Posts by Anders Retirement & Investment Advisors
FRS DROP Payout Option 1 – The "I Love Uncle Sam" Option
For those in the Florida Retirement System Deferred Retirement Option Program (aka DROP), there are 3 payout options when they separate from service. These payout options are elected on the DP-PYT form which is located in your DROP exit packet. The DROP exit packet is usually received 3-4 months before the retiree exits DROP. The…
Read MoreEasy Money Podcast: Episode 1 – Introduction and Promises
The "A" Word: What Are Annuities?
The “A” Word: What Are Annuities? One of the most misunderstood investment vehicles are Annuities. A common statement I hear is: “I don’t like annuities” or “Annuities aren’t good investments.” I’m a firm believer that there is a time, place, and person for almost every investment, and most of these objections are based on people’s…
Read MoreD.R.O.P. — A benefit to everyone
One of the most unique things that Florida pensioners have is the Deferred Retirement Option Program (aka DROP). We’re going to discuss how D.R.O.P. works and how it’s a benefit for public employees, tax payers, the economy, and the pension plan. How DROP Works The average DROP Accrual balance is $146,039 as of September…
Read More5 Needs of Money: Types of Income
5 Needs of Money: Types of Income We touch on the 5 needs of money pretty regularly, but what we want to do is a deeper dive into each need to make sure you really understand what they are. The first need we are going to talk about is income. While most people…
Read More5 Needs of Money
5 Needs in Retirement In 2009, I had a full day of appointments with people getting ready to retire from a local school board. My approach to my clients is simple, I ask questions. One of the questions I’ve always asked is, “What do you need from your investments?” On this day,…
Read MoreFRS Investment Plan / Lump Sum Option
In addition to the 4 monthly pension options available at retirement, the Florida Retirement System offers an additional lump sum option called The Investment Plan. The Investment Plan gives you a lump sum payout from the FRS instead of receiving a monthly pension amount. Like almost any choice we make, there are advantages and disadvantages…
Read MoreThe Importance of Questions
The Importance of Questions In the financial industry, companies are always trying to set themselves apart. They pride themselves on the best algorithms, the best retirement software, the best website logins, etc. And while these tools help with investment advising, they’re missing the point of why their clients are there to see them. …
Read MoreFRS Pension Option 4 — 1/3 Decrease for the surviving spouse
The fourth Florida Retirement System pension option is one of the least chosen options because of it’s unique benefit feature. Option 4 is a lifetime option for both participant and spouse, but if either the participant OR their spouse dies the pension is reduced by 1/3 for the rest of the surviving spouse’s life. Like…
Read MoreFRS Pension Option 3 / Joint Lifetime Income
FRS Pension Option 3 is lifetime the lifetime payment option for both the retiree and their spouse. This option is for spousal benefit only, and the reduction is based on the spouse’s life expectancy. Pension Option 3 is a great choice if the retiree wants to guarantee that their spouse will continue to get…
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