Fantasy Football or Fantasy Future?

Fantasy football has become a national obsession and has appealed to adults of all ages.  Magazines, television shows, and ESPN updates have been dedicated solely for the purpose of fantasy football.  I personally have been among the ranks and joined in on the fun for a couple of years.  So, I bring this up not to say fantasy football or any other entertainment activity cannot be fun or important, but do we spend more time planning for these activities and neglect planning for our future?  From a financial planning standpoint, we sometimes find individuals late in their working years that have very little set aside for retirement.  However, somehow it seems they have found the resources necessary to purchase the latest flat-screen television or newest BMW.  These are all great in their proper place, but not at the expense of sacrificing our future.  So, I ask you, are your financial priorities straight?

 

With personal savings rates so low and mortgage defaults rising, we have to ask ourselves, are we too part of the problem?  Are we living within our means and putting enough aside for our future?

 

Social Security is considered by many to be a major source of income during their retirement years.  This has also been a major topic in the latest presidential debates and one that will affect us all.  However, are you depending too much on social security for you future? With so many from the baby boom generation nearing retirement, our already strained system will be under even more pressure in a few years.  No one knows for sure, but it is a fairly safe assumption that social security will not be enough to meet your retirement needs.

 

So I encourage you to take advantage of some of the retirement opportunities available to you through your current employer.  Many employers offer some form of a 401k, Simple IRA, SEP, and/or profit sharing plan.  Many plans offer a company match, meaning they will match a portion of the amount you contribute to the plan.  This is one of the best ways to save for retirement.  For example, if you were to contribute $200 month, and the company matched 50% of your contribution, you would have just added $100 to your investment and made a 50% return!  Then, the $300 would be invested in any number of investment options offered as part of the plan.  If you were to invest this $300/month for 20 years averaging an 8% annual return, you could have approximately $178,000!  Additionally, if you factor in incremental increases to your contributions as a result of periodic raises, your potential savings could be much more.  If your employer does not offer some type of a savings plans, you can always look into a personal retirement account.  The limits to how much you can contribute are continually increasing.  The tax-saving advantages are also additional positives to retirement savings.  Consult an investment advisor or plan administrator to learn more about these tax advantages.

 

Again, keep in mind, activities like fantasy football can be wonderful fun, but let us take the time now to consider where we might be in 20 or 30 years and start planning now.  The biggest thing that young people have on their side now is time.  With so much time between now and your retirement years, a little saved today can make a very positive impact on the way you live later in life.

 

Aaron Archambo is a financial advisor and the vice president of Archambo Financial Advisors, Inc. Securities Offered Through Dominion Investor Services, Inc.  Member FINRA & SIPC.

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918-336-2222

The full range of services offered at Archambo Financial Advisors are designed to meet your financial advisory needs today, tomorrow and well into the future. Archambo Financial Advisors can lead you through the many financial stages of your life.

310 S. Osage

Bartlesville, OK   74003

Fax: 918-336-2214

aaron@archambofinancial.com

Securities Offered Through Dominion Investor Services, Inc

Member FINRA and SIPC

 

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