I’ve always thought that one of the greatest benefits of becoming a Maryland State Trooper is the chance to retire at a comparatively early age--for me 45.  The majority of the working world must continue to work until at least 66 or 67 years of age.  Of course, we are speaking of retiring from the State Police only, not many people completely retire at 45.  It is more the opportunity to change professions that makes being a Trooper something unique.  Some people fear career change while other can’t wait to begin.  This edition’s article will cover a few things to think about when nearing your MSP retirement.

Ok, just so we’re straight from the opening line, I don’t think anybody really likes life insurance.  It’s like auto insurance—who gets up in the morning and thinks, “Wow, joy, joy!  I get to send in an insurance premium check today.” 

But—unless you’re immortal nobody gets out of here alive!  Sooner or later we are all going to die.  The hope we all have is that it’ll be much later than sooner, but, in the event death does comes sooner than we have planned for, we need to protect the ones we leave behind.

Debt must be a wonderful thing. Just look at how much debt the good Ole USA has—and we are the largest economy in the world—by far. If the richest, most prosperous nation in the world is also the one that borrows the most money, then is it a leap to think that what debt has done for the US can also do for our personal finances? The answer in a word is, no; a big NO as a matter of fact. In this edition we are going to look at how to improve our personal Balance Sheet.

Debt in the financial world is called leverage (leverage sounds better, but it is just a euphemism for debt.) Leverage can, when used properly create greater financial results with fewer dollars. Many corporations use leverage to increase returns on their equity. Leverage in finance works like it does in the mechanical world; proper positioning of a lever and fulcrum multiplies force, hence a little effort can move a big object.

Social Security benefits may not be the most exciting topic in this edition—and reading about obscure Social Security Administration regulations may not be your favorite pastime; but this stuff is important—and it’s complicated—so grab a double espresso, sit down, turn the TV off, and read up.

Mutual Funds are everywhere! They are in your retirement accounts, your personal investment accounts, your pension system, they dominate TV and radio commercials, and entire magazines are dedicated to tracking their performance. But just what exactly is a Mutual Fund? Chances are your financial future is somehow affected by the selection, performance and quality of a Mutual Fund, so perhaps it’s a good time to go over some basics regarding this popular investment vehicle. Besides, the best time to review or talk about a “basic” concept is when it is so “understood” that everyone assumes everyone else already knows about it.

As I write this during the third week of October 2008 the world’s equity markets are in the midst of a sharp decline—some are calling it a “melt‐down.” Many mutual funds have fallen over 40% for the year and there seems to be no end in sight.

Warren Buffet says “Investing is simple but not easy” and in today’s market that statement is truer than ever. Investing boiled down to its essential elements is very simple, buy something at one price and sell that thing later at a higher price. Buy low and sell high. But while intellectually investors know what to do—emotionally investors often do the opposite. Studies have shown that investors invest more money when the market is up and take money out of the market when it is down—basically buying high and selling low.

About a year ago I was talking to a retiree I used to work with in CVED and I asked him how retirement was treating him, he said, “Marty, have you ever heard of the term ‘The Golden Years?’ Well, just drop the G.” We laughed and then he ticked off a litany of nasty medical issues he and his family were experiencing. He was not enjoying retirement—well, actually, he was not enjoying the human aging process.

I don’t think the human body is designed to live as long as we do these days. Advancements in medicine and our affluent lifestyles have managed to extend our time on Earth for a much longer period than the physical body was designed for. 2000 years ago the average life-span was 24 years—about the time most of us graduated from the police academy. Today, many of us will make it well in to our 90’s.

Traditionally, every July and December mark the end of many State Police careers through retirement. Retiring is a wonderful thing—I retired last year after 26 1/2 years. Driving off the Quartermaster parking lot in my personal vehicle after returning my equipment was a once in a lifetime event I hope every Trooper has the chance to experience.

The other once in a lifetime experience for recent retirees is getting your DROP check (Deferred Retirement Option Program). There are just not enough times in life when you receive six-figure checks in the mail. Just what you should do with that check is the subject of this article.

The decision over whether to enter, or not enter the DROP (Deferred Retirement Option) is one of the most important career decisions will ever make as a Maryland State Trooper. To make matters worse, to DROP or not to DROP is also one of those decisions that almost everyone has an opinion on—and unfortunately, not many opinions are alike. To be sure, this is an emotional decision, a financial decision, a career decision, and finally, a family decision, so seek advice from your spouse and/or family.