DirectNEWS is a quarterly publication designed especially for retirement plan participants. The newsletters contain articles on various retirement and investment topics to help educate and assist participants in managing their retirement accounts.

Click here to download the free Adobe Acrobat Reader

Direct News - Fall- 2021.pdf

Inflation and Your Retirement Security
What are the things that could threaten your retirement security?

  • What Inflation Can Do
    Inflation is generally defined as a rise in the price of goods and services. When prices go up, your money will not buy as much today as it did yesterday and thus, your spending power is reduced...
  • Protection From Inflation
    Having a good asset allocation strategy can help protect your retirement savings from inflation. By investing your savings in different asset classes, you'll be able to take advantage of some investments that have the potential to grow faster than the inflation rate, such as stocks...
  • Boost Your Contribution Level
    One other effective way to protect your savings from inflation is to increase your savings rate. Contributing more each year will help your retirement account keep pace with the inflation rate. Try setting aside a portion of any pay raise you receive and contribute that sum to your retirement plan...

A Better Investment Strategy Than Rock-Paper-Scissors
Investors should consider various stock investing strategies and choose those that most closely match their goals.

  • Investing for Growth
    A growth strategy focuses on investing in companies that are poised for higher-thanaverage growth. The expectation is that as earnings and revenues increase, the company's stock price and valuation will also increase...
  • Investing for Value
    Value investors look for bargains. They buy stocks of high-quality companies whose shares are selling at lower prices than the company's financial position seems to warrant, hoping prices will rise as other investors perceive that the stock may have potential. Of course, a low stock price could be due to a failing company or industry...
  • Investing for Income
    Income investors seek older, well-established companies that are no longer growing rapidly but offer a steady income by consistently paying dividends to shareholders. Consider the company's past dividend policy to see if it's likely to continue...
DirectNews - Summer - 2021.pdf

Are You Sabotaging Your Retirement?
Are you helping or hindering your future retirement security? It may be time to rethink your approach to retirement planning if any of the these apply to you...

  • Failing to Understand Retirement Income Sources
    Too many people believe that Social Security will provide a comfortable retirement. However, the average monthly Social Security retirement benefit is $1,671 for men and $1,337 for women.1 That's not a lot of money and it certainly leaves little room for extras...
  • Saving Too Little
    According to a recent survey of consumer finances, the median retirement savings for all families surveyed was just $65,000.2 If you have fallen behind in saving for your retirement, it's never too late to try to get on track toward a more secure future...
  • Ignoring Inflation's Impact on Savings
    Even a low rate of inflation will mean that you will have to pay more for goods and services in the future than you do now. One of the most effective ways to protect your retirement savings from inflation is to have a good asset allocation strategy...
  • Failing to Learn About Investing 
    Learn as much as you can about investing and investments. The more you know, the better decisions you will hopefully make...

Time is Your Friend in Investing

  • The longer your money is invested in your retirement plan, the more you potentially benefit from compounding.
    The sooner you begin adding more to your retirement plan, the more time your extra contribution will have to grow and compound. Compounding is basically money making money. And time is a big part of the magic of compounding...

DirectNews-Spring-2021.pdf

Pay Yourself First!
Odds are that you won't win the lottery or receive a huge inheritance from a deceased relative that will relieve you from financial worries for the rest of your life...

  • Focus on You
    The reality is that you have to take matters into your own hands when it comes to preparing for your retirement. If you haven't thought much about it yet, you really should start focusing on your future retirement needs very soon...
  • Go on Autopilot
    Making automatic paycheck contributions to a 401(k) or similar retirement savings plan helps simplify your financial life. You can't spend money you don't have and you don't have to go to the trouble of transferring funds electronically or writing a check...
  • It's a Good Habit
    As you watch your retirement savings accumulate over time, you may be motivated to save even more for your future retirement. It may become second nature to seek out ways to reduce your discretionary spending so that you will have more money to set aside for your retirement...

Switching Investments

  • When Your Retirement Is Drawing Closer
    Making your investment decisions based on the number of working years you have ahead of you is key to successful retirement investing. So, too, is basing your investing decisions on your tolerance for investment risk...
  • When Your Tolerance for Risk Changes
    It's important to have a long-term perspective as a retirement plan investor since the market can have periods of volatility. However, your tolerance for the market's fluctuations may change due to unforeseen financial occurrences throughout your life -- the loss of a job, the need to save for a child's college education, or a health crisis...
  • When Your Portfolio Needs to Be Rebalanced
    You choose how to allocate the investments among the different asset classes in your retirement plan account by considering your time frame for investing, your tolerance for investment risk, and other assets you may own. However, any change -- up or down -- in one investment class can throw your allocations off balance...
DirectNews-Winter-2021.pdf

Don't Have a Mid-Career Saving Crisis
Life can get in the way of saving enough for retirement, especially when you are busy with your job, family, and the other things that are important to you right now.

  • Dueling Goals
    If one of your financial goals is to help your children pay their college costs, it's likely that those expenses will occur before you retire. You may even consider waiting to save more for retirement until after your kids' college tuition is paid...
  • No Time to Lose
    You may reach your mid-career years and realize that life has gotten in the way and you don't have as much saved for retirement as you'd like. Don't panic. You still could have several years left to accumulate money in your plan account...
  • Put Your Plan to Work
    It's easy to save more for your future. Once you decide to increase your contribution amount, that money will be automatically deducted from your paycheck each pay period and put into your plan account where you won't be tempted to spend it on anything else...

Frequently Asked Retirement Income Questions

  • When should I begin thinking about tapping my retirement assets & how should I go about doing so?
    The answer to this question depends on when you expect to retire. Assuming you expect to retire between the ages of 62 and 67, you may want to begin the planning process in your mid-to-late 50s...
  • How much annual income am I likely to need?
    Financial professionals typically suggest that many people are likely to need between 60% and 80% of their final working year's income to maintain their lifestyle after retiring. Low-income or wealthy retirees may need closer to 90%...
  • How much can I afford to withdraw from my assets for annual living expenses?
    As you age, your financial affairs won't remain static: Changes in inflation, investment returns, your desired lifestyle, and your life expectancy are important contributing factors. You may want to err on the side of caution and choose an annual withdrawal rate somewhat below 5%