ST. LOUIS, March 20, 2012 /PRNewswire/ -- Adequate retirement savings has become an issue of significant concern to members of every income bracket. It should come as no surprise that according to a recent BMO Harris survey, the majority of U.S. residents (57 percent) are not confident in their ability to save for their ideal retirement lifestyle. Approximately half of U.S. residents (52 percent) say they have/will or anticipate maybe having to delay their retirement and/or work part-time during retirement due to a shortage of retirement savings.
"This is a critical wake-up call to everyone, no matter what your age," said Tom Thornton, Vice President, M&I Wealth Management, a part of BMO Financial Group. "Our best advice - start now! Get smart about planning and saving for retirement, and get educated about the many strategies and tools available to help maximize your savings."
Thornton provides the following tips to guide you as you review or initiate your retirement planning:
Meet with a professional: A financial advisor can provide the guidance you need to learn about the retirement planning process and assist you in creating a realistic retirement plan. You just might be surprised at some of the opportunities available to help build your nest egg.
Start Early: We can't say it enough. Start saving at an early age. Doing so gives you the advantage of compound interest, your money will be working for you every single day. Just ask your parents, they learned this lesson the hard way.
It's never too late: Don't be discouraged if you haven't been saving for retirement. Instead of giving up, like many people do, start now. Contact a financial advisor who can help you develop a plan for the best retirement that you can have.
Take advantage of your company 401(k): There are many advantages to 401(k) plans. Don't miss out on any of them. Although rare these days, some companies still offer to match your contributions (guidelines will vary by company). If there is no match, you still benefit because whatever you put into your 401(k) plan is tax-deferred. Don't forget that when you leave a company, you can take your 401(k) contributions with you or make a rollover into other retirement vehicles.
Consider a Roth IRA: A Roth IRA is a special type of retirement plan under U.S. law that is generally not taxed, provided certain conditions are met. Tax treatment is different for this plan because the tax break is granted on money withdrawn from the plan during retirement, rather than for money placed into the plan.
Commit to saving, even if you start small: Ben Franklin said it best, "A penny saved, is a penny earned."
Parents, educate your children: So many of us are learning the retirement lesson, save early and save often, the hard way. Share this knowledge with your children, and guide them to make saving an important part of their financial lives.
The good news is that there are a variety of ways to help you save to enjoy your golden years. For more information about retirement planning, contact your local M&I Financial Advisor, or call: 888-330-3566.
The online survey was conducted by Leger Marketing in all regions of the United States with a representative sample of 1,032 adults, between November 3 and November 8, 2011. Final data was weighted by age, gender, and region in order to obtain a representative sample of the U.S. population. A probabilistic sample of 1,032 respondents would yield a margin of error of +/- 3.1%, 19 times out of 20.
About M&I Wealth Management, A part of BMO Financial Group
M&I Wealth Management, A part of BMO Financial Group, is a leading provider of trust, investment management and private banking services to corporations, institutions and affluent individuals. For high net worth individuals and families, M&I Wealth Management offers a comprehensive range of customized wealth management services that include financial planning, investment management and advisory services, trust and estate services, and private banking. In 2011, M&I Wealth Management became a part of BMO Financial Group, one of the largest diversified financial services organizations in North America with total assets of $477 billion as of October 31, 2011, and more than 47,000 employees.
M&I Financial Advisors
M&I Wealth Management offers products and services through various affiliates of BMO Financial Corp., including Marshall & Ilsley Trust Company N.A., M&I Investment Management Corp. and M&I Financial Advisors, Inc. (member FINRA/SIPC, maintaining its principle offices at 111 E. Kilbourn Ave., Milwaukee, WI 53202), offering various brokerage, investment and insurance products. Insurance coverage is underwritten by a number of insurers. Insurance products are the obligation of the insurance company. Securities and insurance are: NOT FDIC INSURED - NO BANK GUARANTEE - MAY LOSE VALUE.
United States Department of Treasury Regulation Circular 230 requires that we notify you that, with respect to any statements regarding tax matters made herein, including any attachments, (1) nothing herein was intended or written to be used, and cannot be used by you, to avoid tax penalties; and (2) nothing contained herein was intended or written to be used, and cannot be used, or referred to in any marketing or promotional materials. Further, to the extent any tax statement or tax advice is made herein, BMO Harris Bank N.A. and its affiliates do not and will not impose any limitation on disclosure of the tax treatment or tax structure of any transactions to which such tax statement or tax advice relates. BMO Harris Bank N.A. and its affiliates do not provide legal advice to clients. You should review your particular circumstances with your independent legal and tax advisors.
SOURCE BMO Harris Bank