A
look at some ways to get ready.
Provided by Taylor McClish
Are
Americans saving enough? Only 19% of U.S. adults describe themselves as “very confident” when
asked about their savings. Worry spots include retiring without enough money
saved (16%) and anxiety about having a “rainy day” emergency fund (14%). These
findings come from the 2018 Consumer Financial Literacy Survey conducted by the
National Foundation for Credit Counseling. (The survey collected data from
2,017 U.S. adults.)1
Only 41% of
us keep a regular budget. If you are one of those roughly two-out-of-five Americans, you’re on
the right track. While this percentage is on par with findings going back to 2007,
the study also finds that while 65% of Americans are saving part of their
annual income towards retirement, 29% indicate they are “not at all confident”
that their savings will be enough to sustain them.1
Relatively
few seek the help of a financial professional. When asked “Considering
what I already know about personal finance, I could still benefit from some
advice and answers to everyday financial questions from a professional,” 79% of
respondents agreed with the statement. Yet only 13% indicated that they would
seek out the help of some sort of financial professional if they had “financial
problems related to debt.” While it isn’t surprising to think that 24% of
respondents would turn to friends and family, it may be alarming to learn that
18% would choose to turn to no one at all.1
Why don’t
more people seek help? After all, Americans of all incomes and savings levels certainly are
free to set financial goals. They may feel embarrassed about speaking to a
stranger about personal financial issues. It may also be the case that they
feel like they don’t make enough money to speak to a professional, or perhaps,
a financial professional is something that millionaires and billionaires have,
not the average American worker. Another possibility is that they feel like
they have a good handle on their financial future; they have a budget and stick
to it, and they contribute to an IRA, 401(k), or have some other investments.
But that 79% admission, mentioned above, indicates that a vast majority of
Americans are not as confident.1
Defined
goals lead to definite strategies. If you set financial objectives, you vault ahead
of most Americans – at least according to these findings. A written financial strategy
does not imply or guarantee wealth, of course, nor does it ensure that you will
reach your goals. Yet that financial strategy does give you an understanding of
the distance between your current financial situation (where you are) and where
you want to be.
How much have
you strategized? Retiring without a financial strategy is an enormous risk; retiring
with a strategy that hasn’t been reviewed in several years is also chancy. A
relationship with a financial professional can help to bring you up to date
about what you need to do and provide you with more clarity and confidence when
it comes to the financial future.
Taylor McClish may be reached at (503) 239-3060 or Taylor.McClish@cunamutual.com
This material was prepared by MarketingPro, Inc., and does not
necessarily represent the views of the presenting party, nor their affiliates. This
information has been derived from sources believed to be accurate. Please note
- investing involves risk, and past performance is no guarantee of future
results. The publisher is not engaged in rendering legal, accounting or other
professional services. If assistance is needed, the reader is advised to engage
the services of a competent professional. This information should not be
construed as investment, tax or legal advice and may not be relied on for the
purpose of avoiding any Federal tax penalty. This is neither a solicitation nor
recommendation to purchase or sell any investment or insurance product or
service, and should not be relied upon as such. All indices are unmanaged and
are not illustrative of any particular investment.
Securities sold, advisory services offered through CUNA Brokerage Services, Inc. (CBSI), member FINRA/SIPC, a registered broker/dealer and investment advisor. CBSI is under contract with the financial institution to make securities available to members. Not NCUA/NCUSIF/FDIC insured, May Lose Value, No Financial Institution Guarantee. Not a deposit of any financial institution. CUNA Brokerage Services, Inc., is a registered broker/dealer in all fifty states of the United States of America.
Citations.
1 - nfcc.org/wp-content/uploads/2018/04/NFCC_BECU_2018-FLS_datasheet-with-key-findings_031318-002.pdf
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