If you’re paying attention to the economy and the state of financial matters in the United States, you may feel a bit pessimistic. Inflation is at a 40-year high, the stock market is still volatile, and both appear to be remaining that way for the foreseeable future. Such uncertain financial times are leaving many to wonder if saving for a comfortable retirement is even possible anymore. Today’s investors and average people saving for retirement are up against some formidable challenges.
Retirement is still possible, but people will need strong expert advice to help them navigate the muddy waters of the current market. Thankfully, GenWealth Financial Advisors are meeting this moment through their approach which urges people to not just hope that things work out in regards to their retirement, but how to best plan for it.
Communicating the Complicated Topics
John Shrewsbury, co-owner and financial advisor with GenWealth, has a background in broadcasting. While this may seem a departure from his current financial advisor role, it has helped him cultivate a business where clear communication of complicated financial topics is a centerpiece.
“With so much knowledge at our fingertips, many drown in information about financial planning while starving to understand it,” says Shrewsbury. His no-nonsense take on the matter and his clear, concise advice has led GenWealth to become a leader in the financial planning industry.
Planning for retirement can be complicated, especially if you aren’t a financial expert. For example, getting one’s head around terms they may be unfamiliar with like “Roth IRA” or “S&P 500” can be daunting, prompting many to shy away from jumping headfirst into retirement saving because they don’t fully understand the process or specifics it entails. The GenWealth approach breaks down complicated financial matters and addresses the key components of retirement saving for those just starting out to get them ready for retirement.
The Magic 8 Ball of Retirement
No one has a crystal ball sitting on their shelf that can predict the future. Many have been blindsided by the last five years between record-high inflation, a global pandemic, and political upheaval that have affected markets. As such, some may be hesitant to put their money into a retirement account.
To GenWealth, devising a retirement plan is more like working with a Magic 8 Ball. They ask many questions, take circumstances into account, and perhaps change course and shake the ball again if necessary. To Shrewsbury and his GenWealth colleagues, it all comes down to being informed.
“Research found that informed decisions in just six different areas of retirement planning can increase retirement income by 31%,” says Shrewsbury.
Guiding clients to make these informed decisions is the first step to solidifying a wealthy retirement. Many people are unaware of how much they will need for retirement, how long they will have to work to get to that amount, or how compound interest works. “Education is the cornerstone of the GenWealth approach,” Shrewsbury adds. “With education, the future can become more apparent.”
Fearing Retirement
With so much uncertainty, it can be easy to fear for one’s retirement. On average, people are saving roughly $131,000 for retirement, but this is far from what most people require in today’s financial world, and when coupled with the cost of elder care, this amount could be gone in as little as a few years.
“Living primarily on withdrawals from your retirement portfolio is nerve-racking. The numbers speak for themselves — retirement fear is real,” says Shrewsbury. GenWealth works to alleviate this fear through careful planning, informed advice, and building financial plans around individual goals and circumstances.
Purpose and Planning
“We tend to talk about the financial side of retirement most of the time. One thing that often gets overlooked when people are thinking about retiring is maintaining purpose in their lives,” explains Shrewsbury, “We say it all the time — you can’t just retire to the couch. Our purpose is often tied to our careers, but when that career ends, you need to have something else that adds value in your life.”
Helping people identify their purpose in retirement is one way GenWealth guides their clients to build wealth towards that purpose. With clear goals, people are far more apt to save diligently and to save enough.
Experts agree that investing is one of the best weapons against inflation, but also the fastest way to amassing wealth in retirement. While a savings account can offer a paltry 0.09% in returns, the S&P 500 index has returned an average of 11.65% in the past decade. Even during times of market volatility, it makes sense to continue investing over simply saving.
Wealth in retirement is still possible. With knowledgeable advisors like GenWealth on your side and a plan that takes all of your purposes and goals into consideration, retirement needn’t be something to fear.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. Securities and advisory services offered through LPL Financial, A Registered Investment Advisor, Member FINRA/SIPC. Financial Planning offered through GenWealth Financial Advisors LLC, a Registered Investment Advisor, and a separate entity from LPL Financial. For residents of Louisiana, all advisory services offered through LPL Financial.
