In a survey of workers who participate in an employer-sponsored retirement plan, 71% said they wanted their employers to increase their savings rate automatically by 1% each year.1 Some plans have auto-escalation features that increase workers’ contributions by a percentage point on an annual basis.2 Regardless of whether you save by default or by choice, increasing your retirement contributions could make a big difference in the amount you accumulate during your working years (see chart).

Although there’s nothing magical about a 1% annual increase, it may be a manageable way to get closer to an appropriate contribution level for your age and personal situation in Charleston SC, Miami FL, Charlotte NC or Atlanta GA.

Second thoughts are part of life, which may explain why some investors change their minds about the types of accounts they use for retirement savings in Charleston SC, Charlotte NC, Miami FL and Atlanta GA. This could be the case for traditional and Roth IRAs, which feature different tax treatments of contributions and distributions.

The stock market has been on a wild ride since October 2007, when the Dow Jones Industrial Average and the S&P 500 index both hit record highs, only to lose more than 50% of their value over the next 15 months. It took over five years for both indexes to surpass their pre-recession levels, and they set new records in the spring of 2013.1–2

This type of volatility can be hard on an investor’s nerves.

Developed market equities have had an impressive run so far in 2013, while fixed income, emerging markets and commodities have lagged. After telegraphing a tapering of asset purchases, the Fed surprised investors on September 18 with a decision to keep the quantitative easing program in place, wanting to see greater clarity on economic growth and a waning of fiscal policy uncertainty before reducing the level of asset purchases.

The Affordable Care Act Goes into Action - What should you do? Call us first.

The Patient Protection and Affordable Care Act (ACA) has been the subject of speculation and uncertainty since it was passed by Congress in 2010.

Nonetheless, the law’s provisions have been enacted according to a specified timetable, and after surviving legal and political challenges, the ACA enters a pivotal phase of implementation in 2013.

In a recent survey of Generation Z (ages 13 to 22), 39% of teens and young adults said they expect to receive an inheritance and therefore don’t need to worry about saving for retirement! However, only 16% of Gen Z parents expect to provide an inheritance — and there’s no guarantee that an inheritance would be sufficient to replace retirement savings.¹

This disconnect between expectation and reality highlights the need for financial literacy among young people.

Short-term interest rates have been at historic lows for more than four years, due in large part to Federal Reserve policies intended to stimulate the economy.1 The Fed’s actions have also suppressed longer-term rates, leading to low yields on new-issue bonds of varying maturities (see chart).

Despite low rates, you might keep a portion of your assets in bonds or other fixed-income securities in order to balance more aggressive investments.

Because of tax changes that take effect in 2013, some upper-income households are facing the prospect of higher tax rates on investment earnings. 

The potential for taxes to claim a larger share of investment earnings means that many people might take advantage of opportunities to invest in tax-deferred retirement plans such as 401(k)s and IRAs. Of course, many factors other than taxes should influence investing decisions, including your investment goals, time horizon, and risk tolerance.

Risk assets were off to a decent start in the second quarter but then retreated after Federal Reserve Chairman Ben Bernanke’s testimony to Congress on May 22 laid the ground work for a reduction in monetary policy accommodation through tapering their asset purchases as early as September. While the U.S. equity markets were able to end the quarter with decent gains, developed international markets were relatively flat and emerging markets experienced sizeable declines.

In a recent study, 40% of consumers responded that they don’t have enough life insurance to meet their families’ long-term needs.1 This concern raises an obvious question: How much life insurance is enough? What might be appropriate for a family with two young children and a stay-at-home spouse could be significantly different from the needs of a working couple whose children are grown.
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