How To Save For Multiple Financial Goals

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I hope you had a wonderful weekend! Happy May Day!

LRPC’s Monday Morning Minute for this week, “How To Save For Multiple Financial Goals” (presented below) comes to you courtesy of Charles Schwab & Co. As an independent, objective Registered Investment Advisory firm, Lawton Retirement Plan Consultants, LLC has access to research from many sources. Be assured that I will share enlightening, useful information with you each week.

I can hear you thinking, “Bob, I have trouble saving for one financial goal, how can anyone save for multiple goals?” Well, we all have multiple financial goals that we should be saving for. For example, our retirements, college for our kids, a first home, our next car or vacation. Check out below how Schwab thinks we can meet this challenge.

Have a wonderful week!

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How To Save For Multiple Financial Goals

From Charles Schwab & Co.

A comfortable retirement. A new car. A down payment on a house. Paying for a child’s college education. Coming up with a list of future financial goals is generally pretty easy. The bigger challenge is figuring out how you’re going to save for them all.

For most of us, socking a few extra dollars away in a savings account each month may be a good start, but it’s probably not enough, especially if we’re talking about multiple goals. The trick is to think strategically about your goals and come up with a saving and investment plan for each one. A little effort today can help make a big difference down the road.

Here are a few steps you can take as you work toward achieving your goals. [Read more…]

Best Ways To Invest For Your Grandchildren’s College Education

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MMM Newsletter and Website Header 10.2.15I hope you had a great weekend! This is the last week of school for the kids!

LRPC’s Monday Morning Minute for this week, “Best Ways To Invest For Your Grandchildren’s College Education” (presented below) comes to you courtesy of Schwab. As an independent, objective Registered Investment Advisory firm, Lawton Retirement Plan Consultants, LLC has access to research from many sources. Be assured that I will share the most relevant information with you each week. This is a short piece I believe everyone can read in less than 60 seconds.

Managed to get your kids through college? Even if you are still working on that, this piece has valuable advice on how to invest for your children or grandchildren’s college education.

Have a wonderful week!

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Best Ways To Invest For Your Grandchildren’s College Education

 By Carrie Schwab-Pomerantz, Charles Schwab & Co., Inc.

Key points

  • Investing for your grandkids’ education is generous, but first make sure your own retirement needs are covered.
  • There are essentially four account options to choose from for education investing.
  • Choose the account that offers the best combination of tax advantages and investment control for your purpose.

Investing in a child’s education is a wonderful gift. To do it thoughtfully, there are essentially four options to consider: a 529 plan, a custodial account, a trust account, or simply using your own account with the plan to make gifts to your grandchildren later. Here are the basics of each. [Read more…]

Using HSAs In Retirement Planning

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PSI Newsletter and Website Header 10.2.15By Robert C. Lawton, AIF, CRPS, President, Lawton Retirement Plan Consultants, LLC

If you offer a High-Deductible Health Plan (HDHP) to your employees, they probably have the ability to contribute to Health Savings Accounts (HSAs). I believe that nearly everyone eligible to contribute to an HSA should max out their HSA contributions before making any 401k retirement plan contributions. Here’s why. [Read more…]

Eight Savings Strategies You Should Embrace

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MMM Newsletter and Website Header 10.2.15

I hope you had a great weekend and a scary Halloween!

LRPC’s Monday Morning Minute for this week, Eight Savings Strategies You Should Embrace (presented below) comes to you courtesy of ThinkAdvisor. As an independent, objective Registered Investment Advisory firm, Lawton Retirement Plan Consultants, LLC has access to research from many sources. Be assured that I will share the most relevant information with you each week. If you are short on time, make sure you give a quick look at each of the eight suggestions.

Do you know what the most important factor is in determining how much we end up with in our 401k accounts at retirement? It has little to do with the funds we invest in or how smart we are in moving our money around. The most important factor is how much we save. Presented below are eight smart saving strategies we all need to seriously consider.

Have a wonderful week!

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Eight Savings Strategies You Should Embrace

By Suzanne Woolley, Bloomberg appearing in ThinkAdvisor

Social Security recently turned 80, and while news about the program’s financial status is rarely upbeat, most Americans are glad it still exists. Women and lower-earning workers rely particularly heavily on the program.

Here’s why you need to pretend it doesn’t exist: Underfunded as it is, Social Security remains a favorite political football and a target for further trimming. At the same time, we’re living longer, and our savings need to last longer. So whatever happens to Social Security, it’s more important than ever to use all the savings strategies at your disposal. Here are eight additional savings strategies, one for each decade of Social Security. [Read more…]

Saving For College — How Much Will It Cost?

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MMM Newsletter and Website Header 10.2.15
I hope you had a great weekend. Did your bracket survive the first few rounds of the NCAA basketball tournament?

LRPC’s Monday Morning Minute for this week, “Saving For College — How Much Will It Cost?” (presented below) comes to you courtesy of Schwab. As an independent, objective Registered Investment Advisory firm, Lawton Retirement Plan Consultants, LLC has access to research from many sources. Be assured that I will share the most relevant information with you each week. This is a short article that everyone should be able to read in less than 60 seconds.

Wondering how much you should save to send your child to public, private or an out-of-state school? Schwab has calculated what’s needed below.

Have a wonderful week!

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Saving For College — How Much Will It Cost?

By Rande Spiegelman, Vice President, Schwab Center for Financial Research

Key points

  • Saving early for college offers greater flexibility and reduces the need for student loans.
  • We’ll cover college costs and how best to achieve your savings goals.

Sending children to college can be very expensive, especially with tuition rising year after year. But college doesn’t have to be cost prohibitive. The sooner you start saving and investing for college, the more flexibility you’ll have and the fewer loan payments you or your child will likely owe. In fact, it’s possible to save all the money you need to pay for college and never have to worry about loans — if you start early and invest regularly.

College gets more expensive every year

[Read more…]

Adding A Leg To The Three Legged Stool

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By Robert C. Lawton, AIF, CRPS, President, Lawton Retirement Plan Consultants, LLC

You probably have heard about the three legged stool approach to retirement planning. Historically financial planners had advised that retirees could expect to derive their retirement income from three sources: Social Security, corporate retirement plans and personal savings.

It was generally understood that each source of funds was responsible for providing 1/3 of the total living expenses required in retirement. Hence the three legged stool concept. Over the years the three legged stool approach was modified a bit as a result of: [Read more…]

Ten Ways To Save More For Retirement

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MMM Newsletter and Website Header 10.2.15
I hope you had a great weekend. The leaves are at their peak color here in Wisconsin!

LRPC’s Monday Morning Minute for this week, “Ten Ways To Save More For Retirement” (presented below) comes to you courtesy of Schwab. As an independent, objective Registered Investment Advisory firm, Lawton Retirement Plan Consultants, LLC has access to research from many sources. Be assured that I will share the most relevant information with you each week. This is a short piece that I believe everyone can finish in less than a minute.

We all struggle with retirement savings. None of us is probably saving enough. Maybe one of these suggestions can help you save more.

Have a wonderful week!

______________________________

Ten Ways To Save More For Retirement

By Rande Spiegelman, Charles Schwab & Company

Key points

  • If your risk tolerance is conservative to moderate, consider aiming for a portfolio that’s approximately 25 times as large as your withdrawal during the first year of retirement.
  • If you’re behind on your retirement savings, your options include saving more now, spending less in retirement, retiring later or working part-time after you retire.
  • Avoid ramping up your portfolio risk or assuming your investments will produce an overly optimistic rate of return.

[Read more…]

Four Ways Your 401k Participants Can Save More

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By Robert C. Lawton, AIF, CRPS, President, Lawton Retirement Plan Consultants, LLC

A recent study by the Boston College Center for Retirement Research found that 50% of American workers are not on track to save enough to retire without reducing their standard of living. A National Institute on Retirement Security study on the retirement preparedness of American workers showed that:

• 1/3 between the ages of 55 and 64 haven’t saved anything for retirement.

• 38 million working-age households in the United States have yet to start saving for retirement.

• The average retirement savings for people 10 years away from retirement is $12,000.

Many studies, including a recent study by Vanguard, indicate that workers should save more, at least 12% to 15% of their income each year. It is likely that most of your 401k plan participants are not saving anything near this amount. Following are four ideas on how your 401k plan participants could save more: [Read more…]

Five Items That Impact The Amount Your 401k Participants Need To Retire

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By Robert C. Lawton, AIF, CRPS, President, Lawton Retirement Plan Consultants, LLC

How much do your 401k plan participants need to accumulate in their accounts in order to retire without making significant lifestyle adjustments? Here are some estimates from the experts:

  • 8 times final pay at age 67 – Fidelity
  • 8 times final pay – USA Today
  • 9.4 times final pay at age 67 – Aon Hewitt
  • 10 times final pay – Frontline Special on PBS
  • 11 times final pay at age 65 – Aon Hewitt
  • 12 times final pay – T. Rowe Price
  • 13.5 times final pay at age 63 – Aon Hewitt
  • 18 times final pay – EBRI
  • 20 to 25 times final pay at age 65 – many financial advisors
  • 25 times final pay – to ensure an annual withdrawal rate of 4%

With such a wide range of opinions, it can be hard for participants to know what to aim for. Consider discussing the following retirement planning factors during your employee education sessions to help them locate their appropriate target: [Read more…]

Help Your Employees Become Successful 401k Plan Investors

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By Robert C. Lawton, AIF, CRPS, President, Lawton Retirement Plan Consultants, LLC

As a retirement plan sponsor, you commit to annual (at a minimum) employee education sessions. One topic that should be covered during your sessions is successful 401k investing concepts.

Successful 401k investing includes: [Read more…]