Money Talks

05/14/2025

If you are a Union NIPSCO employee planning on retiring with less than 25 years of service listen up heres how your pension will look.

You will ge a reduced pension pay out due to not meeting the required 85 points which signifies that you have met full retirement.

The pension reduction is outlined in this image as well as other articles including the pension packet.

05/13/2025

NIPSCO Employees hired after June 1st 2004 listen up heres how your pension grows.

1. Pay Credit:
This takes into account your age and point of service there is a scale in which we will cover in a later post that determines the percentage of your pay that is contributed on the companys behalf to your pension.

2. Interest Credit:
This is based on the 30-year treasutry scurities rates ending December 31st. It is important to note that your interest growth will be a minimum of 4% nothing less it can however be higher depending on the rates at that time.

05/12/2025

NIPSCO employees on the traditional Final Average Pension with over 25 years of service liseten up heres what you need to know.

05/09/2025

Nipsco Employees on the Final Average Payout Pension heres how your payout could look.

The first line takes into account your final average pay which is an average over the past 5 consecutive years in which you mad the most amount of money. multiplied by your years of service only up to 30.

Added to that is your pay rate multiplied by the years of service you've worked there. In this case the example shows the employee worked a total of 32 years.

Adding those two together you get your totall annual pension benefit. for an individual who decideds to take the single life annuity.

Lastly dividing that annual number brings you to your average monthly pension payout.

Follow for more on retiring from NIPSCO

05/07/2025

NIPSCO employees planning on early retirement heres what you need to know.

Early Retirement is great as long as you have met the required years of service or some of them. Let's break it down.

This example is straight from the latest FAP Pension packet and we will breakdown what it looks like if you are in a similar situation.

The first line is standard in calculating all NIPSCO Union employees pension (FAP only) this takes into account final average pan and years of credited service up to 30 years.

next you will add your Monthly benefit class ( hourly pay rate) multiplied by your years of service which can exceed 30. However, in this case its 20.

If you elect single life annuity you will take the total balance from the line above and devide it by 12 to get your monthly benefit.

*Important*
The next line shows your reduced benefit portion which is because in this case the individual came a few points short of the required 85 points for full retirement. The reduction breakdown is outlined in the packet and we will review this in another post as well. This case it is 70%.

The final line is the total balance after the reduction in which you would recieve if you retire early and dont meet the 85 points.

Follow for more on retiring from NIPSCO

05/06/2025

Nipsco employees who are enrolled in the 401(k) heres why you need to log in an check your allocation.

If you havent already take a look at your current investment mix. Likely you'll be placed in a Fidelity Target Date Fund ending in the year that you are projected to retire.

This is likely where most of your investment assets are held. You'll want to take a look at some of the other investment options that you have in your 401(k) because they do a couple of things for you.

1. Customization: You have the ability to customize your 401(k) assetse how you would like with the investments in the plan. Giving you more control over your money.

2. Diversification: While the Fidelity Target Date Fund trys to diversify for you often there are better was to diversify your fund by taking advantage of the other investment options within your 401(k).

Don't wait to log in and check your allocation.

05/05/2025

Nipsco Employees with more than 25 years of service. Listen up.

Your age plus years of service need to equal 85 points in order to get your full vested pension portion. Here is what that looks like. If you wish to retire early. The key is 85 points with both NIPSCO traditional and cash balance pension plans. This is straight from your pension packet and helps you understand what your pension payout will look like with your years of servce plus age.

03/07/2025

Business owners listen up!

You might not be maximizing your business to its full potential. Here are 3 ways you can start to inveset in your business by growing sitting cash and finding alternative ways to build your wealth .

Maximizing growth is a key focus of running a business, alongside serving your customers. As your business grows and cash flow increases, it

02/12/2025

You could be missing out on significant savings by not contributing to your 401(k). Less than half of Americans feel confident about retirement, according to Business Insider. Here are three reasons to start contributing today:

- Start Small: Many aren’t enrolled or haven’t started contributing. Even small amounts can build compounding wealth over time.

- Employer Match: Many 401(k) plans offer employer matching, which is essentially free money. Don't miss out—those extra dollars can grow significantly over the years.

- Aim for 10%: Save at least 10% of your salary to maximize employer contributions and build strong saving habits. Ideally, aim to save 20% across all accounts for a secure retirement.

02/11/2025

If you don't start saving now you could be playing catch up later.

Here are three reasons why you need to start investing today:

- Good Saving Habits
- Compounding Interest
- Tax Benefits

If you are looking for more info on how to begin your investing journey check out my website www.kennethjmichaels.com

02/05/2025

If you’re a resident of Indiana or Illinois with an estate exceeding $50,000, it’s essential to have a solid estate plan in place. Proper planning ensures your assets are protected, your wishes are honored, and your loved ones are spared unnecessary complications.

Here are the 5 key pieces of setting up a sound estate plan.

02/04/2025

You need to know these 7 key retirement ages.

As you plan for retirement it's important to ensure that you are keeping track of these certain ages to prepare for a successful retirement.

These ages are important so you know when you can:

- Take distributions from your IRA
- Claiming Social Security benefits
- Enrolling in Medicare

Don’t wait until it’s too late take control of your retirement today and stay ahead of these important milestones.