Are you Fully Utilizing Your Benefits?
Modern Dollar Planning works with a number of Cigna (Express Scripts) executives and understands the company’s employee benefit offerings. We assist all of our Cigna executive clients with their 401(k), Deferred Compensation plan, Stock Options/RSUs and annual benefit elections. If you have questions about how to maximize your Cigna benefits, we are here to help.
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Modern Dollar Planning is not directly affiliated with “Cigna.” While Modern Dollar Planning communicates with its clients regarding their “Cigna” employee benefits and educates itself on the “Cigna” Benefits, they can change over time. Cigna employees are encouraged to contact their employer should they have any questions regarding their specific employee benefits.
401(k) plan:
Learn more about your Cigna 401(k) Plan:
Pre-Tax or Roth Contributions?
Your 401(k) Retirement Plan allows for both Pre-Tax or Roth (After-Tax) contributions. This video explains the difference between Pre-Tax and After-Tax contributions and gives you some helpful advice on how to go about determining which type of contribution is right for your situation as it all depends on what current tax bracket you are in today versus what tax bracket you think you may be in during your retirement.
How should you be Investing your 401(k)?
Your retirement plan offers a wide variety of investment choices but it is up to you to determine which option(s) to choose and how much to invest in each option. This video provides helpful tips on how to decide what level of risk you should be taking and how best to go about determining which options you should be investing in.
Should you Self-Direct your 401(k)?
A little known fact about most retirement plans is that they may allow you to “self-direct” your account. This video explains what self-directing really means, how you go about determining whether your employer’s retirement plan allows you to self-direct and, if it does, what sort of thought process you should use to determine if self-directing some or all of your account is worthwhile.
In-Service 401(k)/403(b) Withdrawals
If you have worked for your employer for a long time and are a good saver, most likely you have built up a nice sum of money in your 401(k)/403(b). Because most employer retirement plans offer a limited number of investment options, they typically will allow for “In-Service” withdrawals once you have reached a certain age in order to limit their on-going legal liabilities. This video explains what an In-Service withdrawal is, how you go about determining if your employer plan allows for it and whether this technique is right for your situation.
Back Door Roth IRAs
Under current tax law, anyone can complete a Back Door Roth IRA contribution every year provided they have no other pre-tax IRA accounts that have a balance in them. This video explains what a Back Door Roth IRA contribution is, why you would consider completing one and the process you must follow in order to complete your Back Door Roth IRA contribution successfully.
Deferred Compensation
Learn more about your deferred compensation plan:
Cigna’s Deferred Compensation plan
Once you are promoted to a certain level within your Company, you will gain access to an additional pre-tax retirement savings vehicle called a Deferred Compensation Plan. This video explains what a Deferred Compensation Plan is and what sort of things you should be thinking about when determining whether to participate in this plan and, if so, how much you should contribute into it.
At Cigna, your base salary and bonuses are eligible to be deferred under the plan. The company provides a 1.5% match to any deferrals you make into the plan.
Stock Options & ReStricted stock Units (RSU)
Learn more about Cigna’s Stock Options and Restricted Stock Units (RSUs):
Restricted Stock Units (RSU)
Your employer offers many great long-term incentives. One of the major long-term incentives they offer is Restricted Stock Units or RSUs. This video explains how RSUs work, how they are taxed and what other things you should be considering once your RSUs vest.
STOCK OPTIONS
Stock options are a great way for your employer to incentivize you to continue to work for the company and to perform year-after-year. This video explains how stock options work, how they are taxed and what sort of thought process you should use when determining the optimal time to exercise your vested stock options.
CONCENTRATED STOCK POSITIONS
You love your job and your employer. You have worked for them for a long time, you have moved up the corporate ladder and believe in your Company’s long-term performance opportunities. Unfortunately this may mean you have accumulated a fair amount of value in your Employer’s stock. This video explains what constitutes a “Concentrated Stock Position” along with giving you some helpful tips on how to carefully minimize this concentration, and the taxation of such, over time.
Insurance Coverages
Learn more about your Cigna provided insurance coverages:
WHICH HEALTHCARE PLAN SHOULD YOU CHOOSE?
One of the biggest and hardest decisions you will make every year is what Healthcare Plan you should choose during your annual enrollment period. Far too often people wait until the last minute to make this decision and they do not spend any time financially comparing and analyzing their options. This video explains the most important criteria you should be using when selecting the best Healthcare Plan option for you and your Family along with how to go about comparing your options from a financial sense.
HEALTH SAVINGS ACCOUNTS
If you have elected to utilize a High Deductible Healthcare Plan (HDHP) through your employer, we highly encourage you to contribute into a Health Savings Account (HSA) as it is the only triple tax-free account that we are aware of. This video describes what an HSA is, why we are such big proponents of using a HDHP which allows you to contribute into an HSA and the power of using a triple tax-free account for your future out-of-pocket healthcare costs.
LIFE INSURANCE - HOW MUCH DO YOU NEED?
All too often people neglect to address their on-going life insurance needs. Hopefully some of your life insurance needs can be provided by your employer’s group coverages but you may be in need of even more coverage. This video explains why you need life insurance coverage, how you calculate how much coverage you should have and what types of life insurance policies you should purchase.
LONG-TERM DISABILITY INSURANCE
Statistically you have a much higher percentage chance of becoming disabled than you are to die prematurely. This is not to say that you will be permanently disabled but more so that you are in a car or bike accident or you have a medical issue whereby you are recuperating for an extended period of time and will be unable to work during your recovery period. Consequently, this video explains the importance of making sure you have adequate Long-Term Disability coverages in order to minimize the risk of an accident causing you financial harm in addition to your physical and/or emotional harm.
At Cigna, you receive a company provided 50% long term disability coverage that can be ‘bought up’ to 60% or 70% of your income.
LONG-TERM CARE INSURANCE
No one wants to think about not being able to perform the six activities of daily living but, unfortunately, more and more of us are living a good, long life and are needing long-term care services. This video explains the various long-term care insurance policies that are currently available along with going through all of the things one should be thinking about deciding whether to purchase a long-term care insurance policy or not.
Retirement Questions
Insights on various frequently asked retirement questions:
HOW MUCH SHOULD YOU BE SAVING?
Many people procrastinate and do not start saving for retirement until they are in their 30’s or 40’s. This video provides you with an easy-to-understand table which assists you in determining what percentage of your income you need to be saving for retirement based on your current age, income levels and investment account balances.
TAX SAVING STRATEGIES
Learn some easy ways to save on your income taxes on an on-going basis by listening to this educational video that outlines various tax saving strategies for both employees and self-employed individuals.
STEPS YOU SHOULD TAKE IN PREPARATION OF YOUR RETIREMENT
Retirement is right around the corner for you and you are wondering what sort of things you should be thinking about leading up to your big event? This video maps out all of the major financial items you should be considering and making sure are in order prior to your actual retirement date. Proactively taking the time to prepare for this milestone event ahead of time will increase the probability of a successful retirement.
RETIREMENT DISTRIBUTION PLANNING
Reaching your retirement date should be a joyous, celebrated event. Unfortunately if you have not proactively created your personal retirement distribution plan, you may experience stress and anxiety as you now need to replace your paycheck. This video outlines the process you should take ahead of your retirement date to proactively plan for how you are going to replace your paycheck and do so in a tax efficient manner.
UNDERSTANDING SOCIAL SECURITY
One of the biggest decisions all of us will make over the course of our lifetimes is when we should elect to begin receiving our Social Security income. This video provides an in-depth explanation of social security income and all of the things you should be considering when deciding at what age to turn your social security income on including any tax ramifications of doing so.
MEDICARE INSURANCE
There are many people who look forward to turning Age 65 as they will then be eligible for medicare insurance only to find that understanding and electing your medicare insurance coverage is overly complicated and confusing. This video explains medicare insurance in general along with many of the things you should be taking into consideration when selecting your medicare supplement policy.
WHAT IS A WILL AND WHY DO I NEED ONE?
No one likes to think about our own demise so many of us procrastinate completing our estate plan which includes a Last Will and Testament. This video explains what types of things a Will spells out and why it is imperative that all of us take the time to create our own Will prior to our unknown expiration date.