'For Your Benefit' Newsletter April 2017

"Talk, Plan, Act"
 Special Series #1 of 5
April 2017
Recently I reviewed a five part series of topics on financial health.  Some may be of interest to you or someone you know.  These are all courtesy of Oppenheimer FundsÃ’a mutual fund family whose products we use when appropriate.  As with any of the topics I write about,
please let me know if you have any questions.


We believe a financially secure retirement is achievable if you chart the right course, which means starting with the right planning. When most people think retirement, they're likely to think Social Security. But anyone planning to retire on Social Security alone is in for a rude awakening: The average monthly benefit (as of January 2017) is $1,360. That's just over $16,000 annually, while the official 2016 federal poverty level for a two-person household is $16,020(1). Some predict Social Security won't even be around by the time Millennials retire, but it's unlikely Social Security will become extinct. It's more likely that checks will get smaller and the age to qualify for them will be raised.
So let's get a couple of things straight right from the start: Social Security was never intended to be a retiree's sole source of income. Same goes for 401(k) plans, though 401(k)s are increasingly important because most employers no longer provide defined benefit pension plans. Both are designed to supplement a retiree's income. Together, they can provide retirees some degree of financial security, but the fact is, a financially secure retirement requires multiple funding sources, including Social Security, 401(k) plans, IRAs, and personal savings and investments.
1. Source: U.S. Department of Health & Human Services, Poverty Guidelines, January