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Read up on the latest and most important information you need to stay up-to-date with your financial situation.

D.R.O.P. — A benefit to everyone

By Anders & Anders Financial Group | Jan 27, 2017

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…

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5 Needs of Money: Types of Income

By Anders & Anders Financial Group | Jan 17, 2017

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…

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5 Needs of Money

By Anders & Anders Financial Group | Jan 1, 2017

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,…

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FRS Investment Plan / Lump Sum Option

By Anders & Anders Financial Group | Dec 27, 2016

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…

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The Importance of Questions

By Anders & Anders Financial Group | Dec 20, 2016

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.  …

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FRS Pension Option 4 — 1/3 Decrease for the surviving spouse

By Anders & Anders Financial Group | Dec 7, 2016

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…

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FRS Pension Option 3 / Joint Lifetime Income

By Anders & Anders Financial Group | Nov 29, 2016

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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FRS Pension Option 2 — Decreasing Benefit with increasing cost

By Anders & Anders Financial Group | Nov 22, 2016

The second FRS pension option is often the most misunderstood.   FRS pension option 2 is for the participant’s lifetime, and a 10-year (120 month) guaranteed payout from the day they retire.   The confusion on this option comes from when the 10-years starts. The most common misconception is that the 120 months starts when…

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FRS Pension Option 1 / Pension Maximization

By Anders & Anders Financial Group | Nov 14, 2016

When you retire from the Florida Retirement System you have 4 pension payout options, the investment plan option, and a hybrid option to chose from. Let’s go over option 1.   Option 1 is for the retiree’s lifetime only. If the retiree dies, then the pension checks stop, but because of this risk it is usually…

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What is C.O.L.A. and why is it so important?

By Anders & Anders Financial Group | Nov 1, 2016

When I give presentations to pensioners I often get a confused look when I say that their C.O.L.A. or Cost of living adjustment is probably the most valuable part of their pension. Most people find it hard to believe that a 2%-3% increase per year on their monthly income is more important than their income…

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