As a fiduciary overseeing an employer-sponsored retirement plan, what do you want? Protection? Good customer service from your vendors? An easy-to-navigate retirement plan website? Education for your employees?
If you make decisions regarding the administration of your employer’s retirement plan or its investment choices, then you are a fiduciary to the plan. As a fiduciary, you are charged with making decisions that can impact the employees’ assets in the plan, and ultimately their retirement readiness. Those decisions must be prudent, but they should also drive your plan toward being a good plan. However, you may ask what does it mean for a plan to be a good plan?
Every day retirement advisers help people plan for their retirement by quizzing them on their assets, liabilities, personal finances, net worth, and lifestyle choices. They assist people in establishing and reaching retirement financial goals. The advisers crunch numbers and analytically estimate what retirement will look like for their clients. They build graphs, make assumptions, and run a Monte Carlo simulation model for their clients.Continue reading
A recent study revealed how much of a negative impact financial concerns have on employees’ on-the-job productivity. Those who are struggling financially report being highly distracted on the job 12.4 days per year on average. That’s one day a month! How would you like to recover that lost productivity? One way to help reduce that stress is by promoting good financial fitness with the members of your workforce.Continue reading
The financial planning industry has overplayed the marketing line ‘what’s your number.” I am referring to how financial literature and commercials primarily focus on having a particular asset value (i.e. one million dollars) and once you reach that mythical dollar amount you can have a successful retirement.Continue reading
Part 2: Three reasons to retire as soon as possible
How do you decide when to retire? In part one of this topic, we saw that the more important question is not, “When can I retire?”, but, “When is the best time for me to retire?” We reviewed three reasons why you might want to delay retirement past the time when many of your coworkers have left the workforce.Continue reading
Where do you see yourself or a loved one living during retirement? If you’re like most people, you may think of independent living and assisted living as being essentially the same in terms of living types, amenities, and care options. However, when you peel back the layers of services and living arrangements offered by both, one can quickly to understand the differences and the benefits each has to offer.Continue reading
You know how much is at stake as you set aside money for your future. You understand that retirements don’t just happen, and you are willing to make small sacrifices now so you can enjoy a more fulfilling retirement later. The problem is, unless your action plan includes strategies to address Five Key Risks, that nest egg you’re working so hard to build up may not be enough.
Here are Five Key Risks to your retirement nest egg and how to address themContinue reading
At some point in time you might have heard a familiar phrase used among financial advisers when they talk about building a portfolio, “Don’t put all your eggs in one basket.” Many times they are referring to the importance of having an asset allocation strategy.
An asset allocation strategy should represent the risk an investor is willing to take by investing monies ‘eggs’ in the various asset classes ‘baskets’ for a desired potential return. Continue reading
A recent Merrill Lynch survey found that 72% of pre-retirees older than 50 said that their ideal retirement would include continuing to work in some form. As I interact with individuals who are nearing retirement, we frequently discuss what they plan to do with the next 20 or 30 years of their life. After hundreds of these conversations, my common refrain has become: “It is not enough to retire from something; you must retire to something.” Sometimes preparing for the financial part of retirement is a cake walk compared to getting ready for the non-financial parts. Also the fact that many people are living longer and healthier lives has led to a changing view of retirement.Continue reading