If you have a DCP or Plan 3 investment account, you’re required by the IRS to withdraw a minimum distribution (RMD) from your pretax balance when you reach age 73. We take a look at how the amount you’re required to withdraw is calculated. We also look at special cases like inherited accounts and exceptions…
Category Archives: Podcast
Episode 74 – DCP conversions: pretax to Roth
There are a lot of reasons people choose to convert money within their DCP account from pretax to the Roth option. We discuss the process of how this is done as well as the pros and cons, including timing and tax rules. Episode transcript: [music intro] Jenny Welcome back to Fund your Future with…
Episode 73 – Book review: “The Simple Path to Wealth”
Sometimes people get overwhelmed trying to find the “right” financial advice. But for a simple and effective method, look no further than “The Simple Path to Wealth” by JL Collins. His three core rules – spend less than you earn, invest the extra in low-cost index funds, and avoid debt – have become a strong…
Episode 72 – LEOFF Plan 1: How a pension turned into an endowment
Episode transcript: [music intro] Jenny Welcome back to Fund Your Future with DRS. Well, we’ve previously talked with State Actuary, Matt Smith about how pension plans are funded in Washington. And today we’re excited to have him back on the podcast to kind of walk through a simple example of how to measure the health…
Episode 71 – Rethinking early retirement: downshifting, not disappearing
Episode transcript: [music intro] Jenny Welcome back to Fund Your Future with DRS. Today we’re diving into, a pretty popular topic around here, which is early retirement, and we get a lot of questions about this. Seems like all of the articles and podcast episodes that we put out are everyone wants to know how…
Episode 70 – How to plan for a micro-retirement
The term micro-retirement is becoming popular with people of all ages. The idea involves stepping away from the workforce for an extended period to pursue passions, travel, recharge, or learn new skills, essentially hitting the reset button on life. We look at perspectives and planning strategies to help you make micro-retirement a viable, enriching option.…
Episode 69 – What is a record keeper?
If you’ve ever seen the name Voya Financial with your DCP or Plan 3 account and wondered what they do, this episode is for you. We look at the role of a record keeper: helping process transactions, maintain accounts, and support over 400,000 customers! We also look at what record keepers don’t do and how…
Episode 68 – Understanding COLAs and the CPI connection
Why do pensions sometimes go up? We talk with Matt Smith, the state actuary, about COLAs (Cost of Living Adjustment) and how it’s tied to inflation. Matt explains how prices are tracked using the Consumer Price Index for Urban Workers (CPI-U) and why that matters for your pension. We also look at why COLAs are…
Episode 67 – Why the rule of 72 feels like magic (but isn’t)
If you ever wanted a quick way to estimate how many years it’ll take for your investments to double, take 72 and divide it by the interest rate. In this episode, we explore how this a great way to think about the power of compound interest. If you’re early in your career, it may encourage…
Episode 66 – DCP withdrawals, rollovers, and RMDs
You have options when it comes to accessing your DCP funds. In this episode, we cover smart ways to manage your funds, including monthly payouts, rollovers, lump sums and annuities. Plus, find out about required minimum distributions, emergency access and managing beneficiaries. Resources: Withdrawals in retirement calculatorDCP Roth vs pretax calculatorDCP savings calculator Episode transcript:…
