NEW YORK, NY, Oct. 19, 2015 /PRNewswire/ -There are five key investment decisions that can impact a person's retirement savings, but many investors fail to address some or all of them. That's why Foresters Financial is encouraging everyone to focus on their retirement planning during National Save for Retirement Week, Oct. 19 – 23.
"Everyone knows they need to save for their retirement, but not everyone takes the time to focus on a long-term plan or knows how to maximize their retirement nest egg," explains Paul Prete, Vice President for Retirement Programs at Foresters Financial Services, Inc. "National Save for Retirement Week is the perfect time to take stock of how much you've saved so far and how much you will need at retirement to determine if you're on track to meet your goals," he added.
"We have also found that there are five key decisions that could help or hinder someone's retirement savings. Knowing how to address these topics in advance could help investors maximize their outcomes," Mr. Prete said.
Five Key Retirement Investment Decisions
- The age you start saving: When it comes to saving for retirement, the earlier you start saving, the better off you'll be. A slow and steady investment plan in a designated retirement account, such as an individual retirement account (IRA) or Roth (IRA), early on in your career is an efficient way to help have enough money at retirement because you can take advantage of compounding and reinvested dividends.
- The investment vehicle you choose: The tax-deferred savings you enjoy from an IRA or Roth IRA could potentially grow your account.
- Employer-sponsored plan participation: Contributing to an employer-sponsored 401(k) or 403(b) plan, or an IRA account can add additional growth because your account is growing tax deferred and in many cases is tax deductible. In addition, many companies offer matching on a percentage of your contributions, but many people still do not take advantage of this benefit.
- Reliance on Social Security: No one really knows how much money will be available through Social Security to help fund the nearly 76 million baby boomers who will retire over the next 20 years1. As people are living longer and begin to tap into the Social Security system and its reserves, the more important it will be to have your own retirement savings to supplement that program.
- Create a goal or retirement plan: Planning includes more than just deciding to create a retirement plan. You must think about: establishing a well-diversified investment portfolio, making ongoing investments as appropriate to your needs and retirement goals, knowing at what age you should stop working, understanding your lifestyle needs after retirement, and adjusting your retirement savings to a more conservative allocation as you approach retirement age.
National Save for Retirement Week, which began in 2006, is a national effort to raise public awareness about the importance of saving for retirement. Investors should take advantage of National Save for Retirement Week by developing a plan or re-adjusting an existing plan.
"We at Foresters Financial are committed to helping our clients save for their retirement with a wide range of investment vehicles, knowledgeable representatives, and helpful information and tools on our website," Mr. Prete said. "Our representatives can help investors address these five important topics, so they can develop a tailored, comprehensive retirement plan that suits them and their families," he explained.
The views expressed herein are based on the information available at the time they were issued and may change based on market or other conditions. Nothing herein should be construed as investment advice or be relied upon to make an investment decision. Investment decisions should be based on an individual's personal goals, time horizon and risk tolerance. Any forward-looking statements made herein are based on assumptions of future events. Actual events are difficult to predict and may differ from those assumed, thus there is no guarantee that forward-looking statements will materialize. All investing involves risk, including the risk that you can lose money. Past performance does not ensure future results.
This material has been prepared for informational purposes only and is not tailored toward any individual's investment objectives or financial situation. This material should not be construed as a recommendation, or an offer to buy or sell any mutual fund, variable and/or insurance product or security. Please speak with your Foresters Financial Representative if you have questions about your particular financial needs.
About Foresters Financial (formerly First Investors)
The Foresters Financial group of companies is a diversified financial services company and includes a registered broker-dealer, an investment adviser, a life insurance company and a transfer agent. Foresters Financial Services, Inc., a broker-dealer, helps everyday families reach their financial goals by offering solutions and guidance through its network of financial representatives working in 42 branch offices across the United States. Foresters Investment Management Company, Inc. is the investment adviser to the First Investors family of funds, which had nearly $11 billion in total assets under management as of June 30, 2015. Foresters Life Insurance and Annuity Company, Inc., a New York domiciled insurance company, offers a range of insurance and annuity products and maintains an "A" (Excellent) rating by A.M. Best3. forestersfinancial.com
Foresters is an international financial services provider with more than 3 million clients and members in the United States, Canada and the United Kingdom. We provide life insurance, savings, retirement and investment solutions that help families achieve their financial goals and make a lasting difference in their lives and communities. Foresters has assets of almost $12 billion, total funds under management of $28 billion and a surplus of $1.9 billion (all figures in Canadian dollars as of Dec. 31, 2014) and maintains an "A" (Excellent) rating by A.M. Best2 . foresters.com
Foresters Financial™ and Foresters™ are the trade names and trademarks of The Independent Order of Foresters (a fraternal benefit society, 789 Don Mills Road, Toronto, Canada M3C 1T9.) and its subsidiaries, including Foresters Financial Services, Inc. Securities, life insurance and annuity products are offered through Foresters Financial Services, Inc. Insurance products are issued by Foresters Life Insurance and Annuity Company or The Independent Order of Foresters, which also offers its products through independent agents.
1 U.S. Department of Commerce Economics and Statistics Administration U.S. Census Bureau
2 An "A" (Excellent) rating is assigned to companies that have a strong ability to meet their ongoing obligations to policyholders and have, on balance, excellent balance sheet strength, operating performance and business profile when compared to the standards established by A.M. Best Company. A.M. Best assigns ratings from A++ to F, A++ and A+ being superior ratings and A and A- being excellent ratings. In assigning The Independent Order of Foresters and Foresters Life Insurance and Annuity Company (formerly First Investors Life Insurance Company) rating July 1, 2015, A.M. Best stated that the rating outlook is "stable," which means it is unlikely to change in the near future. See ambest.com for our latest rating.
SOURCE Foresters Financial