The “Global Financial Crisis” has been upon us for five years now.
This GFC (as it’s called) is not a national issue; it’s a world issue—but that doesn’t mean your personal finances aren’t affected. With nightly news reports and daily newspaper articles painting nothing but a picture of doom and gloom for the future, we thought it might be necessary to sit down with some financial experts in order to get their tips for survival in this brutal economy. Their advice is credible, free of charge, and will (hopefully) bring a few rays of sunshine to an otherwise cloudy financial outlook.
At what point in my career do I need to start saving for retirement? Is there such thing as "too early"? When is it "too late"?
“It is never too early or too late to start saving for retirement. Starting retirement savings as early as possible, coupled with a well-designed financial strategy, can help you reach your goals sooner or might provide for a more comfortable retirement. We encourage those who have teenage children earning an income to educate them on the fundamentals of investing by having them establish an Individual Retirement Account (IRA). If you haven’t started saving, there is no better time to get started than now. Open an IRA, participate in your company retirement plan, and work with a qualified financial planner who can help you map out reaching your goals.”
MARK A. MAGGS, CIMA, CRPC, CSNA
SENIOR VICE PRESIDENT–WEALTH MANAGEMENT
WEALTH MANAGEMENT ADVISOR PIA PROGRAM PORTFOLIO MANAGER MERRILL LYNCH MAGGS & ASSOCIATES
985 Berkshire Blvd., Floor 2 | Wyomissing | 610.320.5462 | fa.ml.com/maggs.
If I change jobs, what happens to my investments?
"With many plans, if you discontinue working for the company before being fully vested, usually 5-6 years, you may not be entitled to all the money in your account. You’ll want to find out whether there would be any restrictions as to when you can take your money out. Once you have the details, you can make a decision as to how to proceed. The most common way to take your money [with you] is to do a direct rollover to an Individual Retirement Account, or IRA—it’s the safest way to move money from an employer plan, avoids any tax on the money now, and allows you to take control of your account. In some cases, your new employer may allow you to roll your account to their plan, [though] there could be a waiting period for you to become a participant. Some employers will allow ex-employees to leave their account intact. However, it usually is best to take your money out. Once you terminate employment, you may not be kept aware of changes to investments in the plan or changes to the custodian of the accounts.”
RICHARD KAUFMAN
CFP MEMBER AT ED SLOTT MASTER ELITE IRA ADVISOR GROUP,
KAUFMAN FINANCIAL SERVICES
1609 Lancaster Ave., Reading | 610.775.1490 | kaufmanfinancial.com.
When should I consider wealth management services?
“It really depends on when the individual wants a one-to-one relationship with a competent advisor. This can happen when someone reaches a certain age or when his or her portfolio reaches a certain level of value. It can also be when they feel they want more focus placed on portfolio longevity and preservation of lifestyle rather than just growth for the sake of growth.”
JAMES P. MIDDLETON, CFM, CPM, CRPC
MERRILL LYNCH WEALTH MANAGEMENT SERVICES
FIRST VICE PRESIDENT WEALTH MANAGEMENT
SENIOR PORTFOLIO MANAGER PIA PROGRAM AT MIDDLETON, KREITZ & ASSOCIATES
985 Berkshire Blvd., Floor 2 | Wyomissing | 610.320.6363, fa.ml.com/middleton.kreitz.
When it comes to savings options offered by employers, I’ve heard of a 401(k) and a 403(b). What is the difference?
A 401(k) and a 403(b) are similar, but cannot be offered by the same employer. The biggest difference is that a 403(b) can only be offered by qualified institutions, such as non-profit organizations and schools—whereas a 401(k) would only be offered by an organization that was for profit. Other than that, a 401(k) and 403(b) are quite similar, especially in regard to investor benefits.”
TREVOR HUGHES
SPRING RIDGE FINANCIAL GROUP LLC
55 Commerce Dr. | Wyomissing | 610.288.5800.
