Is Generation X Preparing Adequately for Retirement?

Future financial needs may be underestimated.

Provided by

Jeffrey P. Kendall, CFP®    

If you were born during 1965-80, you belong to “Generation X.” Ten or twenty years ago, you may have thought of retirement as an event in the lives of your parents or grandparents; within the next 10-15 years, you will probably be thinking about how your own retirement will unfold.1 

According to the most recent annual retirement survey from the Transamerica Center for Retirement Studies, the average Gen-Xer has saved only about $72,000 for retirement. Hypothetically, how much would that $72,000 grow in a tax-deferred account returning 6% over 15 years, assuming ongoing monthly contributions of $500? According to the compound interest calculator at Investor.gov, the answer is $312,208. Across 20 years, the projection is $451,627.2,3

Should any Gen-Xer retire with less than $500,000? Today, people are urged to save $1 million (or more) for retirement; $1 million is being widely promoted as the new benchmark, especially for those retiring in an area with high costs of living. While a saver aged 38-53 may or may not be able to reach that goal by age 65, striving for it has definite merit.4

LPL Research Midterm Perspectives

LPL Financial Chief Investment Strategist John Lynch shares thoughts on policy, market, and economic implications.

When a Windfall Comes Your Way

What do you do with big money?

Provided by

Jeffrey P. Kendall, CFP®

Getting rich quick can be liberating, but it can also be frustrating. Sudden wealth can help you address retirement saving or college funding anxieties, and it may also give you the opportunity to live and work on your terms. On the other hand, you’ll pay more taxes, attract more attention, and maybe even contend with jealousy or envy. You may also deal with grief or stress, as a lump sum may be linked to a death, a divorce, or a pension payout decision.

Rainy Days and Mondays…

Rainy Day Funds Can Come in Handy

By

Jeffrey P. Kendall, CFP®

Like those Monday mornings after a long weekend, no one wants to see a rainy day, otherwise known as an emergency.  But also like Mondays, emergencies are inevitable.  Life is expensive enough without those rainy days, and a little bad luck or a twist of fate can hit us right in the checkbook and challenge us to live within our budget.

An emergency reserves fund can help with major financial disruptions, which is why I have my clients sock away at least three months, and preferably six months, of living expenses, but for the minor ones, a rainy day fund might just do the trick.

2018 Mid-Year Outlook

The Plot Thickens

by

LPL Financial Research

The LPL Research team proudly presents the Midyear Outlook 2018: The Plot Thickens, with investment insights and market guidance covering the rest of the year.

LPL Research believes the following three themes will be key to the markets over the balance of 2018:

Where is your Focus...

Return on Life or Return on Investments?

By Jeffrey R. Karp, CLU, ChFC, CASL^®

Founder/President - Karp Financial Strategies, Inc.

One of the most difficult questions we ask our clients is “Why is money important to you?”  Most people react to the question with a look that says - What a ridiculous question (and you may have just had the same look).  Take a moment to be truthful and answer the question.  Here are some of the responses that we get: 1) Having money means I can pay the bills, 2) I can buy stuff I want, 3) I can leave money for my kids.  How did you answer?  Had you ever considered this question?

Using a Roth IRA as a College Savings Tool

A tax-advantaged option too many families overlook.

Provided by

Jeffrey P Kendall, CFP®

At first glance, a Roth IRA might seem an unusual college savings vehicle. Upon further examination, it may look like a particularly smart choice.

Smart Financial Steps After College

A to-do list for the twentysomething.

Provided by

Jeffrey P. Kendall, CFP®

Did you recently graduate from college? The years after graduation are important not only for getting a career underway, but also for planning financial progress. Consider making these money moves before you reach thirty.

Catching Up on Retirement Saving

If you are starting at or near 50, consider these ideas.

Provided by

Jeffrey P. Kendall, CFP®

Do you fear you are saving for retirement too late? Plan to address that anxiety with some positive financial moves. If you have little saved for retirement at age 50 (or thereabouts), there is still much you can do to generate a fund for your future and to sustain your retirement prospects.

Keeping This Correction in Perspective

After 20 months of relative calm, this volatility needs to be taken in stride.

Provided by Jeffrey P. Kendall, CFP®

Are you upset by what is happening on Wall Street? It may help to see this pullback within a big-picture context. Corrections have become so rare as of late that when one occurs, emotion threatens to influence investment decisions.

So far, February has been a rough month for equities. At the close on February 8, the Dow Jones Industrial Average was officially in correction territory after a slide occurred, which included two 1,000-point descents within four days. Additionally, nearly every U.S. equity index had lost 7% or more in the past five trading sessions.^1,2