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Life keeps changing

If the Road Curves, Go With It.

Saving decisions, life insurance and family matters can all impact your financial future. What you do now matters, make informed decision. Continue reading...

Saving

Time to Bump it Up.

How much? You should do as much as you can afford. Can you max out your retirement savings and stay at that level? Continue reading...

unfinished Business

Can You? Should You?

Maybe you have an old retirement account out there, or four. Do you have past public service that is eligible to purchase? Here are some options. Continue reading...

Debt

Decorative Image: cutting up credit card

Budget Adjustments

You’ve got a budget in place and you’re paying down your debt…slowly. Want to pick up the pace and get serious about paying it “off” not just “down”? Try adjusting your budget. Continue

Life Keeps Changing.

Cost of Waiting to Save Chart, the sooner you start the better.

Saving Decisions - College vs. Retirement

Kids grow up. They can’t help it. And some will go to college. The popular advice is to “pay yourself” (retirement) first before you save for college. The idea is that they can borrow money for college, but you can’t borrow for retirement.

But Money magazine says you could be throwing money away if you don’t save for college in a tax-advantaged plan. Kansas has the Learning Quest 529 plan. You could earn a tax deduction for contributions, and your earnings will grow tax-free.

Optional Life Insurance for Life Events

If the road curves, go with it. Life changes and so do your life insurance needs. Adding coverage as you need it keeps you on the road. You can add or increase life insurance within 31 days of marriage, divorce, birth, adoption or employment status change (member or spouse).

Big "D" (Not Dallas)

You're cruising along life’s road and you hit another bump – divorce. While you’re sorting things out, don’t forget your Retirement System and KPERS 457 accounts are marital property and may be divided. Visit the KPERS Qualified Domestic Relations Order (QDRO) page for guidelines and guidance.

Other KPERS issues to consider with divorce:

  • Beneficiaries (login to account to change)
  • Optional Insurance (you can cancel anytime)
  • Change of Address (login to account to change)

Time to Bump it Up (Your Savings).

Why Now?

You probably have/make more money now. And your wallet won’t feel the sting as much as it would have early in your career. Your retirement thrives on time. Time to earn and grow.

You won’t be in your “savings prime” for much longer, so there’s no better time than right now.

How Much?

You should do as much as you can afford. Can you max out your retirement savings and stay at that level? Are you eligible for a “catch-up” bump? Eligible retirement plans let you save more than the regular max starting at age 50.

Challenge yourself to cut back on spending and bump up your savings and see what happens. Even if it’s only a little bit right now.

The Pay Off

The extra money could mean the difference between retiring at age 65 and age 67. It also could help pay for the health insurance gap between retirement and Medicare, or your daughter’s wedding. All good reasons.

Unfinished Business.

 

Old Retirement Accounts (Almost) Never Die

Employees today seem to change jobs as often as they change their profile picture. Maybe you have an old retirement account out there, or four. Drifting. Half-forgotten. Here are some options.

Four Options for a Retirement Plan After Leaving a Job
1. Leave the money alone
2. Roll over money into an IRA
3. Transfer money to your new employer's plan
4. Take the money and run

The last option should be, well, your last option. You could face penalties and taxes that could wipe much of it away.

If you’re thinking of leaving your money alone, look at how that old plan is performing. Is it a shining star or a black hole? Also consider fees and other costs. Want to move your money to another account (e.g. employer plan, like KPERS 457, or IRA)? Look at the regular things like performance, risk and account management.

Service Purchase. Can you? Should you?

Do you have past public service that is eligible to purchase? Not sure? Check out the types of service credit you can purchase.

If you haven’t decided whether purchasing service is right for you, here are a few pros and cons that could help you decide.

Pros Cons
Could increase your retirement benefit Lowers your pay (w/payroll deduction)
Could allow you to retire earlier Usually cost more to purchase service later in your career
3 options to pay:
  • pretax payroll deduction
  • rollover from other retirement plan
  • lump sum payment
Limits to what kind and how much service can be purchased

Get Serious About Debt.

Mid-Career Budget Adjustments

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You’ve got a budget in place and you’re paying down your debt…slowly. Want to pick up the pace and get serious about paying it “off” not just “down”? Try adjusting your budget.

Get started by setting new spending limits. Lower your budget for fun stuff by 10-20% and put that toward your debt. Or eliminate an expense completely, but only temporarily. Ask yourself, “Can I survive with only basic cable TV for 6 months, if it means paying off a credit card? Do I really need to watch the Norwegian badminton championship quarter-finals?”

What Debt Do I Pay Off First and When?

If you’re serious about paying off debt, then start right after you make a plan. Most experts recommend making the largest debt payments to loans or cards with the highest balances or interest rates (Money, Jan 2016). So start there. Once it’s paid off, move on to the next debt. It’s called the “snowball effect” because it helps you build momentum to crush other debt.

  Helpful Links
  Opportunities
  Location

Kansas Public Employees Retirement System
611 S. Kansas Ave, Topeka, KS 66603
Toll-free: 1 888 - 275-5737
Email: [email protected]


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