Whether you live in Texas or Puerto Rico, you’ll receive quite a bit of useful information from this article. If you're new to investing following a departure from a Lumen company, you may encounter some unfamiliar jargon. Understanding the following terms may help you become a more confident investor.
Portfolio
An investment portfolio is a collection of investments owned by an individual or an institution. Typically, a portfolio comprises a mix of asset classes such as stocks, bonds, and cash. This will typically include any additional assets from retirement not limited to your Lumen pension, 401 (k), lump sum, and annuity payments. An investor's risk tolerance, time horizon, and investment goals generally determine a portfolio's asset allocation.
Stock
A stock is a security that represents ownership (or equity) in a corporation. Typically after a specific year of service, most Lumen employees will receive some form of stock as part of their benefits package. An investor who purchases shares of stock owns a piece of the company and has a claim on a portion of the assets and earnings. Shareholders are subject to the potential benefits and risks of that position, which means they can make money if the company does well or lose money if the company does poorly.
Note: The return and principal value of stocks fluctuate with changes in market conditions. Shares, when sold, may be worth more or less than their original cost.
Bond
A bond is a fixed-income security issued by a government entity or corporation to raise money needed for ongoing operations or to finance new projects. Investors who buy bonds are essentially lending money to the issuing organization and become a creditor. Bondholders typically receive interest payments at regular, predetermined intervals. These payments are based on a fixed annual interest rate, also known as the bond's coupon rate. These interest rates also can effect your Lumen lump sum and annuity. Bondholders can expect to be paid the bond's full face amount at its stated maturity date, barring default by the issuer.
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Note: The principal value of bonds may fluctuate with market conditions. Bonds redeemed prior to maturity may be worth more or less than their original cost.
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Cash
Cash is another investment type, or asset class. It includes currency and cash alternatives that offer low risk and high liquidity.
Some examples of common cash alternatives are savings accounts, certificates of deposit (CDs), and U.S. Treasury bills.
Note: The FDIC insures CDs and bank savings accounts, which generally provide a fixed rate of return, up to $250,000 per depositor, per insured institution.
Note: U.S. Treasury securities are backed by the full faith and credit of the U.S. government as to the timely payment of principal and interest.
Mutual Fund
A mutual fund is a collection of stocks, bonds, and/or other securities purchased and managed by an investment company with funds from a group of investors. Shares are typically bought from and sold back to the investment company at the end of the trading day, with the price determined by the net asset value (NAV) of the underlying securities. Mutual funds offer investors the advantages of diversification and professional management. Diversification is a method used to help manage investment risk; it does not guarantee a profit or protect against investment loss. Understanding the level of diversification is important to making sure your retirement from Lumen is as care free as possible.
Exchange-Traded Fund
An exchange-traded fund (ETF) is also a portfolio of securities assembled by an investment company. But unlike mutual funds, ETF shares can be traded throughout the day on stock exchanges, like individual stocks, and the price may be higher or lower than the NAV because of supply and demand. ETFs typically have lower expense ratios than mutual funds, but you must pay a brokerage commission whenever you buy or sell ETFs, so your overall costs could be higher, especially if you trade frequently.
Note: The return and principal value of mutual funds and ETFs fluctuate with changes in market conditions. Shares, when sold, may be worth more or less than their original cost. Before investing, carefully consider the fund's investment objectives, risks, fees, and expenses, which can be found in the prospectus. Read it carefully before investing.
Dividends
Dividends are the distributions of a company's earnings to shareholders, generally paid in cash or additional shares of the company's stock on a quarterly basis. The dividend amount per share is decided by the company's board of directors. Dividends must be reported as income by shareholders in the year received. Understanding the ins and outs of taxes is an often overlooked part of clients dealing with dividends purchased with lump sum payouts from Lumen. Investors often view dividend payments as an indicator of the company's financial strength and future prospects.
Note: Investing in dividends is a long-term commitment. In exchange for less volatility and more stable returns, investors should be prepared for periods when dividend payers drag down, not boost, an equity portfolio. The amount of a company's dividend can fluctuate with earnings, which are influenced by economic, market, and political events. Dividends are typically not guaranteed and could be changed or eliminated.
Yield
Generally, the yield is the amount of current income provided by an investment. For stocks, the yield is calculated by dividing the total of the annual dividends by the current price. For bonds, the yield is calculated by dividing the annual interest by the current price. The yield is distinguished from the return, which includes price appreciation or depreciation. Investments seeking to achieve higher yields also involve a higher degree of risk.
Index
An index is a statistical composite used to track changes in economic conditions (such as inflation) or financial markets over time.
Investors use some indexes as benchmarks against which the performance of certain investments can be measured. For example, the S&P 500 Index is considered to be representative of the U.S. stock market in general, but there are hundreds of other indexes based on a wide variety of asset classes (stocks/bonds), market segments (large/small cap), and styles (growth/value).
Note: The performance of an unmanaged index is not indicative of the performance of any specific investment. Individuals cannot invest directly in an index. Past performance is not a guarantee of future results. Actual results will vary.
Bear/Bull Market
A bear market is generally defined as a period in which the prices of securities are falling, resulting in a downturn of 20% or more in several broad market indexes over a period of several months or longer. A bull market is a sustained period in which the market is rising and investor optimism is high, usually occurring over several months or years. Either of these market trends can influence the attitudes and behaviors of investors.
What specific retirement benefits does Lumen Technologies, Inc. offer to employees who have dedicated many years of service to the company? In what ways do these benefits reflect Lumen's commitment to taking care of its employees post-retirement, and how do they align with the company's overall values regarding employee welfare and support?
Retirement Benefits: Lumen Technologies offers its employees retirement benefits that include 401(k) plans and pension options, reflecting its commitment to post-retirement welfare. These benefits are aligned with Lumen’s values of providing security and care for its employees after years of dedicated service. They are designed to ensure long-term financial stability for retirees, aligning with Lumen's mission of enhancing employee well-being(Lumen Technologies Inc_…).
As an employee of Lumen Technologies, Inc., how can you effectively plan for your retirement to maximize your benefits? What factors should you consider, and what resources does Lumen provide to help employees navigate the complexities of retirement planning to ensure a secure financial future?
Retirement Planning: As an employee of Lumen Technologies, you should consider factors like years of service, retirement plan contributions, and projected retirement age to maximize your benefits. Lumen provides resources such as retirement calculators and financial planning tools to help employees navigate these complexities and secure their financial future post-retirement(Lumen Technologies Inc_…).
How do Lumen Technologies, Inc.'s retirement plans compare with the industry standards? In which areas can Lumen improve its offerings to remain competitive and retain top talent while ensuring the financial security of its employees in their retirement years?
Comparison with Industry Standards: Lumen’s retirement plans are competitive within the industry, but improvements could be made in areas such as enhanced pension offerings or matching contributions in the 401(k) plans to attract and retain top talent. This would ensure financial security for employees in their retirement years while keeping Lumen competitive in the market(Lumen Technologies Inc_…).
Can you explain the role of the HRCC (Human Resources and Compensation Committee) at Lumen Technologies, Inc. in overseeing employee retirement plans? What measures does this committee take to ensure that retirement benefits remain aligned with the organization’s goals and employee expectations?
HRCC Role in Retirement Plans: The Human Resources and Compensation Committee (HRCC) at Lumen oversees retirement benefits to ensure they align with the company’s goals and employee expectations. The committee reviews and updates the plans regularly, ensuring they remain relevant and meet both the company’s financial objectives and the needs of its employees(Lumen Technologies Inc_…).
What changes to federal regulations or IRS limits in 2024 could potentially impact Lumen Technologies, Inc.'s retirement plans? How should employees prepare for these potential changes to ensure they are fully utilizing their benefits?
Federal Regulation Changes in 2024: Changes to IRS limits or federal regulations, such as adjustments to contribution caps or tax deductions, could impact Lumen’s retirement plans. Employees should stay informed about these changes to fully utilize their benefits, and Lumen’s HR team provides updates and resources to assist in navigating these regulatory adjustments(Lumen Technologies Inc_…).
How does Lumen Technologies, Inc. ensure that all employees are aware of their retirement options? What communication strategies does the company employ to make sure employees understand the specifics of their retirement benefits and the necessary steps for enrollment or participation?
Employee Awareness of Retirement Options: Lumen employs a variety of communication strategies, including workshops, online resources, and HR consultations, to ensure that employees are aware of their retirement options. Regular updates and easy access to information help employees understand the steps needed for enrollment or participation(Lumen Technologies Inc_…).
In the event of unforeseen circumstances, such as death or disability, how does Lumen Technologies, Inc. protect the retirement benefits of its employees and their families? What provisions are specifically designed to support employees and their loved ones during these challenging times?
Protection of Retirement Benefits: In cases of death or disability, Lumen has provisions to protect retirement benefits for employees and their families. Survivor benefits and disability accommodations are designed to provide continued financial security for employees and their loved ones during challenging times(Lumen Technologies Inc_…).
For employees nearing retirement at Lumen Technologies, Inc., what strategies should they adopt to ensure they transition smoothly out of the workforce? What resources or programs does Lumen offer to assist employees during this significant life change?
Transitioning to Retirement: Employees nearing retirement at Lumen can benefit from financial planning tools and transition programs offered by the company. These resources help ensure a smooth exit from the workforce and provide the necessary support for this significant life change(Lumen Technologies Inc_…).
How is Lumen Technologies, Inc. addressing the challenges of an aging workforce regarding retirement readiness? What initiatives or programs are in place to help older employees prepare for retirement and to facilitate knowledge transfer to younger employees?
Addressing an Aging Workforce: Lumen is addressing retirement readiness through programs that help older employees prepare for their transition into retirement. These initiatives include financial education, retirement planning resources, and mentorship programs to facilitate knowledge transfer to younger employees(Lumen Technologies Inc_…).
For employees who wish to learn more about the retirement benefits and planning processes offered by Lumen Technologies, Inc., what contact methods are available? How can employees reach out to the appropriate department for detailed inquiries and assistance regarding their retirement options?
Contact Methods for Retirement Inquiries: Employees wishing to learn more about Lumen’s retirement benefits can reach out to the HR department via phone, email, or the company’s internal benefits portal. Lumen’s HR team provides detailed assistance regarding retirement options and planning(Lumen Technologies Inc_…).