Educate our community on the challenges they will face upon retirement

During the baby boomers’ working years, many companies funded and managed pension plans (defined benefit) for their employees. In recent years, companies have been moving away from the traditional pensions to a defined contribution benefit plan, in which the employee is responsible for the management of the plans. As you can imagine, the problem begins when individuals from various educational backgrounds and specializations are asked to manage their own retirement plan-in many cases with no additional training or resources. This puts the less financially knowledgeable employee at risk of not sufficiently growing their retirement funds. It also puts the financially knowledgeable individual at risk because they might not have enough time to dedicate to managing their portfolio. OnPoint Financial Retirement wants to educate our community on the challenges they will face upon retirement.

A study investigating whether “households have a good sense of their retirement preparedness” explains that while the same percentage of the population remains covered by a pension, the exact type of coverage has drastically shifted in favor of 401(k) plans. The author writes, “In theory 401(k) plans could provide adequate retirement income. But individuals make mistakes at every step along the way and the median balance for household heads approaching retirement is only $60,000. [Unfortunately], most of the working-age population save virtually nothing outside of their employer-sponsored pension plan.”

The article continues, “These estimates, however, do not explicitly account for health care expenses in retirement. Including health care raises the percent of households ‘at risk,’ that is, not capable of maintaining their pre-retirement standard of non-health care consumption from 44 percent to 61 percent. Because health care costs are rising rapidly and the retirement income system is contracting, a much larger percent of later cohorts will be ‘at risk’ than earlier ones.”

It isn’t hard to predict what will happen to someone who fails to grow their retirement savings. You must ensure that your defined contribution and 401(k) or profit sharing plans are allocated correctly among your available options. In order to accomplish this, see if you can answer these simple questions: (1) “Do you know you what your plan offers?” (2) “Are you maximizing your potential for growth?”

Rather than seen as the end of a career, retirement is best viewed as the first step on a long, incredible and, at times, difficult journey. That’s why we are here, to serve as your guides. Contact us, and let us help you make good financial decisions.

Managing your money properly during your retirement years will also determine how well you will enjoy your retirement. When it comes to retirement funds, one of the most important items to consider is your risk tolerance level (RTL). Your RTL helps answer the question of how much you can lose before it impacts your retirement lifestyle and/or your retirement goals. Each individual will have a unique RTL, as it depends on individual future goals. Example: a person with an above average retirement fund benchmark may be able absorb market losses and therefore has a higher risk tolerance. A person with an average or below average retirement fund benchmark may not be able to afford to lose money in the market. When the money is needed to sustain a lifestyle, the person is said to have a low risk tolerance level. Ask yourself, “What’s my risk level?” “Is my risk level right for me?” Our Financial Assessment uses industry benchmarks to lead the direction with your desired retirement lifestyle directing your retirement needs. Contact Us for your Financial Assessment.


Many young families struggle with when and how to start saving for their children’s education. Whether you decide to fund the whole cost of education or you plan on saving a fixed amount to help aid your child, the decision is a big one. Some big questions we help answer are: How do you save for your child’s education without robbing from your retirement savings? What if your child decides to go into the military or receives a full ride scholarship? What is a 529 plan, and is it right for me? How does college planning fit into my overall financial plan? Contact us today for help planning for college.


As a business owner, you know cash is king. Now that you have gone out on your own, there are a lot of tasks that take up your day. Unfortunately, planning for your financial future seems to fall by the wayside. As a business owner, you now qualify for a lot of programs that other “9-5ers” don’t have access to. With that being said, your business and personal financial future is in your hands. You don’t have the luxury of employer-sponsored plans like 401(k)s or pension plans that are set up for you. You as the business owner must take the initiative to plan for your financial future.

Do you have a business partner or partners? Do you have an important employee that your business wouldn’t be the same without? It might be time to set up a buy/sell or a key person policy. Many business partnerships have a buy/sell as part of their partnership agreement; however, it might not be funded. If you are the sole owner and have an employee that is an intricate part of your business, a key person policy will ensure that your business will be able to withstand the financial hardship your company will undertake as the result of the death of your key person. Contact us today to find out more about business planning.