DropBasics

Surviving Difficult Market Conditions During periods of volatility in the stock market, you may have doubts about your long-term investment strategy. Here are five tips to help you avoid common pitfalls and stay on track toward achieving your financial goals. 1. Declines have been common and temporary occurrences. Problem: Declines can cause imprudent behavior by filling investors with dread and panic. Solution: Realize that declines are inevitable and have not lasted forever. History has shown that stock market declines are a natural part of investing. While declines have varied in intensity and frequency, they have been somewhat regular [...]

Learn about DROP. The Deferred Retirement Option Program (DROP) allows participants to retire without terminating their employment for up to 5 years (8 years for teachers under certain circumstances) while their retirement benefits accumulate and earn interest compounded monthly at an effective annual rate of 1.3%. This program is available to eligible members of the Florida Retirement System who are in the FRS Pension Plan, the Teachers' Retirement System (TRS), or the State and County Officers and Employees' Retirement System (SCOERS). (FRS renewed members and members of the various optional retirement programs available under the FRS are not eligible to [...]

Retirement Success is No Accident. Given the fact that you just entered DROP or are about to exit DROP, you will soon face many questions which will have a very big impact on your future. Here's how a financial advisor can really help you. 1. Information Overload Information can empower us to make educated decisions, but it can also overwhelm us, causing "analysis paralysis." A quick internet search on whether to fund a Roth IRA, yielded conflicting advice such as "you need a Roth IRA" and "reasons to skip the Roth." What's a saver to do? While it's [...]

What's a 403(b) Plan? A 403(b) plan is a retirement plan designed for specific employees of public schools, tax-exempt organizations, and certain religious organizations. The Basics of 403(b) Plans. First let's review some of the basics of a 403(b). A 403(b) plan can be a good way to save for retirement because typically money goes in tax-free. Normally taxes come out of your salary before you are paid, with a 403(b) contribution the money is invested, without taxes coming out first. There's a catch of course, tax is then paid when the money is taken out, which is [...]