Legal & General Investment Management (LGIM)’s Post

Credit Union leaders need to modernize their approach to helping members plan for retirement. Our guest, Rhian Horgan, CEO and Founder of Silvur, came on the podcast to share her modernized blueprint for successful retirement planning –– so you can help your members retire with confidence and peace of mind. In this week's episode of Grow Your Credit Union, Becky Reed and I go deep on the following topics: ✅ Why the shift away from pensions and the spike in healthcare costs mean we've got to get creative with retirement planning. It's more important now than ever. ✅ Uncovering the untapped potential of members aged 55 and above, who hold a significant portion of wealth, and how credit unions can better serve this demographic to enhance liquidity and support younger generations. ✅ Strategies for creating user-friendly, accessible digital experiences that cater to the unique needs and preferences of aging members, ensuring that no one is left behind in the digital age. #CreditUnions #CreditUnionsRock Listen to the podcast by clicking the link in the comment section below. 

It seems that more people are tapping into their 401(k)s in the last two years. With the IRS lossening up on the regulations, a lot of investors are taking loans from their 401(k)s than seeking out alternative loans. They like the concept of paying themselves back rather than the bank. However, remember that 401(k)s are an retirement tool that is supposed to benefit you when your retired.

The 401(k) is doing double duty as both a retirement account and a source of emergency funds for more Americans. A record share of 401(k) account holders took early withdrawals from their accounts last year for financial emergencies, according to internal data from Vanguard Group. Overall, 3.6% of its plan participants did so last year, up from 2.8% in 2022 and a prepandemic average of about 2%. Retirement plans such as the 401(k) are designed to keep Americans’ nest eggs out of reach until later in life. And values in these accounts have risen substantially, in part because of a strong stock market and programs that automatically funnel money from people’s paychecks into their 401(k) accounts. 

Your 401k, 403b, SIMPLE and SEP IRAs are meant for long term retirement savings which you will need later in life. Using them now to bail yourself out of poor budgeting decisions will come back to haunt you down the road. If you have absolutely no other alternative, see if you can take a loan from the plan and pay yourself back. Retirement accounts are meant for RETIREMENT. #financialeducation #retirementplanning

Seeing more Americans increasing their 401(k) contributions is great. However, it is alarming to see Americans treating their retirement accounts as ATMs. We are seeing record withdrawals in the last two years. When we have conversations with the unadvised, prospects' biggest concern is not having a Budget or an Emergency Fund. Stop dipping into your retirement savings, and reach out to us (ShoreHaven Wealth Partners) to help you build a custom budget plan. #budgeting #retirement #401k #emergencyfund

The whole point of a 401k or any retirement account is to enable you to save some money now in order to have lots more money later. HOWEVER, if you take money out before you're supposed to, you've defeated the purpose of having a retirement account. If this is you or someone you know, let's talk... #budget2024 #401k #retirementaccount https://lnkd.in/gyGSRHWF

401(k) rollovers can be tricky. Getting it wrong can have major consequences: ❌ Taxes and penalties 📉 Loss of retirement savings 😩 Additional stress and paperwork It's no wonder savers like Nikki wait years after leaving their job to start the rollover process. With our easy-to-use technology, a seamless user experience, and the support of our team, savers have the tools (and confidence) they need to finally roll over their retirement accounts. #401krollover #retirementsavings #fintech

When people hear phrases like "If your nearing retirement and your portfolio is over $1,000,000..." they think they (and their $80,000 IRA) are on their own. It's no wonder why people struggle with investing the cash of their 401K rollovers. For someone that has no investing experience, it's pretty darn overwhelming to decide on which investments are right for them. The financial industry needs to do a better job of educating the public that there are many ways people can get help on their smaller portfolios: * For those that are tech-savvy but need some guidance - Roboadvisors (Vanguard, Schwab, Betterment and Fidelity all have this option) * For those that need more handholding - Hourly, Advice-Only or Flat-Fee financial planners But when most of the marketing dollars goes to investing fear tactics ("What's going to happen to the stock market after the election?"), we're left with an information void and then we get the results mentioned in this article. ---------------------------------------------------------- Namaste 🙏🏼 ! I'm a flat-fee, fee-only Financial Life Planner who loves helping individuals and families invest their money in meaningful experiences. If you'd like to know more, please visit our website. We'd love to connect with you. **This content is not intended to be investment, legal, or tax advice and is only for educational purposes.**

As this The Wall Street Journal article demonstrates, typical 401(K) plans have a dual challenge (or, more precisely, reflect a dual challenge for employees and employers in the US): 1) Folks need help with their short-term financial security and wellbeing. Bottom line, we need to balance student debt, short term emergencies, mortgage/rental costs, credit cards, etc. We struggle to allocate the right levels of savings for our various short-term needs. 2) At the same time, we realize how important it is to save for retirement. Hence the conundrum described in this article about tapping into retirement savings to avoid short-term financial ruin. Employers: What role do you want to play in providing distinct solutions to these distinct challenges rather than just the 'catch all' 401(K) lifeline? For example, help folks with their short-term liquidity challenges with programs designed to do just that (i.e., make cash available for unanticipated and anticipated emergencies). Simultaneously, focusing your retirement program on its primary objective -- ensuring it will provide meaningful retirement income for your employees when it is time to retire. Being intentional about each program will ensure your employees are able to prepare their financial security for each of life's stages by understanding the purpose and value of what they are doing. (By the way, these are conversations your folks are already having at their kitchen table with loved-ones as they struggle through some hard financial decisions.) Concurrently, it'll make you an employer of choice, and one with a much stronger handle on recruitment, retention and retirement patterns in your organization. https://lnkd.in/eVXigG7j

According to LIMRA data, interest in annuities, which was as low as 33% in 2018, jumped in 2023. For the first time, a majority of workers (52%) said they would consider converting a portion of assets into a lifetime-guaranteed annuity in retirement. I plan to watch LIMRA's first episode of Industry Insights With Bryan Hodgens. Bryan will explore how our industry can help future retirees achieve financial security. The live stream takes place on April 24: https://lnkd.in/g3rtPAuS #Retirement #Investors #FinancialSecurity #IndustryInsightsWithBryanHodgens