PCS Retirement

When it comes to estimating money needed for retirement, Americans are not very accurate.   This is according to the recent Northwestern Mutual Planning and Progress Study, which looked at people’s financial attitudes.   The finding didn't surprise Spencer T. Hakimian, founder of the hedge fund Tolou Capital Management. “Many Americans underestimate the impact of inflation, longer life expectancies, and the rising costs of healthcare,” he said.   A survey by the Employee Benefit Research Institute found that while many workers believe they need around $500,000 for retirement, experts often recommend a minimum of $1 million, depending on lifestyle and healthcare needs.   While some expenses, such as commuting costs or mortgage payments, are likely to decrease in retirement, others, such as healthcare, are likely to increase.   A common rule of thumb is to save enough to replace 70%-80% of a person's pre-retirement income.   Read “People Are Way Off on Predicting How Much They Need for Retirement” https://lnkd.in/eAm9YF-d   Contact us to help your clients set accurate and realistic retirement goals: https://shorturl.at/CMU15   #financialadvisors #retirementplanning #planprospecting

More than a quarter of American couples in the workforce believe they’ll retire simultaneously, according to Ameriprise Financial.   However, the same report reveals a different reality. Only 11% of couples reported entering retirement together, while nearly 62% staggered their retirements by at least a year.   Staggered retirements (one partner retiring before the other by at least a year) can provide significant financial and personal benefits for couples. These include being able to save more, taking Social Security later, and saving on health insurance.   Additionally, having one partner retire first may help transition to this new phase. It can allow the couple to gradually adapt to the new lifestyle, helping to establish new routines and explore new interests without the added pressure of both partners navigating this transition simultaneously.   Read “3 Reasons Why Staggered Retirements Work Well” https://lnkd.in/eJ5NNgSg   Contact us for strategies to help couples transition smoothly into retirement: https://shorturl.at/CMU15   #financialadvisors #retirementplanning #planprospecting

Boomers are experiencing retirement differently than previous generations.   Richard Leider, an Education Fellow with the Alliance for Lifetime Income’s Retirement Income Institute, says this cohort wants to do more rather than less.   He says boomers will live longer and have more energy than previous generations, thanks to advances in medicine, technology, and healthier living. More of them will work into their 70s. And while many will struggle financially for a comfortable retirement, no generation has retired with as much money saved as the boomers.   "For earlier generations," says Leider, "this time of challenge and opportunity and the need for having to keep figuring things out well beyond the normal retirement age, was not an option or necessary. Instead, society considered people at this stage to be “over the hill.”   Boomers are also experiencing the healthy trend of "aging with purpose," viewing retirement as a chance to begin a new life chapter.   Read “Retirement Is Different for Boomers” https://lnkd.in/g2fHZ6GF   Contact us to help your clients maximize their retirement years: https://shorturl.at/CMU15   #financialadvisors #retirementplanning #planprospecting

American adults are feeling more anxious about money. But those same individuals also said they’re still planning to spend money on dining out, vacations, and other forms of entertainment this year.   According to Northwestern Mutual’s 2024 Planning and Progress Study, 33% of respondents reported feeling financially insecure—up from 27% in 2023. It’s the highest share since 2012.   Meanwhile, 1% of respondents reported feeling very financially secure, the smallest share in the report’s history.   Alicia Adamczyk, a senior financial writer at Forbes, speculates that some of this anxiety may be due to recency bias.   She writes, "Though inflation has cooled recently, more than half of respondents are expecting it to keep increasing, and just 9% of households said their income is growing at a faster pace."   Americans want prices back to pre-pandemic levels, but that isn’t happening.   Read “Americans have never been more concerned about their finances. But that doesn’t mean they plan to cut back” https://lnkd.in/eUgB9XPZ   Contact us for strategies to help your clients spend smart and stay secure: https://shorturl.at/CMU15   #financialadvisors #retirementplanning #planprospecting

According to the Mayo Clinic, body dysmorphia is a mental health condition in which you obsess about perceived flaws in your appearance. You fixate on a defect that's not really there.   Now the term "money dysmorphia" is being applied to millennials and Gen Z-ers who experience the anxiety of financial insecurity even though they are doing fine money-wise.   According to a recent study by Credit Karma, some 43% of Gen Z and 41% of millennials say they suffer from a flawed perception of their finances.   "While it might sound like just another form of TikTok-induced anxiety," writes Erin Lowry for Bloomberg News, "money dysmorphia is a real problem that can cause someone to make poor or ill-informed decisions."   Lowry posits that the constant lifestyle comparison found on social media may be a factor. "When you start with a pessimistic assessment of your own future," she says, "it’s hard to imagine that your finances will improve in the normal course of your life and career."   Read: ‘Money Dysmorphia’ Traps Millennials and Gen Zers https://lnkd.in/ebQsJnVn   Keep updated with the latest finance trends by contacting us today: https://shorturl.at/CMU15   #financialadvisors #retirementplanning #planprospecting

Is there REALLY a retirement crisis? The answer depends on who you ask.   Alicia Munnell, director of the Center for Retirement Research at Boston College and a columnist for MarketWatch doesn't believe the term "crisis" accurately describes what is going on. However, she says, "observation after observation paints the same picture — roughly half of households are not in good financial shape in retirement."   Her analysis is based on the Boston College Center for Retirement Research’s National Retirement Risk Index, which uses data from the Federal Reserve’s Survey of Consumer Finances. And according to the most recent estimate by the index, it's predicted that 39% of today’s working-age households will not be able to maintain their standard of living in retirement.   Additionally, she sees objective evidence that between 40% and 50% of workers are not saving enough. And when retirees are asked about what they should have done differently, about half admit they wished they had saved more.   See the article for full details.   Read: Is there a retirement crisis? https://lnkd.in/ezxCJJwC   Contact us to stay in the know of the latest in the retirement planning industry: https://shorturl.at/CMU15   #financialadvisors #retirementplanning #planprospecting

Fiduciary Services Group Family of Companies (FSG), the parent company of PCS Retirement, welcomes Christian Fulmino as their new Head of Business Development! With over 20 years of experience in corporate development and mergers & acquisitions (M&A), Christian brings a wealth of expertise to the team. His impressive career includes leadership roles at Ascensus, Broadridge, and Dataprise, where he spearheaded impactful M&A initiatives. At FSG, Christian will lead the M&A strategy, driving growth and delivering greater value for clients and stakeholders. Read the entire press release here: https://lnkd.in/eKXQsgds #financialadvisors #financialservices

The number of Americans making emergency “hardship withdrawals” from their 401(k) plans is rising. And they are doing it to avoid eviction or foreclosure.   New data from Vanguard is raising fears about the looming retirement crisis facing millions. And raising questions about just how widespread the current “economic boom” really is.   According to the report, the number of hardship withdrawals per 1,000 savers soared about 40% last year, having doubled since 2021.   And the main reason people said they were raiding their retirement accounts was to avoid losing their homes. “In 2023, 39% of hardship withdrawals were used to avoid a home foreclosure or eviction, up from 31% of withdrawals two years earlier,” Vanguard reports.   While a relatively small percentage of retirement savers choose to make these withdrawals, it's a behavior that's trending in the wrong direction.   Read Hardship withdrawals from 401(k) plans rocket nearly 40% — as savers fight to save their homes: https://lnkd.in/etaHWyHd   Contact us to learn how you can advise your clients to make the best decisions for both now and their future: https://shorturl.at/CMU15   #financialadvisors #retirementplanning #planprospecting

Having a household budget is the cornerstone of building financial health. Yet, many people struggle to regularly track their spending.   Emily Batdorf reports for YahooFinance about a greatly simplified budgeting method called the 50/30/20 rule.   Rather than breaking down your monthly spending into dozens of tedious categories, all you have to do is estimate your spending targets for each category based on your post-tax income.   The rule says you should spend about 50% of your after-tax income on needs, 30% on wants, and 20% on savings and debt repayment. But within those categories and budgetary constraints, you have total freedom.   This method may not work for everybody, but it could offer hope to those who haven't been able to stick to the traditional spreadsheet method.   See the full article for more details on the three categories, as well as the pros and cons of using this method.   Read: People who struggle with complex budgeting can use the simpler 50/30/20 rule https://lnkd.in/eNfGfe5v   Contact us for more saving tips you can share with your clients: https://shorturl.at/CMU15   #financialadvisors #retirementplanning #planprospecting

When someone asks you what you do, how do you answer?   Most people would simply say: "I'm a ___________." (Fill in the blank.)   "That’s just boring," says Craig Wortmann, a clinical professor of marketing at the Kellogg School of Management. And why be boring when you can be memorable?   According to Wortmann, when you tell somebody about your work, you should do it in a way that draws them in and makes them want to know more. You want to start a conversation.   So how do you do that?   As you consider how to discuss your work in a less boring, more memorable way, don’t fall into the trap of overexplaining. Instead, Wortmann advises being “crisp.” A crisp answer is one that is to the point, but packed with information, giving your response vitality that draws someone in.   See the full article to see Wortmann's own example of how he describes his work in a non-boring way.   Read: How to Be More Memorable When You Talk About Yourself and Your Work https://lnkd.in/eMMyvEbM   Learn more about making yourself stand out by contacting us today: https://shorturl.at/CMU15   #financialadvisors #retirementplanning #planprospecting