Financial Tips and Resources from Freddie Rappina
I have heard from many of our brothers and sisters over the past week that they expect some tough financial times ahead. This is especially due to overtime not being available and unforeseen spouse income reduction and/or child care costs. I am here to help. Here are some things people can do to help their current situation:
Requote Your Property and Casualty Insurance Policy (auto/home). When I am looking to “find money” in someone’s personnel finances this is one of the first places I go. A lot of people are over paying for their auto and home policies because they stay with companies too long and the rate gradually gets increased (It doesn’t matter the company). If people want to they can call a trusted source of mine, his name is Eric Mandragona and his number is 703-850-7194. Eric has access to multiple companies that he can quote at the same time. Sometimes people can save over $100 a month with this simple effort. Eric is aware to take care of our people.
Call Your Credit Card Company and Ask to Lower the Interest Rate: Credit card companies know that rates just plummeted this week and there are going to be a lot of companies fighting for new customers. If someone makes a simple phone call and asks nicely but firmly to lower the rate on the card, a lot of times they will do it. This can help some people that unfortunately are in some revolving credit card debt.
Call Your Cell Phone Company and Ask for Promotional Programs: Some people have not looked at their cell phone plan in years especially family plans, it is a good time to call them and ask if they have better rates, they will not call you.
Call Your Cable Company and Ask for Promotion Programs: Similar to the cell phone companies, cable companies (comcast/cox) etc. have promotion programs sometimes for months. They want to keep customers so sometimes they are willing to make a deal so people don’t “cut the cord”.
I will also be available myself for members and their spouses via video chat to help them with their personal financial situation. This is of course at no cost. People can schedule time with me at the below link. I know people have a lot questions and concerns especially with deferred comp. I am in constant contact with our Trowe rep Marie Canterbury who is stuck home and TRowe is not allowing calls or meetings with her at this time. This is a TRowe Price decision not a Fairfax County HR decision. She is working with TRowe to have herself available ASAP. I am hoping to avoid people taking loans from their 457 account if possible and at least not without education on the pros and cons. I will also be able to provide them with top of the line free budgeting and financial planning software.
People can schedule a video consultation with me at this link (ctrl+click the link) https://calendly.com/optafinancial/consultation
If there is anything else I can do please let me know.
New Life Insurance Option for FCPA Members
Since pensions have been in existence, the question has been “Do I take a permanent reduction in pension to purchase a spousal benefit or secure permanent life insurance and take the higher pension payout”. The problem was usually decided based whether someone could qualify medically for the life insurance with a manageable premium. If the retiree was unhealthy then the spousal benefit purchase made more sense. If healthy the life insurance could make more sense financially because if the spouse died first the value is not lost and can be cashed in or paid out to the children after the death of the retiree. This concept is called “Pension Maximization” and though there are a lot of opinions concerning the spousal benefit, now all the options are available to you.
For the past few years Opta Financial has been looking to eliminate the underwriting problem. In coordination and collaboration with Opta Financial we are pleased to announce we have solved one of the biggest problems facing our members when it comes to retirement planning. Now, we can provide our members a permanent cash value life insurance benefit without medical underwriting. NO MEDICAL EXAM. The premium is based on age at the time of sign up and provides additional benefit if a death occurs in an accident. This benefit is typically for corporations not unions and certainly not public safety employee groups. We are excited to say that we are now some of the few police officers in the country able to have this benefit and from a top-rated insurance company (MassMutual). Any of our members can purchase the insurance and can take with you when you leave employment with the county. Though we would love to keep as a member for life and enjoy our other benefits, you do not have to stay a member to keep the benefit, you do however need to be a member when you sign up for the policy.
This benefit has all the normal benefits of a permanent cash value life insurance policy including Level Guaranteed premium (doesn’t go up), guaranteed cash value increase and eligible for annual dividends.
Our goal with this program is to limit or possibly eliminate the need for the spousal option. This can give our members a higher pension payout and a higher DROP account balance. The higher pension and DROP balance can combat the costs of other expenses such as the health insurance premium in retirement. The earlier you lock into the program, the cheaper it will be.
Freddie Rappina is a fiduciary financial planner which means he always must act in the individual’s best interest. Freddie has said himself that this benefit should not be looked at like our 457 plan nor is it meant to replace correctly placed term policies.
Freddie will be providing voluntary training in station community rooms on this benefit and how the pension system works. It has been approved by command to go to the presentation after normal roll call business is conducted. Freddie is also open to people calling him with questions or individual meetings. Please call him either anytime on A days or on B days after 5pm at 703-981-1735. You can also email him at his business email firstname.lastname@example.org. Attached is the application and rate sheet. If you would like the benefit, please email the forms to Freddie for processing.