APRIL 23 . 2005 • Q-NOTES
Finances
oney matters
■ j
lynn davidson, cjp' \' clu
Suffering
from
financial
paralysis
A new phe
nomenon called financial paralysis is
affecting a growing number of American
investors and may leave many unprepared
for their retirement. According to a Nov.
2003 report from American Express
Financial Advisors called “The Personal
Economy Index,” more than 50 percent of
those polled feel stalled when it comes to
managing their finances. Another one-third
stated they had no financial plan at all.
Another report from Guardian Life
Insurance in Nov. 2004 illustrates a bleak future
for baby boomers as well. According to their
report, 60 million baby boomers’ feel “para
lyzed” about their retirement plans, don’t
understand some basic financial planning prin
ciples and are choosing to not do anything.
How much do you need to save
Financial experts estimate that most of us
will need about 60 to 80 percent of our annu
al pre-retirement income to live on each year
after we retire. For those nearing retirement,
roughly 57 percent of this will come from
Social Security, according to American
Express Financial Advisors.
The rest will need to come
from other investments and
savings. Furthermore, accord
ing to American Express’
Personal Economy Survey, only
50 percent of consumers feel
they will they be able to
retire when they want to, 60 percent don’t
even have a 401 (k) and only 27 percent
have an Individual Retirement Account
(IRA).
Release youself from financial paralysis
by following some of these tips:
Have a plan
According to American Express’
Personal Economy Index, only 10 percent
of Americans have a formal written finan
cial plan. Whether you have a written plan
that you may not have looked at in a long
time or if you are starting from scratch,
begin taking action by calculating how
much you will need in retirement and fig
uring out how much you will need to save
on a regular basis to reach that goal.
Start investing eariy
Start saving as early as possible. The
sooner you begin saving for retirement the
better. If you start by saving $100 per
month at age 30 you would build a nest
egg of $216,000 at age 65, assuming an
eight percent annual return. If you delay
and begin saving at age 40 instead, that
nest egg would accumulate $125,000 less,
or a total of only $91,000. No matter how
late you are getting started do not let age
paralyze you. If you are in your 50s or 60s
and have not saved enough or anything at
all, there is still time to make a difference.
Invest in 401 (k)s & other savings plans
Almost 18 percent of American workers
eligible to participate in a 401 (k) plan choose
not to do so and many do not contribute the ’
maximum eligible amount according to the
Profit Sharing/401 k Council of America’s
“Annual Survey of Profit Sharing and 401 (k)
Plans (2003).” Taking full advantage of the tax
benefits and possible employer matches in a
401 (k) plan is key to a successful retirement
plan. If your employer does not offer you a
401 (k) plan or similar savings opfion, take
matters into your own hands and consider
opening your own Individual Retirement
Account (IRA). This will allow you to save for
your retirement and still reap the tax benefits.
Monitor your progress
Whether you are 34 or 64 and a half,
your retirement plan is not something that
you put on autopilot and forget about until
you are ready to retire. You need to review
your plan at least once a year, so you can
reassess your investing strategies, rebal
ance your investments if needed and make
necessary adjustments.
Seek help
The most important step in avoiding
financial paralysis is to not be deterred if
you feel you are behind in reaching your
goals. Instead, take action by seeking the
help of a qualified financipl planner who
can help you stay on track with a compre
hensive financial plan.
American Express Financial Advisors inc. Member NASD.
American Express Company Is separate from American
Express Financial Advisors Inc. and Is not a broker-dealer.
info: phone: 704-987-9794
emoil: lynn.j.davidson@aexp.com
A'
Behold the Wonder!
YOU ARE INVITED
Please join with our
community of spirited persons
who encourage one another
to be healthy, creative, and loving.
There is a place for you at our table!
Call us or check the web for details!
Sunday Worship Service at 6 pm.
• Worship • Scripture Study • LGBTQ Outreach
• Proy^o Nuevos Amigos • Artist’s (3roups
• Choir • HIV Support • Spiritual Direction
• Fellowship • Warm Community
• Coffeehouse Worship
• Nursing Shelter Outreach
• Covered Dish Dinners
GREAT PLAZA-MIDWOOD LOCATION!
1900 The Plaza Sunday 6 pm Worship
■ Charlotte, NC 704-334-0350
The Rev. Tim Koch, Ph.D.
Pastor, Author, and LGBT Theologian
www.newlifemccnc.org
New#)life MCC
Nefropolilao Community Church
Whether you're in
it needs organizing!
■ifll
body therapy
spring is on the way,
Are you ready for itt
David Stout,
LMBT # 2204
Swedish
Neuromuscular
Reflexology
Acupressure
Reiki
$30/half hour
SSS/hour
$80/hour and a half
Hot Stone Massage
$75/hour
$95/hour and a half
The beginning of orgamzation.'
Dream Closets, Inc.
Your Organization Specialist
336-442-6665 336-861-1006 (fax)
phill@dreamclosets.org www.dreamclosets.org
Free design and consultation!
Gift certificates available
^4037 E. Independence Blvd.
(The Vamadore Building)
Suite 100
Charlotte, NC 28205
PhCMie; 704-566-0120
E-mail; intouch'Sf^carolina.rr.com