A Penny Saved, Building Your Nest Egg At Any Age
Let’s face it: The prospect of having less money on hand now for a seemingly far away future isn’t appealing. But, with many now living longer and some choosing to retire earlier, financial planners say that most underestimate what the true cost of retirement will be. Others are finding that financial assurances they had historically relied upon, like social security or pensions, aren’t sufficient.
“It ultimately comes down to the days of the pension [being] gone,” says Bradley R. Newman, CFP® with Roof Advisory Group (www.roofadvisory.com), a fee-only investment management firm in Harrisburg. “It used to be people went to work, worked for one employer, had a pension, social security and that’s it.”
Instead, Newman says the onus of funding retirement is now falling on the individual. “You have to be self-sufficient: No one is going to do this for you,” he says. While retirement looks different for every person, saving and allocating money for the future starts with a plan; the earlier you start, the more you’ll have as a cushion for retirement, whenever that may be.
Pressure Mounts On Advisers To Lower Fees
A national focus on financial industry fees has moved into the advisory realm. Clients are increasingly asking their financial advisers to lower — or at least explain — what they are paying in investment and advisory fees, some advisers said.
Jeff Roof, founder of Roof Advisory Group Inc., said he hasn't noticed clients asking more about fees, but he regularly reminds them that the firm is actively managing their funds, including buying and selling individual stocks.
“We spend a lot of time demonstrating to our clientele the value that we are adding for what they are paying,” he said.
Mr. Roof's firm charges 1% or less depending on total assets, and has had the same pricing for 16 years, though the firm has raised the minimum annual account fee over the years.