If you are a Disney cast member, a new cast member, or a Disney leader, you may wonder what your Disney 401k investment options are. More importantly, you’re thinking about the following: How you should go about investing within the 401k? What are the pros and cons of different strategies? How do you put all the different strategies together? Many of my clients are Disney cast members, past and present. I’m also a former cast member. I work with the Disney 401k program frequently and help cast members understand their options and how to make investment decisions within the Disney 401k plan ..read more

One of the most common questions I’m asked is how to avoid paying taxes on 401k withdrawals. Many people need to use their 401k for various reasons. It makes sense that they would want to avoid paying taxes on it if possible. It reminds me of a recent experience with a young man who had just started working. He received his first paycheck and couldn’t wait to open it with his parents and siblings. As he slid the check from the envelope, his face dropped. He said the amount wasn’t what he expected. The difference? Taxes He expected that making $12 per hour for ten work hours would give him $1 ..read more

The topic of taxation on any type of account is frequent. “How are 401k withdrawals taxed?” is one of the most common questions I’m asked. While taxes on a 401k account may seem pretty straightforward, it is anything but. The typical financial planner’s answer is, “It all depends.” It may not be the most popular answer, but it’s the right one. Several different factors go into giving a specific answer for individual circumstances. For example: How are you taking money out of your 401k? How was your 401k funded? How are 401k withdrawals taxed based on those answers? Let’s discuss a few disti ..read more

Retiring with a pension and 401k brings some extra complexity when considering and planning for retirement. Determining the best way to retire with a pension and 401k requires understanding those complexities. This article will provide some tips and considerations to help you create a solid retirement plan. Historically, many companies used to offer pensions to every employee. Companies offering pensions today are few and far between. For companies that provide pensions, availability is sometimes based on when you began working with the company. Disney’s traditional pension, for example, is o ..read more

You may or may not have heard the term LTI mentioned in a benefits meeting. It may be listed in your employee handbook. It’s not a new concept, but it’s one many companies, including Disney, use to reward employees. I have many clients who are Disney employees (aka cast members). Many of them need clarification on the Disney LTI benefit, how it works, and if it will work for them. The best way to help is to start with the basics. What Is Disney LTI? LTI stands for “long-term incentive.” At its core, an LTI program is an additional form of compensation, on top of one’s salary and bonus, with s ..read more

I need to start by confessing. I made a terrible mistake even though I was warned not to do it. What’s this dreadful mistake? I accidentally dried my wife’s sweater. While doing laundry the other day, I got wrapped up in all the other items I was washing, drying, and folding. We were enjoying a fun date night of watching TV and folding laundry together while the kids slept upstairs. Suddenly I heard the dreaded words of disappointment. “Kyle,” she said, “you dried my sweater.” I thought about protesting my innocence. When I turned to look at her, sure enough, it had shrunk several sizes. My ..read more

Many Cast Members have questions about how to understand the Disney 401k benefit. Before we get into specifics, it’s important to offer some basic understanding of what a 401k is and how it works. Let’s start with a little history. What is a 401k? A 401k is a part of the IRS tax code. The IRS has all these rules and regulations around taxes. So, to organize those rules, they assign different items and sections. 401k is Section 401 Item K of the IRS tax code rulebook, hence the name 401k. This regulation outlines how a 401k is treated from a tax perspective. The 401 K allows you, as an employee ..read more

We’re just a few weeks away from Christmas. I’m sure everyone is very excited to see what Santa has for you under the Christmas tree. I’m sure it will be something good this year. My wife, Brooke, had me working the day after Thanksgiving to get the Newell household decorated and ready for the festivities. With all the excitement around Christmas and the anticipation of what gifts are hidden inside the beautifully wrapped packages, there is one gift that no one wants to receive around this time of year and going into next year. No, it’s not coal in your stocking. It’s surprise taxes. Some pe ..read more

If you’re thinking about retirement, you may ask yourself this question. Maybe it occurred to you that taxes will be due in retirement, and a lot of the onus is on you to pay them. As an employee, you never had to think about paying taxes because they are automatically taken out of your paycheck. You’re probably starting to wonder how much will I pay in taxes in retirement.   When I think about how much will I pay in taxes in retirement, I’m reminded of a video I saw recently. A young man is with his family and some friends. He is so excited because he just got his very first payche ..read more

David and I met the other day to discuss his financial situation. He recently got a promotion at work. On top of this he has a beautiful new baby daughter. His wife decided to stay home to help with the early years of raising their daughter. Naturally, a part of the conversation was how much to contribute to 401k. He also asked about the idea of maxing 401k. David is an analytical guy, so we went through the various aspects of his financial life to come up with this number. Looking at his budget, looking at his taxes, looking at his objectives for retirement and even insurance coverages. Ther ..read more