As a fiduciary financial advisor in Statesville, Holland Capital helps teachers, public employees and long-career workers plan how a pension, workplace savings and Social Security fit together. We work with clients in Statesville by video and phone, and meet in person by appointment at the Regus center at LangTree Lake Norman in Mooresville.
A pension is a promise. The question is how to use it.
In Statesville, a career may be spent with the schools, the county, the city, the hospital or one manufacturer. Some workers have a pension that will pay for life. Many also have a 401(k), 403(b) or 457 plan, plus Social Security.
The main question is simple: when can I retire, and what will I have to live on?
Answering it means looking at all three sources together.
Your Pension, Your Savings and Social Security
If you work for the state, a school system or a local government, your pension may be through the state’s teachers’ and state employees’ system or the local government system. Your years of service and your highest salaries help determine the benefit.
Retiring before the full-benefit age can reduce the pension, often for life.
At retirement, you choose how the pension is paid. A single-life payment is the largest, but it stops when you die. A survivor option pays less each month but continues to your spouse. Once payments begin, that choice is generally permanent.
Our guide on North Carolina state employee retirement planning covers the system in more detail.
We put the pension, your supplemental savings and Social Security together to find the year when retirement works. Then we test the plan against a longer life, a bad market and rising costs.
How North Carolina Taxes a Pension
Your pension check will usually carry North Carolina income tax at the state’s single flat rate. Your Social Security check will not.
Longtime public employees may be exempt. Under the Bailey settlement, people who were vested in a government retirement plan with five years of service by August 12, 1989 generally pay no state tax on that pension.
Few people still working today qualify, but some retirees do. We check the service dates before assuming the pension is taxable.
Investing the Savings Around a Pension
A pension changes the job your savings have to do. Part of your retirement income may already be steady, so the rest of the portfolio can be built around the income gap that remains.
The written investment policy statement starts with what you expect to spend, then subtracts the pension and Social Security. It sets how the savings are invested to cover that gap for as long as it lasts.
Our guide on Social Security and retirement income explains the timing questions.
At Holland Capital, investment management includes advice on the funds inside your 403(b), 457 or 401(k), even though we do not hold those accounts.
How We Work with Clients in Statesville
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.
Start by pulling together your latest pension benefit statement, a statement from each savings plan and your Social Security estimate.
We will tell you when retirement looks possible, which payout choice deserves the most thought and what we would do first.
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.
Our offices are in Charlotte, North Carolina and Winter Park, Florida. We work with clients in Statesville primarily by video or phone. When an in-person meeting makes sense, we meet by appointment at the Regus center at LangTree Lake Norman, 106 Langtree Village Drive in Mooresville.
For clients whose investments we manage, accounts are held directly at Charles Schwab in the client’s own name. Holland Capital manages the investments but does not take custody of client assets. If a client ever needs in-person assistance from Schwab, the closest branch is in Huntersville at 8700 Sam Furr Road.
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
How Does a Fiduciary Financial Advisor Help with a Pension Choice?
Holland Capital acts as a fiduciary when providing financial planning and investment advice. We compare the pension payout choices with your spouse’s needs, your savings and the rest of your retirement income.
We earn nothing from the pension choice. If a 403(b) or 401(k) moves to an IRA we manage, that account would carry our fee. We say so before anything moves.
Should I Take a Refund of My Pension Contributions If I Leave?
Compare the choices before you decide. A refund gives back what you paid in, but it generally gives up the lifetime pension earned by that service.
For someone with several years of service, that trade-off can be significant. Our guide on pensions for teachers and public employees explains it.
Where Do We Meet If I Live in Statesville?
At the Regus center at LangTree Lake Norman in Mooresville, by appointment. Most shorter meetings can be handled by video or phone.
Photo: Travis K. Witt / Wikimedia Commons / CC BY-SA 4.0, cropped.
