Transcript: 

Voiceover: [00:00:00] Welcome to Retirement Unlocked with Larry Heller, Your Life Your Way, unlimited possibilities. Join us as we explore how tailored financial planning and investments can help you navigate life transitions with confidence. Let’s dive into this week’s episode. 

Larry Heller: Today we are discussing retirement planning for Northwell Health Employees.

From understanding your benefits to making the right financial decisions as you approach or enter retirement, there’s a lot to consider. I’m glad to be joined today by Belinda Tsui, a certified financial planner and wealth manager with over 20 years of experience. Belinda has been part of the Hella Wealth management team since 2019, and works closely with our current and former Northwell employees to help them maximize their benefits and build a confident retirement together.

Belinda and I. We’ll walk you through how independent financial guidance can help you make the most of your [00:01:00] Northwell benefits and prepare for a secure future. So, Belinda, why don’t you kind of start us off and tell us a little bit more about working with Northwell employees. 

Belinda Tsui: Well, Northwell is a very big organization, so there’s a lot that, um, the employees are offered.

So my job is to help them walk through the. Benefits and options available to them during their working years. We want to maximize and take advantage of all the benefits they have to build up their retirement nest egg, and then when they retire, we wanna make sure we leave nothing on the table and to secure the financial future.

Larry Heller: There are a lot of different available options, and we’re gonna talk about a lot of those today during the podcast, uh, to make sure that you’re selecting the right choices for, for you during your career at Northwell. Um, and like Belinda says, as you’re nearing retirement, to make sure you make the the best choices as well.

So let’s talk about kind of like why does independent. [00:02:00] Advice matter. Why can’t you just kind of pick the, the choices that you have at Northwell and what benefits can you get from getting some independent advice? 

Belinda Tsui: Well, I would hope that everybody has a life outside of their work. So by working with an independent.

Advisor. What would happen is that we will integrate other matters that are important. You say you have investments outside of work, tax strategies and insurance planning. And of course, what’s most important at the end is retirement income planning at the very end, which you may not do if your only focus is on your Northwell retirement plan.

The other thing is working with a, um. Firms such as, uh, Heller Wealth Management. We are by law required to, um, work in the best interest of the client because we are fiduciaries. 

Larry Heller: Hmm. And we’re gonna talk about, you know, the, the, the different types of customized strategies when it comes to your [00:03:00] pension, your 4 0 3 B if you’re eligible.

4 0 4 57 B, social Security, Medicare. So we’re gonna get into, you know, we’re gonna get into all of that. Also, wanna let you know that there’s a checklist, um, that you can go right into the, the body of the, uh. Podcast and there’ll be a checklist there that you’ll be able to download. So don’t have to write down everything we’re discussing today.

You can just grab that checklist at the end of the podcast. So why don’t we kind of talk about, you know, some specific recommendations, uh, and depending upon the different roles and the different type of employee that you are at Northwell. 

Belinda Tsui: Mainly speaking, um, they are, there are different tiers at, uh, Northwell as far as the, uh, benefits package.

So what you have offered in your package as your benefits may be very different depending on your tier and your situation at Northwell. So, for example, a 4 57 or, uh, which can also be called a [00:04:00] deferred compensation plan, may not be offered to employees that are. Director, executive level or, or non-physicians at, uh, Northwell.

So every, so, 

Larry Heller: so what, what is a 4 57? 

Belinda Tsui: It’s a deferred compensation plan. So basically if someone has already maximized the main retirement plan, which is the 4 0 3 B, then they can also put more of their salary and defer the taxes on it, just like they do with the 4 0 3 B and put it away for retirement. In the future, 

Larry Heller: and there’s a lot of different choices in trying to figure out what’s the best time to actually get the deferred income as well.

Correct? Correct. Okay. And what are some of the other recommendations based upon the different roles in Northwell? 

Belinda Tsui: Mainly speaking, everybody is different in their situations, so. Depending on, um, what your goals are and your objectives, what we will give you is different. But when [00:05:00] looking at your role, there’s a big array on top of the retirement plan that we just spoke of.

Something that is considered is, uh, for example, my understanding is that, um, you are offered either a cash balance plan or a pension at Northwell right now, and you have to make that election whether you want to have the. Ability to take a lump sum in the future, or you just wanna be guaranteed a certain income stream depending on your years of service.

At Northwell, if you are working, they have a TU tuition reimbursement program. It’s not just good for employees who want to advance, uh, their skill sets and get a higher education, but you can also use it for your children if, uh, they. Go to college for reimbursement. And of course, if, uh, your job is, is important, you definitely wanna, uh, visit well, uh, as far as disability and life insurance to make sure that you protect your loved ones and also protect yourself in the event that something tragic happens and interrupts your ability to work.

Larry Heller: [00:06:00] Hmm. A college benefit is, is interesting. That’s why it’s real important that you really know all the different benefits that are out there, so you’re not leaving money on the table. So why don’t we kind of break down, ’cause I get think when we look at the Northwell employees, we look at kind of three different areas, those that are employed, those that are, uh, employed, but are nearing retirement, planning for retirement, and those that are about to retirement into retirement.

So what should Northwell employees consider when planning, while they are still working? 

Belinda Tsui: Well, what they would be planning if they’re getting near retirement is, uh, obviously how to replace their, um, income stream after they retire because Northwell will stop paying your, giving you a paycheck. So where would the money come from?

So that’s when we look at all your resources. So we talked about the, uh, big retirement plan, which is the pension, the 4 57, the 4 0 3 B, and their social security plus. Other investments that, uh, you have accumulated over your lifetime. [00:07:00] And, uh, other things that are important is it depends on when you retire.

Are you retiring where you can, are you qualify for Medicare or do you need to go out and get your own, uh, health insurance and then. Depending on if you have chosen the cash balance plan, do you want to take it out in a lump sum where you manage the money and decide how to distribute it or do you annuitize it?

And then of course, most of the plans are pre-tax. And what is most careful when you retire is how to efficiently withdraw with tax and consideration so that you get the most after tax dollars from your withdrawals. 

Larry Heller: Yeah, I mean that, that’s so critical that we’ve seen. If you don’t plan right, you can end up paying a lot more in, in, in taxes.

And we’re not gonna talk about Roth conversions today. You can listen to one of our other podcasts on, uh, solely on Roth conversions, but that also may be something that you want to consider as you’re approaching, approaching retirement. So let, let’s talk about kind of [00:08:00] what happens as a North Wall employee.

’cause there is a process that needs to go on and sometimes it’s not the easiest. So let’s just let everyone out there know. What should the employees consider when they are retiring? 

Belinda Tsui: So before you choose a date, one of the most important things that in dealing with. Retirees that they tell me about is, um, the healthcare coverage obviously.

So well, you have to set up, so after you leave, uh, Northwell that there is no lapse in your healthcare coverage. So choosing that date is very important. And, uh, just a little tip that most people will choose to retire on the first, so that at least they make sure that. Uh, Northwell covers them for the month, for whole month that they retire, and then they don’t, at least they have that time to transition to a new plan.

And, uh, depending on whether you retire after 65 or before 65, Northwell does, uh, sub help subsidize if you do retire before the age of 65 and [00:09:00] you can still go into a, uh, one of their plans or even after your turn 65, but you have. But after you qualify for Medicare, the difference is that you are able to choose from the different array of Medicare plans out there.

Uh, versus you can’t. And then once you decide that, then you go notify HR of your official date. And then retirement date, and then you’ll start getting packages from them to fill out. Now, one thing that’s important for you to know is that until you get your final paycheck, most of your retirement plans, you’re probably not able to move because you need to get that final, final deduction from your paycheck into say, uh, your 4 0 3 B, or you need that final contribution into your pension so that they can calculate.

What your benefits are. And then another thing that, uh, about not leaving money on the table is check your PTOs. You, depending on your position or how [00:10:00] much you have carried over, uh, you may or may not be paid out for the amount of, um. PTOs that you did not take. So you certainly wanna start taking some vacations if, uh, you have too much.

Larry Heller: Hmm. All great things to consider if you haven’t thought about those as you’re nearing retirement. So, uh, make sure that you kind of go through all those and make the right decisions. 

Belinda Tsui: Oh, and one last thing I sort of forgot. It’s that, um. If you are one of the more highly compensated individuals in the deferred compensation plan, if you don’t make a decision as far as your distribution, 90 days after your retirement, they will make it for you.

So that’s something to, uh, definitely, you know, attack right away and figure out how you want to distribute. 

Larry Heller: Are you talking about the 4 57 and the deferred 

Belinda Tsui: compensation plan? 

Larry Heller: So, and, and how long can you defer that? Out, 

Belinda Tsui: uh, you could choose to annuitize it or you can choose a specific dollar amount. And once the money exhausts, it’s, it’s gone.

But, uh, [00:11:00] at least you will have some control over that versus they will make the election for you if you don’t. 

Larry Heller: Right. And we wanna have some control so we can try to minimize what the government’s gonna take out of 

Belinda Tsui: that. Correct. And it depends on what stage you are. Sometimes, like maybe you’re not at the age of social security, um, collecting it then, and that could.

You’d be certainly used to subsidize your income in the meanwhile where you wanna expedite it rather than taking it over your lifetime. 

Larry Heller: Great. Let’s talk about kind of some examples of some of the Northwell clients that you’ve helped and the different occupations. So, um, let’s just kind of talk about a, a nurse that you, that we’ve, we’ve worked with.

Belinda Tsui: So the nurse that we worked with, one of them, uh, for example, did fall in the category of, she retired before she turned 65. So one of the issues would be to figure out how is she gonna get her healthcare coverage after retirement, and also when she had a cash balance plan. So to make sure that where [00:12:00] she is as far as vesting to, um, to, so that she can, she can take out the full, the full amount from the cash balance plan.

Larry Heller: Interesting. And one of our interesting Northwell employees was an administrator who, um, who, who worked kind of later into life. 

Belinda Tsui: Correct. And in, uh, her case, uh, she retired after the required minimum distribution age. So what was important is we had to coordinate with the accountant because now that she’s.

Officially retired. She is no longer able to delay her require minimum distribution. ’cause for anybody who continues to work after the age of 73, your retirement plan, you can delay your require minimum distribution from the 4 0 3 B. But once you. Do retire, the requirement will be that you have to take your distribution.

Mm-hmm. So you’re gonna suddenly have a very, in some cases, a very sizable distribution from your account, which we [00:13:00] need to coordinate to make sure the proper taxes are paid. 

Larry Heller: Hmm. Great. Great point. And then we, we, we’ve also worked with, uh, with, with physicians. So, uh, can you give us an example about kind of one of our physician clients?

Belinda Tsui: Well, physicians have very specialized work. Um, so one of the things that is definitely important is, um, to make sure that, uh, they have a disability coverage and life insurance coverage because we need to protect. Them and also to protect their loved ones In, um, some, in the case something, uh, tragic happens and, uh, if you happen to lose, your income and disability is exhausted.

Once again, the, um, say the deferred compensation plan will come in, it’s like, do we take that first? Or what other sources of money do we take from to make up for the missing income? 

Larry Heller: Hmm. And you know, finally kind of, you know, a younger employee, what there’s some that we’re working with right now. What are some of the, the tips we can, we can let them know?

Belinda Tsui: Well, they would have to make [00:14:00] sure, obviously, if they’re younger in life and, and we do happen, have ones that. Got married, has a young child on the way. And, uh, it, it’s about setting up to try to do your best to save, uh, for retirement. Uh, take advantage of, uh, what the firm has to offer, whether it’s, um, like we said, tuition reimbursement for the young, for the young child if, uh, when they go to college or for yourself.

If you wanna advance in your career and take some courses, which Northwell will, uh, support. 

Larry Heller: Hmm. So all, all great. Suggestions all. There’s a lot of benefits that Northwell provides, so really knowing which ones and how to get the maximum for, for, for yourself, for your family, and how to minimize taxes are all super critical.

So note, what are some of the top things that Northwell employees should remember? 

Belinda Tsui: You guys really have, um, some pretty good benefits, but you have to know your benefits to, uh, be able to take advantage of them. And, uh, also something that’s important depending on [00:15:00] what stage you have in life, you have to make changes to your investments as well.

You can’t just like, you know, set it and forget it. Um, as you move closer to retirement and you’re starting to live off your nest egg, you have to change the, uh, investment strategy that you have in. Like in all the examples that we have above where many other factors will come into play, it’s best to probably work, uh, with someone else.

You can’t do it all yourself. This is not your specialty to have somebody discuss with somebody and coordinate all these things to help you become more successful in your financial plan. 

Larry Heller: Right. And like we kind of, you kind of mentioned before, you know, we want to kind of coordinate. All their income sources.

So as they transition, they have a, a smoother retirement, and the earlier that they can stop planning, the easier it is to maximize all of their, their benefits. And especially if you’re gonna be going on on Medicare, you want to kind of make sure [00:16:00] that you’re coordinating that and selecting the right. Um, the right coverage for, uh, for yourself out there.

So if you’re a Northwell employee or retiree, you can schedule a complimentary benefit with, uh, with, with Belinda and our, and our team. So, um, thanks Belinda for sharing all the Northwell benefit tips with us today. And thanks to you, our audience for tuning into Retirement Unlocked. If you found this episode helpful, please like, subscribe and share it with someone who might benefit.

If you like to take the next step in planning your retirement or understanding your Northwell benefits, you’ll find the link in the episode description to the Heller Wealth Management website. There you can explore additional resources. You can also find the um, checklist that I mentioned, and if you like, you can schedule a complimentary 20 minute call with our team.

Your ideal retirement starts with a conversation. Let’s get started. We’ll see you next time on Retirement [00:17:00] Unlocked.