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Tag: retire

  • What happens when you inherit an IRA or 401(k)?

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    Spousal beneficiary

    When a spouse inherits an IRA or 401(k), they can take over the account as an inherited account or transfer the account into their own IRA or 401(k) on a tax-deferred basis. 

    IRA and 401(k) accounts generally have required minimum distributions (RMDs) beginning at age 73. These are subject to US withholding tax for a Canadian resident, and Canada taxes the withdrawal with a credit for the US tax already withheld. 

    A US citizen living in Canada must report their worldwide income on both a Canadian and US tax return. 

    Non-spouse beneficiary

    When a non-spouse beneficiary inherits, the account value is not subject to immediate tax. This differs from the taxation of an RRSP, DC pension, or other Canadian retirement accounts for non-spouse beneficiaries. These Canadian retirement accounts are generally fully taxable to the estate of the deceased. 

    Instead, taxes are payable on subsequent withdrawals from the inherited IRA or 401(k). This can provide an opportunity for tax deferral, as well as a potential decrease in the tax rate payable. A deceased Canadian taxpayer with a high income in the year of death may pay over 50% tax on their tax deferred retirement accounts. A non-spouse beneficiary with a low or moderate income may pay a significantly lower rate of tax. 

    There is a 10-year rule that allows withdrawals to be taken over up to 10 years following the account holder’s death. In the meantime, the account remains tax deferred in the US and Canada. 

    US withholding tax

    Withholding tax on US retirement account distributions to non-residents is typically 30%; however, a Canadian beneficiary can submit Form W-8BEN – Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding to the financial institution. This will allow them to withhold the lower 15% rate. 

    This is important because Canada will only allow a foreign tax credit for the 15% treaty rate. If a higher rate is withheld, a beneficiary may need to file a US tax return to get a refund from the Internal Revenue Service. 

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    Inherited Roth IRAs

    A Roth IRA is like a Canadian tax-free savings account (TFSA). A spouse beneficiary can take over the account or transfer it to their own Roth IRA.

    Roth IRAs are generally tax-free in the US and can also have tax-free status in Canada; however, an account holder must file an election with the Canada Revenue Agency (CRA) to maintain the tax-free Canadian status and ensure no new contributions are made. 

    A non-spouse inheriting has the same CRA election requirement, but has a different tax-free status opportunity. There is a 10-year rule for non-spouse beneficiaries, allowing only a limited tax-free growth period. 

    Roth IRA withdrawals are tax-free in the US and Canada. 

    Exceptions

    Disabled or chronically ill non-spouse beneficiaries may be exempt from the 10-year rule.

    The 10-year clock does not start ticking for minor beneficiaries until they attain the age of majority. 

    Summary

    IRA and 401(k) accounts work a little differently from Canadian RRSP, DC pension, and TFSA accounts on death. These US counterparts offer more favourable tax reduction opportunities.

    If you expect to leave a US account as an inheritance, or you are inheriting one of these accounts, it is important to understand the rules. They may impact how you draw down your assets in retirement and how you structure your estate.

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    Jason Heath, CFP

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  • Top military lawyer told chairman that officers should retire if faced with an unlawful order

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    How should a military commander respond if they determine they have received an unlawful order?Request to retire — and refrain from resigning in protest, which could be seen as a political act, or picking a fight to get fired.That was the previously unreported guidance that Brig. Gen. Eric Widmar, the top lawyer for the Joint Chiefs of Staff, gave to the country’s top general, Joint Chiefs Chairman Gen. Dan Caine, in November, according to sources familiar with the discussion.Related video above: US military strikes on drug boats in Latin America spark legal concernsCaine had just seen a video that included six Democratic lawmakers publicly urging U.S. troops to disobey illegal orders. He asked Widmar, according to the sources, what the latest guidance was on how to determine whether an order was lawful and how a commander should reply if it is not.Widmar responded that they should consult with their legal adviser if they’re unsure, the sources said. But ultimately, if they determine that an order is illegal, they should consider requesting retirement.The guidance sheds new light on how top military officials are thinking about an issue that has reached a fever pitch in recent weeks, as lawmakers and legal experts have repeatedly questioned the legality of the U.S. military’s counternarcotics operations in the Caribbean Sea and Pacific Ocean — including intense scrutiny of a “double-tap” strike that deliberately killed survivors on Sept. 2.Caine is not in the chain of command. But he is closely involved in operations, including those in SOUTHCOM, and is often tasked with presenting military options to the president—more so than Secretary of Defense Pete Hegseth, CNN has reported.The Joint Staff declined to comment for this story.Several senior officers who reportedly expressed concerns about the boat strikes, including former U.S. Southern Command commander Adm. Alvin Holsey and Lt. Gen. Joe McGee, the former director for Strategy, Plans, and Policy on the Joint Staff, have retired early in recent months.Widmar’s advice to Caine was meant to help inform the chairman’s discussions with senior military officials should the issue come up, the sources said. The Democrats’ video had become headline news, enraging Hegseth and sparking debates across the country.A separate official familiar with military legal advice said that it is not uncommon for lawyers to urge servicemembers to consider leaving the force if they believe they’re being asked to do something they are personally uncomfortable with, but it’s typically handled on a case-by-case basis and tailored to the facts of the situation.Other current and former U.S. officials, however, including those who have served as military lawyers in the Judge Advocate General’s Corps, stressed that broadly encouraging servicemembers to quietly retire — if they’re eligible — rather than voice dissent in the face of a potentially illegal order risks perpetuating a culture of silence and lack of accountability.”A commissioned officer has every right to say, ‘this is wrong,’ and shouldn’t be expected to quietly and silently walk away just because they’re given a free pass to do so,” said a former senior defense official who left the Pentagon earlier this year.More than a dozen senior officers have either been fired or retired early since Trump took office in January, an unusually high rate of turnover. In a speech before hundreds of general and flag officers in September, Hegseth directed officers to “do the honorable thing and resign” if they didn’t agree with his vision for the department.But disagreeing with the direction of the military is different than viewing an order as illegal, legal experts said.Dan Maurer, a retired Army lieutenant colonel and former JAG lawyer, said that the guidance, as described by CNN, appears to “misunderstand what a servicemember is supposed to do in the face of an unlawful order: disobey it if confident that the order is unlawful and attempt to persuade the order-giver to stop or modify it have failed, and report it through the chain of command.”Maurer added that “if the guidance does not explicitly advise servicemembers that they have a duty to disobey unlawful orders, the guidance is not a legitimate statement of professional military ethics and the law.”Widmar advised that an order may be unlawful if it is “patently illegal,” or something an ordinary person would recognize instinctively as a violation of domestic or international law, the sources said — the My Lai massacre in Vietnam is an oft-used example. But the guidance he provided was that an unlawful order should be met with retirement, if possible, and did not note that servicemembers have a duty to disobey unlawful orders, the sources said.”It’s a very safe recommendation in this current political environment,” said the former senior defense official. “But that doesn’t make it the right or ethical one.”Experts on civil-military relations have previously pointed to retirement as a reasonable option for officers who object to a particular policy, while noting that it comes with its own costs.In a September article that has been discussed amongst the Joint Staff and other senior military officials, Peter Feaver, a political science professor at Duke University, and Heidi Urben, a former Army intelligence officer and current associate director of Georgetown University’s security studies program, wrote that “quiet quitting,” or opting for retirement “allows officers with professionally grounded objections to leave without posing a direct challenge to civilian control.”But while officers shouldn’t resign in protest or pick fights, they argued, they should “speak up” and “show moral courage” when the military’s professional values and ideals are at risk.And they should be willing to be fired for it. “Complete silence can be corrosive to good order and discipline and signal to the force that the military’s professional values and norms are expendable,” they wrote.Maurer, the former Army officer, said the advice to retire in the face of an unlawful order also functions to “keep that person silent in perpetuity, because as a retiree he or she remains subject to the Uniform Code of Military Justice, which criminalizes a broad range of conduct and speech that would be constitutionally protected for regular civilians.”Those constraints have been apparent as the Pentagon has launched an investigation into Sen. Mark Kelly, a retired Navy captain and one of the Democratic lawmakers seen in the video encouraging troops to disobey unlawful orders, which prompted Caine to seek legal advice.As questions continue to swirl around the legality of the boat strike campaign, Widmar also advised Caine that Article II of the Constitution gives the president the authority to authorize lethal force to protect the nation, unless hostilities rise to the level of a full-blown war, in which case Congressional approval is required, the sources said.Whether the president’s orders are legal to begin with, Widmar advised according to the sources, is a question only the Justice Department’s Office of Legal Counsel can answer, due to the executive order Trump issued in February that says the president and the attorney general’s “opinions on questions of law are controlling” on all executive branch employees — to include U.S. troops.The Office of Legal Counsel determined in September that it is legal for Trump to order strikes on suspected drug boats because they pose an imminent threat to the United States, CNN has reported.Since Sept. 2, the U.S. military has killed at least 99 people across dozens of strikes in the Caribbean and eastern Pacific, arguing that those targeted were “narcoterrorists” who pose a direct threat to the United States. The Trump administration has also not provided public evidence of the presence of narcotics on the boats struck, nor their affiliation with drug cartels.Lawmakers have said that Pentagon officials have acknowledged in private briefings not knowing the identities of everyone on board a vessel before striking it; instead, military officials only need to confirm that the individuals are affiliated with a cartel or criminal organization to target them.Some members of Congress, legal experts and human rights groups have argued that potential drug traffickers are civilians who should not be summarily killed but arrested —something the Coast Guard did routinely, and continues to do in the eastern Pacific, when encountering a suspected drug trafficking vessel.CNN’s Haley Britzky contributed to this report.

    How should a military commander respond if they determine they have received an unlawful order?

    Request to retire — and refrain from resigning in protest, which could be seen as a political act, or picking a fight to get fired.

    That was the previously unreported guidance that Brig. Gen. Eric Widmar, the top lawyer for the Joint Chiefs of Staff, gave to the country’s top general, Joint Chiefs Chairman Gen. Dan Caine, in November, according to sources familiar with the discussion.

    Related video above: US military strikes on drug boats in Latin America spark legal concerns

    Caine had just seen a video that included six Democratic lawmakers publicly urging U.S. troops to disobey illegal orders. He asked Widmar, according to the sources, what the latest guidance was on how to determine whether an order was lawful and how a commander should reply if it is not.

    Widmar responded that they should consult with their legal adviser if they’re unsure, the sources said. But ultimately, if they determine that an order is illegal, they should consider requesting retirement.

    The guidance sheds new light on how top military officials are thinking about an issue that has reached a fever pitch in recent weeks, as lawmakers and legal experts have repeatedly questioned the legality of the U.S. military’s counternarcotics operations in the Caribbean Sea and Pacific Ocean — including intense scrutiny of a “double-tap” strike that deliberately killed survivors on Sept. 2.

    Caine is not in the chain of command. But he is closely involved in operations, including those in SOUTHCOM, and is often tasked with presenting military options to the president—more so than Secretary of Defense Pete Hegseth, CNN has reported.

    The Joint Staff declined to comment for this story.

    Several senior officers who reportedly expressed concerns about the boat strikes, including former U.S. Southern Command commander Adm. Alvin Holsey and Lt. Gen. Joe McGee, the former director for Strategy, Plans, and Policy on the Joint Staff, have retired early in recent months.

    Widmar’s advice to Caine was meant to help inform the chairman’s discussions with senior military officials should the issue come up, the sources said. The Democrats’ video had become headline news, enraging Hegseth and sparking debates across the country.

    A separate official familiar with military legal advice said that it is not uncommon for lawyers to urge servicemembers to consider leaving the force if they believe they’re being asked to do something they are personally uncomfortable with, but it’s typically handled on a case-by-case basis and tailored to the facts of the situation.

    Other current and former U.S. officials, however, including those who have served as military lawyers in the Judge Advocate General’s Corps, stressed that broadly encouraging servicemembers to quietly retire — if they’re eligible — rather than voice dissent in the face of a potentially illegal order risks perpetuating a culture of silence and lack of accountability.

    “A commissioned officer has every right to say, ‘this is wrong,’ and shouldn’t be expected to quietly and silently walk away just because they’re given a free pass to do so,” said a former senior defense official who left the Pentagon earlier this year.

    More than a dozen senior officers have either been fired or retired early since Trump took office in January, an unusually high rate of turnover. In a speech before hundreds of general and flag officers in September, Hegseth directed officers to “do the honorable thing and resign” if they didn’t agree with his vision for the department.

    But disagreeing with the direction of the military is different than viewing an order as illegal, legal experts said.

    Dan Maurer, a retired Army lieutenant colonel and former JAG lawyer, said that the guidance, as described by CNN, appears to “misunderstand what a servicemember is supposed to do in the face of an unlawful order: disobey it if confident that the order is unlawful and attempt to persuade the order-giver to stop or modify it have failed, and report it through the chain of command.”

    Maurer added that “if the guidance does not explicitly advise servicemembers that they have a duty to disobey unlawful orders, the guidance is not a legitimate statement of professional military ethics and the law.”

    Widmar advised that an order may be unlawful if it is “patently illegal,” or something an ordinary person would recognize instinctively as a violation of domestic or international law, the sources said — the My Lai massacre in Vietnam is an oft-used example. But the guidance he provided was that an unlawful order should be met with retirement, if possible, and did not note that servicemembers have a duty to disobey unlawful orders, the sources said.

    “It’s a very safe recommendation in this current political environment,” said the former senior defense official. “But that doesn’t make it the right or ethical one.”

    Experts on civil-military relations have previously pointed to retirement as a reasonable option for officers who object to a particular policy, while noting that it comes with its own costs.

    In a September article that has been discussed amongst the Joint Staff and other senior military officials, Peter Feaver, a political science professor at Duke University, and Heidi Urben, a former Army intelligence officer and current associate director of Georgetown University’s security studies program, wrote that “quiet quitting,” or opting for retirement “allows officers with professionally grounded objections to leave without posing a direct challenge to civilian control.”

    But while officers shouldn’t resign in protest or pick fights, they argued, they should “speak up” and “show moral courage” when the military’s professional values and ideals are at risk.

    And they should be willing to be fired for it. “Complete silence can be corrosive to good order and discipline and signal to the force that the military’s professional values and norms are expendable,” they wrote.

    Maurer, the former Army officer, said the advice to retire in the face of an unlawful order also functions to “keep that person silent in perpetuity, because as a retiree he or she remains subject to the Uniform Code of Military Justice, which criminalizes a broad range of conduct and speech that would be constitutionally protected for regular civilians.”

    Those constraints have been apparent as the Pentagon has launched an investigation into Sen. Mark Kelly, a retired Navy captain and one of the Democratic lawmakers seen in the video encouraging troops to disobey unlawful orders, which prompted Caine to seek legal advice.

    As questions continue to swirl around the legality of the boat strike campaign, Widmar also advised Caine that Article II of the Constitution gives the president the authority to authorize lethal force to protect the nation, unless hostilities rise to the level of a full-blown war, in which case Congressional approval is required, the sources said.

    Whether the president’s orders are legal to begin with, Widmar advised according to the sources, is a question only the Justice Department’s Office of Legal Counsel can answer, due to the executive order Trump issued in February that says the president and the attorney general’s “opinions on questions of law are controlling” on all executive branch employees — to include U.S. troops.

    The Office of Legal Counsel determined in September that it is legal for Trump to order strikes on suspected drug boats because they pose an imminent threat to the United States, CNN has reported.

    Since Sept. 2, the U.S. military has killed at least 99 people across dozens of strikes in the Caribbean and eastern Pacific, arguing that those targeted were “narcoterrorists” who pose a direct threat to the United States. The Trump administration has also not provided public evidence of the presence of narcotics on the boats struck, nor their affiliation with drug cartels.

    Lawmakers have said that Pentagon officials have acknowledged in private briefings not knowing the identities of everyone on board a vessel before striking it; instead, military officials only need to confirm that the individuals are affiliated with a cartel or criminal organization to target them.

    Some members of Congress, legal experts and human rights groups have argued that potential drug traffickers are civilians who should not be summarily killed but arrested —something the Coast Guard did routinely, and continues to do in the eastern Pacific, when encountering a suspected drug trafficking vessel.

    CNN’s Haley Britzky contributed to this report.

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  • ‘It’s just been a blessing’: Fast food employee retires after 54 years on the job

    ‘It’s just been a blessing’: Fast food employee retires after 54 years on the job

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    Connie Claxton retired from Whataburger on Wednesday after 54 years of service.”I thought it was the best burger I had ever ate and I thought, well I could do that,” Claxton said.Claxton started working at Whataburger in 1970 and never left.”I still eat a junior burger every morning!” she said.Over her career, Claxton worked at 10 different locations, spending the longest time in Terrell, Texas.”And I was there approximately 18 years, married one of my customers!” she said.”I would take his order. He had a special needs boy. He was so kind to him and I thought man what would it be like to be married to him.”Claxton and her husband were married for three decades until he passed away 11 years ago. Despite this loss, her dedication to Whataburger remained steadfast.”So I got up this morning and I thought you know what, thank you Jesus for letting me do it one more day!” she said.

    Connie Claxton retired from Whataburger on Wednesday after 54 years of service.

    “I thought it was the best burger I had ever ate and I thought, well I could do that,” Claxton said.

    Claxton started working at Whataburger in 1970 and never left.

    “I still eat a junior burger every morning!” she said.

    Over her career, Claxton worked at 10 different locations, spending the longest time in Terrell, Texas.

    “And I was there approximately 18 years, married one of my customers!” she said.

    “I would take his order. He had a special needs boy. He was so kind to him and I thought man what would it be like to be married to him.”

    Claxton and her husband were married for three decades until he passed away 11 years ago. Despite this loss, her dedication to Whataburger remained steadfast.

    “So I got up this morning and I thought you know what, thank you Jesus for letting me do it one more day!” she said.

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  • Mitch McConnell Stepping Down As Senate Republican Leader

    Mitch McConnell Stepping Down As Senate Republican Leader

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    Opinion

    Gage Skidmore/Creative Commons

    Many Republicans have had a problem with Mitch McConnell leading the Senate GOP for a very long time, particularly for undermining conservatives’ agenda.

    But come November, it appears he will no longer be a problem.

    He’s stepping down.

    RELATED: Trump Jr. Rips Mitch McConnell as ‘Pro-Amnesty Turtle’ After Vast Majority of $118 Billion Senate Bill Goes to Israel, Ukraine

    In Congress Since 1985

    The bane of conservatives’ existence – except for deftly maneuvering some Supreme Court seats – will move on to other ventures.

    The Associated Press reports, “Mitch McConnell, the longest-serving Senate leader in history who maintained his power in the face of dramatic convulsions in the Republican Party for almost two decades, will step down from that position in November.”

    The story continued:

    “McConnell, who turned 82 last week, was set to announce his decision Wednesday in the well of the Senate, a place where he looked in awe from its back benches in 1985 when he arrived and where he grew increasingly comfortable in the front row seat afforded the party leaders,” AP noted.

    The senator had been under increasing pressure from the restive, and at times hostile wing of his party that has aligned firmly with Trump…

    But while McConnell’s critics within the GOP conference had grown louder, their numbers had not grown appreciably larger, a marker of McConnell’s strategic and tactical skill and his ability to understand the needs of his fellow Republican senators.

    McConnell gave no specific reason for the timing of his decision, which he has been contemplating for months, but he cited the recent death of his wife’s youngest sister as a moment that prompted introspection. ‘The end of my contributions are closer than I’d prefer,’ McConnell said.

    That last part will be music to many conservative voters’ ears.

    RELATED: Byron Donalds, Who Is On Trump’s VP Short List, Says Congress Should Defund The Government ‘If The Border Is Not Secured’

    Why Won’t He Step Down Now?

    The Federalist’s Sean Davis makes a good point.

    Why won’t McConnell step down now? Is he sticking around simply to sabotage Trump and his agenda?

    The last major move by McConnell was to partner with Democratic Majority Leader Chuck Schumer in putting together a bill that would give billions more to Ukraine and not secure the border.

    Seriously.

    What kind of conservatism is that?

    Mitch McConnell has dedicated his entire time as a GOP Senate leader to undermining conservatives as much as he could.

    So good riddance. A change in leadership is long overdue.

    He can’t leave quickly enough.

    Liberal Media Claims Biden Has An Illegal Immigration ‘Silver Lining’ Because There Are More Workers

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  • Bank of America exec Cathy Bessant, a force in banking and the community, to retire

    Bank of America exec Cathy Bessant, a force in banking and the community, to retire

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    Veteran Bank of America executive Cathy Bessant will retire at the end of the year, the bank told employees in a memo Thursday morning.

    Bessant also has been a longtime civic leader in Charlotte, involved in projects ranging from helping guide growth along North Tryon Street to combating homelessness.

    Bessant has spent more than 40 years with the Charlotte-based bank, mostly in Charlotte, including as its chief operations and technology officer. She most recently has been stationed in Paris.

    Hugh McColl, former chairman and CEO of Bank of America, told The Charlotte Observer Thursday that Bessant is “one of the most important executives we’ve had in the last 30 years.”

    The Charlotte Observer obtained a copy of the memo about her retirement.

    Bessant is the second powerful executive in Charlotte to retire from the upper echelons of the banking world this year. In April, Wells Fargo’s Mary Mack detailed plans to retire this summer after nearly 40 years in the industry and navigating a massive scandal at the bank.

    Bessant will return to her family’s home in Charlotte by the end of the summer after two years in Paris, where she has been serving as vice chair of global strategy. She also is a member of the bank’s executive management team.

    Cathy Bessant, a longtime Bank of America executive, plans to retire by the end of the year.
    Cathy Bessant, a longtime Bank of America executive, plans to retire by the end of the year. Courtesy Bank of America

    After she retires, Bessant plans to focus on “issue-based efforts” that have been important to her over her career, according to the memo.

    Bank of America is the nation’s second largest bank by assets. As of March, the bank has $3.2 trillion in assets, with 68 million consumer and small business clients according to its latest quarterly filing.

    Bank of America has over 18,000 employees in the Charlotte area, part of about 217,000 workers companywide.

    On Tuesday, the Consumer Finance Protection Bureau announced that the bank agreed to a consent order to pay $250 million in penalties and restitution for a series of consumer-related problems the bureau said it uncovered involving fake accounts, junk fees and other issues.

    Leadership roles at Bank of America

    Bessant’s international role was announced in 2021. Prior to that, she served as Bank of America chief operations and technology officer from 2010 to 2021.

    In that post, Bessant was responsible for delivering end-to-end technology and operating services across Bank of America through a team of 95,000 people in over 35 countries. That also involved oversight of the company’s global information security efforts, according to her bio on the bank’s website.

    She joined Bank of America in 1982.

    Among her other leadership roles was as president of Global Corporate Banking, president of Global Product Solutions and Global Treasury Services, chief marketing officer and president of Consumer Real Estate and Community Development Banking.

    McColl has worked beside Bessant at the bank and indirectly through civic work for about 35 years. He described Bessant as articulate, intelligent, energetic and “knows how to move the ball.

    “She very quickly came up through the ranks and took charge of our community development,” he said. “We were one of the first banks to have one.”

    In her time with the bank, Bessant also served as a sponsor of the Disability Affinity Group and as founding sponsor of the LGBTQ+ network and Ally program, the memo stated.

    Bessant also helped spearhead the creation of The Council on the Responsible Use of Artificial Intelligence. The council was launched with Harvard University’s Kennedy School and the Centre for Digital Transformation at the Indian Institute of Management in India.

    Bessant’s leadership helped develop thousands of affordable houses and develop neighborhoods across the country, McColl said. “People thought we’d lose money in it, but we made money. She ran a top-notch operation,” he added.

    Key Bank of America leader Cathy Bessant will return to her family’s home in Charlotte by the end of the summer after two years in Paris, then retire by year’s end.
    Key Bank of America leader Cathy Bessant will return to her family’s home in Charlotte by the end of the summer after two years in Paris, then retire by year’s end. Daniel Tepper Bloomberg

    ‘Powerful’ and ‘cool’

    Bessant earned the “Most Powerful Woman in Banking” designation by American Banker magazine three times in a row, the Observer previously reported.

    Asked about that distinction in 2017, she told the Observer she was thrilled to be honored with other women from Charlotte.

    “I think my kids will think I’m cool for a little while,” she said.

    Bessant has two children, her company bio says, and is a cancer survivor. She studied photojournalism in Cuba in 2016. Two years later, she summited Mount Kilimanjaro.

    Bessant was inducted into the “25 Most Powerful Women in Banking” Hall of Fame by American Banker in 2020. And she was named to Barron’s “100 Most Influential Women in U.S. Finance” in 2020 and 2021.

    Civic engagement around Charlotte

    Outside of her bank duties, Bessant has remained active for years in leadership roles in a number of causes around the region.

    Bessant helped lead efforts to overhaul how public and private entities addressed homelessness in Mecklenburg County.

    In 2017, she was named to lead a committee to oversee redevelopment of the North Tryon area up uptown. The corridor was lagging in growth when compared to South Tryon Street and East Brooklyn Village Avenue.

    And when Michael Marsicano said last year that he was stepping down as leader of the Foundation for the Carolinas, Bessant was on a search committee to find his replacement. Bessant also has served on the foundation’s board.

    In a text to the Observer, Marsicano said, “Her career accomplishments are unsurpassed and her track record as a civic leader is stunning. I am thrilled she is coming home and have full expectations she will resume her commitment to community.”

    McColl said he was caught off guard by Bessant’s retirement announcement.

    “This is not the end of her career but the beginning of a second phase of her career,” McColl said. “She’s an outstanding leader and I’m sure she’ll be a leader in our community going forward.”

    Observer business editor Adam Bell contributed to this report

    This story was originally published July 13, 2023, 10:10 AM.

    Related stories from Charlotte Observer

    Gordon Rago covers growth and development for The Charlotte Observer. He previously was a reporter at The Virginian-Pilot in Norfolk, Virginia and began his journalism career in 2013 at the Shoshone News-Press in Idaho.

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  • Could you live on $16,000 a year? Here’s why you might have to

    Could you live on $16,000 a year? Here’s why you might have to

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    We’re told repeatedly how important it is to save independently for retirement, but a lot of us still aren’t listening.

    An estimated 33% of Americans have no money at all saved for retirement, but an even more frightening statistic is the fact that 30% of those 55 and older are in the same boat. And a big reason so many of us aren’t saving boils down to Social Security.

    In fact, according to the National Academy of Social Insurance, Social Security is the sole source of income for almost 25% of Americans 65 and older.

    But while it’s true that Social Security helps countless seniors stay afloat financially in retirement, there’s a real danger in relying on it too heavily. And if we don’t start taking matters into our own hands, a lot of us will risk coming up short when retirement rolls around.

    Can you live on Social Security alone?

    The problem with banking on Social Security is that your benefits are only designed to replace about 40% of your pre-retirement income. This isn’t just an educated estimate; the Social Security Administration even says so itself.

    Now you may be expecting your living costs to go down once you retire — so much so that you’ll be able to survive on Social Security alone — but in reality, that’s not likely to happen.

    For one thing, you’re going to have a lot more free time on your hands, which means you might wind up spending extra on leisure and entertainment. But more importantly, you’re going to have health care to worry about, and that’s where so many seniors get thrown for a loop.

    According to 2016 data from HealthView Services, a provider of healthcare cost-projection software, the average healthy 65-year-old couple retiring this year can expect to incur $377,000 in medical expenses over the course of retirement.

    Younger couples have it even worse. The average healthy 55-year-old couple today could spend as much as $466,000 on health care expenses throughout retirement, while a 45-year-old couple today in similar health might rack up $592,000 in health care costs. And those are the numbers healthy couples are facing. If your health isn’t great, your expenses could climb even more.

    When you think about it that way, Social Security probably won’t be enough, especially since the average recipient currently receives $1,341 in monthly benefits, or just over $16,000 a year. Even if you and your spouse each receive $16,000 a year in Social Security benefits for a total of $32,000, if you wind up spending $377,000 like the average healthy older couple over the course of a 20-year retirement, that’s $18,850 a year on medical costs alone. Subtract that figure from $32,000, and you’re left with just over $13,000 a year, or roughly $1,100 a month, to cover the rest of your expenses.

    And as much as you can try to keep your living costs down, there’s just no getting around the basics like food, electricity, transportation, and housing. In 2014, the average American spent $934 a month on rent alone. If you’re in a similar boat, that means you’d be left with less than $200 a month to cover the rest of your expenses if you were to rely solely on Social Security. And that’s just not enough.

    Time to start saving

    If $16,000 a year per person in retirement doesn’t sound adequate, then it’s time to start saving independently while you still have a chance. Even with retirement less than a decade away, there’s still time to amass some savings before you stop working for good. Anyone 50 or older can currently contribute up to $24,000 a year to a 401(k) and $6,500 a year to an IRA. If you can’t max out those contributions, do what you can. Saving just $250 a month over the course of 10 years will give you an extra $36,000 in retirement if your investments generate a relatively conservative 4% average annual return.

    If you’re still in your 30s or 40s, you have an even greater opportunity to catch up. Saving $250 a month over the course of 20 years will leave you with $137,000 for retirement, assuming your investments generate an average annual 8% return — a reasonable assumption for younger investors who are able to get more aggressive.

    Now if you’re already in your 60s and have yet to start saving, you might consider postponing retirement and working a few extra years to put some money aside. Though it may not be your ideal solution, some studies have shown that working longer could actually lead to a longer life. Another option? Work part-time in retirement to supplement your Social Security benefits.

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    No matter what you do to generate extra retirement income, don’t make the mistake of depending on Social Security alone to fund your golden years. Social Security can and should play a strong role in your retirement budget, but without another source of income, you risk running out of money at a time when you just might need it the most.

    CNNMoney (New York) First published November 29, 2016: 11:45 AM ET

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