FIC Blog

We believe in – and live by – a philosophy of excellence.

Average is not good enough … Our goal at Family Investment Center is excellence. We find excellent investment products and supervise an excellent service package. We maintain a library of excellent research materials and financial planning resources. We also demand top safety and security for our clients.

We won’t settle for average. We continually seek top managers or securities and meld them into superior custom portfolios. Each palette of investments is carefully tailored to personal or family goals. We enlist excellent managers, research, resources, and effort for our clients. Don’t settle for average. You deserve excellence.

Please search our blog posts for answers to common investment questions, and we look forward to sharing our knowledge and experience with you first-hand.

Planning for Retirement

 

What do Successful People Underestimate When Planning for Retirement?

b2ap3_thumbnail_Retirement-5.jpgA recent survey by Charles Schwab indicates that some of America’s wealthy are underestimating their expenses as they are planning for retirement. According to the study, 80 percent of workers who earn $115,000 annually think they’ll only need $66,000 a year in retirement and that their current investment plans are on track for retirement.

Survey respondents believe they are going to cut back on lavish spending and live a simpler life. However, for Americans currently making $115,000 a year, a retirement goal of $66,000 per year is actually a 43 percent reduction in annual income. This figure may leave out unexpected costs that can occur in later years, such as health care. What are other elements that individuals in upper levels of income (and those who aren’t) tend to underestimate?

Many adults assume they’ll retire at 65 but are underestimating how long they’ll live after that. Arriving at the “right” number when planning for retirement can be difficult. For many Americans, the number is 65 years of age – but if they haven’t invested enough for retirement, this may not be possible. Today, many adults in the U.S. will live ten to 15 years longer than they anticipate, especially women. Taking the time to sit down now with a professional investment advisor can mean that you have a better plan that lines up with your life expectancy and projected – and realistic – income needs.

Many workers assume what they’re contributing to their IRA or 401(k) is enough, or that they can’t start now. About half of Americans are invested in a retirement plan like an IRA or 401(k), according to a study by EBRI. Maxing out the contribution limit on these retirement plans is ideal, but many Americans fail to realize that adding to these accounts at any percentage is important for retirement planning. Did you know there are also tools that allow for a “catch up” contribution if you’re over a certain age? While nothing is guaranteed and there are always risks associated with having investments, there is great potential for reward, especially if you start early.

Many investors assume they can’t (or shouldn’t) be a little unconventional from time to time. Scores of time-worn advice circulate toward investing, and for many Americans, it can be challenging to “go against the grain.” One example is paying off a mortgage early or making double payments. By investing what you would have spent making that extra house payment, you may have the potential to achieve higher returns later – and you may be better prepared as new doors open that you didn’t anticipate.

At Family Investment Center, our team is dedicated to serving clients’ best interests first, and we’ve always operated in a commission-free setting. We are able to sit down and work with each individual in a professional, experience-driven atmosphere without cumbersome jargon. Contact our team today to learn more about what makes us unique. 

Want to Get More From Your 401(k) Investing?
Investing for Retirement: Are You Avoiding These C...

Related Posts

 

Comments

No comments made yet. Be the first to submit a comment