Annualized returns over the past 30 years on equities and government bonds were well above \u00a0the long-term averages (+6.5% and +1.7% respectively), but projections for the next 20 years do not look as promising, (McKinsey Global Institute study).<\/p>\n
![2016-09-08_-_Does_Retirement_Scare_You_-_Image_1_of_3_.png](\"https:\/\/zacksim.com\/blog\/wp-content\/uploads\/2022\/02\/2016-09-08_-_Does_Retirement_Scare_You_-_Image_1_of_3.png\")
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Data source: McKinsey Global Institute analysis<\/strong><\/em><\/p>\n Data source: McKinsey Global Institute analysis<\/strong><\/em><\/p>\n Given these estimates, even pension funds could find it hard to plug the funding deficit, which is already a gaping $1 trillion for U.S. public retirement plans.<\/p>\n How to Avoid the Retirement Headache <\/strong><\/p>\n Given the long-term outlook for broader asset classes\u2014which is a result of continued growth but perhaps at a slower rate than previous decades\u2014it makes sense that the sooner you plan out your finances and portfolio diversification, the better chance you have of averting a hard landing through your retirement years. At the same time, we realize not everyone knows how to go about financial planning. More than half of the Charles Schwab survey participants have admitted to being unsure about the ideal savings amount necessary for a comfortable retirement.<\/p>\n Saving effectively for your future does not have to mean making great sacrifices to your present living standards. What\u2019s essentially needed is a properly balanced saving\/investment discipline, which a financial advisor can help you set up and hold you accountable for. Indeed, the survey reveals that having professional advice boosts confidence among people making 401(k) investment decisions, compared to doing it by themselves.<\/p>\n Data source: Charles Schwab\u2019s 2016 401(k) Participant Survey Results, August 2016<\/strong><\/em><\/p>\n Bottom Line for Investors<\/strong><\/p>\n Recent volatility and more modest return expectations for the next business cycle or two have many retirees and investors worried. But, investors should keep two things in mind. First, global growth should continue apace regardless over the next 20+ years, and no matter what the rate it should take equity prices with it as it has historically done repeatedly. Second is that the \u2018not-so-secret\u2019 formula for wealth accumulation over time remains the same and is not likely to change\u2014save and invest. It\u2019s that simple.<\/p>\n Knowing how <\/em>to save and how <\/em>to invest is a different task, and it\u2019s probably wise to seek professional financial advice. Professional management not only saves you time, but the expertise involved can also potentially offer more skillful portfolio diversification and tactical strategies, helping you build your nest egg with greater confidence while easing your retirement woes. The members of the Zacks Investment Management Committee have over 100 years of combined experience. So, we know a thing or two about how to plan for retirement with confidence.<\/p>\n The right investment manager can make an enormous difference over the long term and help you stay steady through market changes. But, don\u2019t take our word for it. If you’re thinking about working with a manager, read “What to Look for in a Money Manager” – it includes 10 tough questions you can ask any prospective investment manager…download it now…<\/p>\n","protected":false},"excerpt":{"rendered":" Are people increasingly getting spooked by the thought of retirement? A recent survey by Charles Schwab suggests that this is […]<\/p>\n","protected":false},"author":1,"featured_media":4124,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[71,72],"tags":[],"class_list":["post-3470","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-private-client-group","category-steady-investor-news"],"acf":[],"_links":{"self":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts\/3470","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/comments?post=3470"}],"version-history":[{"count":1,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts\/3470\/revisions"}],"predecessor-version":[{"id":11205,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts\/3470\/revisions\/11205"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/"}],"wp:attachment":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/media?parent=3470"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/categories?post=3470"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/tags?post=3470"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}![2016-09-08_-_Does_Retirement_Scare_You_-_Image_2_of_3_.png](\"https:\/\/zacksim.com\/blog\/wp-content\/uploads\/2022\/02\/2016-09-08_-_Does_Retirement_Scare_You_-_Image_2_of_3.png\")
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