You MAY want to work even after retirement!
Working part time in retirement offers more than just extra income.
Opportunities for socializing, and exercise are among seven reasons why you might want to keep on working! Read more from U.S. News & World Report‘s Emily Brandon here.
What You Need to Know About Retirement, At Every Age
Are you dreaming of retiring, someday, with your desired lifestyle? There are crucial steps for every age to help you make those dreams come true! Click here to read more from NBC News’ Kelsey Butler.
6 ways to fraud-proof your retirement savings
You’ve worked hard for your retirement savings – don’t be defrauded out of them!
According to Steve Vernon, “Fraudsters target people of all ages, but older adults with retirement savings are particularly lucrative targets. And the consequences of fraud and exploitation can have a devastating impact on older adults who depend on their retirement savings after they leave the workforce.” Read more about the issue, and the solutions, to safeguard your savings.
Plan Sponsors Ask…
Q: How important is it to deliver targeted messages as we attempt to engage, communicate with and educate different participant demographics in our retirement plan?
A: In a word, very. Targeted communications and relevant tools, like mobile apps and online planners – preferred by 66% of Millennials and Baby Boomers, according to Willis Towers Watson – are critical devices to have in your retirement plan education arsenal. Each generation has different concerns, and so the guidance and messaging you deliver needs to be tailored to reflect them. For example, education is especially important for Boomers, many of whom are actively preparing to retire.
Research from NerdWallet suggests that for Millennials to accumulate enough for retirement, their savings rate needs to be at 22% starting now to accommodate for lower projected market returns.1 However, many are focused on paying off student loans, and an Allianz Life study shows 70% prefer to travel than to save. Educating this demographic about the importance of saving early, and illustrating for them how concepts like compounding make a significant difference over time, as well as showing them how today’s savings translates to tomorrow’s income, are key in convincing them to grow their nest egg along with planning trips to exotic locales.2
What’s more, Willis Towers Watson found that 59% of Millennials and 54% of Boomers valued tools to help them track retirement goals. These are just some examples of how tailoring key messaging and offering access to retirement planning tools can make all the difference in helping various generations get on track to more financially comfortable retirements.
Please contact our office to help guide you through all the educational tools which are available for your plan. And please click on these links to learn more from Allianz Study and
Willis Towers Watson Survey.
Spring Cleaning for your Retirement Plans!
OK, so it’s only barely still Spring, but the concept holds true. This is a great time to review your retirement savings plans with your company’s financial advisor.
What do your house and your 401(k) have in common? Both may need some spring cleaning, according to our friends at American Funds.
A lot can change in a year. Your closet might be filled with clothes you no longer wear. Appliances might need fixing or replacing. Likewise, your 401(k) investments or contributions may no longer fit your retirement objectives.
“The circumstances of our lives are constantly changing,” says Ken Burdick, senior product specialist at American Funds. “So you want to check in from time to time to make sure your investment strategy still makes sense.”
That’s why it’s important to review your 401(k) at least annually to make sure you’re on track. The following six tips will help guide you through the process.
Read More »
Saving and Investing in Your 30s…
Planning for the Long Road Ahead
We turn our attention to 30-somethings, and how making good choices today may help your financial well-being decades from now.
Here are the top 5 things you can do to plan ahead. While taking charge of your finances is not especially difficult, it does take time and attention. Consider working with a financial advisor to create a plan that takes into account your specfic circumstances and goals.
Pay down school loans – As of December 2106, Americans are awash in $1.31 trillion in education debt1 , and in 2016 the average student loan debt was $37,172. 2 The problem is that outstanding loan balances may cause you to delay other life decisions, such as buying a home or starting a business. There’s a straightforward approach to retiring school debt. Look at all forms of outstanding debt (student loans and credit-card debt) and assess whether you’re on track to paying it off in a desired time frame. You might also consider consolidating the debt or refinancing if it reduces the interest rate you pay each month or accelerates your repayment schedule.
Protect your loved ones – Even when you’re in the prime of life, misfortune may strike. If you are married, you may want to set up a living will and/or a revocable life insurance trust. A living will specifies what actions should be taken for your health if you are no longer capable of making decisions for yourself because of illness or incapacity. A revocable life insurance trust allows you to specify that life insurance benefits be paid into a trust for the benefit of your loved ones. This is often recommended for younger families with relatively modest assets but substantial insurance policies to pay down debts, fund education or accumulate wealth.
If you have dependents, consider buying term insurance – Term life insurance pays a fixed amount of benefit for a certain period of time (the relevant term). Parents with dependent children often purchase term life insurance policies as the least expensive way to provide for those children’s livelihoods in the event of their death.
Save for a down payment on a house – But only if you have no credit-card debt and you’ve set up a six- to eight-month emergency fund. The emergency fund needs to be an account that you can access relatively quickly, without penalty, such as a bank savings account or money market fund. Many financial advisors do not recommend purchasing a home with less than a 20% down payment.
Keep saving – A rule of thumb is to save about 15% of your salary for retirement, including IRAs, employer-sponsored plans and any matching employer contributions. While taking charge of your finances is not especially difficult, it does take time and attention. Consider working with a financial advisor to create a plan that takes into account your specific circumstances and goals.
1 Quarterly Report On Household Debt And Credit, New York Federal Reserve, February 2017 https://www.newyorkfed.org/medialibrary/interactives/householdcredit/data/pdf/HHDC_2016Q4.pdf
2 10 Student Loan Facts College Grads Need to Know, Farran Powell, U.S. News, May 9, 2016 https://www.usnews.com/education/best-colleges/paying-for-college/slideshows/10-student-loan-facts-college-grads-need-to-know
Disclosure: This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal or investment advice. LPL Financial and its advisors are providing educational services only and are not able to provide participants with investment advice specific to their particular needs. If you are seeking investment advice specific to your needs, such advice services must be obtained on your own separate from this educational material. © 2014 Kmotion, Inc Kmotion, Inc., 412 Beavercreek Road, Suite 611, Oregon City, OR 97045; www.kmotion.com
