insurance Marketplace.
Retiring from Boeing and working in another job with lower income can have implications for your retirement plan. It is important to weigh the pros and cons of your decision and schedule a meeting with our advisors or a retirement specialist to help you plan accordingly.
• I am maxing out my VIP, where else should I save money?
If you are maxing out your Boeing VIP retirement plan, congratulations! You are taking advantage of one of the best retirement savings options available to Boeing employees. However, you may be wondering where else you can save money for your future goals, whether it’s buying a house, traveling the world, or leaving a legacy for your loved ones. Here are a couple of options to consider:
– Open an Individual Retirement Account (IRA). An IRA is a tax-advantaged account that lets you save and invest money for retirement. There are two types of IRAs: traditional and Roth. A traditional IRA allows you to deduct your contributions from your taxable income, but you pay taxes on your withdrawals in retirement. A Roth IRA does the opposite: you pay taxes on your contributions, but your withdrawals are tax-free in retirement. Subject to income restrictions, the annual contribution limit for IRAs in 2023 is $6,500, or $7,500 if you are 50 or older.
– Invest in a taxable account. A taxable account is an account that lets you buy and sell stocks, bonds, mutual funds, exchange-traded funds (ETFs), and other securities. Unlike an IRA, a taxable brokerage account does not offer any tax benefits, but it also does not have any contribution limits or withdrawal restrictions. You can access your money at any time, but you will have to pay taxes on any capital gains or dividends you earn. A taxable brokerage account can be a good option for saving money for goals that are not related to retirement, or for diversifying your portfolio beyond your retirement accounts.
• What investment strategy make sure we reach all of our needs in retirement?
Some investors are comfortable with the risk of the market and want the highest returns they can get. Other investors like the returns of the market but hope to take as little risk as possible. In the end, even if we build the greatest investment strategy know to man, if it exceeds your risk tolerance you will bail out at the worst time. With that in mind, possibly the best strategy is designed to shoot for what you want, with the hope that it provides what you need.
Robinswood Financial provides individually managed portfolios tailored to meet your specific needs. Our objective is to deliver higher returns by fully participating in the upswings of the market while our strategy has proven to be consistent, steady, and repeatable. providing maximum risk protection from market meltdowns, consistent with your risk tolerance and financial goals
• What should we be doing for Social Security planning & strategies?
Social Security planning and strategies are important aspects of retirement planning. Social Security provides a monthly income for eligible retirees, survivors, and disabled workers. However, the amount of benefits depends on several factors, such as age, earnings history, and claiming strategy. Therefore, it is advisable to schedule a meeting with us or consult a Social Security expert to determine the best way to maximize your benefits and minimize your taxes. Some of the strategies that may help you optimize your Social Security income include:
– Timing your benefits until your full retirement age or before to earn delayed retirement credits or to take full advantage of longevity
– Claiming spousal or survivor benefits if you are eligible and they are higher than your own benefits
– Coordinating your benefits with your spouse or ex-spouse to avoid overlapping or reducing each other’s benefits
– Working longer or earning more to increase your average indexed monthly earnings, which are used to calculate your benefits
– Reducing your taxable income in retirement by using tax-advantaged accounts, such as Roth IRAs or health savings accounts