Retirement Planning is Quickly Evolving - Can You Keep Up?

Are you Prepared for Retirement Email not displaying correctly? [View it in your browser](. Retirement Planning is Evolving, Can You Keep Up? Do You Have a 3-Legged or a 4-Legged Stool for Retirement? Pensions, social security and personal savings were once the three sources that people would swear by for supporting their retirement. But recent dynamics suggest that this 3-legged stool strategy may not be sufficient in guaranteeing comfortable golden years. Currently, there is a growing shift towards a more diversified and holistic retirement plan, where individuals are required to take a more active part in building and protecting their nest egg. Defined benefit plans from employers have almost become obsolete in the U.S. And, a 2014 Gallup poll shows that less than 21% of workers were expecting a steady stream of pension from their former employer in retirement (as reported in the U.S. News). On the other hand, Social Security is rife with shortfall probabilities (latest projections from Social Security Administration show that there is a possibility that funds will be depleted in 2034). So, it is not hard to see that the responsibility of accumulating and preserving wealth for retirement is shifting more and more to the individual. Individuals’ confidence is shifting away from the 3-legged stool of pension, Social Security and personal savings, and towards a more diversified strategy. We call this strategy the 4-legged stool for their retirement, which takes into consideration income, expenses, savings and investments. Below we dive into just what these 4 Pillars of Retirement entail: - Income The longer you earn during your lifetime, the more time you will have in retirement to depend on your savings pot including IRA or 401(k). Therefore, more time means the potential of these accounts to grow more. Working longer can even help in raising the full benefit amount of Social Security. The benefit amount is computed based on an average index of the highest 35-years of your earnings. People usually see their salaries increase over time, and therefore are likely to earn more towards the later phase of their career. So, working longer could boost the average of higher-income years, thereby counting towards a better Social Security amount for you. - Expenses Even after people stop working, they may face some of the biggest expenditures for themselves and their families, such as healthcare, kids’ education and even unforeseen ‘rainy days’. And, who’s to say these won’t become more expensive over time? There could be changes in policies, taxes, inflation rates, market volatility and/or even unexpected turns in your life that put your spending capabilities under pressure or cause uncertainty. The only way around this, is to plan your retirement expenses well in advance, while also following a long-term strategy against potential threats. - Savings In a 2016 survey by GoBankingRates, 69% of Americans admitted to having less than $1,000 in their respective savings accounts, while 34% said they have no savings at all. Most of them probably don’t realize this, but putting away an adequate portion of income throughout one’s working life can save them from worry later! An effective savings discipline goes a long way in building a strong nest egg. By regularly setting money aside for savings, you can avoid feeling pressured into making major compromises on your living standards in retirement. - Investment As you save, you also must invest. Putting all your eggs into one basket will deprive you of long-term returns from a well-diversified portfolio and could even threaten your wealth preservation goals. No matter how much savings you accumulate over your lifetime, if it is not protected against inflationary risks, you could see its value erode by the time you reach retirement or after. While bonds and other steady streams of income offer the security of ‘certainty’, exposure to riskier assets such as equity can serve as a cushion against inflation. In addition, some cash or cash equivalents come in handy against urgent withdrawal needs especially in times of market’s downside volatility or shrinking liquidity in a recession. That’s why, a well-diversified portfolio is essential for building and sustaining your wealth. At the same time, choosing an investment allocation especially suited to your financial goals is equally crucial. Each of the four pillars listed above is important in supporting a comfortable retirement. The combination of the four pillars is the key to a well-planned retirement strategy, helping you to spend your golden years with the least worry. At Zacks Investment Management, we guide our clients on these four pillars to help them build and preserve wealth, while steering them clear of the “cookie cutter” approach. By leveraging unbiased research and tools, we build customized portfolios for our clients. In the process, we ensure that every client’s individual financial and retirement goals are covered while taking into account their risk tolerance. $7 Billion In Assets Under Management Thousands of families across the country entrust Zacks Investment Management to manage their money. We’ve been managing wealth for institutions and high net worth individuals for over 30 years helping many of these families reach their long-term financial goals. If you, or your family, are looking for experienced wealth management advice, give us a call at 1-800-600-2783, and we can create an investment plan tailored just for you. And in the meantime, to learn more about retirement, check out our exclusive retirement guide. Click on the link below to download your free copy today: [Click Here for Your Free Guide "4 Steps to Managing Your Retirement"]( [Follow on Twitter]( [Friend on Facebook]( [Forward to Friend]( DISCLOSURE Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. Zacks Investment Management, Inc. is a wholly-owned subsidiary of Zacks Investment Research. Zacks Investment Management is an independent Registered Investment Advisory firm and acts as an investment manager for individuals and institutions. Zacks Investment Research is a provider of earnings data and other financial data to institutions and to individuals. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. Do not act or rely upon the information and advice given in this publication without seeking the services of competent and professional legal, tax, or accounting counsel. The information contained herein has been obtained from sources believed to be reliable but we do not guarantee accuracy or completeness. Publication and distribution of this article is not intended to create, and the information contained herein does not constitute, an attorney-client relationship. No recommendation or advice is being given as to whether any investment or strategy is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change Returns for each strategy and the corresponding Morningstar Universe reflect the annualized returns for the periods indicated. The Morningstar Universes used for comparative analysis are constructed by Morningstar (median performance) and data is provided to Zacks by Zephyr Style Advisor as of 3/31/17. The percentile ranking for each Zacks Strategy is based on the gross comparison for Zacks Strategies vs. the indicated universe rounded up to the nearest whole percentile. Other managers included in universe by Morningstar may exhibit style drift when compared to Zacks Investment Management portfolio. Neither Zacks Investment Management nor Zacks Investment Research has any affiliation with Morningstar. Neither Zacks Investment Management nor Zacks Investment Research had any influence of the process Morningstar used to determine this ranking. ¹ WE CALL IT PURE INVESTING™ Companies build businesses that grow and create value over time. By investing in their stocks and bonds you participate in that value creation. At Zacks, we believe the “truth in investing” is ...the more of your investable assets allocated to stocks and bonds, the greater your net worth will grow. We call this Pure Investing™. Our competitors want to allocate an ever increasing % of your money to alternatives; hedge funds, fund of funds, commodity funds, options, futures or the hot trend or theme at the time, from tulip bulbs to mortgage backed securities. These “alternatives” amount to gambling with your money, “mostly for the benefit of others”. They do not create long-term value. These are simply zero-sum games with short- term winners and losers. Why chase alternatives, when you can invest in the real thing? We believe there is a better way benefit from Pure Investing™ at Zacks. About Informa Investment Solutions A market leader in intelligence and software solutions for investment professionals and financial institutions of all sizes, Informa Investment Solutions offers a robust set of analytics and tools to help you grow and retain your business. With a nearly 40‐year history, Informa Investment Solutions is part of Informa PLC, a leading business‐to‐business knowledge provider serving International markets. Informa Investment Solutions has set the standard for providing turnkey and customizable applications for performing manager searches, building wealth plans, and producing client reports and investment marketing materials for companies worldwide. PSN and Informa Investment Solutions have no affiliation with Zacks Investment Management, but rather evaluate investments managers’ performance on an objective basis. For more information, please visit Copyright © 2016 , All rights reserved. © Zacks Investment Management 227 W. Monroe 43rd Floor Chicago, Illinois 60606 [unsubscribe from all emails]( [update subscription preferences](