Approximately 30% of all the money in 401ks in Target Date Portfolios. Basically you figure out what year you turn 62 and you pick the Target Date Portfolio that corresponds to that year. Sounds easy enough, so why don't I like them?
Typically, you pay an advisor the same reason you pay a mechanic to repair your car. If you wanted to repair it yourself, you probably could, but what's your time worth? Is that really what you want to do? Can you do it right? What is your strategy for doubling your income in retirement? What is your strategy for tax planning in retirement? What is your strategy for claiming Social Security in retirement? If you aren't sure of those answers, it would be wise to sit down and talk to an advisor about your retirement planning needs.
How much is your time worth?
The timing of your Social Security benefits can be important. It could make a difference of thousands of dollars in your retirement income. Although there are many factors to consider when making a decision about Social Security (more about that later), it’s fairly simple to calculate your break-even age. Let’s use an example to illustrate the calculation:
I would like to argue against the perception that bonds are "safer" than stocks, especially when considering long-term financial goals like retirement which can last 20-30 plus years.
Successful investing for retirement and in retirement is not that complicated. The planning process can be complicated, such as when to liquidate certain investments, how much cash to keep on hand, and sticking to your plan, but the investing process isn’t hard at all.
Everyday cooperative employees retire. Some of these retirees take the lump sum option and "rollover" that money to an Individual Retirement Account (IRA) or they "rollover" that money into their NRECA 401k. They may be working with a financial advisor or they may have decided that they don't want to pay an advisor and they want to do it themselves. This blog is speaking to the do it yourselfers.
What if you're age 55 or older and you just don't want to wait until age 62 to retire? Many of you are stuck in that 50-58 age range where the thought of retirement can be a little scary. Let's look at some options.
Before making a Roth IRA withdrawal, keep in mind the following rules to avoid a potential 10% early withdrawal penalty
I started this firm to help people, specifically electric cooperative employees, with retirement planning. I worked for an electric cooperative for over 11 years and during that time I saw a need for retirement planning above and beyond what NRECA is capable of providing you.
The One Big Beautiful Bill Act, signed into law on July 4, 2025, introduces sweeping changes to the U.S. tax code that could impact how you plan for taxes and manage your finances.
Did you know that the S&P 500 Index Mutual Fund available to you through your NRECA 401k options has historically averaged a return of approximately 10 percent? Did you know over that same period of time the average cooperative employee in the 401k plan has averaged a return of only 3.9 percent?
Well according to my television and the financial "news" media the economy was on the verge of collapse this past April. The financial "news" media seemed excited about that and also excited to mention that gold had broken through to new all-time highs! And while that is sort of true because gold recorded a new nominal high price, that's not the whole truth. Nominal in this context means unadjusted as it pertains to inflation which, in the end, is all that really matters. They tend to leave the adjusted for inflation part out because it's not as sexy and doesn't excite people as much.
If you are eligible for the NRECA R&S Plan, you MUST consider the tax scenarios when deciding whether to take the lump sum option or the annuity option. You essentially have a winning lottery ticket and just like a real lottery ticket, the IRS is waiting for their piece of the action.
Today I want to discuss, what I feel, is the single most important benefit the co-op offers you. And that is your NRECA 401k plan. It’s important because it’s the fastest and simplest way for you to grow your wealth over time.
Companies and what's referred to as the "stock market" are two different things. Companies are rational. The "stock market" is irrational. When you begin to realize that we are long-term goal-focused investors and we are owners of successful companies rather than just investors in the "stock market" you can change how you perceive the panic that the financial "news" media assaults us with on a 24/7 basis.
