Kemp Harvest Financial Group
Kemp Harvest Financial Group® Harvest News
T
he Pitfalls & Blunders of Your 401(k)
The 401k is one of the main vehicles for most retirement savers in today’s workforce. While it’s not as attractive as a company pension, it is still a viable means of providing a comfortable retirement for many. However, there can be numerous traps along the way, each of which must be sidestepped to stay on track. 1. Starting too late. “Compounding is the most powerful force in finance.” That quote is said to be from Albert Einstein, which, if true, means we should probably listen. If we look to some quick math, we can see just how much of a force it is. Assume two people both work for 30 years, and earn a 5% return upon their investments, but Worker A saves for all 30 years while Worker B starts in the beginning of their 10th year. Worker A would have saved $163, 961. Worker B, just $81,702. The sooner one starts, the better. 2. Failing to take advantage of the match. We’ve all heard it before: don’t miss out on free money! If your company matches your contributions up to 4%, there are few financial situations that justify missing the match. Why?
You’re doubling your investment before it spends one full day in the market. If you contribute $100 per paycheck, and receive 26 pays per year, then that is an additional $2,600 above and beyond your own contributions each year. 3. Not having the appropriate investments. It is not uncommon for people to be on opposites of the investment fence. Either they have little idea of what
Quarter 2, 2017 they are invested in and why, or they move things around too much, trying to chase returns in the market. In today’s high tech world, there are many online tools that allow you to gauge
your personal investment risk tolerance. Consideration of this tolerance, along with your time remaining to retirement, can help produce an appropriate investment recommendation. Staying informed and involved in your investments ensures we are not missing out on good returns in strong markets, while also avoiding undue risk. Being involved also includes rebalancing, which when done cont. on next page
cont. from prev. page
regularly, keeps investments from becoming unbalanced over time. Unablanced stocks can cause problems during both poor and strong markets. 4. Staying in a 401(k) too long. While there can be many scenarios to stay in or get out, we’ll look at just two today. The first is when someone retires and stays in the 401(k), missing out on cost savings and additional investment options. When an individual leaves their employer,
the cost of the 401k may increase due to an administration charge for participants no longer employed with the company. Even if it doesn’t, it pays to shop around and see if an IRA will provide lower overall fees – which should include both account and investment charges. The second scenario relates to an “In-Service Distribution.” While still with your company, you may have the option to roll some of your 401k to an IRA. This option may allow you to
invest your retirement assets into a product that is not available in your 401(k). This becomes increasingly attractive when one nears retirement. There are other pitfalls to be aware of that are not mentioned here. Ultimately, your 401(k) needs to be coordinated with a broad financial plan. The closer you are to retirement, the more important that becomes. If you’re looking to get the conversation started, set an appointment today! ♦
David A. Lawrence is a financial planner with Kemp Harvest Financial Group®. David earned his CERTIFIED FINANCIAL PLANNER™ certification in 2013 and has over ten years of financial experience. He received his Bachelors of Science from California University of Pennsylvania and holds his FINRA Series 7 and 63 registrations. David meets regularly with clients, helping to explain their individual retirement income plans. He has an in-depth understanding of portfolio management, investment products, and client management.
Upcoming Events April 2017 • March & April Birthday Club
Maggiano’s King of Prussia Tuesday, April 18th 1-3pm OR 6-8pm Invitation Only
April 2017 • Spring Client Appreciation Event
Iron Pigs Game, Coca Cola Stadium, Allentown, PA Sunday, April 23rd 12:30pm, Invitation Only
June 2017 • Town Hall Talks: Internet Security Date and Time TBA, Further Details to be Announced
For more information on any of our events, or to register, please contact us at (215)513-4330 or register online at www.KempHarvest.com.♦
www.kempharvest.com
8
Reasons to begin financial spring cleaning
Could your finances use a good cleaning this spring? You may already be planning to tackle your house with a broom and a bottle of bleach, so you might as well dust off your finances while you’re at it. Check off some of those nagging financial tasks this spring so you can relax over the summer.
1. Get rid of clutter
Your first task may already be on your regular spring cleaning checklist. It’s time to tackle the clutter inside your filing cabinet, which is most likely overflowing with bank statements and tax forms. Cleaning it out now will make it easier for you to find important documents throughout the year.
2. Inventory your possessions
After decluttering your house, take time to inventory the items you put back in your closets. If you ever need to make a claim on your homeowners or renters insurance, you’ll save yourself a headache by already having a record of your belongings.
3. Check your credit report
You can get a free credit report from each of the three major reporting agencies every year. Many consumers stagger their claims so they can monitor their report for errors throughout the year. If you’re not already on a schedule for reviewing your reports, you can start now by claiming one from Equifax, Experian, or TransUnion.
4. Rebalance your portfolio
To make sure your portfolio matches the asset allocation you originally chose, you should be rebalancing regularly. If you didn’t do it at the end of the year, there’s no time like now to readjust.
5. Create or update a budget
6. Make a will
Stop putting it off and get it done this spring, if you haven’t already. While you’re at it, review the beneficiaries listed on all of your accounts and ensure that they’re up-to-date.
7. Do some comparison shopping
Researching rates for any large expense is an easy way to save money. Set aside the time so you can make sure you’re getting the best insurance rates, the lowest credit card interest rates, and the best deals on cable, internet and other recurring bills. If not, try to negotiate or consider switching.
8. Adjust retirement account contributions
If you’ve been meaning to start a budget, now is the time to get it done. Sign up for free budgeting software or set up a good, old-fashioned spreadsheet. If you already have a working budget, give it a onceover to ensure it still reflects your income and expenses.
If you received a raise or other financial windfall last year, you can adjust your retirement contributions to reflect the change in income. Or, if you regularly contribute the annual limit, adjust to reflect any new limit increases. This small, quick task can lead to a major payoff in the future. ♦
This article was written by Advicent Solutions, an entity unrelated to Kemp Harvest Financial Group. The information contained in this article is not intended to be tax, investment, or legal advice, and it may not be relied on for the purpose of avoiding any tax penalties. Kemp Harvest Financial Group does not provide tax or legal advice. You are encouraged to consult with your tax advisor or attorney regarding specific tax issues. ©2013-2016 Advicent Solutions. All rights reserved.
www.kempharvest.com
Employee Spotlight
Meet our Executive Coordinator, Candis Buehrle! When did you start working at KHFG? May 2015 Where did you grow up? North Wales, Pennsylvania What do you do for fun? I love to bake, but doing anything with my two children and fiance is always fun. What is your favorite part of the job? Our clients. I love being the one to greet them, see how they’ve been, what’s new in their lives, even what vacations they’ve Meet Candis’ family! Fiance Ryan, daughter Mackenzie, and son Connor.
been on. I really enjoy building strong relationships with them. What is one thing on your bucket list? To live Happily Ever After, just like in Disney movies!
Join us for this quarter’s discuss online security
Town Hall, where we’ll and safety. Frank Ableson,
owner and CEO of Navitend Technologies, will be our guest speaker, providing insight and answering any questions you may have. These informational events have proven to be extremely popular, so be sure to sign up fast. We would love to see you and your friends and family in attendance! Want more information on how to attend? Visit our Upcoming Events web page at www.kempharvest.com/upcoming-events/.♦
www.kempharvest.com
W
hat’s going on in Quarter 2?
Retirement Plain and Simple®
April
1 - April Fools’ Day 16 - Easter Sunday 18 - Tax Day
May
5 - Cinco de Mayo 14 - Mother’s Day 29 - Memorial Day
Have you heard Mark & Todd on the radio? Tune in every Saturday morning at 8:00am on WNPV AM1440 to hear Retirement Plain and Simple®!
June 6 - D-Day 14 - Flag Day 18 - Father’s Day
Find us online!
Quotes Corner
www.KempHarvest.com www.facebook.com/KempHarvest www.youtube.com/KempHarvest www.kempharvest.com/Harvest-News www.linkedin.com/KempHarvest Securities and advisory services offered through National Planning Corporation (NPC), Member FINRA/SIPC, a Registered Investment Adviser. Kemp Harvest Financial Group and NPC are separate and unaffiliated companies and are independently owned and operated. NPC does not provide tax or legal advice. NPC # 117251 03/19
www.kempharvest.com
Kemp Harvest Financial Group® 331 Ruth Road Harleysville, PA 19438
Are you interested in adding a friend or family member to our mailing list? If so, please complete the form below and return to us at:
Kemp Harvest Financial Group® 331 Ruth Road, Harleysville, PA 19438
Your Name: Contact Name: Address: Email Address: Relationship: Birthday Month: Please add my contact to your mailing list
Please add my contact to your email list
www.kempharvest.com
T
he Pitfalls & Blunders of Your 401(k)
The 401k is one of the main vehicles for most retirement savers in today’s workforce. While it’s not as attractive as a company pension, it is still a viable means of providing a comfortable retirement for many. However, there can be numerous traps along the way, each of which must be sidestepped to stay on track. 1. Starting too late. “Compounding is the most powerful force in finance.” That quote is said to be from Albert Einstein, which, if true, means we should probably listen. If we look to some quick math, we can see just how much of a force it is. Assume two people both work for 30 years, and earn a 5% return upon their investments, but Worker A saves for all 30 years while Worker B starts in the beginning of their 10th year. Worker A would have saved $163, 961. Worker B, just $81,702. The sooner one starts, the better. 2. Failing to take advantage of the match. We’ve all heard it before: don’t miss out on free money! If your company matches your contributions up to 4%, there are few financial situations that justify missing the match. Why?
You’re doubling your investment before it spends one full day in the market. If you contribute $100 per paycheck, and receive 26 pays per year, then that is an additional $2,600 above and beyond your own contributions each year. 3. Not having the appropriate investments. It is not uncommon for people to be on opposites of the investment fence. Either they have little idea of what
Quarter 2, 2017 they are invested in and why, or they move things around too much, trying to chase returns in the market. In today’s high tech world, there are many online tools that allow you to gauge
your personal investment risk tolerance. Consideration of this tolerance, along with your time remaining to retirement, can help produce an appropriate investment recommendation. Staying informed and involved in your investments ensures we are not missing out on good returns in strong markets, while also avoiding undue risk. Being involved also includes rebalancing, which when done cont. on next page
cont. from prev. page
regularly, keeps investments from becoming unbalanced over time. Unablanced stocks can cause problems during both poor and strong markets. 4. Staying in a 401(k) too long. While there can be many scenarios to stay in or get out, we’ll look at just two today. The first is when someone retires and stays in the 401(k), missing out on cost savings and additional investment options. When an individual leaves their employer,
the cost of the 401k may increase due to an administration charge for participants no longer employed with the company. Even if it doesn’t, it pays to shop around and see if an IRA will provide lower overall fees – which should include both account and investment charges. The second scenario relates to an “In-Service Distribution.” While still with your company, you may have the option to roll some of your 401k to an IRA. This option may allow you to
invest your retirement assets into a product that is not available in your 401(k). This becomes increasingly attractive when one nears retirement. There are other pitfalls to be aware of that are not mentioned here. Ultimately, your 401(k) needs to be coordinated with a broad financial plan. The closer you are to retirement, the more important that becomes. If you’re looking to get the conversation started, set an appointment today! ♦
David A. Lawrence is a financial planner with Kemp Harvest Financial Group®. David earned his CERTIFIED FINANCIAL PLANNER™ certification in 2013 and has over ten years of financial experience. He received his Bachelors of Science from California University of Pennsylvania and holds his FINRA Series 7 and 63 registrations. David meets regularly with clients, helping to explain their individual retirement income plans. He has an in-depth understanding of portfolio management, investment products, and client management.
Upcoming Events April 2017 • March & April Birthday Club
Maggiano’s King of Prussia Tuesday, April 18th 1-3pm OR 6-8pm Invitation Only
April 2017 • Spring Client Appreciation Event
Iron Pigs Game, Coca Cola Stadium, Allentown, PA Sunday, April 23rd 12:30pm, Invitation Only
June 2017 • Town Hall Talks: Internet Security Date and Time TBA, Further Details to be Announced
For more information on any of our events, or to register, please contact us at (215)513-4330 or register online at www.KempHarvest.com.♦
www.kempharvest.com
8
Reasons to begin financial spring cleaning
Could your finances use a good cleaning this spring? You may already be planning to tackle your house with a broom and a bottle of bleach, so you might as well dust off your finances while you’re at it. Check off some of those nagging financial tasks this spring so you can relax over the summer.
1. Get rid of clutter
Your first task may already be on your regular spring cleaning checklist. It’s time to tackle the clutter inside your filing cabinet, which is most likely overflowing with bank statements and tax forms. Cleaning it out now will make it easier for you to find important documents throughout the year.
2. Inventory your possessions
After decluttering your house, take time to inventory the items you put back in your closets. If you ever need to make a claim on your homeowners or renters insurance, you’ll save yourself a headache by already having a record of your belongings.
3. Check your credit report
You can get a free credit report from each of the three major reporting agencies every year. Many consumers stagger their claims so they can monitor their report for errors throughout the year. If you’re not already on a schedule for reviewing your reports, you can start now by claiming one from Equifax, Experian, or TransUnion.
4. Rebalance your portfolio
To make sure your portfolio matches the asset allocation you originally chose, you should be rebalancing regularly. If you didn’t do it at the end of the year, there’s no time like now to readjust.
5. Create or update a budget
6. Make a will
Stop putting it off and get it done this spring, if you haven’t already. While you’re at it, review the beneficiaries listed on all of your accounts and ensure that they’re up-to-date.
7. Do some comparison shopping
Researching rates for any large expense is an easy way to save money. Set aside the time so you can make sure you’re getting the best insurance rates, the lowest credit card interest rates, and the best deals on cable, internet and other recurring bills. If not, try to negotiate or consider switching.
8. Adjust retirement account contributions
If you’ve been meaning to start a budget, now is the time to get it done. Sign up for free budgeting software or set up a good, old-fashioned spreadsheet. If you already have a working budget, give it a onceover to ensure it still reflects your income and expenses.
If you received a raise or other financial windfall last year, you can adjust your retirement contributions to reflect the change in income. Or, if you regularly contribute the annual limit, adjust to reflect any new limit increases. This small, quick task can lead to a major payoff in the future. ♦
This article was written by Advicent Solutions, an entity unrelated to Kemp Harvest Financial Group. The information contained in this article is not intended to be tax, investment, or legal advice, and it may not be relied on for the purpose of avoiding any tax penalties. Kemp Harvest Financial Group does not provide tax or legal advice. You are encouraged to consult with your tax advisor or attorney regarding specific tax issues. ©2013-2016 Advicent Solutions. All rights reserved.
www.kempharvest.com
Employee Spotlight
Meet our Executive Coordinator, Candis Buehrle! When did you start working at KHFG? May 2015 Where did you grow up? North Wales, Pennsylvania What do you do for fun? I love to bake, but doing anything with my two children and fiance is always fun. What is your favorite part of the job? Our clients. I love being the one to greet them, see how they’ve been, what’s new in their lives, even what vacations they’ve Meet Candis’ family! Fiance Ryan, daughter Mackenzie, and son Connor.
been on. I really enjoy building strong relationships with them. What is one thing on your bucket list? To live Happily Ever After, just like in Disney movies!
Join us for this quarter’s discuss online security
Town Hall, where we’ll and safety. Frank Ableson,
owner and CEO of Navitend Technologies, will be our guest speaker, providing insight and answering any questions you may have. These informational events have proven to be extremely popular, so be sure to sign up fast. We would love to see you and your friends and family in attendance! Want more information on how to attend? Visit our Upcoming Events web page at www.kempharvest.com/upcoming-events/.♦
www.kempharvest.com
W
hat’s going on in Quarter 2?
Retirement Plain and Simple®
April
1 - April Fools’ Day 16 - Easter Sunday 18 - Tax Day
May
5 - Cinco de Mayo 14 - Mother’s Day 29 - Memorial Day
Have you heard Mark & Todd on the radio? Tune in every Saturday morning at 8:00am on WNPV AM1440 to hear Retirement Plain and Simple®!
June 6 - D-Day 14 - Flag Day 18 - Father’s Day
Find us online!
Quotes Corner
www.KempHarvest.com www.facebook.com/KempHarvest www.youtube.com/KempHarvest www.kempharvest.com/Harvest-News www.linkedin.com/KempHarvest Securities and advisory services offered through National Planning Corporation (NPC), Member FINRA/SIPC, a Registered Investment Adviser. Kemp Harvest Financial Group and NPC are separate and unaffiliated companies and are independently owned and operated. NPC does not provide tax or legal advice. NPC # 117251 03/19
www.kempharvest.com
Kemp Harvest Financial Group® 331 Ruth Road Harleysville, PA 19438
Are you interested in adding a friend or family member to our mailing list? If so, please complete the form below and return to us at:
Kemp Harvest Financial Group® 331 Ruth Road, Harleysville, PA 19438
Your Name: Contact Name: Address: Email Address: Relationship: Birthday Month: Please add my contact to your mailing list
Please add my contact to your email list
www.kempharvest.com
