Retirement planning can be a sound investment
Once Wells Fargo thoroughly understood the practice owners needs, it sent out requests for proposals from third-party administrators to handle reporting and compliance, Jacobs said.
The bank was able to offer the employees a low-cost retirement plan with a mutual fund provider that offered a range of investments that allowed younger and older participants to customize their investments for growth, Jacobs said, adding it later followed up with the staff to keep them up to date on their choices.America is eight years into one of the longest-running bull markets, and the percentage of working Americans who say the
But despite the increased optimism, a recent
It looks like theres still a significant gap between peoples expectations of retirement and the reality, said Jacobs. A lot of it has to do with a gap between peoples estimates of what they need to put away, and the amount theyre actually putting away for retirement.
Some people simply dont have the economic ability to save, she said, but for many middle-income and wealthier individuals who are worried about retirement, they simply lack a comprehensive plan.
Jacobs sees this as a business opportunity for Wells Fargo.
We can offer helpful advice and education for clients and the general public, said Jacobs. Youd be surprised at how many people can see the market might be a good place to be but they just dont know how to invest. Part of the challenge, she said, is that each persons situation is different, so you cant offer a blanket, one-size-fits-all solution.
Wells Fargo created the online learning center Hands on Banking to provide resources for those who want to learn about money management, said Jacobs. The site offers financial articles that answer questions on a range of subjects, from budgeting tips and buying a home to improving an individuals credit.
Many of our financial professionals will volunteer to facilitate Hands on Banking education, and together well help you and your family take charge of your financial future, she said.Investing tips for changing times Theres no easy answer. Study your choices and consider your own goals and needs. Work with an advisor that can craft an investment plan tailored to you. Start early. A longer horizon gives you more time to adjust to changes and weather slow periods while taking advantage of bull markets. Bring your family into the picture. As people live longer and age better, multi-generational conversations matter even more.Jacobs said that even savvy small-business owners have questions about investments and other financial planning, so it created the online initiative Wells Fargo Works for Small Business. The bank serves approximately 3 million small business owners across the
The banks site, which is free of charge, includes feature stories, informational articles and videos by small business strategy experts and business owners sharing their experiences.
When asked why so many people still shy away from the stock market, Jacobs said it was due to insecurity.
There is some substance behind it, she said. When you hear the news, the market is often one of front and center topics, but when newscasters say the market, theyre often referring to a particular index, like the
She advised that individuals know their goals, and explore what kinds of investments align with those goals, timelines and resources. Portfolios and performance should be aligned with objectives, she said.New Jersey residents, in particular, may face some unique challenges.
Overall, the optimism of
For families, its important to have a multigenerational conversation, she said.
Can you stay here in
Millennials also have their concerns. A Wells Fargo study showed they tend to be cautious but curious, she said. They embrace mobile and other tech communications, but at the same time they value personal relationships.
Many millennials are also apprehensive about investing having come of age in the post-200 era, when finding a well-paying job has become tougher, and interest rates have stayed low, crimping the return on traditional savings accounts.
About 37 percent of millennials are not currently investing in the stock market, said Jacobs. But more than half say they realize the market offers the greatest returns.
Todays investors, young and old, face some challenges, she said.
But knowledge can empower them, because once they have information and financial education, they can more easily engage in comprehensive planning, she said. People who know more about investing, she added, usually find that they can make intelligent, informed decisions.
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