Issue link: https://read.dmtmag.com/i/74289
The Ultimate Goal When it comes to retirement planning, what's a girl to do? No matter what your financial situation, taking a head-on approach to saving today is your key to funding the retirement of your dreams By Emily Leas Consider two common scenarios playing out in America today. Jan began investing in her 401(k) 30 years ago. She rode out the uncertainty in 2000 and 2008, and re- tired at age 65 with enough savings to draw comfortably from her investments for the next 20 years. Now look at Karen, who began saving early in her career, but paying down credit card debt, student loans and a mortgage took priority over monthly contributions to her investments. Now, at 65, she's un- certain if she will ever truly retire, and if her Social Security checks will be enough to live on if she does. Karen isn't alone. In fact, one in six Certified Financial Planner® and finan- cial advisor with Robert W. Baird & Co. in Madison, suggests the shift from defined benefit plans (such as pensions) provided by employers to optional 401(k) plans may be part of the reason. "This has moved the onus for retire- step toward planning a healthy financial future is all about awareness. It starts with understanding where you are at, and where you want to be. Everyone's "number" will be different, ment from the employer to the employee," Strickland explains. "And, [unfortunate- ly,] most employees don't have the disci- pline to save enough for retirement." This shift in responsibility requires a col- Americans over age 65 are living below the poverty line, including 10.4 percent of the elderly in Wisconsin, according to a report by the UW-Madison Institute for Research on Poverty. It's a number that doesn't even touch the rate of elderly living on fixed in- comes who simply can't afford the life they've wanted—and the retirement we all dream of. While previous generations relied on company pensions and Social Security benefits to fund their retirement, today the focus has changed. Mary Strickland, lective change in how we manage our fi- nances, a goal which has consequences for women in particular. With a longer life expectancy (which and Tracey Anton of Googins & Anton Investment Advisors, recommends us- ing 80 percent of your current income as a starting point for determining the annual amount you'll need in retirement. "From there, you figure out what per- can mean longer retirements and more health care costs) and earnings about 20 percent less than their male counterparts, saving for the future early is a mantra that financial advisors can't repeat enough to women. "Most women are in and out of the work- force raising children, and that leads to lower retirement fund balances, as well as Social Security [benefits]," explains Strick- land, one of a number of advisors devoted to shedding more light on the issue. For many—women and men—the first centage you are going to be fully respon- sible for, and what sources are already in place," Anton says. "[Ask yourself] what is the grand number that I need to create an income to make up the difference for what social security or a pension isn't going to provide?" It's taking this realistic look—and talk- ing real numbers rather than ambiguous goals—that many advisors say helps their clients build the confidence and under- standing to get in a plan, and stick with it. The other point they echo? While today's economy has us all making tough choices for tomorrow, let alone 20 or 30 years down the road, there is hope. And it comes from making a plan and working toward it, day by day. Find the Right Help When finances aren't your forté, find a professional you can count on says Alan Zobel, financial representative with Platinum Wealth Management The goal? In seeking help planning for your future, you want to find a financial professional who understands you, what you want, and how you want to work with them. 60 BRAVA Magazine July 2012 Know your specific challenges Make sure your professional asks about your goals while acknowledging the challenges facing women today: Longer life expectancies, potential savings shortfalls due to career and family situa- tions, and more. See the big picture To create a sound plan, you want to work with an advisor who will help you adjust your thinking from today's responsibilities to your financial needs down the road. Planning for the Expected