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Maximizing investments for your retirement

The length of time you have before retirement — your investment “time horizon’’ — is an important consideration when determining your asset allocation strategy, or the mix of stocks, bonds and money market/stable value investments you select.

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All of these investment vehicles are available in your Costco 401(k) retirement plan from T. Rowe Price, whether you choose to create your own portfolio or select a pre-assembled portfolio, such as a target date fund or asset allocation fund.

Your goals, financial circumstances and risk tolerance level may change as you go from entering the workforce to retirement and beyond.

Finding a balance, decade by decade

Your 20s and 30s: Now’s the time to start saving and investing through your workplace retirement plan. And the sooner you enroll and start saving, the better. Here’s why: When you invest through the plan, any earnings are put right back into your account. The longer your money stays invested, the more it can potentially earn through compounding.

Because retirement is several decades away, consider a higher allocation to stocks. Your investments should have time to ride out any ups and downs in the market.

Your 40s: Even if you’re just getting started, you still have 20 to 25 years to build up your savings. So make the most of these years.

Historically, stocks provide better long-term growth potential when compared with bonds and money market/stable value investments.

Your 50s and over: As retirement approaches, you may want to consider cutting down on stock allocations, which are more vulnerable to ups and downs in the market.

Before passing up too much growth potential, though, remember inflation and the power it could have to erode your money. Consider keeping a portion of your portfolio in stocks to help stay ahead of inflation over the 20 to 30 years you may need your nest egg to last.

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Learn the basics

LEARN THE BASICS

Investing terms 101

Don’t know your money market funds from your mutual funds? We’ve got you covered. Start your financial education with this handy glossary of investment terms. (Pro tip: Bookmark this page so you can refer back to it later!)

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Bonds and bond funds
These are also known as fixed-income securities, because the income they pay is fixed when the bond is sold. Bonds and bond funds invest in corporate or government debt obligations.

Commodities
These are physical commodities, such as an agricultural product (grains) or a natural resource (gold). A futures contract is an agreement to purchase or sell a commodity for delivery in the future.

Index funds
These funds invest in a particular stock market index, such as the S&P 500 or the Russell 2000. An index fund is managed passively and mirrors the performance of the designated stock or bond index.

Market-linked certificates of deposit (or structured CDs)
Returns are linked to the future performance of a market index, and may include stocks, bonds, foreign currency or other assets. These are designed for a long-term commitment (up to 20 years).

Money market funds
These are mutual funds that invest in short-term bonds. They usually pay better interest rates than a savings account but not as much as a certificate of deposit (CD).

Mutual funds
These invest in a variety of securities, which may include stocks, bonds, and money market securities. Costs and objectives vary.

Roth IRA
This is a personal savings plan for retirement where earnings that remain in the account are not taxed. Investments may include a variety of securities. Contributions are not tax deductible.

Stocks
Stocks represent a share of a company. As the company’s value rises or falls, so does the value of the stock. All Costco employees are eligible for the employee stock purchase plan, which allows you to purchase Costco stock through payroll deductions and eliminates brokerage fees through our partner, UBS Financial Services Inc.

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Explore more

EXPLORE MORE

Decrease your stress to improve your heart health

Our mental health has a significant impact on our physical health. Chronic stress can be especially hard on our bodies and can lead to substantial health issues.

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If you are someone who experiences stress frequently, you could be at risk for:

Heart disease

Daily stress can lead to heart attacks. Those with Type A personalities have an extremely high risk of developing abnormal heart rhythms. And even the normal stress of everyday life can negatively affect people already prone to heart disease.

Stroke

People who are highly stressed, or even moderately stressed on a regular basis, have a significantly increased risk of having a fatal stroke.

High blood pressure

Stress hormones cause an immediate rise in blood pressure. While this may not create problems for everyone, chronic stress and hypertension is a deadly combination.

Lowered immunity

Stress hormones compromise a body’s immune system, making it more susceptible to the flu, colds and other infectious diseases.

Here’s the good news

There are steps you can take to decrease your stress and improve your heart health. Take control of your stress — and calm your body and mind — through:

  • Breathing techniques: Breathing slowly and deeply automatically relaxes the body.
  • Yoga: Slower exercises, such as yoga, help connect breath, movement and body control.
  • Meditation: Find a quiet place to be alone, wherever you are, and try to clear your mind. Get started with our guided meditation.
  • Stretching: Take time to stretch whenever you find yourself in a tense position.
  • Walking: Walk around the building instead of taking a coffee break. Or get up 15 minutes early and walk around the block before you leave for work.
  • Sleeping: Make sure you get just a little more sleep than you think you need during times of high stress. If you need help falling asleep, try taking non-habit-forming sleep aids like melatonin, unwinding with apps like Calm and Headspace, or listening to relaxing audiobooks. Download Costco’s free audiobook app for discounts on some of your favorite reads.
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Believe you can and you’re halfway there.

Theodore Roosevelt

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How much is too much

Decoding alcohol misuse and addiction

When it comes to alcohol, how much is too much? Short answer: It’s different for everyone, and it’s based on gender, age, weight and what’s right for you. What we do know is that over consuming alcohol can lead to health risks like heart disease, cancer, a weakened immune system and mental health concerns. In fact, excessive drinking is responsible for 1 in 10 deaths among adults ages 20–64 years.¹

If you’re concerned you might be indulging a little too much, or you’re worried about the drinking habits of a loved one, check out these videos from experts on alcohol and substance misuse to learn more.

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Show transcript

Everything you think you know about addiction is wrong

New York Times bestselling author Johann Hari examines how our society responds to addiction ― and what we could all be doing better to support those who need it most. The short answer? Let them know they’re not alone.

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Show transcript

How I overcame alcoholism

Actress Claudia Christian shares her journey from social drinker to someone who struggles with alcohol use disorder. Here, she speaks about her decade-long journey to recovery, and the treatment that finally saved her life.

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Gray area drinking

Nutritionist and wellness expert Jolene Park discusses the concept of ‘‘gray area drinkers” (the people who are between those who have alcohol occasionally and those at rock bottom), and how that can affect someone’s mental and physical health.

(P.S. Concerned about your own alcohol intake? Check out this free online screening.)

Sources:

1Centers for Disease Control and Prevention

Everything you think you know about addiction is wrong, TEDx Talks, 2015

How I overcame alcoholism, TEDx Talks, 2016

Gray area drinking, TEDx Talks, 2017

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Substance misuse podcasts

LISTEN UP

Podcasts to help understand substance misuse

Whether you’re working on your recovery or you have a family member struggling with substance misuse, tune in to these podcasts for addiction resources and support.

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Last Day

The first season of this investigative podcast explores the opioid crisis through the lens of one person’s last day of life. Hosted by author Stephanie Wittels Wachs, who lost her brother in 2015 to a heroin overdose, Last Day breaks down how addiction impacts our country today ― and the ways we can move forward.

The Addicted Mind

Looking to understand more about addiction treatment from a licensed therapist? The Addicted Mind covers the latest research on the subject, as well as how recovery differs from person to person.

My Child & Addiction

Think of this podcast as a support group for parents. Hosted by three fathers whose children are addicts, My Child & Addiction offers encouragement and support for families during the challenging journey of recovery.

Addiction Unlimited

Brought to you by a former addict turned recovery coach, Addiction Unlimited focuses on actionable steps to help you stay sober. Plus, you’ll hear from others about their real-world recovery experiences. 

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Talk to teens about opioids

TAKE ACTION

How to talk to your kids about prescription drug misuse

by Colin Groundwater

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Until recently, the term “drug use” typically referred to illegal substances like cocaine, heroin or crystal meth. Today’s teens are more likely to get hooked on prescription medication, especially painkillers. Opioids are a class of highly effective pain relievers that includes oxycodone (brand names: OxyContin, Percocet), hydrocodone (brand name: Vicodin) and fentanyl. Teens most often receive opioid prescriptions after dental procedures ― like wisdom tooth removal ― and sports injuries.

But prescription opioids have downsides that make them prone to misuse. They can produce feelings of euphoria, like their chemical cousins heroin and morphine. And their effectiveness fades quickly. Within months, a patient can be taking dangerously high doses to feel the same relief.

If your child is prescribed opioids for pain relief after an injury or surgery, it’s important to be aware of the facts and to take an active role in their recovery. Here’s how you can help:

Talk frankly with your child’s doctor, dentist and pharmacist
No parent wants to see their child in pain. To ensure yours receives the proper aftercare, get the facts from your health care provider. Ask about the standard recovery time for your son’s or daughter’s procedure, how much medication is necessary, and when your teen should stop taking the pills.

Know the options for pain relief
Opioid painkillers are rarely necessary after wisdom tooth removal, according to Dave Thomas, PhD, a health scientist administrator at the National Institute on Drug Abuse. ‘‘NSAIDs work as well or better in those situations,” he says. The American Dental Association also recommends simple NSAIDs, such as ibuprofen, as the first line of pain therapy after dental procedures. (Exparel is a pain-management medication that’s an alternative to opiates. Through Costco’s Aetna Dental Plan, you can receive this medication at no cost to you. Talk to your dentist to see if it’s right for your teen’s procedure.)

Alternative pain-management techniques can boost the effectiveness of over-the-counter drugs, especially in young people. Options include ice packs, distraction (video games, TV), massage, mindfulness and even old-fashioned TLC.

Talk with your kids
Getting through to teens isn’t always easy. Pick a time when you’re both relaxed and focused. Go in with some talking points to anchor the conversation. For example:
  • Calmly explain the dangers. Many teens assume that drugs that are prescribed by a doctor and come from a pharmacy must be safe. But opioids pose special risks. The difference between the prescribed dose and an overdose can be very small. (Even with opioids prescribed by a trusted doctor, there’s always a risk of dependency.) Opioids also seriously impair your ability to drive. And it’s hard for doctors and patients to know when regular use switches to addiction ― until you try to quit. “That is when they realize they have a problem,” says Lynne Kain, an Aetna case manager who counsels young drug users. “They had never tried to stop before and thought it was just ‘recreational’ use up to that point.”
  • Urge them not to share medication. Dosage is highly individual: What’s safe for one person can be dangerous for another. And opioids can be deadly when mixed with other common medications, such as anti-anxiety and insomnia drugs.
  • Use your own words, not clichés. “I feel that catch phrases like ‘Just say no’ are outdated with the teen population of today,” says Kain. “Concrete facts and examples resonate more and show you are respecting their intelligence.”
The National Institute on Drug Abuse offers excellent guidance on how to have difficult conversations with your teen, including videos showing positive and negative approaches.

Maintain control of your child’s painkillers
Even responsible teens or those managing their medication for other conditions should not be allowed to control their painkillers. “Parents should closely supervise opioid use, keeping the bottle in their possession at all times and giving the medication only as needed,” says Harold Paz, MD, chief medical officer at Aetna®. Store pills in a safe place where they aren’t readily accessible, like a lock box or a lockable drawer.

Source: “How to talk to your kids about prescription drug abuse,” Aetna

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Recipes

Healthy recipe

HEALTHY RECIPE

Kale Breakfast Egg Cups

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Ingredients: 10
Prep: 10 mins | Cook: 25-30 mins
Makes: 12 servings
Calories: 146 cal
Ingredients:

1 tablespoon olive oil

1 medium onion finely chopped

3 cloves garlic minced

8 ounces mushrooms thinly sliced

1/2 pound hot or sweet chicken sausage

3 ounces sun-dried tomatoes finely chopped

2 cups chopped kale

8 ounces feta cheese crumbled

Cooking spray

1 1/2 cups egg substitute or 6 eggs

Directions:
  1. Preheat over to 350 degrees.
  2. Add olive oil, then sauté onion for 4 minutes. Add garlic and sauté one additional minute.
  3. Add mushrooms and cook for 5 minutes. Then add chicken sausage, and cook 6 minutes, or until thoroughly cooked. Break the sausage up into small pieces. Add sun-dried tomatoes and incorporate fully.
  4. Add kale and cook about 2 minutes, until it wilts slightly.
  5. Turn off heat then stir in feta
  6. Spray 12-cup muffin pan, and then add ingredients evenly to each muffin cup.
  7. Pour equal amount of egg into each muffin cup, filling to just below rim.
  8. Bake until the eggs have set, about 25-30 minutes.

Recipe Notes: Can be stored in an airtight container in the fridge for up to 4 days. Also can be frozen. Wrap each egg cup individually in plastic wrap and then tin foil and freeze. To reheat, reheat in a toaster oven or microwave for about 30-45 seconds.

Nutrition

Serving Size: 1 egg cup | Calories: 146 | Carbohydrates: 8g | Protein: 10g | Fat: 3g | Saturated Fat: 3g | Unsaturated Fat: 0g | Cholesterol: 30mg | Sodium: 489mg | Fiber: 1g | Sugar: 5g

Recipe Source: TasteandSee.com

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Take action

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Reduce your risk for diabetes

You may know that type 2 diabetes is when your blood sugar (blood glucose) is too high. But what’s prediabetes? This is when your blood sugar is higher than normal, which puts you at risk for type 2 diabetes. Keep in mind that prediabetes is still a serious condition that needs special attention.

According to the Centers for Disease Control and Prevention, more than 1 out of 3 adults in the United States have prediabetes. And yet, most of them don’t know they have it.¹

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Lifestyle changes are key

The good news is that there are things you can do to help prevent type 2 diabetes or delay its onset. These include making lifestyle changes to help you keep your blood sugar levels under control. You can get started by making these part of your daily life:

  • Managing your weight
  • Making healthy food choices
  • Staying physically active

Get your body up and moving

Regular exercise is one of the most important things you can do to help prevent type 2 diabetes or delay its onset. Here are some tips to get you started:

Talk with your doctor
You may need to have a medical exam before you start an exercise program.

Make it a priority
Do moderate to intense activity for at least 30 minutes a day, 5 times a week.

Be consistent
Don’t go more than two days without being active. Keep the habit going strong.

Get creative
Why not take the stairs? Or park your car farther away? Instead of sit-down meetings, have walking meetings. Stay active whenever you can.

Build it in
Pick part of your schedule and pin an activity to it. If you’re busy, you can exercise in 10-minute intervals. Every bit helps.

Know that everyone is different
What works for one person may not work for another. Just do what you need to do to help yourself succeed.

1Centers for Disease Control and Prevention. Prediabetes: your chance to prevent type 2 diabetes. May 30, 2019. Available at: cdc.gov/diabetes/basics/prediabetes.html. Accessed June 13, 2019.
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Take action

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Your guide to beneficiaries, wills, and trusts

No matter where you are in your life, everyone can benefit from estate planning. Often people think that estate planning is just for the wealthy, for those approaching retirement age, or for those who have children.

However, only about 50 percent of employees have designated a beneficiary (a person or entity who will receive those benefits in the event of your death).

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Almost all Costco employees have life insurance

That’s right! All full-time and part-time employees enrolled in a Costco medical plan, even those who declined coverage because they’re enrolled by another employee or health plan, have life insurance and an accidental death and dismemberment (AD&D) policy that’s paid for by Costco. However, only about 50 percent of employees have designated a beneficiary (a person or entity who will receive those benefits in the event of your death). Without a designated beneficiary, your life insurance may not go to the correct person — or your loved ones will have to take extra steps to access your life insurance. Therefore, it’s important for all employees to designate their life insurance and AD&D beneficiaries by logging onto the enrollment website located on Costcobenefits.com or calling the enrollment center at 800-541-6205. Employees can view and update beneficiary information at any time. 

Don’t forget your retirement accounts 

Most employees also have a 401(k) or 1165(e) account through Costco’s Retirement Plan. Just like life insurance and AD&D, it’s important for employees to designate a beneficiary for their Costco retirement account. (There are some special rules about designating a retirement account beneficiary when you’re married.)

To learn more about beneficiary and eligibility rules, view the Costco Retirement Plan Summary Plan Description located on Costcobenefits.com. To designate a beneficiary to your Costco Retirement Account, log on to TRowePrice.com or call 800-922-9945

Learn about wills, trusts, and other estate planning

Designating a beneficiary takes care of your life insurance, AD&D, and retirement plan through Costco’s Benefit Program. But what about your other assets like your house, cars, collectibles, bank accounts, and other investments? And what happens if the unlikely event your death occurs before your children are adults, or you become unable to make financial or health care decisions for yourself?

  • Wills and trusts ensure that your assets and possessions end up where you want them to go. If you have children who are minors, you can also make a will to name who will be your child(ren)’s physical and financial guardian.  
  • Durable power of attorney and health care directives give the person you choose the ability to make decisions for you regarding your health care, legal matters, and finances if you become incapacitated or unable to communicate your own wishes.