Baptist Health Corbin hosts Edward Jones Financial at Noontime Knowledge

Mar. 28—CORBIN — At Wednesday's monthly Noontime Knowledge event, hosts Baptist Health Corbin and Beth Davis of Edward Jones Financial focused on retirement options for senior citizens.

Also speaking was Breanna Jackson of Baptist Health Corbin's Pharmacy to discuss potential outlets for lowering the cost of medications.

The presentation given by Davis was titled Leave it, Move it, Roll It, Take It: Know your Employer Retirement Plan Options.

Retirement plans are a crucial aspect of long-term financial security as one comes close to retirement age.

Numerous plan options exist, including options provided by employers or options that can be done at one's leisure in private.

According to Davis, long-time financial advisor for Edward Jones Financial, it is "important to understand the ins and outs of your employers retirement plans."

Davis noted that, out of those who experience issues with their retirement plans, most of the time it begins with a change in employers, being laid-off, or otherwise leaving your job under any circumstances but retirement.

When in this scenario, one is presented with four main options, according to Davis: Leave it, Move it, Roll it, or Take it.

Each of these options, as with most things, has various benefits and consequences.

Davis laid out these pros and cons succinctly.

If one chooses to leave their plan with their employers, as is typically allowed by law even if terminated, they can expect to be able to avoid potential taxes and penalties associated with early withdrawal; avoid higher fees that are associated with IRAs (individual retirement accounts); and retain a higher level of creditor protection.

However, the consequences of doing this option are as such: less individual control over relative to an IRA; limited number of investment options; and an increased amount of paper work.

If one chooses to move their plan to new employer's plan, if allowed, one can expect to see the same benefits and consequences as leaving it, with the exceptions of forfeiting rights to stock options for the previous employer and benefitting from decreased paperwork.

Rolling over the contributions from a previous plan into an IRA or other retirement account can provided one with a higher degree of individual control over the account and give greater access to financial advising.

However, rolling over contributions to an IRA can result in greater restrictions being placed on when one can begin withdrawing funds penalty free and increase the amount of fee's one must pay for maintaining the account.

Lastly, there is always the option of simply withdrawing your funds and receiving a lump-sum cash payment.

Of course, receiving a lump-sum can seem appealing, considering that one could purchase various dream items or pay bills with such funds.

However, taking the money from a retirement account has its consequences, particularly in the form of taxes and fees.

If you withdraw the money, it will be counted toward that years income and will therefore be taxable. Even at lower income brackets, this will inevitably cut into your funding.

Additionally, if you withdraw the money prior to being age 59 and 1/2, you will incur an additional 10 percent penalty.

According to Davis, in some circumstances, taking the lump-sum can be the prudent option. However, it is generally not recommended by financial advisors.

Jackson spoke of the various ways by which one can reduce the cost of medication.

The primary option available to most people would be to ensure that the medication they are receiving is covered by their insurance, and, if not a preferred option of the company, to have paper work filed by your doctor to inform the insurance agency of the need for that medication.

Another option is to utilize apps such as GoodRx or other methods to procure a manufacturers coupon, which can significantly decrease the cost of any given medication.

Lastly, for certain ailments, there exists charitable funds that will provide a grant for medication via an application. Jackson advised to always be searching and on the lookout for grants of this nature.

The next Noontime Knowledge event will be held at the Corbin Public Library on April 17.