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The Benefit of Confidence

Dan Todd
June 30, 2020

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Seeking Investment Advice 

Sponsoring a retirement plan is an important benefit for you and for your employees. Upon retirement many people rely heavily on their social security benefit to meet monthly income needs and, unless you still offer a traditional pension plan, the retirement savings plan you provide to your employees will likely be significant source income for those wisely save for the day their regular paycheck stops. As a financial advisor, a large percentage of the conversations that I have with clients pertains to understanding where their regular monthly income will come from in retirement….and how much income they can expect each month while planning for 25 to 35 years in retirement. As you may expect, people who have saved and invested appropriately are usually more confident that their income needs will be met in those golden years. Employer sponsored plans such as a 401(k), Simple IRA or several other types of plans truly do make a great impact for those people who have had the ability and made the sacrifice to save regularly. 

The intent for this article is to encourage you as an employer and benefit sponsor to help your employees even more. Not necessarily with more matching funds or adding another expense line item to your benefits spend, but by helping employees to know that their retirement savings is invested correctly in order to maximize the future potential and help them realize their goals and financial security in retirement. Each one of us has limited resources and ultimately, we must make a choice between how much we can save for retirement with each paycheck or send to the checking account for current household needs. So, if resources are limited, we should make sure those resources are working as well as possible for us. Do most of your employees know if they are invested properly in your retirement plan? Does the financial advisor for your retirement plan offer to meet onsite with employees and, if so, are your employees taking advantage of that professional access? Some employees may be invested too conservatively or may be taking more risk than necessary to achieve their current rate of return. Some employees may be invested appropriately but they may not know it or understand what their investments are doing. They may not have confidence, but they should, and they don’t know it! In just about any situation, a good financial advisor will not need a long conversation with someone to evaluate their current state and help them recognize some considerations to maximize future state potential with investment performance and long-term risk exposure. Little improvements today can make a monumental impact over time. 

It can be easy for you and your employees to put retirement savings on the “back burner” and possibly wait too long before talking to a financial advisor. I encourage you and your employees to take action today with a financial check-up. Don’t be embarrassed, don’t be ashamed and don’t fall into the trap of regret thinking that it is too late or that you didn’t do enough in your earlier working years. The job today is to look forward and position the resources that we have and still can save for retirement. There is ALWAYS something you can do to improve your future financial outlook and gain knowledge of a strategy or investment philosophy that you do not know about today. Some of these improvements can be worth thousands and thousands of dollars in the future without having to save extra today. Your employees deserve access to this confidence and the financial advisor for your retirement plan should be helping you to engage current and eligible participants in your retirement plan. 

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