On the Beat 12/05/19 - Financial Concepts on Retirement Planning

Credit: WCBI
Published on December 6, 2019 -

On the Beat 12/05/19 - Financial Concepts on Retirement Planning

Scott Ferguson with Financial Concepts explains that it's never to early start planning for retirement and the importance of taking advantage of your benefits package.


On the Beat 12/05/19 - Financial Concepts on Retirement Planning

Financial concepts.

Guess what?

Graduation, first job, now what?

We asked you to write in questions to us.

Our financial expert, scott ferguson is going to help you with some of those answers.

How are you my friend?

Scott ferguson: i'm doing good.

How are you?

Troy: you ready to be put on the hot seat?

Scott ferguson: let's do it.

Troy: all righty.

Our first guy writes in and he says, "look, first job, it's scary.

When you add an employer sponsored benefit for the first time, things have become even scarier.

I'm not quite sure where to start.

And how do i analyze the benefits that came in the employer packet?"

Scott ferguson: that's right, that's a lot, right?

That's a bg question.

Troy: i'm throwing it in the bi.

Scott ferguson: yeah.

Troy: it's this thick.

Scott ferguson: you're going to get a big packet.

That first job, they're going to give it to you and somebody's going to say, "here you go, fill it out."

And they're going to walk away.

Right?

So what do you do with all that information that you've got?

You kind of got to assess and say, "what benefits do i actually have in this new job?"

Right?

You're going to have insurance benefits, you're going to have time off benefits, you're going to have retirement plan benefits.

A whole lot of different things that you need to take advantage of and make sure that you're using the most of all those different benefits that you got.

Troy: okay, billy writes in and says, "we have a company sponsored retirement plan, but i don't know what it is."

Scott ferguson: that's right, because if it's your first job,t may be your first time ever having any kind of retirement plan or any kind of way to save for your future.

And so i get this question a lot.

A lot of young folks, they're just got out of school, they get this benefit.

They either choose, i don't know what it is so i'm not going to use it, or they don't know what to do with it, right?

Scott ferguson: and i'm going to tell you, everybody needs to take advantage of those companies sponsored retirement plans because it's the easiest way to save for your future and save for retirement.

So if it's your firt time getting it, you need to get et advice on saying, "what should i be doing?

How much should i put into here?

How should i invest it?"

Right?

There's all these different questions and someone at the company may or may not be able to help you answer these questions.

But as an advisor, that's something that i help folks with all the time.

Troy: all right scott, here's another one.

Bill writes in and he says, "what does it mean to have a company match?

I'm unsure what the meaning by me matching the dollar."

Scott ferguson: that's right.

Right, because if you've never had a retirement plan or if you've never had a company that made a match, you may or may not know what that is.

So a match is when a company says, "if you put in some of your hard earned dollars that you've earned on your own, into the retirement plan, we're going to put some in for you too."

They're encouraging you to save for your future.

And by doing that, they're going to make a contribution for you through that match.

Troy: okay, i'm fully... sorry,e goes on and says, "what does it mean when you are fully vested in our company sponsored retirement plan?"

Scott ferguson: that's right.

Typically, vested means that with that matching contribution, the dollars that the company has put in for you, they may tie strings to those dollars, right, because they may want to keep you around, right?

So a vesting schedule is a way for our company to say, "hey, you're going to get dollars from us if you stick around for two, three, four, five years.

In the retirement, you're going to get some dollars from us.

But if you leave before then, we're going to take our dollars back."

Troy: all right, i'm going to ak my own question if you wouldn't mind.

Scott ferguson: go for it.

Troy: we all know most new employees, after leaving graduation, in sort of their first job, very rarely stay in their first job for maybe past two years.

Agree?

Because- scott ferguson: they're hungry.

Troy: ... they got there for experience and then moved on.

Should they even worry about a retirement plan?

Scott ferguson: yes, yes, because the sooner that you start- troy: that's something i didn't do.

Scott ferguson: yeah, the sooner that you get started saving for your future, the easier it's going to be.

The longer that you wait to do it, the more you're going to have to save.

And typically the longer that we wait, life has changed on us, right?

If we're just out of school, we may not be married, we may be married, we probably don't have kids yet.

But if we wait until our mid-20s or early 30s, we're probably married, may have kids, may have a house payment by them so our budget's gotten a whole lot tighter.

There's not as much money to go around.

Scott ferguson: so if we started early, number one, getting in the habit of doing i, and number two, saving a smaller amount, we don't have to save quite as much later on in life to reach those dreams and goals.

The farther that we wait, that's when things get much and much harder.

Troy: if you want to find out more information about scott ferguson and financial concepts, there's all the information up on the screen.

Give them a call, go over to the website, check it out everyone.

He gives great advice and will help you put your best foot forward.

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