As a fiduciary financial advisor in Chapel Hill, Holland Capital helps UNC-Chapel Hill faculty and senior staff in their late 50s and 60s decide when to retire and how to turn their university retirement savings into income. We work with clients in Chapel Hill by video and phone, and meet in person by appointment at the Regus center on East Franklin Street in Chapel Hill.
A university career brings its own retirement choices.
Nearly one in five employed Chapel Hill residents works for state government, a share that reflects the University of North Carolina at Chapel Hill.
Retiring from the university is not one decision. It is a set of them: which plan you are in, how to draw on it, whether to phase out of your work and how health coverage fits in.
Each choice affects the others, so it helps to plan them together.
Which Plan Are You In?
Depending on your position and the election you made, you are in either the state pension, called TSERS, or the Optional Retirement Program.
The Optional Retirement Program is a defined contribution plan. You and the university contribute to an account, and what you have at retirement depends on those contributions and how the account was invested. It does not pay a set monthly pension.
If you are in TSERS, the pension can provide monthly income for life. The main decision is which payment option to choose, including how much income continues to a spouse. Our guide on North Carolina state employee retirement planning covers the pension side.
Turning Your Account into Income
For those in the Optional Retirement Program, the account has to become a paycheck. That means deciding how much to draw each year, from which accounts and in what order.
Supplemental accounts, such as a 403(b) or a 457(b), add to the savings you can draw on. Money you contributed to a governmental 457(b) can generally be withdrawn after you leave your job without the 10% early withdrawal penalty that applies to most retirement accounts before 59½. Money rolled in from other plans can follow different rules.
Social Security timing fits into the same plan. Waiting to claim can raise your monthly benefit, while your savings cover the years in between.
Our guide on UNC-Chapel Hill retirement planning explains the university’s plans in more detail.
RETIREMENT ENGINEERING™
The Order Matters
Five retirement decisions and why timing matters.
Phased Retirement and Health Coverage
Eligible full-time tenured faculty may be able to use the university’s phased retirement program. It involves retiring and then returning to part-time work for a set period. Eligibility and terms are set by the university, so we will confirm them with you.
Retiree health coverage through the State Health Plan depends on your years of service and when you were hired. It can shape the best date to retire.
At Holland Capital, investment management for a university retiree starts with the yearly income your savings need to provide.
How We Work with Clients in Chapel Hill
Holland Capital Management is an independent registered investment adviser and a fiduciary. M. Chad Holland, CFA, CFP® works directly with clients and is responsible for the planning and advice.
Bring your latest statements for the Optional Retirement Program or your TSERS benefit estimate, any 403(b) or 457(b) statements, your Social Security estimate, your State Health Plan information and a rough monthly budget.
We show how each retirement date would work, what income each one produces and what it means for your health coverage.
The first conversation is free. If there is work worth doing after that, we will define the scope and cost before you decide whether to move forward.
Holland Capital is based in Charlotte. If you are looking for a fiduciary financial advisor in Chapel Hill, we meet by appointment at the Regus center at 1506 East Franklin Street in Chapel Hill, and handle shorter check-ins by video or phone. Holland Capital does not maintain a branch office in Chapel Hill.
We work with clients throughout North Carolina. You can see the other North Carolina communities we serve here.
Our what we do page explains how a planning engagement works.
RETIREMENT ENGINEERING™
The Order Matters
Five retirement decisions and why timing matters.
Frequently Asked Questions
Can a Fiduciary Financial Advisor Help with University Retirement Plans?
Yes. Holland Capital acts as a fiduciary when providing financial planning and investment advice. That includes advice on plans we do not manage, such as your Optional Retirement Program account.
If you ever consider moving money into an account we manage, you will see our fee in writing first.
Do These Rules Apply to UNC Health Employees?
Not always. Some UNC Health employees are covered by different retirement plans and benefits. Our guide on UNC Health retirement planning covers those plans.
Where Would We Meet in Chapel Hill?
At the Regus center at 1506 East Franklin Street, by appointment.
If you are phasing into retirement or traveling, we can also talk by video or phone.
Photo: yeungb / Wikimedia Commons / CC BY 3.0, cropped.
