Many retirees—Approx. 2.8 million, potentially including you—are eagerly awaiting the benefits of the recently signed Social Security Fairness Act, which was enacted on January 5, 2025. This landmark legislation primarily repeals two provisions:

• The Windfall Elimination Provision (WEP)

• The Government Pension Offset (GPO)

Connecticut clients preparing for retirement often ask me about Cost of Living Adjustments (COLA) and how they apply to various retirement benefits. Two main retirement benefits receive a cost of living adjustment:

1) Social Security

2) Specific Pensions

Inside this article, you’ll learn about the Cost of Living Adjustment and how the state of Connecticut uses the calculation. This information is especially helpful if you or a loved one have a pension through the State of Connecticut.

Here’s what you’ll discover in this article:

• What is a Cost of Living Adjustment (COLA)?

• How is Connecticut State Retiree’s COLA Calculated?

• Prediction for Future COLAs

If you have worked for the State of CT for 25+ years and are looking to retire, then you likely have a buildup of unused vacation leave.  You should ask yourself; do I have to use all my vacation days before I retire, and if not, what will happen to them?  My goal in this blog is to cover what happens to your vacation, sick, and personal leave when you retire and a few strategies to take advantage of it in retirement.   

Key Takeaways:

• What Happens to Your Accrued Retirement Days?

• Retirement

• Resignation

• Death

• What About Personal and Sick Leave Days?

• Strategies to Effectively Use the Lump-Sum Payments in Retirement

With the rise in inflation, we saw a rapid surge in housing prices.  Housing prices in October of 2022 were over 38% higher than where they were at during the start of the pandemic.  Since then, prices have started to revert but remain significantly elevated.  In addition, mortgage rates are at the highest level in over 20 years, further increasing the price to purchase a home.  So, you may wonder, is now a good time to buy a second house? If not, when?

Key Takeaways:

• The Rise of Housing Prices

• Impact of Rate Hikes on Mortgage Rates

• Current Mortgage Rates

• Is it a Good Time to Buy?

If you work for a public school, charitable organization, or faith-based organization then you are likely eligible for a 403(b) plan. This includes teachers, school administrators, professors, government employees, nurses, doctors, librarians, etc. Unfortunately, these employees do not have control over the administrator or the available investment options. If you are enrolled in a 403(b) plan, then read along as I will teach you how to analyze your plan, and alternative options if it’s sub-par.

Key Takeaways:

• What is a 403(b)?

• Types of 403(b) Plans

• What To Do if You’re in a Sub-Par Plan

• Alternative Investment Options

On November 9, 2022, the Connecticut Teachers Retirement Board (CTRB) announced the approval of their January 2023 COLA.  The announcement followed the Social Security Association’s (SSA) decision to provide an 8.7% adjustment to recipient’s Social Security benefits starting in January of 2023.  The CTRB releases two COLA adjustments each year, and we are currently waiting for the release of the July 2023 adjustment.  On Tuesday, CPI was released, and it showed continued decline of inflation causing the financial markets to rally.  With inflation coming down, should we expect the CT Teachers pension to receive a lower COLA in July? 

Key Takeaways:

• What is a Cost of Living Adjustment (COLA)

• Which Employment Group Are You In?

• How is the COLA in Each Group Calculated?

• What are the 2023 COLA amounts?

• Anticipated Changes to Group 1 COLA in July

• Concerns Over Recent COLA Amounts

The Connecticut 457 plan does not provide a wide array of fixed-income options as there are only five available.  Fortunately, there are several equity options that cover multiple asset classes, company sizes, and portfolio styles.  Which means that you have the ammunition required to create a well balanced portfolio that will accommodate your investment needs.  For this reason, I went through the options to determine which I believe will perform well in 2023 and beyond.  If you have a 457 plan and are interested in my analysis, then I’d highly suggest you read this blog!

Key Takeaways:

• Overview of the CT 457 Plan

• What is My Risk Profile?

• Determine Your Asset Allocation

• Growth vs. Value vs. Blend

• Should You Include International Securities?

• What About Domestic Real Estate Securities?

• The Best Aggressive Investment Options in the CT 457 Plan

• Rollover into an Individual Retirement Account (IRA)

If you are a CT state employee, then you have to opportunity to invest in the 457 plan.  The 457 plan has a limited set of investment options, and I went through and determined the best conservative options available.  I thought this was appropriate as we have a potential recession on the horizon with a high-level of inflation and Restrictive monetary policy.  Therefore, if you have a 457 plan then I’d suggest you read through to see what I think are the best conservative investments within the plan. 

Key Takeaways:

• CT 457 Plan Overview

• Why You Should Consider Conservative Investment Options

• Intermediate Core Bond vs. Intermediate Core-Plus Bond

• What is a Stable value Fund?

• The Best Conservative Investments Within the 457 Plan

I frequently get asked about the differences between Traditional IRAs and Roth IRAs, and which one is the best choice for retirement savings.  Unfortunately, the answer is not black and white, and is dependent on your own situation.  For this reason, educating investors on the differences between the two accounts becomes even more valuable.  In addition, I will explain the key factors I look at when helping clients with this decision.  If you are unsure about which type of IRA is suitable for you, then I’d suggest you read to the end.   

Key Takeaways:

• Roth IRA vs Traditional IRA Analogy

• Comparing the two options

• Using a “Backdoor” Roth IRA

• Qualifying contributions

Have you seen ads for annuities either on television or online?  Whenever the stock market declines, I seem to see a lot more annuity commercials that attempt to take advantage of individuals fear of losing money. These products are often sold by brokers for a commission which can lead to unethical sales.  Not to say annuities cannot be useful, but are they a suitable retirement product for you specifically? Throughout this blog I will cover an overview of annuities, how you can use them, and who they could benefit. 

Key Takeaways:

• What are the different types of annuities available?

• The benefit of purchasing an annuity

• Understanding how a fixed annuity works.

• How to use an indexed annuity

• Is a variable annuity right for you? 

• How death benefits and living benefits with annuities work

• My take on using annuities wisely

Who came along and helped you get your finances in order? Was it a parent, friend, or significant other?  No matter who it was, we could all benefit from additional instruction on how to better manage our finances.  If you are a young adult looking for direction, then this is the blog for you as I will cover nine tips that you can employ to improve your future finances.   

Key Takeaways:

• Why it’s Important to Create a Budget

• Building an Emergency Fund

• Invest in your 401(k) Plan

• Pay Off Your Credit Card Debt

• Take Care of Student Loans and Start Savings!

• Contribute to your Retirement Savings or Investment Account

• Tackle Any Other Debt You May Have

• Make Sure You Have the Proper Insurance Coverage

• Create an Estate Plan

Wouldn’t it be nice if every investment was a winner? While not every investment will make you money, there are strategies to help you make the most of a loss. On this episode, I’m going to show you the dos and don’ts of tax-loss harvesting so you can lower your income taxes and soften potential losses in the market.

Key Takeaways:

• What is tax-loss harvesting?

• Examples of tax-loss harvesting

• Four things to be aware of when developing a tax-loss harvesting strategy

• Do your tax-loss harvesting homework