News Column

Michael Kabarec Offers Basic Tips for Starting a Retirement Plan

Mar 11 2013 12:00AM

Marketwire

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PALATINE, IL -- (Marketwire) -- 03/11/13 -- As a financial planner and wealth management professional, Michael Kabarec has spent a lot of time helping his clients effectively plan for comfortable retirements. While some Americans make the effort to save for retirement early on in life, Kabarec explains that many fail to address these needs until mid-life, which can pose some risk for one's ability to experience an easy retirement. Even with the bare minimum savings approaches, many may find that the future economy will not allow for a lot of financial flexibility when it comes to using retirement funds. Therefore, many Americans may benefit from following simple steps to improve their savings approach.

According to a recent article from CNN Money, new research indicates that individuals who make an effort to save for retirement early on may actually enjoy personal benefits before even reaching retirement age. The article states, "A recent survey shows that people who've prepared a personal financial plan are more likely to feel as if they're on track to meet financial goals, like saving for retirement." In addition, CNN Money reveals, "stats from the Employee Benefit Research Institute's Retirement Confidence Survey demonstrate that people who've made an attempt to calculate how much they'll need for retirement not only are more likely to put money away, they also aspire to higher savings targets."

While these new statistics may provide current savers with added comfort, Michael Kabarec explains that many individuals who are not following a retirement plan should take action to avoid poor financial situations in the future. He explains, "The only way to realistically have any hope of a reasonably comfortable retirement plan is to aggressively save now. This probably means not living beyond your earnings and lifestyle. You need to take advantage of your company's 401K plan especially if it offers matching contributions. In addition, you need to find that balance between spending today and retiring tomorrow."

In addition to these basic tips, the CNN Money article encourages those concerned about retirement savings to assess their current standing, set goals, and periodically reassess savings to determine if they need to make changes to stay on target for achieving a suitable retirement.

However, planning may not be the complete solution, as Michael Kabarec observes that many Americans should anticipate making greater sacrifices for improved retirement savings. He states, "Today's employees will probably have to work beyond age 65, because most financial experts believe that that the age to receive full Social Security benefits will increase to as high as age 72 for a person who is 40-years-old today. Americans should be prepared to work longer." While that may seem like a negative outlook, Michael Kabarec concludes with a positive spin on this observation, "Despite these sacrifices, the American public must also remember that we are, for the most part, living longer and healthier lives."

ABOUT:

Michael Kabarec is a trusted investment management professional who carries more than 30 years of experience in this challenging career field. Throughout his professional history, Michael Kabarec has gained strong insight into what skills and knowledge is necessary to perform tax management, investment management, wealth building services, small business development and retirement plans. Today, Michael Kabarec relies on his proficiencies in these areas to serve as President at Kabarec Financial Advisors, Ltd. -- a Chicago-based investment management, financial and wealth advisory firm that has existed since 1982.



Source: Marketwire


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