Commack, NY -- (SBWIRE) -- 06/17/2014 -- Saving for the future should begin sooner rather than later says Financial Advisor Dr. H. William Wolfson.
According to Dr. Wolfson, retirement planning should begin sooner rather than later, as time is not forgiving for those who often wait. The earlier someone starts saving, the greater the opportunity to build a portfolio of assets and peace of mind. For those who think Social Security will be sufficient to meet required retirement expenses, think again, he says.
According to the U.S. Federal Reserve Board, 48% of U.S. households do not save and more glaring is the fact that over 65% of American adults do not have any emergency funds (three to six months of cash on hand to cover monthly expenses) set aside. A recent survey from the Employee Benefit Research Institute revealed that nearly a third of workers are not confident they’ll have enough money to retire comfortably. To compound these findings, the retirement age for receiving full Social Security benefits is expected to creep up and life expectancies are increasing. This means someone will likely wait longer to receive full Social Security retirement benefits and will statistically live longer. In other words, proper planning now may help someone to not outlive their money cautions Dr. Wolfson.
The contribution to an IRA or Roth IRA may be done individually and unrelated to an employer’s plan. However, in certain circumstances this option may be curtailed or eliminated. Assuming someone can participate in an employer’s retirement plan, the options available can be overwhelming. The requirements and availability of options can be limited due to a whole host of equally daunting factors.
The intent of funding or participating in a plan is only a small part in the retirement funding puzzle. A plan that is adequate, appropriate and available to suit needs should be reviewed to determine the benefit of participating and ensure desired goal. Will there be a company match? How long before someone is fully vested? It becomes abundantly clear the choices for retirement planning and subsequent investing may become overwhelming, if not cumbersome. The need for sufficient and strategically placed assets is continual as you go through life and often unexpected events. The goal is to meet each need and have the fortitude to stay the course to reach ultimate goals says Wolfson.
Retirement planning is not the end all but a part, albeit large portion, of asset accumulation he says. In addition to attending employer educational financial presentations, it may be in someone's best interest to speak with a financial advisor or tax professional. After determining investment risk tolerance and percentage of pay to set aside, decide where best to allocate contributions among your available options. He suggests being proactive, asking questions and monitoring financial statements. Ultimately, it is an individual's responsibility to ensure retirement goals are realized.
About Dr. Wolfson
Dr. Wolfson is a financial planning educator and was awarded by The College for Financial Planning a Master Planner Advanced Studies(SM) certification.