Strolling the Retiree Fairgrounds: Your DCP City Fair Guide to Financial Wellbeing

Welcome back to the Retiree Fairgrounds, a place where financial wisdom and the lively spirit of the DCP City Fair converge.

As you continue your retirement adventure, join us for a stroll through a few essential financial principles designed to help you make the most of your golden years. Pssst: Be sure to stick around to the end of the article for your chance to win a prize!

  1. Budgeting Balancing Act: Crafting and sticking to a balanced budget is key to your financial well-being. Calculate your retirement expenses and allocate funds wisely, ensuring a comfortable lifestyle while safeguarding against unexpected costs.
    If you’re on your way to retirement, consider how much of your income will need to be replaced in retirement. If you wished to maintain the standard of living while you were working, consider that you may have reduced commuting costs but may need to budget for healthcare costs in the future.

  2. Diversify to Manage Risk: Just as the DCP City Fair's vibrant attractions cater to various tastes, diversifying your investments should be part of your financial strategy. Ensuring your investments are diversified and aligned with your risk tolerance can help you manage risk during your retirement years and protect your retirement nest egg. Don’t forget that we can help! The DCP’s team of Local Retirement Counselors can help educate you on your investment options so you can make informed decisions about the diversification of your account.

  3. Dodging Debt: The reality is when you retire, you will be living on a fixed income. Entering and living in retirement with debt means you'll have less flexibility in spending your money, so it’s important to get rid of existing debt and avoid creating any new liabilities. Try to pay off credit card balances, high-interest loans, or balances for other accounts where interest is high.

  4. Emergency Fund Oasis: A well-funded emergency fund offers tranquility in uncertain times. Set aside three to six months' worth of living expenses in a dedicated account. This cushion ensures you can face life's surprises without dipping into your retirement nest egg.

  5. Prioritize Estate Planning: While your retirement years should be full of enjoyment and leisure, crafting your legacy through thoughtful estate planning is an important priority. Unfortunately, a recent study found that two out of three Americans lack any type of estate planning document*, risking confusion and delays for their loved ones. Designating beneficiaries, drafting a will, and other solutions like living trusts can help mitigate any unnecessary headaches. Consult with a legal and tax professional to determine what option is best for you and your family. Update your beneficiaries by logging into your DCP account and selecting Personal Information and Beneficiary Information. Remember to also review your beneficiary designations for your other benefit elections.

  6. Distribution Decisions: Juggling the various pension payout options and DCP distribution choices may seem overwhelming at first. You’ll need to get information from your respective pension program at LACERS, LAFPP, or WPERP for payout guidance. As a retiree, you also will need to consider recent changes due to SECURE 2.0 to Required Minimum Distributions (RMDs). Rest easy knowing that our team of Local Retirement Counselors is experienced with the City’s pension programs, payout options, and DCP distribution strategies. Setting up an in-person or virtual appointment with us can give you the confidence you need in your retirement income strategy.

Measure your financial wellness and win a prize!

As you continue to meander through the Retirement Fairgrounds, we invite you to explore the DCP’s Financial Wellness Assessment tool, which can help you identify areas for improvement in your financial well-being. Get started by clicking the orange LOGIN button at the top right corner of this screen. Once logged in, click My Financial Wellness from the Financial Wellness dropdown menu at the top of your account homepage. Once you complete the assessment, head right back to this page and enter your contact information below for your chance to be one of the fifty (50) winners! Good luck!

If you are having trouble logging into your account, contact a Customer Service Associate at the Service Center by calling 844-523-2457. 

*Source: Lustbader, Rachel. 2023 Wills and Estate Planning Study. Caring.com. 2023. https://www.caring.com/caregivers/estate-planning/wills-survey/

Eric Lan