Making the Decision: Which Pension Payout Option is Best?

August 30, 2011

I recently met with a multitude of pre-retirees for individual consultations who were contemplating an early retirement deal, so naturally part of the analysis revolved around their pension.  I was stunned at the amount of employees who, up until our in person meeting, had never gone online to run a pension estimate.  Of those who had already run their estimate, quite a few were still unclear about the various payout options and how to go about making the decision on which payout best fit their own situation.  The most common question I got was, “What do most employees pick?”  Although I was very tempted to bring up the old adage mom used to say that, “if everyone else jumped off a bridge, would you do that, too?”  I resisted, and instead, I stressed to them that it was a personal decision based on their own unique situation.  Here are the points I had the employees consider: Continue reading “Making the Decision: Which Pension Payout Option is Best?”

Real Life Cases of Money Isn’t Everything

August 26, 2011

Over the last month, I’ve had the opportunity to meet a lot of people who are contemplating retirement right now.  And I’ve noticed a common theme.  More people, than might be expected, really like their job and the people they work with, and they have a difficult time wrestling with the emotions of making the retirement decision.  A little background to this story might help. Continue reading “Real Life Cases of Money Isn’t Everything”

You Have HOW MUCH of Your 401(k) in Company Stock?

August 23, 2011

With the recent roller coaster ride of the stock market, many employees have taken a closer look at their asset allocation within their retirement plans, and to the surprise of many, they find their investment strategy is way off base. Continue reading “You Have HOW MUCH of Your 401(k) in Company Stock?”

Why I Love My Whole Life Policy

August 15, 2011

Whole life insurance has a bad reputation.  It isn’t perfect but then again it wasn’t ever meant to be.  When used for the right purpose, however, it can fit perfectly into a financial plan when there is a need for life insurance.  You hear a lot of talk about the negative aspects of whole life and what it doesn’t do such as: Continue reading “Why I Love My Whole Life Policy”

Do You Know Your Retirement Number?

August 10, 2011

There is a series of humorous commercials that show men and women holding a long, seven-figure number under their arm.  This number is supposed to represent “their” number; the amount they will need to save in order to enjoy the retirement they are looking forward to.  It seems silly, but the truth is, very few people actually know how much they will need to save in order to retire comfortably.  Even our own research suggests that only about one in three employees has used a retirement calculator.  With so few crunching the numbers, it’s any wonder retirement confidence is at record lows, but the good news is that this number doesn’t have to be a mystery.  Let’s look at six (relatively) easy steps to finding yours: Continue reading “Do You Know Your Retirement Number?”

Benefits Trends: Looking Back the Past 5 Years

August 09, 2011

Over the last 5 years, there has been great progress in the employee benefits arena for new employees entering the workforce.  Auto enrollment into a DC retirement plan has increased from 32% back in 2007 to 41% in 2011.  The number of companies offering the Roth 401(k) option has doubled since 2007, from 16% to 31%, and this feature usually is most beneficial to the younger workforce who most certainly may face higher tax brackets in the future.  And for those companies that offer high deductible health plans, 1 in 5 now offer an employer contribution, up from only 1 in 10 in 2007.  These are all positive movements highlighted in the 2011 SHRM Employee Benefits Study when looking back at the trends from 2007 to today. Continue reading “Benefits Trends: Looking Back the Past 5 Years”

Why Didn’t I Sell?

August 08, 2011

“Why didn’t I sell before the market dropped?”  is a question I got from a caller to our helpline last week.  This is a common question, as you can imagine, after a big drop in the market or during an extended bear market.  This caller was extremely frustrated because he was stuck between a rock and a hard place.  He had already turned in his paperwork to retire within the month (too late to cancel) and was making a transfer from his 401(k) to a pension purchase to provide additional fixed income – essentially changing the goal of this money from long term growth to income.  The market drop would lower his monthly income for the rest of his life because his lump sum was being used to calculate his monthly income payment.  He was distraught. Continue reading “Why Didn’t I Sell?”

Retirement Plan Enrollment: How to Get More Employees in the Game

July 26, 2011

Do you have a population of employees that are still on the sidelines regarding participating in your retirement plan?  According to a recent study by Aon Hewitt, 76% of eligible employees participated in their company’s DC plan in 2010, which means that almost 1 in 4 employees ARE NOT participating!  It just amazes me that even with the popularity of auto enrollment, there are still so many employees not taking advantage of saving for retirement. Continue reading “Retirement Plan Enrollment: How to Get More Employees in the Game”

I WAS Officially Depressed, but Feeling Better Now

July 22, 2011

What started out as a quick thought about a depressing article on the difficulty younger generations may face preparing for retirement, has now become a mini-series about some of the positive trends I see, and today’s thoughts (the last installment of this series) are on some things that people who have a few decades prior to retirement can do to get into a much better long term financial position. Continue reading “I WAS Officially Depressed, but Feeling Better Now”

I WAS Officially Depressed, but Feeling Better Now

July 15, 2011

Last Friday, I talked about how each generation’s retirement income is increasingly at risk and the factors (longer life spans, shrinking pensions, uncertainty with Social Security, rising health care costs and declining investment returns) behind that trend.  While all of these factors exist and are real reasons for concern, I also see hopeful signs out there as well.  Today, and next Friday, I’ll talk about why I am hopeful and some of the things you can do, small things that may seem inconsequential, to take control of your financial life and buck the negative trends that I showed you last week. Continue reading “I WAS Officially Depressed, but Feeling Better Now”

OK, I’m Officially Depressed

July 08, 2011

Wow.  I don’t think I want to read financial news stories for a while now.  This is one of those times I wish I were older.  What am I talking about?  This article talks about how many Baby Boomers and Gen X’ers are “at risk” where retirement income is concerned.  The numbers get worse with each successive younger generation, and with each passing year.  Here are some numbers (I know, who comes to a financial blog to see numbers…). Continue reading “OK, I’m Officially Depressed”

Obstacles to Benefits Communications

July 05, 2011

As part of my four-part series, I’ve been exploring what I see as the four key reasons why employers do not prioritize benefits education, even though the majority of employers are very eager to increase employee satisfaction with their benefits package.  These four reasons are: Continue reading “Obstacles to Benefits Communications”

GUEST BLOG POST: The 6 Reasons Why the 401(k) Is the Best Way to Save for Retirement

June 30, 2011

401(k)s have gotten some negative press due to the market downturn during the recession, which took a big toll financially on many employees. Even so, as someone who has dedicated my whole working life to retirement planning, specifically to the 401(k), I wanted to share six important points on why 401(k) are still a better vehicle for saving for retirement.

  1. The matching contribution. The vast majority of companies who sponsor 401(k) plans match your contribution into the plan. You can’t get that with any other savings vehicle. For example if you’re going to put money into an IRA nobody is going to come in and give you $0.50 for every dollar that you put into that IRA. Continue reading “GUEST BLOG POST: The 6 Reasons Why the 401(k) Is the Best Way to Save for Retirement”

What About My House? (A Soon to be Retiree’s Dilemma)

June 24, 2011

I met with someone who is preparing to retire in the next year, and we started talking about what a day in his new-styled life would look like.  I asked what I thought was a simple question, “Are you planning to stay in your house, move somewhere warmer (he lives in New England), or stay local and downsize?”  It turns out, the question wasn’t so simple. Here’s why: Continue reading “What About My House? (A Soon to be Retiree’s Dilemma)”

Obstacles to Benefits Communications – Part 1

June 21, 2011

Last week I wrote about a recent study that revealed a decline in employee perception of the value and satisfaction level of employer-provided benefits.  Over the next month, I will explore the four key reasons that I have discovered on why employers do not prioritize benefits education, even though the majority of employers are very eager to increase employee satisfaction with their benefits package.  The four reasons are: Continue reading “Obstacles to Benefits Communications – Part 1”

Poorer Can Actually Be Richer – Fulfilling a Lifelong Dream

June 17, 2011

I recently read an article talking about something we don’t like to talk about.  It was written by a hospice nurse and is about the regrets of the dying.  It was interesting to me to read what the five most mentioned regrets were from those who realized that their time on this earth was coming to an end.  I wasn’t surprised to find that one of the top five was, “I wish I didn’t work so hard.”  (In case my boss is reading this…I wish I could find a way to work even harder!  Is that sucking up too blatant?) Continue reading “Poorer Can Actually Be Richer – Fulfilling a Lifelong Dream”

Investment Secrets Revealed

June 15, 2011

Several weeks ago I was in Chicago giving a workshop on investing.  Every time I give this workshop, I almost always get asked the same thing, “Greg, what is the best thing to invest in right now?”

First of all, if I really knew what the absolute best things to invest in at any time was, do you really think I’d be writing this blog?  I get the sense that people think financial professionals have some sort of secret knowledge when it comes to investing.  They think we can read the tea leaves and know where to invest, and where not to invest.  I can’t blame them, though.  I think the industry has done this to them on purpose.  For years financial institutions have spent countless dollars trying to convince you that they have an edge, a better way to research, a better strategy for picking winners, etc. Continue reading “Investment Secrets Revealed”

Could Vegas Hold the Answer to Your Employees’ Retirement Jackpot?

June 07, 2011
Welcome to Fabulous Las Vegas
Photo by By Goynang/Flickr

The secret to a good retirement planning strategy can be found in Las Vegas, but not at the poker table.  The SHRM 2011 Annual Conference and Exposition kicks off on Saturday, June 25th at the Las Vegas Convention Center and promises to be loaded with practical tips, informative HR sessions, new innovations, and networking opportunities – not to mention nonstop entertainment, Vegas style. Continue reading “Could Vegas Hold the Answer to Your Employees’ Retirement Jackpot?”

Should I Manage My Investment Account or Use a Financial Advisor?

June 02, 2011

If I had a dime for every time I heard this question – I would have a lot of dimes! This is actually one of those questions I feel shows that an investor has entered the introspective phase of their investing life. The good news here is that the sooner you can answer this question, the quicker you can get on with the business of putting your money to work for you! Continue reading “Should I Manage My Investment Account or Use a Financial Advisor?”