Tuition-free college available for residents 25 and up
Michigan residents ages 25 and up can qualify to attend their in-district community college to earn an associate degree tuition-free under the new Michigan Reconnect program.
The program is open to residents who have not yet completed an associate or bachelor's degree. Michigan Reconnect also provides free tuition for those ages 25 and up seeking a Pell-eligible skill certificate.
To be eligible for Michigan Reconnect, applicants must also have lived in Michigan a year or longer and have a high school diploma or equivalent. If you do not have a high school diploma or equivalent, visit Michigan.gov/LearnMoreEarnMore to get started.
If you attend a college in a district where you don’t live, Michigan Reconnect only pays the in-district part of the tuition and the student will need to pay the remaining balance.
Click here for more information and to apply for Michigan Reconnect.
Free retirement planning offered to MAPE dues paying members
By Jennifer Gomori, MAPE Editor
While it’s true our experiences in life impact our financial decisions, having a plan for retirement isn’t something anyone should go without.
That’s the message Stuart Raider and Peter Mendler recently shared with MAPE members. The Raider Dennis Agency President and Vice President encourage all members to come in for a free financial analysis and thorough retirement plan, so they are ready when it’s time to retire.
“This is something that is available to all MAP, MAPE and MAFF members that are dues paying,” Mendler said.
Raider’s father, Jordan, was only 7-years-old when his own dad passed away unexpectedly. “He learned about financial and emotional hardship,” Raider said.
Those hardships inspired Jordan to build a successful financial planning business, thus inspiring Stuart to follow in his footsteps with the business and get a college education at Michigan State University. “It taught me a lesson about responsibility for my clients,” Raider said.
Mendler experienced a similar upbringing to Raiders’ father. A former IRS Agent, current attorney and financial planner, Mendler was only 5-years-old when his parents divorced. His dad passed away when he was 12. “I went to live with my grandparents,” Mendler said. “I felt like a charity case. I learned what it was like to feel needy, vulnerable. I’ve worked my whole life to never feel like I’m in that position again.”
His grandfather inspired his financial career. “My grandfather instilled in me the value of saving,” Mendler said. “As we face retirement, we don’t want to run out of money.”
Both partners in the Raider Dennis Agency are fiduciaries. They are held to a higher standard of education, knowledge and responsibility to provide individuals with financial plans that will see them through retirement. “A fiduciary is legally bound to act in your best interests,” Mendler said. “Stuart and I are fiduciaries. We take it very seriously to uphold that trust we’re held up to. Not every financial advisor is a fiduciary.”
MAPE helps maintain pensions in a 401k climate
By Jennifer Gomori, MAPE Editor
Having a pension is an important part of a successful retirement savings plan, but something many employers are taking away from their workers and replacing with 401k plans. MAPE works hard to maintain Defined Benefit (DB) plans, a type of pension plan, for its members.
When 401k plans were introduced to employees in the 1980s, it was never the intent of early backers that these would replace pensions.
“401k’s were not designed to take the place of (pensions),” said MAPE Executive Director Fred Timpner. “If all people have is a 401k and Social Security, that will not be enough to maintain the lifestyle they’ve become accustomed to.”
President Stuart E. Raider (left) and Partner Peter M. Mendler of Raider Dennis Agency.In an effort to save money, employers are substituting these market-based plans for pensions. The problem is market volatility can negatively impact 401k savings compared to the steady growth of a DB plan.
“(Pensions are) the most important part because they’re not environmentally changed,” said Stuart Raider of Raider Dennis Agency. “The Defined Benefit is a payout based on a formula, like Social Security. Social Security is the cornerstone of most people’s retirement, although most police and fire aren’t eligible to receive this benefit.”
That makes DB’s even more important to public safety employees, assuring them a certain amount of money will be set aside for their retirement. The plan is ‘defined’ because the formula for calculating the employer’s contribution is known ahead of time. However, DB’s are different from other pensions, where the amount of payout depends on the return of the funds invested. If there is a shortfall from investments set aside to fund the employee’s retirement, employers must make up the difference.
“One of the advantages is the Defined Benefit puts all of the responsibility of the risk on the employer,” Raider said.
But that doesn’t mean DB plans will become a hardship for the employer, Timpner said. “If a DB plan is properly funded by the parties, then there could be minimal or no cost at all to the employer,” Timpner said. “For example, the City of Sterling Heights went years without putting one cent into the pension fund. There were no employer contributions due to the fact that the pension fund was overfunded.”
Some employers are opting instead for Defined Contribution (DC) plans, which are 401k plans. DC plans allow employers the option of making contributions at their discretion and they don’t assume any of the market risks of losses - the employee assumes all the risks. Another drawback of DC plans for employees is that they are accessible to workers before they retire, unlike DB plans.
Page 3 of 3
