FX Excursions

FX Excursions offers the chance for once-in-a-lifetime experiences in destinations around the world.

Let it Be

by Kevin Ryan, CPA/Partner, Citrin Cooperman

Jan 8, 2020

PHOTO: © PATCOTILLOJR – DREAMSTIME.COM

January 2020

PARTICIPATING IN A COMPANY’S retirement plan is a smart and important decision — smart because you put away small amounts today for a comfortable retirement later.

As your account begins to grow, it may be tempting to dip into your retirement savings by taking a loan against your plan to pay your annual taxes, repair a leaking roof, catch up on your everyday pile of bills and so on. While the decision to take a plan loan is yours to make, we want to make sure you consider the true cost.

With a retirement plan loan, pay yourself back the amount plus interest. But the true cost is reflected in the loss in your retirement savings. You lose money when you borrow from your retirement account for several reasons. You lose by not making money on the earnings or compounding of those earnings. Typically you pay an initial set-up fee and quarterly loan fee. You repay the loan with after-tax dollars. Most employees decrease or cease their contribution amount to compensate for the loan payment. You may not pay yourself back the same amount you would have earned if you’d left the money invested.

To further illustrate the costliness of taking a plan loan, consider the following example. (This is hypothetical and intended for illustrative purposes only.) Jane took a $10,000 loan at 7 percent interest from her retirement account; her account balance before the loan was $20,000. She previously made contributions of $150 per pay- check (including employer match). Because she had to repay the loan, she decreased her contribution to $50. Additionally, prior to the loan, she was earning a 10 percent return. Now she will repay the loan over five years. If you take into account the loss of interest, compounding and tax on repayments, the retirement plan loan actually costs Jane 13.77 percent. And don’t forget about decreased contributions, which can add up to hundreds of thousands of dollars over many years.

The content of this article is for informational purposes only. It is not intended to be a substitute for professional financial advice. Always seek the expertise of a certified financial advisor or other qualified provider with any questions you may have regarding personal finance, investment and money-related issues.

Introducing

FX Excursions

FX Excursions offers the chance for once-in-a-lifetime experiences in destinations around the world.

#globility

Insta Feed
Lifestyle
Sep 24, 2021

Fall Travel Trends from Vacasa

With the autumn in full spring, now is time to start planning your fall weekend getaway.  Whether a relaxing weekend on the lake, leaf-peeping or hiking, check out these fall travel trends from vacation rental management company Vacasa.

Greece: Destination Luxury

Since its prestige for attracting the world elite grew in the 1960s, Greece remains the go-to destination for glittering holidays. Each step of the journey is enrobed in luxury, from culinary traditions with the highest standard of execution and name-brand, high-end shopping to first-rate wellness locales and elite accommodations, like 5-star hotels, private villas and yachts.

September 2021
Sep 23, 2021

Host a Fabled Business Event in Wonderful Copenhagen

I imagine that when writer Hans Christian Andersen mused, “Life itself is the most wonderful fairy tale,” he was standing at the edge of Copenhagen’s historic Tivoli Gardens, one of his favorite haunts, enlivened by the swirl of human happiness that surrounded him: children laughing; carousels spinning; games of chance played for prizes; lovers holding hands; hungry people whispering over sweets, hot drinks, beer and towering, open-faced smørrebrød, Denmark’s quintessential sandwich. That fairy tale lives on today at the second-oldest amusement park in the world, a spectacle of folly architecture, bakeries, gardens, rides, restaurants, puppet shows and joy ... and which also happens to be one of the city’s most storied places to convene for business.

Canada
Sep 23, 2021

Reimagined Park Hyatt Toronto Officially Reopens Its Doors

The restored Park Hyatt Toronto reopened its doors, bringing luxury, sophistication and glamour alongside a nod to the hotel’s Canadian heritage. Alessandro Munge of Studio Munge collaborated on the hotel’s refresh, drawing inspiration from Canada’s seasons and natural landscapes.

The Future of Hamad International Airport

Without a doubt, the pandemic changed the role of airports in the travel industry. Hamad International Airport’s role evolved in many ways since the pandemic hit. Now, more than ever, airports are responsible for creating a secure passenger experience. As the gateway to Qatar and the world, the safety and wellbeing of staff and passengers has always been at the core of Hamad International Airport’s strategy.

eFlyer Reviews
Sep 22, 2021

Irwin’s Review

I recently dined at Irwin’s in Philadelphia. The restaurant is located on the rooftop of the Bok Building, a former school turned collective of small businesses, non-profits, artist workshops, a bar and restaurant. I previously visited Bok for the bar and yoga classes, and I was excited to experience the restaurant.

eFlyer Lead
Sep 22, 2021

Cathay Pacific to Use Sustainable Fuel for 10 Percent of Total Consumption by 2030

Cathay Pacific reaffirms its commitment to reaching net-zero carbon emissions by 2050 with a pledge to use Sustainable Aviation Fuel for 10 percent of its total fuel consumption by 2030. The airline has made pioneering efforts in supporting SAF development for more than 10 years.

Register Today for the Most Important Gathering of Business Travel Professionals

The Global Business Travel Association’s (GBTA) Convention 2021 will be unlike any other convention before it, as we come together in person for the first time since the business travel industry drastically changed and look forward to rebuilding and reshaping the future. GBTA Convention 2021 will bring all of us together to learn from experts and each other, in-person at Orange County Convention Center in Orlando, Florida, Nov. 17–19. The safety of our attendees is our top priority. View health and safety protocols.

Daily
Sep 22, 2021

La Concha Resort Puerto Rico Review

Arriving early afternoon in Puerto Rico, we jumped in an Uber and took a short, 15-minute drive from the airport to La Concha.  As it was Tuesday, the streets were not too busy and the hotel lobby was calm. During the weekend, the scene likely would have been more bustling. We were greeted by a staff member who requested proof of vaccination and government-issued ID, and were given a wristband to indicate we were fully vaccinated. All guests are required to be vaccinated and wear masks at all times while moving around the hotel. Hand sanitizer stations were placed around the lobby, in elevators and in each common area.