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Navigating FRS DROP, Investment Plan, and Bencor Rollover Options

Navigating FRS DROP, Investment Plan, and Bencor Rollover OptionsPhoto from Unsplash

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Retirement planning can be a complex and daunting process, particularly when it comes to navigating the different options available for managing your funds post-employment. From the FRS DROP (Deferred Retirement Option Program) to the FRS Investment Plan, and Bencor consider your Rollover options. There are numerous avenues to discuss before determining how best to secure your financial future during retirement.

In this blog, we will explore these options, providing you with the knowledge and insight needed to make informed decisions about your retirement investments. Whether you are just starting out on your retirement savings journey or looking to optimize existing accounts, this article will serve as a valuable resource for understanding the intricacies of FRS DROP, FRS Investment Plan, and Bencor..

A Closer Look at FRS DROP (Deferred Retirement Option Program) 

The Deferred Retirement Option Program (DROP) is a unique program offered by the Florida Retirement System (FRS) that allows eligible employees to technically retire while still working and accumulate pension payments in a separate account. Participants agree to defer receipt of their monthly retirement benefits while they continue employment, which results in a significant financial incentive upon their actual physical retirement.

Key points to understand about FRS DROP:

  • Employees must have reached normal retirement eligibility and be enrolled in the FRS DROP..
  • The program offers the participant to work an additional 8 years, during which participants earn interest on their DROP account balance.
  • After leaving DROP and retiring, participants may rollover their accumulated benefits as a lump sum into their IRA.

Exploring the Benefits of the Investment Plan

  1. Savings for Retirement: The investment plan offers a way to save for retirement with contributions from both you and your employer, helping you build a nest egg for your future financial security.
  2. Investment Options: This plan provides limited fund choices. This allows your retirement savings potentially higher returns.
  3. Portability: If you leave public employment in Florida, the Investment Plan allows you to rollover your balance into an IRA providing flexibility and portability..

Understanding Bencor 

When you are heading towards the final years of your retirement date, your unused sick and vacation days will be credited based on your hourly average and deposited into a holding company called Bencor.  Upon 30-45 days after you officially retire, those funds will be available to rollover into your IRA.  Contact your FRS retirement specialist to discuss transferring these funds.

Be diligent in reviewing your options so you make an informed decision regarding your retirement savings.

Choosing the Right Retirement Investment Strategy

  • Assess Your Risk Tolerance: Before choosing a retirement investment strategy, consider how comfortable you are with risk. Determine whether you prefer conservative investments that offer lower returns but more stability, or if you are willing to take on more risk in pursuit of higher potential gains.
  • Diversify Your Portfolio: Spread your investments across various asset classes to reduce risk and increase the likelihood of meeting your financial goals. Diversification can help protect your savings from market fluctuations and economic downturns.
  • Review and Adjust Regularly: Keep an eye on your retirement investments regularly to ensure they align with your evolving goals and risk tolerance. Make adjustments as needed based on changes in the market, your financial situation, or your retirement timeline. Stay informed about current trends in investing to make well-informed decisions for a secure retirement future.

Let Fortitude Financial Assist you with your Retirement Planning 

For 29 years, Fortitude Financial Group has been providing clients with thorough and customized financial planning. With our knowledgeable financial advisors, you can have peace of mind. We offer the best financial solutions for your family, business, investment, and life insurance needs. Want to learn more about how we can help you with your retirement planning so you can enjoy your time with family and friends to the fullest? Be sure to contact us today!

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