All right.

Awesome.

Well, good afternoon or good morning, depending on if you're a morning person or not.

Thank y'all for joining us.

I believe this is day three of y'all's financial wellness week.

I loved all the decorations outside too.

Shout out to everybody.

Nobody's dressed up today except for Keisha.

But it is a pretty cool jacket she has on.

So appreciate y'all being here today.

My name's Danny Kirath.

I'm your rep with Mission Square.

Can y'all still hear me, even if I'm not talking this way?

Do I maybe they won't?

This is probably screen.

I think everybody's gotta hear me online.

Okay.

Well, my name is Danny Kirath.

I'm your rep with Mission Square.

We administer y'all's 401A account that's through the city today.

I'm gonna cover that really.

Y'all might know it as a supplemental social security for y'all.

Uh I'm gonna cover this.

I'm gonna mention some bits as well about the other parts of y'all's retirement.

Um, but really helping y'all to just do exactly what's up there.

It's understanding this 4-1A account.

Um, any questions that y'all have, please.

There's a very good chance somebody else is gonna have that same question, so go ahead and ask if it's anything personal as well.

I'll stick around afterwards if you have something you may not want to ask in front of every everybody.

And I'm also gonna be here tomorrow as well, doing one-on-one appointments.

I'm normally here once a month, anyways.

But if y'all ever need to get a hold of me, hopefully you find that very easy to do.

Um I'm gonna go ahead and get started.

Uh first introduce who we are.

Uh who mission square.

So it's a new brand, same mission based.

Honestly, the only thing that's really changed is the logo and the name.

It used to be called ICMA RC, if you remember that from back in the day.

I'm glad they changed that.

I'm not a I'm not a huge acronym person, so uh mission square, easy to spell, you know, not hard to remember.

Um, but who we are, we only work with folks like yourself.

We do not do any sort of private sector 401ks or any sort of private uh company retirement plans.

We only work with small local municipalities like yourself.

We always have a local rep who is me.

Luckily for me as well, I'm from Georgia.

Um I'm from the other side of Georgia though, so it's interesting.

I never came over here when I when I was younger, so I was looked at I-85 as my east and west divider.

I was I grew up in Gwyneth, Walton area, but I'm glad to be over here.

It's better than over there.

Don't tell everybody, don't tell my friends that ultimately uh wanna make this results oriented for you.

If you're anything like me, if if I'm just saving just to save, it can be very daunting.

But whenever I'm saving with a goal in mind, it it becomes a lot easier to do that.

So we wanna make sure the money that you do have going into these accounts, whether it's your just your 401A account, the 457 Roth IRAs, we want to make sure that number one, all these accounts are going to be working in tandem.

They are designed to do the same thing for you, which is provide you retirement income.

So we want to make sure ultimately it's gonna get you to where you want to go, and you understand how these accounts work when it comes to that time to start withdrawing from them or just investing um all together.

But who I am as your local rep, look, you're gonna have some sort of background, some holistic financial overview that you come from.

Whether that's you learned it from mom and dad, um you know, it I can at least speak for myself.

Unfortunately, neither of my parents worked in business or accounting or finance.

Uh my dad's an electrician, and my mom is a student pastor.

So I at least learned about what tithing was.

But um, you know, you're gonna have some sort of background that you come from.

Hey, it could be, you know, a lot of us too.

Didn't learn it in school.

Um, at least my parents will tell me they learned how to balance a checkbook in high school or in college.

By the time I got to high school, there were no such thing as checks anymore.

So, as you can tell.

Um, so ultimately, though, I want to meet y'all where you're at.

Figure out what are your goals and objectives, help you get to those.

Because like I said in a second ago, if you're just saving just to save, all right, it becomes very daunting.

Now, we all know we're saving for retirement, but that word is so it's so vague, it's so general.

It's going to be precise to each of you.

It's not a one-size-fits-all suit, right?

This is a custom tailor-made suit that you want to wear.

Um, you know, because you could be sitting next to somebody and have the same exact goals, same exact income, same exact retirement date, but y'all are gonna want to do two different things in retirement.

So we want to make sure that whatever it is that you do want to do in retirement, that we are prepared for it financially.

Okay.

Why are your financial goals important?

I'm gonna go through this real quick.

These are just some of the most common ones that I hear.

Maybe you don't want to be a financial burden to your family as you grow older, right?

I think that's a pretty common one.

Um, you maybe you want to stop working and do something that you love.

Maybe like my I'll pick on them because they're not here.

My parents, my dad's getting ready to retire, but he's got a lot of energy.

So he his idea is retire, put on an orange apron, bother people at Home Depot.

Okay, that's what he's gonna do.

Um my mom, my mom, she works at a church.

She loves volunteering, she loves being there.

She would be there, like she I'm I told her, I'm like, don't tell them you like it so much, because they're gonna stop paying you, and then you're actually just gonna be a volunteer one day.

But she's like, when that time comes, I'm still gonna do it.

So it can be that as well.

So whether it's just something you want to stop doing and do something that you love, if you're telling me you got to retire and you have to go back to work, right?

Let's change that.

You're not really retiring, okay.

Um maybe you want to be paid be able to pay for future medical expenses.

This is probably the most underlooked expense people deal with in retirement because you know when you retire, all of those medical expenses, they're not gonna go up by a little bit, right?

They're gonna go up significantly.

That's probably gonna be the biggest expense that's gonna change for you in retirement in a negative way, okay?

Um, is going to be prepared, you know, being prepared for those future medical expenses.

Um, especially if you know I know you know each to each is their own right.

I know some people there's there's um, especially when it comes to if there's any genetic, if you know that you have any sort of, you know, hey, look, the men in my family have had a history of this, and it's probably gonna daunt on me as well.

Okay, you you know, we can start preparing for those for those things.

Um maybe it's you want to help pay for kids' college education, whether that's your kid, maybe some of y'all as well getting towards the grandparent stage as um my parents are now in that, so I'm I'm an uncle, but I'm the fun uncle.

Um got to go watch cheerleading last night, if any of y'all care.

But it's really cute.

She's five years old, so um, but maybe you want to do that.

Maybe you want to help put your kids through college.

And college is look, this too, I don't like that word.

It could be any sort of education, right?

It could be whether that's a four-year state school, or maybe you're gonna go to night school, or they're gonna do trade school, whatever it is, or maybe they're gonna start a business, whatever it is, you want to help be able to fund their future.

Let's just call it that.

Um, and then the last thing you want to feel secure about your finances in retirement.

Um, the biggest worry we're probably all gonna have.

I I kind of look at the first two the the top point and the bottom point kind of go hand in hand.

The biggest worry we're all gonna have in retirement is outliving the money that we have.

You know, hey, yes, life expectancy is this, but we don't have a crystal ball to tell us that date, right?

And the last thing we do we want to do either is we go in and we don't have a plan, and then oh yeah, the men in my family live to 85, and then all of a sudden life laughs at you and you're 95.

So, you know, we want to make sure that if that happens, that you are fully prepared for if you live 25, 30 plus years throughout retirement.

Um, but just some things, one of these could apply to you.

If anything, I hope this slide just got you thinking about some of the financial goals that are gonna be important to you, or financial burdens that might also be thrown on you as well in retirement.

One of the ones on here that I see is very common when people retire is maybe an older relative moves back in.

Or uh maybe there are kids that you you know, hey, my kids are still living with me before they get on their feet.

So you know, just having these things in mind, they're all gonna be different to each of us, but having them in mind, very important.

Um, I'm gonna go through this really quick.

I show this on literally every single presentation that I do.

I just love showing this visual slide.

Your future retirement income.

Um, so for y'all here with the city, you have a pension.

Now, the city, and this is what I'm gonna talk about the 41A account, which is designed to do.

Y'all do not pay into social security here.

So the city puts into this 401A account in lieu of social security.

So look at it, you have a pension, your social security benefits benefits, at least that you're accruing here at the city, are gonna come from that 401A account.

All right.

There's also annuities, uh, IRAs, I'll I'll briefly touch on IRAs, um, your workplace retirement plan, that one's sticking out, but really that's gonna be the 457.

Um that's optional to y'all to use, but look, highly recommend utilizing it, and I'm I'll kind of piggyback off of why I think it's important to utilize it with the 401A.

Um part-time work, I look at this one, kind of like on that last slide, it's a want rather than a need.

Okay, if you want to go do something, if you're like my dad and you got a motor mouth and you can go bother people at Home Depot all day, go do it.

Okay.

Um, but it's a want rather than a need.

Okay, if you have any sort of personal investments or rental income, I like to call this really any sort of mailbox money if y'all own any businesses, or maybe do some sort of odd jobs, side jobs that are generating you consistent income if you're planning on doing that in retirement, or it's gonna generate you that passively in retirement, right?

That's gonna be income for you that needs to be planned into your retirement income.

Um, and then lastly, and last on the list for a reason is insurance cash value.

If any of y'all have whole life insurance policies, a lot of the times uh the provider will allow you to take money out of the cash balance of that uh whole life insurance policy.

If you fall into that bucket, though, I would just just always double check with your insurance provider to make sure the money that you're taking out of that insurance cash value is a withdrawal and not a loan, because a lot of times it's a loan and you have to pay it back, and if you don't pay that back, they take it off of the death benefit for from your whole life insurance policy.

So that's just something if you if any of y'all are in that uh bucket, check in on it.

And I love showing this because people get very confused about the so okay, yes, you know that you're gonna have sources of income in retirement.

And uh there's a study, it was actually by an advisor here in Atlanta, very famous uh advisor.

Um, and they did a study on over 10,000 of their total clients to see all right, what makes a happy retiree?

And what they found is the happiest of retirees have two to five different sources of income.

Okay, so it's not just gonna be pension, it is not just gonna be Social Security, it's not just gonna be that 401A social security account that you'll have.

It's not just gonna be the 457.

It's going to be a mixture of all of them.

They all have to work together to really come up with the same goal that you had, you know, before retirement, which is giving you a monthly income to cover your life.

Um, so we want to make sure, yes, y'all are going to have a few of these working in tandem.

We want to make sure when you get to that point, they're all firing how you want them to.

Okay.

So your 401A account, um, probably spend a little bit more time on this slide, even though there's not much on here, but just to talk to you about it.

So the 401A plan for y'all on the left-hand side.

I will call this, and I mentioned at the beginning, this is your supplemental social security.

So the city does not put into social security for y'all.

So this is where the city saves for you in that regard.

Okay.

So the contributions are as follows.

You'll see the the city puts in 6.13% based on your gross pay into the Social Security 401A account.

Okay.

This starts after one year of employment here.

Okay.

Now, y'all, a lot of y'all that have already participated in it, you'll see it is an investment account, right?

So you have investments in there.

You cannot change the contributions that go into that.

That is just set on however your income, your salary here with the city.

Um, you can always make changes to the investments though, and I will always recommend that at least y'all take a look at either changing them or making sure the investment that it's defaulted into is something that you're gonna be happy with.

Um, mentioned too, it's important for y'all to use the 457 because most times people will ask me, what's a good savings goal?

And I will always say, try to save in between a good goal is 10 to 15% of your income for retirement.

Okay, whether that's saving in a retirement plan or you just save it, you know, in an IRA or save it in a savings account, okay.

Um recommend doing it if you have the time, obviously doing it in your retirement account so you can invest it.

Um, but y'all will need to still use a you know, hey, a lot of people will get this 41A account and they see that money's going into it.

Reminder, y'all are not putting money into it, it's just your employer.

And I promise you, if you're just gonna rely on that, that is not going to be your your only source of income that is going to you know make it last for years to come.

Okay, like I said, it's gonna be a mixture, y'all will have pension, y'all will still have some sort of social security benefits if you ever work anywhere else.

Um, but this account, like it's it's the replacement.

So we always make the joke, oh, how could you ever live off of Social Security?

How could you just live off of Social Security?

Well, if you're just gonna live off of this account, that's exactly what you're telling yourself you're doing.

Okay, so we want to make sure that we do avoid that.

By avoiding that, yes, it will require y'all to save more money in your own paychecks, whether that's utilizing the 457 that's on here, whether that's utilizing a Roth IRA or a traditional IRA or even a brokerage account.

All right, the 457, I'll just piggyback off of this.

That's the account, it's optional for y'all, you can get enrolled.

That's where you contribute, okay, from your own paycheck, just like the 401A account, it's invested.

You get to decide those investments, you'll have beneficiaries as well, which I'll talk about in a few slides.

Um, and you'll always have the flexibility in the 457.

You can change your contribution, you can stop it, restart it whenever you would like.

Okay, now reminder the 401A account where the city puts in, that is that look at that.

It's like it's a water faucet, it got turned on all the way.

You don't have to it got turned on all the way, and then they break the handle, okay?

So you can't change it.

That's it's gonna be the same amount forever as long as you're working here.

The only time they put the faucet back on to stop it is when you leave, okay.

Um the 457, that faucet, you always gonna have the handle for it.

Okay, so you can change it, increase it, decrease it, put it on, turn it on all the way, turn it off.

Same as the 401A, though, once you are no longer an employee with the city, you wouldn't be able to contribute to that 457 anymore.

Okay.

Now I'll go through quick the contribution limits.

The 401A contribution limits won't really matter to y'all because you're not putting into it.

That's that's just where the city's putting into it.

Um this is for I wanted to just show this just because these were just released for 2026.

Um, some of y'all might have been aware of the you know, 2025 contribution limits, but here's for 2026.

So you'll see the normal contribution limit if any of you are under age 50.

The normal contribution, all you're gonna have to follow is 24,500.

That's your limit.

Okay.

If any of y'all are over 50 intact your 2026, they're gonna allow 8,000 as an additional catch up clause.

So start on the bottom.

If you're over 50, you're gonna be able to put 32,500 every single year into your 457 every year that you're over 50.

And then you'll have something as well.

This would really only apply your last few years of working.

Uh the top equation, you'll see the 49,000.

This is something called a pre-retirement catch up.

So if any of y'all, a lot of the times this is going to come into play.

If any of y'all have when you retire with the city, if you have a lot of vacation pay or back pay that has built up, a lot of hours built up, and maybe they're gonna say, hey, look, you've got these amount of hours, and it's gonna pay you out 20 or 30,000.

You get the the decide at that point, you can put it, you can take it as a as a check and withdraw it, pay the taxes on it.

That triggers the taxable event, or you can defer that money, put it into your 457.

You do not pay taxes on that until you start withdrawing from that account.

So just to show y'all, these are changing for 2026.

Good chance too, it will change in the next couple years again.

Uh when that does, it will always be communicated with you.

Um, and to make changes to your contributions, to make changes to your this, not just your contributions, but to your 41A account if you need to update beneficiaries, um, change your investments, pull statements.

You can do all that online.

I actually forgot to take this part out.

It says contact your HR represent, don't contact them.

Don't bother Keisha and Sherry about it, don't bother Ladonna.

Bother me.

That's they don't work for Mission Square, it's a mission square account.

I work for Mission Square, so you can contact me.

Um and they'll tell you to I'm normally here once a month to do appointments, like I'll be here tomorrow.

Um, but y'all can always, I'm local, so if you ever need to get a hold of me, or if there's a few people where you work at that, you know, need a rep to come out, I'm it takes me 20 minutes to get here.

So your beneficiaries want to mention this as well because that this is by far, if y'all take away one thing from all this, it's definitely keeping these up to date.

Because I've noticed here, what will happen is when y'all start working, I mentioned the 401A account starts one year after you're hired.

What will happen is after you're your employee here for a year, HR is gonna go in, they're gonna create that 401A account for you, and then they're gonna you know they'll start putting money into that.

But they do not update your beneficiaries for you or put your beneficiaries for you onto those accounts.

So, yes, even when you maybe you got started and during your benefits, okay.

You're you're married, I put on all my insurances and all these other accounts.

I put, you know, my spouse is my beneficiary.

We still need to make sure that is on file for your retirement accounts.

Normally, if it ever runs into a situation and they're not, we can normally prove, you know, hey, you know, this is your spouse.

But it's just a good idea to have it on there anyways.

Um, so you know, choosing your beneficiaries, um, that as well, that can be done online, they're listed online.

If you cannot find it or need help doing it, contact me, I can walk you through it, or I can just do it for you over the phone.

Whatever makes your life easier, okay?

That's what I'm trying to do.

I don't want y'all having any headaches with this.

Um choosing your beneficiaries, you know.

One, this is gonna decide where you know your assets are gonna be paid per your wishes, right?

You're gonna have people that are going to inherit this account.

So avoids probate, avoids credit reclaims.

I don't know if any of y'all have ever dealt with probate.

I was I'm gonna try to say this as sarcastically as possible.

I was very fortunate enough at such a young age to do with probate with my grandpa and nine of my cousins, and it was ridiculous.

So it's like you already lose somebody, and then we've got the state deciding, you know, who they think is is uh you know, who who's the head of this hierarchy.

But you know, and I they obviously know my family so well, so they did such a great job.

So loved ones can receive more tax benefits as well.

So with um with your with these retirement accounts, kind of summarize this.

If you're married, your spouse will need to be your primary beneficiary.

Okay.

If you are not married, you can name whoever you would like.

Proceed with caution, make sure it's someone you trust, right?

Someone that you love.

Um if you're not married, you can change that whenever you would like.

You can also have more than one.

Um if you are married as well, you can have contingent beneficiaries.

Actually, this applies even if you're not married.

Contingent beneficiaries would just be second in line.

Okay, so let's just say, for example, you're married, you got two kids, you name your spouse as your primary beneficiary, and your children as your contingents.

Say both of your your children are minors as well.

If something just happens to you, spouse is gonna receive everything.

Obviously, you know them, they'll take care of the kids, right?

If something happens to you, God forbid something happens to you and your spouse at the same time.

Um, all the money would go to your children, just make sure, yes, you can name minors, but what will happen is their legal guardians will still obviously know they will kind of oversee this for them.

So as long as you know, hey, you have that in order as well.

Hey, look, we've got a good legal guardian setup.

If anything were to happen to us, you know, they're gonna go with my with my sister or my parents.

Um, you know, I know that they'll watch out for them.

So, yes, you can name minors as your beneficiaries, just proceed with caution because if you pass away and they are a minor, it's gonna you know, be in control of their um of their legal guardian.

Um, this as well, really with the tax benefits of this.

So, number one, um, and actually, this isn't necessarily a benefit, but something to be aware of when you pass away, if they are not a spouse and they're inheriting this, they will have a 10-year period where they're gonna have to withdraw all that money from that account.

So maybe some of y'all have dealt with that inherited accounts before.

Um another benefit, really that I guess the only tax benefit.

If any of y'all have Roth IRAs, look at it this way.

You're leaving a chunk of money that is tax-free to whoever is inherited, whoever is inheriting that.

So definitely something, make sure they're up to date.

This is something, you know, when y'all have the 401A accounts, they do not get updated for y'all automatically.

So once, you know, hey, I've logged into my account.

If you don't have beneficiaries, the website's gonna tell you anyways, hey, you don't have a beneficiary, you need to add that.

Go ahead and do that.

Just do it now, because if anything were to happen to you, it's gonna avoid a mess after that.

But make sure you have those up to date if you need any help with that, changing those.

Keep beating the dead horse, right?

I just contact me.

I'm always here to you know, ultimately just try to make y'all's lives easier when it comes to dealing with these accounts, okay.

Um the next thing as well with the um with y'all's retirement mentioned, y'all do have access to Roth IRAs as well.

Go through Roth IRA quick just to have it.

This is an after-tax saving tool.

So the money that you put in, it's taxed up front, it's not taxed later.

Um, but later, it there's two stipulations that apply.

Okay, so the Roth IRA, you have to be 59 and a half, and it has to be open for five years before you can start taking those tax-free withdrawals.

So let's say, for example, that you are um, let's say, for example, that you are 56 and you open up a Roth IRA at 56.

You are still gonna have to wait till 61 to make those tax-free withdrawals.

Even though you're 59 and a half and three and a half years, you hit that qualification.

The account has to be open for five years.

So that means the year, the first year that a Roth contribution was made.

Okay.

Um, same as your 401A and your 457.

I'm gonna cover this on the next slide.

It's gonna be invested for long-term growth.

Now, the difference between the Roth IRA and your 457 or the 41A account is the Roth IRA, it can be payroll-deducted contributions, like you do for the 457, but you can also have it set up where it's from a check or banking account as well.

So savings or checking account.

So you can have it ACH or direct deposited from your bank account if you don't want to do it from payroll as well.

Now, the max for 2026, and I thought this was kind of funny.

The max is changing again.

So the max for this year it was $7,000 that you can put into a Roth IRA.

Next year it's gonna be $7,500, and then the catch-up is going to be if you're over $50, an additional eleven hundred dollars.

So if you're over $50, it's gonna be $8,600 that you would be able to put into a Roth IRA for tax year 2026.

And then the last part on here, I always say this very loosely, um, and proceed with caution on this one.

You can access this account while you're working.

So, what does that mean?

Okay, one, I do not want y'all, when I tell you this, please do not change your view on this and look at it like a high yield savings account.

Um, but a lot of people do not know that in a Roth IRA, you can always withdraw the contributions that you've put into it.

Okay, so say for example, you put in $5,000 to a Roth IRA and it grows to 10,000, and you're only you're not 59 and a half and it hasn't been open for five years, you can withdraw the contributions you've put into it.

There's no taxes, there's no penalties involved with that, you have already paid taxes on that money going in.

The earnings portion of it though, if you withdraw the earnings from it, that's when the IRS is gonna come back in, they're gonna tax you, they're gonna penalize.

I think that's a 10% additional penalty that they add to those withdrawals.

So reminder, you can always withdraw the contributions whenever you would like.

And then there's two reasons, two main reasons that you can withdraw from the earnings portion of a Roth IRA.

Number one is if you are paying for education expenses, okay.

So if you decide you're gonna go back to night school or you're gonna go get a degree, you can pay for those qualified education expenses with your Roth IRA.

Super great.

And then the second one is if any of y'all are in the market, if you are if you are gearing up or wanting to purchase your first home, you can withdraw up to $10,000.

I'm not sure if that's changing for 2026, but I can get y'all that information.

I believe it's still staying the same.

But you can withdraw up to $10,000 from your Roth IRA.

That's contributions and earnings to help pay for a down payment for your home.

So those would be the two reasons you could for you know, extra, but always reminder, you can take out the contributions from your Roth IRA.

Okay, but don't look at it, you know, it's like I I don't want you to treat it that way, like you're always withdrawing the contributions from it, because you ultimately, this is a retirement account.

You want it to have money going into it and allow it to grow, you know, over a long period of time.

Um the next part, choosing your investment options.

I'm gonna get through these pretty quickly.

Uh, there's three ways recommend, and now this applies for your 401A accounts, your 457s, your Roth IRAs, three ways to choose your investments.

Number one, you can always build out your own portfolio.

There's a bunch of different funds on there.

If you are very comfortable doing that, very well versed doing that, you can do that, no problem.

Change your investments as you'd like.

Um, if you want something simple, diversified, the investment that you're gonna be defaulted into into your 401A when it gets enrolled after a year is something called your target date fund.

Excuse me.

Now, your target date funds, the way that they work, you're gonna be defaulted into a fund that they go in increments of five years.

So you're gonna be defaulted into the fund that's closest to you, turning 65 years old.

Okay.

The way that fund works is when you're very young and you just get into it, it's gonna be very aggressive.

It's gonna be mostly equities, U.S.

stocks, international stocks, but it's gonna be mostly equities.

As time goes on, that portfolio is gonna incrementally become safer and safer as you get older.

So, what it's gonna do each year is gonna start taking a little bit off of the stocks and the equities and start adding a little bit more to the bonds.

By the time you reach that target date year, that means it will no longer make changes after that year.

And by that point, you've got about 25 to 35% of your portfolio is gonna be in equities or stocks or growth funds, and the remaining balance, the other is that 65 to 75% is going to be in bonds.

Okay.

Um, so that's a fund.

If you're someone that's like, look, I don't want to get into the weeds of this, I just want to make sure you know I'm invested in something good that has a relatively low cost, and I don't have to do a whole lot of overhead management.

That is the perfect fund for you.

This is a fund that you're not gonna have to do a whole lot of overhead.

This is also a fund that you don't necessarily you people look at it, oh, I'll use it till retirement.

You could use that fund until you die, truthfully.

So, and that's always the thing I'll I'll push for when y'all are retired is you still want to leave your money invested when you're retired.

Yes, we're not gonna invest it in Bitcoin, and if there's something that's very aggressive, but you know, it's something that's still, you know, hey, it's not just sitting there accruing dust either.

Um the third way, if you want someone to do it for you, we have a program through Mission Square called Managed Accounts.

Um, this would be I will always recommend this to folks who are gearing up for retirement or retired.

Um why I like this, you would get in managed accounts, sounds just like it, it does.

You're gonna have someone that's going to actively manage your account.

Okay, you're gonna be assigned to a consultant, they're gonna build you out a portfolio.

You can always make changes, but you'd have to go through them to make those changes.

Um, but what this consultant will do, they'll manage the portfolio for you, they'll pick funds for you.

They'll also have something called discretionary trading authority in your account.

What that means is you might be at work one day at 12 30 on a Wednesday, and you all of a sudden you get an email from Mission Square that there was a trade confirmation in your account.

If you're in managed accounts and you see that, do not be alarmed.

That is the consultant.

What they'll normally do is yes, you don't have time to that's their job.

They just look at the market and look at your portfolios.

Um what they'll do is if they ever see that there's opportunities in your portfolio or threats, they will go in there and make changes.

Uh a recent example of this, at least to kind of harp on them, is uh back in February of this year, administration changed, there was a lot of change that was you know being anticipated, and the market reacts to that.

So the market had very big downswings between January to the end of February, and what a lot of the managed accounts consultants had done had already gone in there and reallocated a lot of funds for folks that they were in more stable value or bond funds and really mitigated a lot of losses for those people.

So I'll tell you this with the consultants with managed accounts.

Um to preface, their best game, if there's any football fans in here, shout out the Falcons.

They're still they're still they're not, they haven't disappointed me yet.

I'm sure they will.

I'm sure it's coming.

It's coming.

Gosh, just thinking about that.

Just never mind.

Uh so right.

So uh look at it this way.

If there's any football fans, they are not gonna be the team, they're not gonna put up seven touchdowns a game.

Promise you that.

They're not gonna be, you know, it's not gonna be that they're not gonna be having fun out there, okay?

But they're gonna make sure the other team doesn't have fun.

They're gonna keep them at the red zone.

All right, so that's really their bread and butter.

Mitigating losses for y'all and making sure your portfolio is spread out over a bunch of different um different asset classes so that you're not all you know, keeping all your eggs in one basket.

Uming your withdrawal options, so with your accounts here, the 41A, the 457, the Roth IRA, all these accounts, you're gonna have flexible options upon once you separate and retire about how you want to take your withdrawal.

So, unlike your pension, when y'all retire, you know, your pension is one of those, faucets turned on.

Hey, that's how much you're getting monthly.

That's how you know you can't call them back for a raise, you can't call them to change that, right?

Um, where your 401A account, your 457, those their account balances, so you decide how much you want to withdraw from them.

And that's something as well.

When you get to that point, I can help you come up.

It's always a good idea to either talk to me or somebody that you trust about hey, what's a good withdrawal option here?

How much should I be withdrawing comfortably?

Um you'll see in bolded the revised any time.

That means as well, you can always you decide how much you you want to take from it, but you can also make changes to that as well.

So, hey, maybe you're gonna do $500 a month, and then in six months, hey, I want to get you know, I want to withdraw $750 a month, or I want to withdraw $400 a month.

You can always make changes to that.

So you can do single payments.

That means all are part of your balance, so you can do just kind of random, hey, I want to withdraw.

Maybe you know, you retire and then three months goes by.

Hope it doesn't happen to any of y'all.

HVAC goes out, and you gotta, you know, hey, I gotta replace my HVAC, I need a 10, $15,000 withdrawal to cover this.

You can do that.

You can do a little single withdrawal whenever you would like.

You can also withdraw your whole balance.

I would not recommend doing that.

That is, you know, any time you make a withdrawal from your 401A account in your 457, that's gonna trigger a taxable event.

Okay, so if you withdraw all of it, say for example, you have been working, you worked January, retired in November, and then you wanted to withdraw all of it in December.

You had already been earning a paycheck for 11 months, and then you're gonna withdraw a total balance of that.

There's a very good chance you're going to be in a very high tax bracket.

So don't want to do that either.

Do not want y'all paying any more taxes than you have to.

Um the most common is though is most people will do installment payments.

So you can do this.

Number one, you can have them sent to you as a check, or you can do ACH, you can add your bank account to your account and do direct deposit.

You know, the withdrawals from your mission square account will go directly to your bank.

Um, you can do this over, you can do a specified amount.

That's what most people will do.

Hey, we'll come up with a good monthly amount that you can withdraw indefinitely.

Uh, you can do a specified time period.

Depends.

I normally I only recommend this to every now and then that like I said, it's mostly just guys, they'll come in there and they're gonna be like, look, there hasn't been a man in my family that's lived past 77.

I want to make sure by the time I hit 77, I got as close to zero as possible.

And you know, one of those things it's like, man, I really, you know, sinister to say it's like you know, I hope you don't live past that then, because then you're not gonna have anything, but um, but that that is an option.

Uh, there's also a cola option.

So on my Southerners, not Coca-Cola, right?

This is cost of living adjustment.

Um, what this means is what you can do, say, hey, I'm gonna do $500 a month now, but I know that the cost of living is gonna go up three to five percent every year.

What I want to do is at the start of next year, I want my withdrawals to increase by three or five percent, and we can decide that amount.

Typically, average inflation is three percent.

Y'all can laugh at me at that one, because we obviously know, yeah, everybody goes to the store in here.

Um, so um that that is another option to you as well.

But like I said, even if you just set it up at a specified amount, what we can do, one, y'all's relationship with us never doesn't stop, but y'all can always contact me, and we can, if you ever need to change that amount, we can always do that.

Okay.

Um, so when can you withdraw your money?

So it's gonna be at any age after you separate from with the city of Marietta.

Okay, if you do not start withdrawing from this, the pre-tax, any of the pre-tax money, so your 41A account, if you have it any pre-tax contributions in your 457, or maybe if y'all have other retirement plans that have pre-tax contributions, at age 73, and this is actually getting ready to change to 75, I believe, in the next couple of years.

Right now, though, your required minimum distribution would start at age 73.

So, what that means is if you have any pre-tax retirement accounts, the IRS is gonna require you to withdraw from them at age 73 if you are not doing so already.

Yes, one plus one equals two, the IRS needs you to withdraw pre-tax money because they need you to pay taxes on it.

Yeah, so this that's the that's that's it for that.

Um when you get to that point though, when you get to that point, one, you're gonna get a letter from us.

We're gonna send you a letter in the mail if that if it applies to you.

Hey, this is your 73rd birthday.

Uh, you have your required minimum distribution that's going to start.

Um, and it'll also specify will also specify to you the amount that you're gonna have to withdraw.

Typically, what I see it's it's normally in between one to three percent of the account balance, not very high.

Um, but that is something that you would be required to withdraw from if that applies to you.

Okay.

Uh last couple bits, I'm almost done here.

Um, really, a couple more things.

If y'all ever when you retire, um, you'll always have access to us, you're always gonna have access to me.

If you ever need access to as well, we have certified financial planners as well with Mission Square.

Their job is literally designed to work for retirees.

Okay, that's their job.

Their bread and butter is helping you do social security analyzers, helping you come up with you've got all these different buckets of income.

How do I make this look pretty and make it make sense?

Their job is to help you through retirement to when you retire till the end of your time.

Okay.

All right.

Um and also have a succession plan for you.

So you can always, so if you have a balance of a hundred thousand dollars or more, you can always get a free consultation.

If you have less than that though, they will always sit down with you for free and do a social security analyzer, which I recommend a hundred times over for every single person in here.

Um so if you ever need to get in contact with them or need more information about, hey, see, and I didn't even mention the CFP just stands for certified financial planner.

So go back to the whole thing, I don't like acronyms, and then I just leave y'all on a cliff like that.

Um but if you ever need access to a financial planner, please contact me first.

I'll put you in contact with the the Mission Square uh financial planner that's assigned to Marietta, his name is Brian Filak.

Um, but very nice guy.

So if y'all ever need to get in contact with him or have any questions about that, contact me first.

There might even be a time where you talk to me, and just based on something that you say, I'll probably recommend you to talk to one of them.

Okay, so um uh free free of service to y'all.

I like I always love talking about them because I used to work for uh CFP before I worked with Mission Square, and uh he would charge $2,000 for a sit-down just to not to manage your money, just to sit down and you know, meet and kind of do an overview.

And then if you wanted him to manage your money, it was also a one one and a half percent fee every year that you had to pay for him to manage the money.

So um these are free.

This is what the city pays for y'all to have, so I'm always a huge fan of look, y'all take advantage of what what there is here.

Um, that's in education.

Look, I'm just gonna cover this quick it because it doesn't even have the picture.

I don't know why it always does that, but there's a picture.

There's supposed to be a picture there of a cell phone.

So you do have access to a mobile app, okay?

On the mobile app, you can do everything that you can do on the web browser if you need to change contributions, change your investments, pull statements, check your rate of return.

If you need to get in contact with your rep, my photo is on there.

I hate that photo more than anything.

Anything it looks like, you know, like in 2012 when people used to air dust, you know, if I was on Facebook, probably not.

Yeah, that's my my error, but I that's what it looks like.

So um, but if you ever need to get in contact with me, my information is on there.

I've got my card here as well.

I'm sure Sherry and Keisha have a few as well.

But um I'm gonna leave it open now for questions if there's any.

And uh appreciate y'all being here, and then I'll leave my my contact information up here as well.

Um don't disregard the 800 number one.

Just grab my contact, don't call that one, call the 2027 five nine.

Okay.

Uh but yeah, leave it now.

Is there any questions?

Any comments?

Yes, sir.

You only get those emails if you uh if you have uh because I thought I signed up for uh like a time um account with the circumstances the managed account or or the the target date?

Okay, yeah, so no, because the target date, so it's always gonna be a target date fund.

It'll just every now and then it will change things within that fund.

So you won't it won't change the fund out, but every year, yeah, a little bit out of the equities goes a little bit more into the bonds.

Everyone's not gonna get these emails so you can buy some trades that happened to be.

So you also get the emails with the target date or no?

You shouldn't.

You should not.

Not those, at least about a trade being made.

So if that is, grab my information because if it is, I can at least check that for you.

And if you need to make changes to that, we can.

Yeah, because if you signed up, go ahead.

We're percentage charging on mayors.

Great question.

So if you're using the managed accounts, the first hundred thousand, it's half a percent, okay, or half a basis, they call it half a basis point, so half a percent.

Um so and then after two hundred thousand, it goes down, it goes down every hundred thousand by point one percent.

Okay.

Yeah, that would definitely be something if you think you put into a target A fund and you're getting those, then you're probably not, and that's something we definitely need to change.

Yeah.

Good question, though.

Thank you.

Um any other questions.

All good.

It was post-tax.

The the Roth IRA is post-tax.

Yep.

So you pay tax on the front end, you don't pay it on the back end.

Yeah.

So are there a couple questions?

Yep.

My question might have said that uh if somebody has 100,000 in the capital uh the uh, yes, so if that combine or just on your corporate seven or line.

Great question.

So that's just total assets that y'all have under the mission square plans.

Okay, so and uh and to also this, even if you don't have a hundred thousand, you can still sit and talk with one of them.

They will always do a social security analyzer for you.

A lot of the times too, they don't just limit it to that, they'll go through your investments anyways.

But over 100,000, yes, you get a free financial plan, and they'll give you like they use online tools to do the the income planning, you'll have access to that as well.

It's called Money Guide Pro.

Yeah.

Good question.

Yep.

What do you suggest three pieces about how many years in the city?

From an old, from an old employer.

So you'll have to one will have to contact the old employer because a lot of the times if it's in a 401k.

Now that's something we can do together.

So y'all know if any of y'all following that bucket, if if you have accounts at other employers, um, I always recommend you contact me anyway, so I can talk with them for you because a lot of the times they'll try to use jargon that none of us understand, anyways.

So for your question, um, yes, we would have to contact the old employer, whether that's HR, just find out a lot of times too, we can even go on Google and dig around.

Because maybe if the 401k provider could have changed.

And if that's the case, then okay, we need to find who the current provider is, and then we just contact that current provider.

You know, because if we know who it is, like if it's a mission square or Fidelity, you don't have to contact HR.

We can we just go directly to the source, because HR is going to make you go through them anyway.

So we would just need to find who the 401k provider is, and like I said, that's something I can do with you, and I would recommend doing it with me so that way we can get it done smoothly.

But uh we would contact them and they would transfer the funds if you want to transfer it to your retirement.

And I always say this too, keep it current.

If you have an old retirement plan, keep it current with your current employer because this is the retirement plan that you can contribute to.

Okay.

Um that's a non-taxable event too.

When you transfer old retirement plans, so you don't pay taxes on that transfer until you start withdrawing the money when you retire.

Did that answer your question?

Yeah, somewhat.

Even if you're not sure, so even if that comp like if the company's gone out of business, yeah, they're still gonna have like they're they're still gonna have whether that 401k was with Fidelity or there's yeah, the money's still gonna be state or same.

Do you still get statements at all?

From from the No.

But I remember just saying the signal.

Okay.

Yeah, seven years ago, but I'll say that.

Yeah, well, but that's something we can that that's that's not the fun part of my job.

I could do a little Sherlock Holmes for you.

You know, we can we can look at that, yeah.

Using that good question, though.

Any other questions?

I know I spoke with you last year about this, and um I'm not sure.

I'm planning on one of somewhere else up a retire here.

So we can deploy it.

Just leave it in index of deploy and should I retire the second time and draw up.

Yep.

And um another thing too, even when y'all leave, if you all have Roth IRA race to the city, mention the Roth IRAs can be done from your banker savings, so you can always even if you leave the city, you can put into your Roth IRA.

Is it a time frame or start heading to time frame for with when we draw on it?

I mean, and you'll draw it all out at one time.

What yeah, yep.

Once you're retired, yeah.

You can withdraw it at one time.

I don't recommend if it's the pre-tax money, like I said, don't just because it'd be the most taxable to you, but yeah.

The Roth IRA, that's 59 and a half, though.

So even if you retired at 57 or 58.

What percentage you've got to do?

Taxes?

Okay, so it's good, yeah, and that's a great question.

I shouldn't even bring that up.

Is your taxes fantastic?

Thank you.

You saved me right there, but so your taxes are actually going to be, it's gonna be your your income tax rate.

So given that you're still living in Georgia, you're gonna pay federal and state.

The IRS mandatory withholding from a retirement account is 20%.

So there's gonna be 20% federal, given that you're still living in Georgia, say it's five, five and a half percent for a progressive state tax, so about 25%.

On the whole amount.

On the whole amount, yeah.

The Roth IRA reminder, no taxes on that.

You pay tax on the front end, no taxes on the back.

Just whatever you're it could be now a lot of the times that the whole idea behind pre-tax accounts is that yeah, in retirement, you're potentially gonna be in a lower tax bracket because you might not be pulling as much money out.

So, yeah, but I'd say most of the time now I see most people are in the same tax bracket when they retire, anyways.

And that's combined to your other income, so you may or may not have paid enough after the toll.

So if you made 100,000 and also you have another 100,000, now you're at 200,000, right?

Yeah.

100 50%.

So yeah, yeah, if you withdrew all.

Yeah.

Yes, ma'am.

Okay, open things or other jobs.

I always say keep it current.

And why I do it, the example that I give is like imagine you were building a house.

And in this, this is my dream world, imagination.

Okay, so you're building a house, and in this world, what we can do is if you don't want to, you know, you're building this house, but if you want to, and you find a prettier, you know, you go work somewhere else and you find a prettier piece of land, you can take what you've built from that house and go put it there.

What a lot of people will do is they're building a house at one employer, then they leave, and then they go start again.

Where you don't have to do that.

You can take those bricks that you were laying before, move your foundation there and start working on the main frame that you were really so you know, so yes, I recommend doing that.

Keeps your fees lower.

It also keeps things where you don't have to go look for an old retirement account.

You know, so big for that.

Danny helped me move all of my assets together.

And some of it was tough to visit that the actual album said to help me get debt and made it much easier.

You're awesome.

Thank you for singing my praises.

Yep.

Yes, sir.

If there's a previous 401k vested, would you still recommend moving?

Yep.

Great question.

No, and it doesn't.

Since you're vested, all that means is you've gained 100% ownership of the your old emplo all the money that your old employer was saving for you.

You have 100% ownership of that.

Yeah, yeah, you're not gonna lose any money.

And like I said, you transferred, there's no taxes involved, you're only gonna be taxed once you start withdrawing from those accounts.

Yes, sir.

57B, is it the same plan?

Like would this be the same as nationwide if like pretty much ready?

Yeah, yes, sir.

Yeah, so like the 41A, everybody has the 401A through mission square.

But then y'all y'all have a choice for your 457, you can do that through nationwide through mission square.

They work exactly the same way.

Great question.

Yeah.

So you could even the 41A account with the 457, if y'all decided, hey, look, I just don't like looking at two accounts.

Yeah.

If you wanted to, you can merge them all into one and just withdraw from the one.

Good questions.

All day from 10 to 4.

All day.

So if any of y'all want to meet, I know tomorrow's gonna be pretty pretty packed, but um, I'm normally pretty easy, so if there's a lot of y'all, I can just come back next week as well.

It's really not I can throw that out there now because my schedule's pretty open.

So um, yeah, so if y'all ever need to get in contact, I'll be here.

I'm normally here once a month.

It's normally the third Thursday of the month if you ever want to meet one on one, but um you ever need to get in contact with me.

I I live 25 minutes away, so I ain't hard to get a hold of.

Any other questions or everybody get taken care of?

Uh again, thank you guys so much for being here.

Thank you for taking the time.

I've gone well over, but uh appreciate y'all, and thank you.

I think I get to, yeah, I get to uh decide.

Bring our vet tech over here.

Let me tell you, uh before I pick this, I'll just I can be bought.

So Katrina Dooley.

You've won the golden ticket to Charlie's factory.

It's actually even better.

This is a hundred dollars, you know.