Data & Research June 27, 2017

Investors Younger Than 30 Confident About Retirement

Eighty-five percent believe they will be able to have the lifestyle they aspire to in retirement.
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Investors younger than 30 are quite confident about retirement, with 85% saying they believe they will be able to have the kind of lifestyle they would like to have in their golden years, E*TRADE found in a survey.

Seventy-six percent think they will be able to retire by the age of 64. For 45%, retirement is the top priority for long-term saving, and 85% are saving more than 5% of their income in a retirement account.

However, it is not all clear sailing for these young people. Sixty-nine percent believe that housing costs are a barrier to saving for retirement. Sixty-six percent say the same thing about student loans, and 63% about other educational expenses. Fifty-four percent have dipped into their retirement account, and among this group, 74% regret having done so.

“It is great to see young investors focused on their retirement goals and beginning to save early, as the power of compounding returns is significant for this group,” says Mike Lowengart, vice president of investment strategy at E*TRADE Financial.

Lowengart offers advice on what young people should do to improve their situation, starting with planning on increasing contributions as they grow older and see their salary increase. Second, always save at least as much as the company match, as otherwise, this is free money left on the table. Thirdly, consider putting at least some money into a Roth 401(k) or individual retirement account (IRA). Fourth, Lowengart says, resist the temptation to time the market.

E*TRADE conducted the online survey of 164 young adults between the ages of 18 and 29 who manage at least $10,000 in an online brokerage account in early April.

Deals & People June 26, 2017

intellicents University Hones in on Financial Wellness

Partnering with Financial Finesse, intellicents is rolling out a new comprehensive financial wellness program.
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intellicents is rolling out financial wellness services to its corporate and public employer clients through its new intellicents university.

“Only 52% of Americans are on track to have enough money to maintain their same standard of living when they retire,” says Grant Arends, president of intellicents. “We encourage our 401(k) and 403(b) clients to set the goal of having 75% of their tenured employees on track for a successful retirement. We can’t expect 401(k) or 403(b) participants to contribute more when they don’t have a family budget, can’t balance their checkbook, and are maxed out on numerous credit cards. We are now starting to roll out intellicents university to our clients, which will provide full financial wellness services to their employees. The goal of intellicents university is to educate and assist participants in getting their finances in order.”

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Through its membership in the GRP Advisor Alliance, intellicents is partnering with Financial Finesse, a provider of financial coaching and guidance. The service is being offering to employees as an employer-paid benefit through intellicents university.

“intellicents is taking a proactive approach to improving retirement outcomes for their clients,” says Liz Davidson, CEO and founder of Financial Finesse. “In this partnership, intellicents university will be offering customized corporate sponsored financial wellness campaigns for their clients designed to diagnose and address the specific financial concerns expressed by each client’s employees; a self-directed financial wellness portal branded for each employer that provides the tools their employees need to address their financial concerns, a financial call center staffed by certified financial planners who will address employee financial concerns, and a customized employer aggregate report outlining the top financial concerns expressed by their workforce.”

“With a shared vision of elevating financial confidence with employees and plan sponsors, GRPAA is proud to partner with intellicents and Financial Finesse to deliver this best-in-class suite of services,” says Bill Chetney, GRP Advisor Alliance Founder. “We believe in strength through collaboration and innovation, and we look forward to working together to help more Americans achieve financial fulfillment.”

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