Tag Archives: CFP

Financial Planning is the new employee benefit.

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Some of the most progressive companies are introducing a new employee benefit: company-paid financial guidance.

Concerned about their employees’ retirement funds, and acknowledging the increasing scarcity of skilled employees, companies are looking for a benefit that is relatively inexpensive while making a big difference in employee satisfaction.

Financial insecurity troubles most people, from the entry-level employee to the highly compensated professional. Half of U.S. households are at risk of being unable to maintain their standard of living in retirement, according to one study. For most people, financial stress is a distraction from work and leads to lower productivity.

Money is the single largest source of stress for employees, ahead of work, relationships or health.
Employers are concerned about the impact employees’ financial problems are creating problems at work. Here’s what employers say they are most concerned about:
• Lack of retirement readiness 16%
• Paying down debt 15%
• Lack of emergency savings 13%
• Other 3%

Without professional guidance, most people take a seat-of-the pants approach. But that leaves them and their families wondering how they will survive the decades that they will spend after leaving the work force.

Many companies offer a retirement program, like a 401k, but are ill-equipped to do more than provide a menu of investment choices. To fill the information gap, more companies are offering financial-wellness programs. Others are considering such a move.

A program offered by Korving & Co. is a series of programs, provided by a CFP® (Certified Financial Planner™) professional. These are designed to educate participants about debt, investing, and retirement income planning.

Providing employees with professional education about these issues, on company time, in a relaxed setting is an economical way for companies to help their employees reduce stress. It also creates a great deal of good will and loyalty on the part of employees.

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What is the right amount to save when aiming for a certain retirement goal?

Question from middle-aged worker to Investopedia:

I am 58 years old earning $100,000 per year and have investments in multiple retirement accounts totaling $686,250. I’m retiring at the age of 65. I am currently investing $16,000 per year in my accounts. I project to have $848,819 in my retirement accounts at the age of 65. I will be collecting $2,200 in Social Security when I retire. I also do not own my home due to my divorce. How much money will I need to hit my projection? Should I be saving more?

My answer:

I believe that you may be asking the wrong question. For most people, a retirement goal is the ability to live in a certain lifestyle. To afford a nice place to live, travel; buy a new car from time to time, etc. By viewing retirement goals from that perspective you can “back into” the amount of money you need to have at retirement.

To do that correctly you need a retirement plan that takes all those factors into consideration. At age 65 you probably have 20 to 30 years of retirement ahead of you. During that time inflation will affect the amount of income it takes to maintain your lifestyle. You will also have to estimate the return on your investment assets. As you can see, there are lots of moving parts in your decision making process. You need the guidance of an experienced financial planner who has access to a sophisticated financial planning program. Check out his or her credentials and ask if, at the end of the process, you will get just a written plan or have access to the program so that you can play “what if” and see if there are any hidden surprises in your future.

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Planning makes a difference

Happy senior couple walking on beach

Do you want to have fun in retirement?  Planning can make the difference and it doesn’t have to be difficult.  Working with a financial professional that understands your retirement goals can help you create a plan to make the most of your money – now and in retirement.

The partners at Korving and Company are Certified Financial Planning™ professionals – fiduciaries – who specialize in retirement.  We help people plan their retirement and continue to work with them during retirement.

There are 5 reasons why you should work with a financial professional to create a retirement plan.

  1. Focus on your goals in retirement and how you will pay for them.
  2. Address your concerns and expectations for retirement.
  3. Identify things that could pose a threat to your retirement and manage them.
  4. Feel more educated, confident and in control of your financial future.
  5. To help you navigate the complexity of financially moving into retirement.

 

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Why People are Scared to Get Professional Investment Advice

Nearly three quarters (71 %) of Americans say some aspect of talking to a financial advisor scares them according to a survey conducted by Harris Poll.

The reasons varied but cost was one of the major factors.

  • 49% said that cost was the top concern. They were scared that talking to a financial advisor will “end up costing me a lot of money,” according to the poll.
  • 47% said they were hesitant to trust a financial advisor with their personal financial information.
  • 41% said they were concerned that a financial advisor would not be able to help them with their finances.
  • Millennials were significantly more concerned about talking to investment professionals than people 45 or older.
  • Nearly four in ten people (38%) avoided taking to a professional advisor because they feared that advisors would give them bad news about their finances.

Here’s the reality. A Registered Investment Advisor (RIA) can actually save people money by helping them make intelligent investment decisions. If that person is also a CFP®, they should be able to provide planning services that span the spectrum from advice on investing, retirement, and insurance, to tax and estate planning. Most advisors simply charge you based on the amount of assets that they manage, and provide all the other services as part of that fee!

If an RIA is going to provide investment guidance, they need to have a complete picture of the client’s financial situation. Just as a physician gives his patients a physical, an investment professional provides his clients with periodic financial physicals.

Finally, professional advisors don’t just dole out the bad news that people fear. If a client comes to us after having made some bad financial decisions, we often help them create a roadmap to help get back on track and headed towards achieving their goal.  Most advisors will provide a free introductory consultation to see if they can help.

VISIT OUR WEBSITE AND GET A FREE LOOK AT OUR BOOK ON ESTATE PLANNING.

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“What Is the CERTIFIED FINANCIAL PLANNER™ Certification?”

No doubt you’re well aware of the volatility that has characterized the economic environment over the past five years. It’s little wonder that personal financial security is still uppermost in many peoples’ minds. They’re eager for advice about their retirement, estate plans, insurance, emergency funds, liabilities and their asset allocation. Today’s financial conditions require a holistic approach – looking at an individual’s entire financial picture, not just one aspect or another. Working with a Certified Financial Planner™ professional is assurance that he or she is a credentialed expert who is held to high ethical and professional standards.

So I’m taking this moment to remind you that I’ve been a CFP® professional for 21 years. The designation comes with extensive training in financial planning, estate planning, insurance, investments, taxes, employee benefits and retirement planning, as well as in CFP Board’s Standards of Professional Conduct, which are rigorously enforced. As a CFP® professional, I’m required to uphold my certification through continuing education – something to consider with new financial instruments appearing regularly on the consumer market. In fact, CFP® certification is the most recognized in the industry for personal financial planning. So as you think about your financial future, please bear in mind that only 17% of all financial advisors in the industry can claim this distinction.

Please ask for the CFP® brochure. E-mail us at info@korvingco.com Visit our website to learn about us. If you have any questions or would like an analysis of your current financial situation, I’d love to hear from you.

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