Tag: financial-well-being

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APRIL 2022

Make a will for peace of mind

There’s a reason 50 to 60% of Americans don’t have a will. Even the idea of talking with someone about estate planning makes some people uncomfortable. But it’s an important conversation to have. You can learn how to provide for your loved ones after you’re gone. And you can enjoy the emotional benefits of getting your finances in order and knowing that you’re taking care of the ones you love.

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A will puts your mind at ease

Having a will is one of the most important things you can do for yourself and your family. It offers you peace of mind — right now — because it allows you to:

Protect your family from financial hardship

You decide — not a probate court — how to divide your estate. This means, at a very difficult time, your family can have a seamless and peaceful financial transition and avoid long, unnecessary delays as well as attorney and legal fees.

Minimize confusion and conflict

Having a will empowers you to make your wishes clear and helps minimize family clashes over your estate. It also ensures that part, or all, of your estate doesn’t go to someone you never intended to be your beneficiary. Your beneficiary is the person (or persons) you choose to inherit your assets if anything should happen to you.

Choose the right guardian for your children

You can then take the time to think about which relative or friend you’d want to raise your minor children, and then ask them if they’d be willing to take on that responsibility. Once that’s settled, you can designate them in your will, a legally binding document.

Make meaningful gifts and donations

Your personal values and interests can live on through the legacy you leave your favorite organizations. Gifts up to $13,000 are excluded from estate tax, so you’ll also be increasing the value of your estate for your heirs and beneficiaries to enjoy.

When you make a will, you gain the satisfaction of knowing you’ve done the smart, responsible thing for those you love. And that’s something to feel good about.  

Source: FindLaw. Top 10 reasons to have a will.

The following resources are available to help you plan and secure your family’s financial future. These resources are confidential and available to you at no extra cost. 

 

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APRIL 2022

Invest where you work

Working for a thriving company is a good feeling. You’re part of a winning team. Your hard work is making a difference. And at Costco, there’s something else to feel good about: You can share in the profits you helped build — through the Employee Stock Purchase Plan (ESPP).

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What is an ESPP?

The employee stock purchase plan, or ESPP, is a benefit Costco* offers that allows employees to buy shares of company stock without having to pay commissions. In Costco’s case, fees and commission for these purchases are fully paid by Costco. Employees who choose to participate generally make contributions to the plan through payroll deductions. The deductions are held in the plan until a set purchase date. At that point, they’re invested in the company’s stock.

*At Costco, employees who are 18 or older are generally eligible to participate. Participation in the ESPP is entirely voluntary.  

What are the advantages of an ESPP?

With an ESPP, the brokerage fees and commission are paid by Costco. Brokerage fees and commission can be as high as 2% of the stock price. So, for example, if you buy ten shares of Costco stock at $500 per share, the fees and commission would be around $100.

When participants enroll, they can choose either a percentage or flat dollar amount to be withheld from their paychecks. These deductions accumulate during the offer period. Then, on set purchase dates, the company uses the funds to buy stock for plan participants.

A qualified ESPP can offer some tax benefits. When you sell the stock: 

  • If the stock has increased in value, the gain will also be taxed as ordinary income. 
  • If you hold the stock for more than a year, it will be taxed at the typically lower capital gains rate.   

Source: NerdWallet. ESPP: What to know about employee stock purchase plans. 

The following resources are available to help you learn more about your Costco Employee Stock Purchase Plan. These resources are confidential and available to you at no extra cost.

 

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TAKE ACTION

APRIL 2022

Start preparing for retirement

Take a moment to focus on your financial well-being and make the most of your Costco Retirement Plan,* administered by T. Rowe Price.

*For Mainland and Hawaii employees, the plan is called the Costco Retirement Plan. For employees in Puerto Rico, it’s called the Costco Puerto Rico Retirement Plan. 

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Make saving for retirement a priority

Whether your retirement is decades away, or just a few years down the road, use this list and your Costco Retirement Plan to get ready. Start by visiting RPS.TRowePrice.com to view your Costco Retirement Plan.

Add an extra layer of security for your plan account by setting up multi-factor authentication. Multi-factor authentication helps keep your financial information secure by requiring two or more forms of authentication to verify your identity.

Name your beneficiary, the person (or persons) you choose to inherit your assets if anything should happen to you. If it’s been a while, check to ensure your beneficiary information is up to date.

Update your email address to receive timely newsletters and valuable saving insights.

Contribute enough to get the full matching contribution. Review your contribution now.

See if you qualify for the Retirement Savings Contributions Credit (Saver’s Credit). For low- to moderate-income employees who qualify, the Saver’s Credit means you can get a tax credit based on your tax filing status, adjusted gross income and how much you contribute. 

Make sure your T. Rowe Price Automatic Increase is turned on, so your contribution will be increased by 1% each year.

Strive to save 15% of your annual pay — it’s OK to work your way up to the suggested target gradually.

If you’re age 50 or older, consider making catch-up contributions. This allows up to an additional $6,500 (for 2022) to help you move closer to your retirement goal.

Get your financial house in order

Learn to budget, free yourself from high-interest debt and aim for higher savings goals with help from SmartDollar®.

Build an emergency fund equal to three to six months’ expenses to help you in case there are unexpected changes in your income.

Make a budget that matches your lifestyle and gives you room to save.

Create a plan to pay down credit card debt; paying off small balances first can motivate you to keep going.

Use your emergency fund instead of credit cards to offset surprise costs.

The following resources are available to help you get started on your retirement plan. They are confidential and are available to you at no extra cost.

 

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MARCH 2022

Meals for a healthier wallet

The benefits of home cooking are well known. You can use healthier ingredients, control portion size, limit sugar and salt, and avoid food allergies. By cooking together, you can also teach your kids the basics of healthy living, while sharing a fun family activity. And you can demonstrate how to stretch your food dollars with careful planning and savvy shopping.

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Savor these 6 budget-friendly shopping tips.

1. Plan ahead

Before you head to the store, create a shopping list based on your weekly menu plan. Never shop when you’re hungry. Be sure to check your refrigerator and cupboards to see what you have on hand before you head to the store. And try to limit your shopping trips to once a week. 

2. Stock up on seasonal produce

Food in season is typically priced to sell. Corn on the cob, for example, can cost 10 times less in the summer than it does in the winter. So, think about buying produce in season and freezing what you don’t use. See what’s in season right now in your state by visiting SeasonalFoodGuide.org.

3. Make the most of leftovers

Using leftover vegetables, poultry or meat in soups, stews, salads and casseroles can help stretch your food dollars. For example, enjoy roast chicken one night, use the leftovers for chicken enchiladas the next night and make chicken stock from what’s left. For more tasty leftover tips, visit Chowhound.com.

4. Choose store brands

Whenever possible, buy store brands, such as our own Kirkland Signature™ brand, which are typically higher in quality and lower in price than national brands. They’re all required to meet the same grocery industry standards, but store brands cost less.

5. Try frozen, dried or canned

Produce is typically frozen, canned or dried at the peak of ripeness when nutrients are plentiful. With frozen foods, you can use only the amount you need, carefully reseal the package and return it to the freezer. Canned foods are often sitting in a bath of juice, syrup or salty water, so just rinse them before using. And dried fruits are concentrated in flavor and a great substitute for fresh fruit.

6. Shop at Costco

As you know, at Costco, we sell high-quality food in bulk at low costs per unit and pass the savings along to members. Whether you’re single or have a large family, you can save money by buying grocery items in bulk, including perishable items like fresh produce, meat, poultry, fish and more. Just divide up and freeze what you don’t use.

Sources:

NerdWallet. How to Save Money on Groceries.
WebMD. 10 ways to save money on food shopping.

Thinking about making some positive changes in your eating and spending habits? You’ll find the help you need for your journey with your Costco benefits.

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Learn the basics

LEARN THE BASICS

FEBRUARY 2022

Managing cancer’s financial challenges

There’s a lot to think about when you’re diagnosed with cancer — and your worries don’t end with physical and emotional issues. You may need to keep working throughout your illness in order to pay your bills, including medical expenses. Now’s the time to explore your options and learn how your Costco benefits can help.

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Tips to help you stay financially healthy during cancer treatment

Breathe, but think ahead.

Give yourself time to deal with your diagnosis and prepare for the road ahead. Whenever you talk to your doctor or their office staff about what to expect, timing and other concerns, have your questions ready and take notes.

Get support with financial planning.

Talk to a financial consultant. Through Resources For Living® (RFL®), you can get a free 30-minute consultation for each issue you’d like to ask about, including:  

  • Creating a budget and managing expenses  
  • Understanding bankruptcy options and requirements  
  • Avoiding foreclosure and handling creditors  
  • Making the most of your insurance coverage 
  • Keeping your retirement plan on track through tough times 
  • Estate planning 
  • Medicare/Social Security information and more 
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Learn the basics

LEARN THE BASICS

NOVEMBER 2021

Review your benefits coverage

Your 2021 may have included a new marriage, a new baby, a promotion, your first home or a newly empty nest. And whenever your life changes, it’s time to ask yourself if your benefits coverage should change, too. During Annual Enrollment, November 1–23, you’re able to add to or change your benefits coverage to better meet your financial needs — and provide for those you love.

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Secure your financial well-being

Your Costco benefits include three types of coverage to help protect your finances if the unexpected happens, or you’re unable to work for medical reasons. These include life, accidental death & dismemberment, and disability insurance. All are administered by Unum. 

Life benefit coverage is there when you aren’t, to keep your family’s finances healthy. It pays a cash benefit in case of your death to a person (or persons) you choose as your beneficiary. If you’re enrolled in a Costco medical plan or Costco Long-Term Disability benefit coverage, you and your family members are automatically covered by Basic Life coverage at no cost to you.  

Want more? During Annual Enrollment, you can buy additional coverage with Supplemental Life benefits for yourself, your spouse or domestic partner, and/or your child(ren).  

When you first select and/or increase your Supplemental Life coverage, you may have to provide Evidence of Insurability (EOI). Unum will let you know if EOI is needed and how to complete it. Your new coverage levels will go into effect when Unum approves your application. If you’re on a leave of absence, the new levels will go into effect when you return to active employment.

Accidental death & dismemberment (AD&D) coverage pays a benefit if you’re injured or die as the result of an accident. Depending on your injury, the benefit is a percentage of the total benefit amount you’re eligible for. It’s paid in addition to any life insurance benefit. Costco provides AD&D coverage at no cost to you. 

Disability insurance helps replace income lost when you’re not able to work because of an illness, injury or other medical condition (such as pregnancy). 

  • Unless you live in California, Hawaii, New Jersey, New York or Puerto Rico, you’re automatically enrolled for Voluntary Short-Term Disability (STD).* You pay a small portion of your base weekly earnings for coverage.
  • If you’re enrolled in a Costco medical plan, you’re automatically enrolled for Long-Term Disability (LTD) insurance. There’s no cost to you. If you’re not enrolled in a Costco medical plan but are enrolled in other Costco benefits, you can elect LTD insurance and pay part of the cost.

*If you add STD insurance during Annual Enrollment, coverage will begin July 1 of the following year, after a six-month waiting period, as long as you’re actively at work. If you’re on a leave of absence on the effective date, your coverage will begin when you return to active employment.  

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Why choose a beneficiary?

Your beneficiary is the person (or persons) you choose to receive the funds from your Costco benefits (life, AD&D and retirement plan) in case of your death. It’s important to keep your beneficiary choices up to date, so you can be sure the right people receive your benefits.

Without a designated beneficiary, your life benefit may not go to the correct person — or your loved ones will have to take extra steps to access your life benefit. Therefore, it’s important for all employees to designate their life and AD&D beneficiaries by logging in to the Enrollment Website on Costcobenefits.com. Or you can call the Enrollment Center at 800-541-6205.

Annual Enrollment is a good time to update your beneficiary, but you can change it at any time during the year.

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Annual Enrollment is November 1–23.  

You can add to or change your life, AD&D or disability insurance on the Enrollment Website at Costcobenefits.com.  

 

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November 1-23, 2021

Annual Enrollment liftoff!

NOVEMBER 1-23, 2021

Annual Enrollment is your opportunity to review your Costco benefits, make changes and confirm eligibility for your enrolled dependents. An Annual Enrollment letter and the 2022 Benefits Plan Changes Booklet were mailed to you the last week of October. The booklet contains details about your enhanced 2022 benefits. You also can view the booklet on Costcobenefits.com.

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Ready to launch into 2022 with enhanced benefits?  

Here’s a handy checklist to ensure you have a successful Annual Enrollment.

Review your current benefit plan elections on the Enrollment Website located on Costcobenefits.com.

Complete the Dependent Verification by November 23 to continue coverage for your family members, even if you don’t make any changes to your benefits.

Sign up for text reminders on the Enrollment Website located on Costcobenefits.com.

Consider the Aetna Dental® EPP Plan. This is an in-network-only dental plan that offers higher annual limits and a higher lifetime benefit for orthodontic services.

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Enroll or re-enroll in a Health Care Reimbursement Account (HCRA) and/or Dependent Care Assistance Plan (DCAP) for 2022.**

**The HCRA and DCAP are not available to Costco employees in Puerto Rico. 

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Review the 2022 Benefits Plan Changes Booklet that was sent to you, or visit Costcobenefits.com to learn more about your enhanced benefits.

 

 

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OCTOBER 2021

Future-proof your finances

No one knows what the future will bring. But with three essential Costco insurance benefits, you can make plans today to take care of your loved ones, no matter what happens.

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Protect your financial well-being

Through your Costco benefits, you’ve got help to meet your financial needs — and provide for those you love — when the unexpected happens. Get to know these important Costco benefits administered by Unum.

Life insurance is there when you aren’t, to keep your family’s finances healthy. It pays a cash benefit in case of your death to a person (or persons) you choose as your beneficiary. If you’re enrolled in a Costco medical plan or Costco Long-Term Disability insurance, you and your family members are automatically covered by Basic Life Insurance at no cost to you.

Want more? You can elect additional coverage with Supplemental Life for yourself, your spouse or domestic partner, and/or your child(ren). You can do this when you first become benefits eligible, during Annual Enrollment, or during a qualified mid-year event.

Accidental death & dismemberment (AD&D) insurance pays a benefit if you are injured or die as the result of an accident. Depending on your injury, the benefit is a percentage of the total benefit amount you’re eligible for. It’s paid in addition to any life insurance benefit. If you’re enrolled in a Costco medical plan or Costco Long-Term Disability insurance, you and your family are automatically covered by AD&D insurance at no cost to you.

Disability insurance helps replace income lost when you’re not able to work because of an illness, injury or other medical condition (such as pregnancy).

  • You’re automatically enrolled for Voluntary Short-Term Disability* (STD) insurance. You pay a small payroll contribution, which is based on the amount of your earnings.
  • If you’re enrolled in a Costco medical plan, or you are declining health coverage because you’re enrolled in a plan outside of Costco, you’re automatically enrolled for Long-Term Disability (LTD) insurance — at no cost to you.

    *In most states.

Check your benefits: Log in at Costcobenefits.com to view your life, AD&D and disability amounts.

Do you have a beneficiary?

Your beneficiary is the person (or persons) you choose to receive the benefits from your Costco benefits (life insurance, AD&D and retirement plans) in case of your death. It’s important to keep your beneficiary designation(s) up to date so you can be sure the right people receive your benefits.

If you don’t name a beneficiary, your estate becomes the beneficiary. This means your benefits go into probate, and the people who end up with your benefits may not be those you would have chosen. Keeping your beneficiary designation(s) up to date is important, too, as needs, preferences and family situations change.

To designate or change your life insurance beneficiary, log in to the Enrollment Website at Costcobenefits.com. You can name anyone you want as your beneficiary — and you can name more than one person.

To designate or change your retirement plan beneficiary, log in to the T. Rowe Price website. If you’re married, your beneficiary must be your spouse unless your spouse consents to another choice.

The following resource is available to you through your Costco benefits to help you take control of your financial well-being.

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Learn the basics

LEARN THE BASICS

OCTOBER 2021

Saving for retirement made easy

Retirement may be years away, but the sooner you start planning for it, the better. By taking advantage of your Costco Retirement Plan now, you can help make sure you enjoy a worry-free retirement in the future.

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Get to know the Costco Retirement Plan

What does your retirement look like? Your plans for the future may include more travel, more time with family or more time to do the things you enjoy without worrying so much about money. It’s all possible with the right planning — and saving.

A more secure retirement depends on what you do today. Your Costco benefits are here to help, with the Retirement Plan,* administered by T. Rowe Price.

Here are the basics:

You’re eligible to participate in the plan once you’ve completed 90 days of service with Costco. You can start making contributions, and receiving Costco’s matching contributions, on the first pay date after the first day of the following month.

Here’s an example: If your 90th day of employment is July 15, you can start contributing on the first pay date after August 1.

You make contributions. With the Retirement Plan, you save part of your paycheck through automatic payroll deductions. When you enroll, you’ll choose a percentage of your pay to contribute. You’ll also choose whether you want to make pretax or after-tax (Roth) contributions, or a combination of the two.

If you don’t make an election within 30 days of the first of the month you’re eligible to participate in the plan, deductions will automatically be taken from your paycheck. You’ll be enrolled to contribute 3 percent of your compensation pretax.

Costco makes contributions. Costco matches your contributions in an amount that’s set each year. This amount is a percentage of your own contribution amount for the year, up to a maximum amount.

Your account grows. When you enroll, you choose how you’d like to invest your account funds. T. Rowe Price offers a variety of mutual funds and information on how to make the right choice(s) for you.

To get started, log in at Costcobenefits.com and select Financial Wellbeing > Retirement Plan Details. Or call T. Rowe Price at 800-922-9945. You’ll set a percentage of your pay to contribute and choose investments to grow your retirement nest egg.

*For Mainland and Hawaii employees, the plan is called the Costco 401(k) Retirement Plan. For employees in Puerto Rico, it’s called the Costco Puerto Rico Retirement Plan.

 

The following resources are available to help you be more in control of your financial well-being. These resources are confidential and available to you at no cost through your Costco benefits.

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Take Action

TAKE ACTION

OCTOBER 2021

Make the most of your money

Being smart about your money can help you have enough for everyday expenses while saving for future goals. Here are some practical suggestions to get you started.

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5 tips for smarter spending & saving

Maybe it’s tough to stretch that paycheck. An unexpected expense pops up. Or you’d love to plan a great vacation. Whatever’s going on in your financial life, there are steps you can take to spend and save wisely. Here are five tips you can use today:

1. Know what you spend

Here’s something to try: For two weeks, save all your receipts and track online purchases using your bank account (or just write them down). Put purchases into groups — food, entertainment, clothing, tech and other expenses. Don’t count essentials like rent/mortgage, utilities and insurance.

Look at your totals. What do you spend most of your money on? How can you spend less? For example, if you spend a lot on takeout and restaurant meals, consider cooking more meals at home and packing a lunch more often. Shop the sales and visit consignment stores for clothing. If you have a tech wish list, narrow it down to one special item you just can’t live without.

2. Budget for the kids (furry ones, too!)

Spending wisely means getting the kids involved. Learn to say “no” to extras that aren’t needed. If life is a whirlwind of after-school activities, choose the most important one and let the others go. Take advantage of free local fun like parks, libraries and playgrounds. Join a school carpool. Trade babysitting services with other parents.

Remember that your furry family members have expenses, including pet food, toys, equipment, annual checkups and the occasional unscheduled vet visit. Make sure your budget has room for your fur babies, too.

3. Save automatically

If your checking and savings accounts are with the same bank, set up an automatic transfer. Decide on an amount to move from checking to savings on a regular basis. Most online banking services let you choose weekly or monthly transfers.

It’s a painless way to save. And don’t worry that it’s not enough. Even a modest amount builds up over time, and it’s much better than not saving at all.

4. Think about trade-offs

Saving for something special? Change your daily spending habits to free up extra money. Let’s say you’re saving for a new cell phone and you buy one or more Starbucks tall lattes every day. Think about how many lattes would pay for the new cell (or at least contribute a good portion of the cost). Cut back on coffees for that new cell phone!

5. Cut health care costs

You can save on health care without sacrificing quality. Use in-network providers. Ask your doctor to prescribe generic drugs whenever possible. Visit an urgent care center or walk-in clinic (instead of the emergency room) for quick, convenient non-emergency care. Take advantage of preventive care, like routine exams and screenings, to stay healthy and catch problems early.

 

The following resource is available to help you be more in control of your financial well-being. This resource is confidential and available to you at no cost through your Costco benefits.