What 90% of Retirement Plans are Missing

Chances are your employer offers you an array of benefits, one of them most likely being some version of a retirement plan (SEP, SIMPLE, 401(k), 403(b), etc). Business owners are beginning to put more and more importance on their suite of benefits, because they realize it is a major factor in not only recruiting new employees, but also retaining current ones. There’s also a good chance that the retirement plan they put in place for you has some holes.

This is not the fault of your employer, they can’t possibly design a retirement benefit that fits perfectly for every employee’s situation. That’s what Financial Advisers like GranitPath and Granite Financial Partners are here for. We can evaluate your benefits portfolio, as well as your personal situation and develop a comprehensive solution. Below we’ll review one of the more overlooked aspects of retirement planning.

Plan for Distribution as Well as Accumulation

One of the simpler, yet important, concepts in retirement saving is market participation. Even a conservatively allocated portfolio offers at least some protection against long term inflation. This is a great tool for accumulating assets, but what about when it comes time to retire and start using your portfolio as an income source? The same market volatility that helped you grow your nest egg could also damage it when you begin taking withdrawals. Because of this, some retirees can benefit from guaranteeing a portion of their retirement income. Only about half of Americans retirement plans involve any sort of income solution, and only about 20% of those income solutions are guaranteed. So, this is a key piece that many are missing out on.

Benefits of Guaranteed Income

Among the biggest fears both pre-retirees and retirees face is that of outliving their assets. Guaranteeing a portion of a retiree’s income for the remainder of their life can be an appealing solution for a number of reasons. It is much easier for a pre-retiree to exhale and finally retire when they know at least a portion of their income is guaranteed for as long as they live. Upon retirement, this guarantee can relieve a great deal of stress for not only the individual, but also their portfolio. Having an income source that is not tied to market performance allows an investor to be more flexible with their overall portfolio withdrawals.

Not Your Father’s Pension Income

If guaranteed income for life sounds like a familiar concept, that’s because it is. In the past many Americans would retire after years of hard work and live on the income from their company pension plan. In a time where Pension plans are becoming more and more rare, many individuals are using fixed indexed annuities to accomplish the same goals as a pension. With current interest rates on the rise and many analysts projecting continued rate hikes, we believe annuities can be a great way to supplement bond portfolios going forward.

To further explore these and other options in your work benefits program ask your Human Resources Rep for statements detailing the plan’s offerings, then call us to set up a consultation. We can help you navigate the more complicated parts of you plan to identify specific strengths and weaknesses. From there it may be beneficial to have our team analyze your overall plan.

Five Reasons to Hire a Financial Adviser

In an age of political unrest, ever changing regulations, and an array of different financial services offerings many Americans could benefit from using a wholistic Financial Adviser. More often than not, we find ourselves sitting down with clients who have gone years without getting the help they need (before meeting us, that is). In this week’s blog, we have decided to put together a list of concerns that trigger people to reach out to an adviser.

  1. You Are Feeling Overwhelmed
    We can help you identify your goals and develop a plan that is going to help you achieve them. You work too hard to spend your time studying the complicated world of finance, so let us do it for you.
  2. You Are Not Sure Who to Trust
    If you think you are being sold a product rather than sound advice, you are probably right. It may be time to talk to your current adviser about how they get paid. Your adviser works for you, and should be compensated fairly for their work, but it is important that you understand what their motivations are behind their advice. That is why we take so much pride in our simple and transparent fee structure. We can easily explain exactly what you are paying for our services, so that you can be sure that our best interests are aligned with yours.
  3. You Want to Leave a Legacy
    Whether you want your property or business to stay in the family for generations to come or you want to leave a make a meaningful contribution to a cause that you are passionate about, you need help designing a plan. Without professional oversight your assets could be diminished by after death taxes or worse, not get to their intended destination at all.
  4. You Have a Business to Run
    Is your business structure right for you? What additional benefits could you be providing your employees? Are your business systems correctly aligned with your personal financial goals? What is the long-term plan to grow and expand? We can address these concerns by creating a cohesive plan- implement the correct tools to maximize overall efficiency, monitor the results and adjust the plan as circumstances change over time.
  5. You Are Not a Robot
    Even the most cool and calculated investors benefit from the opinion of a third party. It is human nature to react emotionally to fluctuations in the market, even though we know historically such volatility is to be expected. Having a professional can help talk you through your fears, and build confidence that your plan is strong enough to withstand market downturns.

These are just a few of the compelling reasons to reach out to a financial adviser. At Granite Financial Partners, our wealth advisers are professional stewards and true advocates for our clients. The cornerstone of our client partnerships is our comprehensive wealth planning process, which transcends simple financial planning to provide high-level wealth preservation strategies and coaching. Where knowledge, experience, and education intersect, there lies True North. If you are at all interested in learning more about our process, please do not hesitate to call us at 603-554-8551.