Up and Coming Weekly is a weekly publication in Fayetteville, NC and Fort Bragg, NC area offering local news, views, arts, entertainment and community event and business information.
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MARCH 11-17, 2015 UCW 19 WWW.UPANDCOMINGWEEKLY.COM The world of today is vastly different from the one that existed in, say, 1974. Innovations such as the Internet, smartphones, tablets, Facebook, Twitter and so on have made our lives more enjoyable, effi- cient and productive in many ways, and have vastly improved our access to the world's knowledge. Yet, when it comes to one important area of our lives — investing for the future — many of us may actually face more challenges today than we might have in the past. At least two main factors are responsible for this apparent regression. First, following a quarter century during which U.S. workers' income rose fairly steadily, "real" wages — that is, wages after inflation is consid- ered — have been flat or declining since about 1974, according to the Bureau of Labor Statistics. Secondly, during this same time period, we've seen a large drop in the percentage of private-sector workers covered under a "defined benefit" plan — the traditional pension plan in which retired employees receive a specified monthly benefit, with the amount determined by years of service, earnings history and age. So, unlike your counterparts in the 1950s and 1960s, you may not be able to count on a rise in real wages, and you may not have the promise of a regu- lar pension. What, then, can you do to improve your prospects for eventually achieving a comfortable retirement? First of all, in the absence of a formal pension, you will need to create your own retirement plan. That means you will need to consider all the opportunities available to you. If your employer offers a 401(k) or similar account, such as a 403(b), contribute as much as you can afford — at the very least, put in enough to earn your employer's match- ing contribution, if one is offered. And even if you par- ticipate in your employer's plan, you may also be eligible to open an IRA. If you're self-employed, you still have options such as a SEP IRA or a "solo 401(k)." While these accounts may differ from each other in terms of eligibil- ity, income restrictions and contribution limits, they both offer the same key benefit: the ability to defer taxes on your earnings for many years, typically until retirement. As for your next main challenge — the need to com- pensate for stagnant real wages and the subsequent dif- ficulty of boosting your savings — what can you do? For one thing, you will need a reasonable percentage of your portfolio — both inside and outside your IRA, 401(k) and other retirement plans — devoted to growth-oriented investments. It's true that the value of growth vehicles, such as stocks and stock-based instruments, will always fluctuate. But you can help control this risk by owning a mix of investments, including stocks, bonds, Treasury bills, certificates of deposit (CDs) and other securities. Keep in mind, though, that while diversification can reduce the impact of volatility on your holdings, it can't guar- antee profit or always protect against loss. As far as attaining rising wages and enjoying guaranteed retirement payments, we don't have the "certainties" that many people had in the 1950s and 1960s. But you can still help brighten your future — through diligence, disci- pline and the determination to explore the opportunities available to you. Outlook for Today's Investors: Less Certainty — but Potential Opportunities by STEVE McDAVID Diligence, discipline and determination all play a part in planning for retirement. Before Treatment After Treatment Only four weeks after only VenaCure EVLT Treatment Other services available: • • Dr. Hari Saini • Dr. Krishnan Ramaraj The Vein Clinic at Carolina Heart and Leg Center 3637 Cape Center Drive 910.491.1763 www.CarolinaHeartandLeg.com Before Treatment After Treatment Only four weeks after only VenaCure EVLT Treatment Other services available: • • • Leg pain and leg cramps • Ulcers, wounds and blood clots • Leg/foot numbness and swelling • Poor circulation • Chest pain • Comprehensive cardiovascular assessment & treatment Before Treatment After Treatment Only four weeks after only VenaCure EVLT Treatment Other services available: • • Other services available: Before Treatment After Treatment Only four weeks after only VenaCure EVLT Treatment Other services available: • • Before Treatment After Treatment Only four weeks after only VenaCure EVLT Treatment Other services available: • • If you look at your legs and just see varicose veins, we can help. Now you can show immediate improvement on your legs by eliminating varicose veins with EVLT laser treatment. This laser procedure requires no general anesthesia or hospitalization, meaning no painful surgery or downtime. Deciding to get the safe and effective EVLT treatment is a choice everyone will notice. STEVE McDAVID, Edward Jones Financial Advisor. COMMENTS? Editor@upandcomingweekly.com. 910.484.6200.