In Perspectives

As the summer winds down, we approach what many of us in Michigan call “the dog days of summer.” A time to bask in the warm sunshine, reflect on the summer activities and start planning for the fall and winter seasons ahead. For some, it’s also a time to assess their personal financial situation – specifically, their retirement planning.

For most people, a career can span 40 to 50 years. During that time, you share experiences with many different colleagues and evolve professionally and personally as the workplace and technology changes around you. However, one element that remains constant is the need to plan for your financial future. Whether you are 25 and have recently graduated or 60 years young and visualizing what the next chapter looks like, saving for retirement is extremely important. Pondering the future can be difficult for some but if you simply address a couple of key steps you can put yourself in a position for success.

Evaluate Your Finances:

One of the most important things to do is to periodically evaluate your overall financial situation. At times, it can feel like our lives are constantly consumed with something more pressing, whether it be getting married, starting a family, buying a car or a home, or simply balancing life’s demands. Despite these events you should always carve out time to evaluate where you are financially even if it is just an annual review of your portfolio. This review can help you develop and stick to a sound budget or re-evaluate your current one. Doing this will force you to identify the strengths and weaknesses of your situation and will help you shape the way you spend and save going forward.

Save, Save, Save:

Perhaps the most crucial step to achieving that coveted retirement nest egg is saving. The earlier you can start saving the better off you will be. Contributing to an employer provided retirement plan is one of the easiest ways to do this. Best of all, many employers offer a matching program to help incentivize workers to enroll in their IRA or 401K programs. Think of it as free money and who doesn’t like that! The key is to start saving early. If you need specific details on how valuable starting early can be simply look at the two scenarios below.

Scenario #1: The Early Saver

Annual Salary: $50,000
Current Age: 25
Retirement Age: 65
Percent to Contribute: 6%
Employer Match: 3%
Annual Rate of Return: 5%

Scenario #2: The Late Bloomer

Annual Salary: $50,000
Current Age: 40
Retirement Age: 65
Percent to Contribute: 6%
Employer Match: 3%
Annual Rate of Return: 5%

As you can see, being in the market over a longer period of time can have a huge impact on your total savings, especially if your employer offers a matching program. These examples do not take into consideration salary increases over time, higher contributions to your retirement plan or higher growth rates; all of which are real possibilities over a 40-year timespan.

One of the best ways to get on the right track for retirement is by seeking advice from a financial planner. They can be an excellent resource in helping you lay the groundwork for a great retirement plan and can be very helpful when you conduct your periodic reviews. A financial planner can help you optimize your budget, allocate your investment account and tailor a strategy to meet your unique goals and objectives. During your periodic reviews you can also incorporate planning for other life events such as: purchasing a home, paying for college education expenses or even travelling the world in your golden years. These considerations should be a part of your overall wealth management strategy. The bottom line is when it comes to thinking about retirement, the more you have planned for it, the more enjoyable the “dog days” will be for you and your family.

Legacy Trust and Your Right to Financial Privacy

At Legacy Trust we have established policies and practices that respect the financial privacy of all individuals who use our trust company. We believe it is critical to comply with the laws and regulations designed to secure your financial privacy. Your relationship with us as our client is very important to us, and we want you to understand our policies and practices about handling your information.

This Policy applies to you – This Policy applies to our relationships with individual clients who inquire about or obtain products or services from us for personal, family and household purposes.

Strict security measures – We take the security of information very seriously. We have established security standards and procedures to prevent access to client information. We maintain physical, electronic and procedural safeguards to guard client information.

Limited employee access – We have established procedures to limit employee access to information to only those employees with a business reason for accessing such information. We educate our employees about the importance of confidentiality and client privacy. We take appropriate disciplinary measures to enforce employee responsibilities regarding client information.

Why we collect information – We collect information about you to:

  • accurately identify you;
  • protect and administer your records, accounts and funds;
  • help us design or improve our products and services;
  • understand your financial needs;
  • save you time when you apply for new products and services; offer you quality products and services; and comply with certain laws and regulations;

We collect information – We collect and maintain your personal information so that we can provide investment management and other services to you. The types and categories of information that we collect and maintain about you include:

  • Information we receive from you to open an account or provide investment advice or other services to you (such as your home address, social security number, telephone, financial information and investment objectives).
  • Information that we generate to service your account or from our transactions with you (such as account statements and other financial information).
  • Information on your transactions with nonaffiliated third parties.

We have established procedures so that the financial information we collect is accurate, current and complete. We are committed to work with you to promptly correct any inaccurate information.

Our selective sharing of information – In order for us to provide investment management and other services to you, we do disclose your personal information in very limited instances, which include:

  • Disclosures to nonaffiliated companies as permitted by law, including those who help us service your account (such as providing account information to brokers and custodians).
  • Other limited disclosures as permitted by law, for example, required reports to government entities.

We do not share your information with third parties for marketing purposes. We do not sell your information.

Former clients – If you end your relationship with us, we will continue to adhere to the privacy policies and practices described in this notice.

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USA PATRIOT Act

Important Information About Procedures For Opening A New Account

To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify and record information that identifies each person who opens an account.

What this means for you: When you open an account, we will ask for your name, address, date of birth and other information that will allow us to identify you. We may also ask to see your driver’s license or other identifying documents.

We apologize for any inconvenience this may cause; however, federal law prohibits us from waiving these requirements.

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