There are just a couple of things almost all Nexstar Media Group 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 Nexstar Media Group 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 Nexstar Media Group retiree about 30 years of retirement income.
As the economy constantly changes, a number of factors may force prospective Nexstar Media Group retirees to revisit the 4% rule. It may be worth considering annuities as an alternative.
As life expectancies increase, Nexstar Media Group 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 Nexstar Media Group.
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 is the 401(k) plan offered by Nexstar Media Group?
The 401(k) plan at Nexstar Media Group is a retirement savings plan that allows employees to save and invest a portion of their paycheck before taxes are taken out.
How can employees at Nexstar Media Group enroll in the 401(k) plan?
Employees can enroll in the Nexstar Media Group 401(k) plan by completing the enrollment process through the company’s benefits portal or by contacting the HR department for assistance.
Does Nexstar Media Group match employee contributions to the 401(k) plan?
Yes, Nexstar Media Group offers a matching contribution to the 401(k) plan, which helps employees grow their retirement savings.
What is the maximum contribution limit for the Nexstar Media Group 401(k) plan?
The maximum contribution limit for the Nexstar Media Group 401(k) plan is determined by IRS regulations, which may change annually. Employees should check the latest guidelines for the current limit.
When can employees at Nexstar Media Group start contributing to the 401(k) plan?
Employees at Nexstar Media Group can start contributing to the 401(k) plan after they have completed their initial eligibility period, typically within their first year of employment.
What investment options are available in the Nexstar Media Group 401(k) plan?
The Nexstar Media Group 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles tailored to different risk tolerances.
Can employees at Nexstar Media Group take loans against their 401(k) savings?
Yes, employees at Nexstar Media Group may have the option to take loans against their 401(k) savings, subject to the terms and conditions of the plan.
What happens to the 401(k) plan if an employee leaves Nexstar Media Group?
If an employee leaves Nexstar Media Group, they can choose to roll over their 401(k) balance to another retirement account, cash out, or leave the funds in the Nexstar Media Group plan if permitted.
Is there a vesting schedule for the Nexstar Media Group 401(k) matching contributions?
Yes, Nexstar Media Group has a vesting schedule for matching contributions, which determines how much of the employer's contributions an employee is entitled to based on their length of service.
How can employees at Nexstar Media Group monitor their 401(k) account?
Employees can monitor their 401(k) account through the company’s benefits portal, where they can view their balance, investment performance, and make changes to their contributions.
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