There are just a couple of things almost all JELD-WEN Holding retirees need when they hit retirement: predictable income and protection against a cluster of risks, which include longevity risk, performance risk and sequence-of-returns risk.
In the past we have seen retiring JELD-WEN Holding employees utilize the “4% rule,” where retirees take annual withdrawals start at 4% of the entire portfolio and increase with inflation. They then keep the remainder of the portfolio with at least 50% invested in equities. Based on historical data, this would give a JELD-WEN Holding retiree about 30 years of retirement income.
As the economy constantly changes, a number of factors may force prospective JELD-WEN Holding retirees to revisit the 4% rule. It may be worth considering annuities as an alternative.
As life expectancies increase, JELD-WEN Holding retirees need to prepare for expenses over a longer time frame. In the past we would plan for a 15 to 20 year retirement, but now we need to prepare for a 30 to 35 year retirement. What is available to assist meeting the 35-year time frame?
The annuity strategy can assist with a few of the pitfalls we see in the 4% rule. For example:
If you need $50,000 per year in retirement and need that for 30 years, you may need $1.2 million in fixed income at a 3% interest rate. BUT if you look to fund $50,000 for 30 years, you can cover that expense with $800,000 by choosing the annuity option.
The other pitfall with the 4% rule is that it may not reflect a client’s risk tolerance. When you are accumulating assets, you can afford more volatility and can take on more risk than when in the retirement and withdrawal phase after leaving JELD-WEN Holding.
Also, should we see a drop in the market, you would be able to reduce your income using the 4% rule, which you cannot do if you choose an annuity option.
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What type of retirement plan does JELD-WEN Holding offer to its employees?
JELD-WEN Holding offers a 401(k) retirement savings plan to its employees.
Is JELD-WEN Holding's 401(k) plan available to all employees?
Yes, the 401(k) plan at JELD-WEN Holding is available to all eligible employees.
What is the employer match for the 401(k) plan at JELD-WEN Holding?
JELD-WEN Holding provides a matching contribution for employee contributions to the 401(k) plan, typically matching a percentage of employee contributions up to a certain limit.
How can employees enroll in the 401(k) plan at JELD-WEN Holding?
Employees can enroll in the 401(k) plan at JELD-WEN Holding through the company’s benefits portal or by contacting the HR department for assistance.
What investment options are available in JELD-WEN Holding's 401(k) plan?
JELD-WEN Holding's 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles.
Can employees take loans against their 401(k) at JELD-WEN Holding?
Yes, JELD-WEN Holding allows employees to take loans against their 401(k) balance, subject to the plan's terms and conditions.
What is the vesting schedule for employer contributions in JELD-WEN Holding's 401(k) plan?
The vesting schedule for employer contributions at JELD-WEN Holding typically follows a graded schedule, where employees become vested over a period of time.
How often can employees change their contribution amounts to the 401(k) plan at JELD-WEN Holding?
Employees at JELD-WEN Holding can change their contribution amounts to the 401(k) plan at any time, subject to plan rules.
What is the maximum contribution limit for the 401(k) plan at JELD-WEN Holding?
The maximum contribution limit for the 401(k) plan at JELD-WEN Holding is determined by IRS regulations, which may change annually.
Does JELD-WEN Holding offer a Roth 401(k) option?
Yes, JELD-WEN Holding offers a Roth 401(k) option, allowing employees to make after-tax contributions.
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