11-14-2019 Columns

Take greater control of your 401(k)

If your employer offers a 401(k) or similar plan, you’ve got a powerful retirement-savings tool at your disposal. And yet, how well you do with your 401(k) depends greatly on your choices and actions. What steps can you take to maximize the benefits of your plan? For starters, be aware that your 401(k) may come with what might be called “standard” features, which you should review to determine their applicability to your situation. These features include the following: Default deferral rate – When you take a job, your employer may automatically enroll you in the company’s 401(k) plan and assign a “default” contribution rate – the percentage of your salary you will put in to your 401(k). Many companies choose a default rate of 3 percent, although, in recent years, there has been a move toward higher rates, even up to 6 percent. Unfortunately, too many people don’t question their default rate, which could be a problem, especially if it’s at the lower end. If you want your 401(k) to ultimately provide you with as many financial resources as possible, you will likely need to contribute as much as you can afford. So, be aware of your default rate, and, if you can possibly afford it, increase that level. And every time your salary goes up, consider boosting your contributions. Investment mix – When you’re automatically enrolled in your 401(k), the amount you might initially contribute isn’t the only “off the shelf” feature – you also might be assigned a default investment option. One common default investment is known as a target-date fund, which generally includes a mix of stocks, bonds and cash instruments. Your 401(k) plan provider, or your human resources area, will typically base this mix on your age and projected retirement date. Usually, this fund will grow more conservative over time, reflecting the need to reduce the portfolio’s risk as you get nearer to retirement. However, you may not be obligated to stick with the default option. Most 401(k) plans usually offer several options from which to choose. Ideally, you’d want to spread your investment dollars among a mix of these investments to give yourself the greatest growth potential, given your risk tolerance and time horizon. And always keep in mind that your 401(k) is a long-term vehicle, designed to help you prepare for a retirement that may be decades away. Consequently, try to discipline yourself to look past the inevitable short-term drops in your portfolio. Matching contributions – If your employer offers a 401(k) matching contribution, you should certainly take advantage of it. Consider this: If your employer matches 50 cents for every dollar you contribute, up to 6 percent of your pay, and you contribute the full 6 percent, you would, in effect, be receiving a 3 percent pay raise (50 percent of 6 percent). That’s like a 50 percent rate of return even before you invest this added money. Taking control of your 401(k) in the ways described above can help go a long way toward getting the most from your plan – and, as a result, may help get you closer to supporting the retirement lifestyle you’ve envisioned. This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.

Shop locally this Christmas season

If you are like me, you have most likely already seen advertisements from online retailers for Black Friday and Cyber Monday sales. According to the Michigan Retailers Association, in 2017, Michigan residents spent $18.5 billion on items from out-of-state retailers. The group argued that, if residents switched just one out of every 10 purchases from an online seller to a Michigan retailer, the state’s economy would grow by $1.2 billion and nearly 10,600 jobs would be created. With these big sales seemingly beginning earlier and earlier each year, I have to wonder if the trend toward shopping local is having an impact. It should be. Locally-owned small businesses are the lifeblood of our communities, creating many of our state’s jobs and helping fuel a vibrant economy. Our state’s retail industry directly supports 116,000 stores, employs about 877,000 workers and pays $21.6 billion in wages each year. Indirectly, with various supports like custodial services, security firms, financial planning, and so forth, the industry’s impact is even larger. While you may not always find the cheapest price compared to a faceless online seller, you will encounter friendly, knowledgeable people who are happy to help. Shopping locally will also help foster a better sense of community that seems to be getting lost with so much of our lives lived through phone screens. As you think about your upcoming Christmas season shopping, consider shopping locally – the many shops, restaurants and other local establishments help make Southwest Michigan a great place to live. As always, residents can contact my office with any state or local issues by calling (517) 373-6960 or emailing senklasata@senate.michigan.gov.

New physician seeing patients

Spectrum Health Lakeland is pleased to welcome internal medicine physician, Erika Nearpass, DO, to the medical staff. Dr. Nearpass will see patients at both Stagg Medical Center in Hartford and Community Medical Center in Watervliet.

Dr. Nearpass earned her Doctor of Osteopathic Medicine degree from the West Virginia School of Osteopathic Medicine. She was a Clinical Assistant Professor for Michigan State University and served as a preceptor for new medical students and residents during their geriatric rotations. She spent three years completing her internal medicine residency at Lakeland. More recently Dr. Nearpass served as the Medical Director for PACE of Southwest Michigan, where she cared for the elderly members of our community. “Dr. Nearpass is an excellent addition to our primary care team here in the Tri-Cities area,” said Jay Shah, MD, Medical Director of Rural Health Clinics, Spectrum Health Lakeland. “She has a wealth of experience caring for older individuals and also speaks Spanish.” Current primary care providers in the Tri-City Area care for individuals of all ages, including young children and teens. Many are accepting new patients, including those with Medicaid and Medicare. For more information, or to find a physician, call 269-463-3600.

Protecting seniors from abuse

Elder abuse has become one of the most serious problems threatening our older population throughout Michigan. While incidents of physical abuse and neglect are the most common, elder abuse can also be verbal, psychological, or financial. I’ve heard a growing number of somber stories about family members exploiting elderly loved ones for money and property, as well as caregivers mistreating and taking advantage of their patients. Much like domestic violence and sexual assault, elder abuse often goes unreported, which makes it difficult to know just how many seniors experience abuse each year. Whether it’s feelings of shame or fear of potential repercussions from their offenders, many seniors choose not to speak up about their experiences. As a community, we have a responsibility to stand up for some of our most vulnerable members when they are unable to defend themselves. We need to help ensure that people guilty of elder abuse face justice for their immoral behavior. With that in mind, I have been actively advocating for a bipartisan plan to combat elder abuse based on available evidence about abuse in our state. The legislation strengthens legal protections for Michigan’s seniors and increases criminal penalties for offenders who financially or physically abuse elders. I recently attended an annual meeting of the Area Agency on Aging in St. Joseph, where we discussed this plan and other issues facing seniors throughout southwest Michigan and potential solutions. I’m always available to hear your story or discuss new ideas with you to protect our seniors. You can also call the anonymous Abuse & Neglect hotline at (855) 444-3911. In my office, I have information available that highlights various consumer protection resources our state has for seniors. If I ever may be of assistance, please do not hesitate to contact me at (517) 373-0839 or via email at BethGriffin@house.mi.gov.

Working to end animal cruelty and torture

Last week, the U.S. Senate passed a bill that I cosponsored called the Preventing Animal Cruelty and Torture (PACT) Act, and now it’s on the way to President Trump’s desk to be signed into law. This legislation passed with unanimous bipartisan support in the U.S. House of Representatives last month because it is simply common sense. Unfortunately, the U.S. Congress has never passed a comprehensive animal torture law – until now.

Protecting small, innocent animals from torture is an important priority for folks across Michigan’s Sixth District and around the country. The PACT Act strengthens existing legislation that bans so-called “crush videos,” where individuals create videos hurting small animals. But the legislation did not cover the underlying acts of cruelty themselves. The PACT Act would make animal abuse itself – specifically crushing, burning, drowning, suffocating, impaling or other animal cruelty – a federal crime nationwide.

The legislation sends a clear message that we will not tolerate any sort of cruelty against animals. This is important legislation, and I have heard from a number of folks about why they think it is critical for the President to sign it. To learn more about other important legislative issues, follow me on Twitter at @RepFredUpton or visit my website: upton.house.gov. You can also call my offices in Kalamazoo (269-385-0039), St. Joseph/ Benton Harbor (269-982-1986), or Washington, D.C. (202-225-3761).

The Great American Smokeout

The Great American Smokeout is a nationwide event sponsored by the American Cancer Society. Held on the third Thursday of each November, it is a day where smokers are asked to put down their cigarettes, cigars, spit tobacco or any tobacco product and prove to themselves that they really can live without them for one day.

More Americans try to quit smoking on this day than any other day of the year, including New Year’s! While smoking rates have gone down considerably, there are still 27% of Berrien County residents who smoke every day, and another 11% smoke on some days. Quitting smoking is one of the most important things you can do for your health. In fact, smoking is responsible for the most cancer deaths in the U.S.

The majority of people who do smoke have attempted to quit at least once, but sometimes it can take some extra support. Once you have decided to quit, it is important to have a plan, and make sure others are supporting you. The first thing to do is set a date to quit (the Great American Smokeout is a great one!). Then, you should decide on a method to help you quit (cold turkey, patches/gum, medication, counseling, classes).

The Berrien County Health Department has a variety of cessation resources available for you to get started or even to help someone you love get started on the journey of living tobacco free. Smoking Cessation classes are also available through Spectrum Health Lakeland Community Health & Wellness.

For more information, visit the Berrien County Health Department website at www.bchdmi.org or call 269-926-7121.