Washington County Weekend Post

GMTODAY.COM SUNDAY, JANUARY 2, 2022 • WASHINGTON COUNTY POST • 3 (BPT) – Many people are reassessing goals in light of the turmoil of the last year. There is a renewed focus on gaining control of finances, especially through increas- ed saving and getting profes- sional advice. Even Ameri- cans who did not lose work lost a sense of confidence in the economy. A new survey by Harris Poll for Empower Retire- ment and Personal Capital reveals a change in attitudes about finances from April - as the pandemic's effects were beginning - to Decem- ber of 2020. Despite the stock market rallying after the initial lockdowns, 22% of survey respondents from December said they felt opti- mistic about their finances, down from 29% in the April survey. Two thirds of respon- dents said they were bracing for financial pain in the event of future lockdowns, with 44% concerned about losing money on invest- ments. Reacting to uncon- trollable world events, one theme emerged: People want to feel more in control of their own finances, whatever comes next. These tips can help you feel more confident finan- cially, no matter your cir- cumstances. 1. Save what you can There's no better buffer against unexpected emer- gencies - anything from car breakdowns to job loss - than an emergency fund. Finan- cial professionals recom- mend saving at least three to six months of expenses to be prepared for emergencies. Sound daunting? Start small and consider setting up automatic deposits into a savings account with each paycheck, to save without thinking about it. Even a few dollars per pay period can add up over time. 2. Invest in your family's future According to the survey, parents are concerned about the pandemic's impact on their children's education, but many believe the crisis will lead to a fundamental shift in higher education. Nearly 6 out of 10 (59%) expect student loan debt for- giveness to become more common, and half believe the pandemic will make higher education more accessible in the long term. If your children are col- lege bound, have a conversa- tion with a financial profes- sional or your child's high school guidance counselor about how financial aid works and what strategies may benefit your family. If you have young children, look into a 529 college sav- ings plan in your state, which can provide tax and financial benefits. 3. Don't forget retirement Whether you're appro- aching retirement age soon or it's years away, consider taking full advantage of your employer's matching funds for your 401(k) contri- butions. Ask your HR department about how to fully utilize all your avail- able employer retirement benefits and increase your retirement savings percent- age now if you can. Your future self will thank you. 4. Consider your HSA account as part of your retirement strategy If your company offers a health savings account (HSA), remember that any unused funds can be saved up to be used during your retirement - adding to your future financial stability. When you do need your HSA for medical expenses, check with your employer to see how it can best be used. An HSA can help pay for quali- fied medical expenses including prescriptions, medical tests and treat- ments, including many vision and dental expenses. 5. Consult a professional Americans are focusing on fundamentals: cutting spending, increasing savings and safeguarding invest- ments. As uncertainly con- tinues, an increasing num- ber are seeking professional help to make financial deci- sions and plans. "A good financial profes- sional can provide not just advice on saving and invest- ing, but financial wellness recommendations on every- thing from building a budget and starting an emergency fund to managing debt," said Edmund Murphy, president and CEO of Empower Retire- ment. A financial professional can help you set priorities and find the best vehicles for protecting and growing your money. Ask your employer if your retirement plan provider offers financial advice through virtual ses- sions or phone calls with a professional. You may also be able to access digital tools that help you calculate how close you are to your retire- ment goals, along with ways to monitor your investments. For more tips about finan- cial planning, visit Empower- re t i re m e n t . c o m / e m p o w e r- insights. 5 tips to help you take control of your finances Saving for retirement is an essential component of financial planning. Adults can save for retirement in various ways, and one of the simplest, most popular ways to do so is to enroll in an employer-sponsored 401(k) plan. Enrolling in a 401(k) plan can be a wise decision. According to a recent report from Fidelity Investments, the average 401(k) balance rose 8 percent in the first quarter of 2019. Investors seem to be taking notice of such returns, as Fidelity also noted that the average 401(k) employee contribu- tion reached $2,370 in the first quarter of 2019, mark- ing a 15 a percent increase from the year prior. When enrolling in a 401(k) plan, professionals may wonder how to choose their investments. Such plans typically include an assortment of funds. There are a host of factors to con- sider when choosing 401(k) investments, and the follow- ing are some strategies that can help investors make decisions they're comfort- able with. • Read the enrollment brochure. Brochures might not be the most exciting reads, but 401(k) brochures, which should be provided when employees enroll in a plan, typically include a detailed rundown of the investment options within a given plan. As valuable as these rundowns can be, a recent survey from Pruden- tial Investments found that 42 percent of investors don't know how their retirement assets are being allocated. Investors who know how their 401(k) contributions are being allocated are in better position to address market fluctuations, giving them more control over their money. • Involve a financial plan- ner in your 401(k). Financial planners can be an invalu- able resource that can help investors in myriad ways. Some investors may be sur- prised to learn that outside planners can even help them with their employer-spon- sored 401(k) plans. Provide a planner with detailed information about your 401(k), including a rundown of the plan's investment options, and share your retirement goals. A financial planner can then help you choose the funds from your plan that best align with your goals and your comfort levels in regard to risk. • Monitor your invest- ments. While investors need to recognize that markets fluctuate, they still need to keep an eye on how their 401(k) investments are per- forming. Keep an eye out for funds that consistently lose money or provide little to no return, as they're likely not worthy of your investment dollars. Choosing 401(k) funds is a decision to take seriously. Tips when choosing your 401(k) investments

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