The Northeast Pennsylvania Business Journal, February 2020

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Business Journal NORTHEAST

PENNSYLVANIA

THE REGION’S AWARD-WINNING SOURCE OF BUSINESS NEWS AND INFORMATION

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NEW MONTHLY FEATURE: COMMUNITY SPOTLIgHT

February 2020 VOL. 35 NO. 2

Retirement planning in the digital age out emotional hunches. Professionals should select specific investment choices after comIn the digital age, retirement planning can pleting the appropriate due diligence. become a day-to-day roller coaster ride, but “Our job is not the occasional home run,” the tactical roots of investment remain firmly said Ramassini. “It’s to be slow and steady imbedded within traditional tactics for wealth and create a portfolio that can actually grow management. after retirement begins.” During 2020, investors Risk adversity is an issue with many will have the same opporinvestors, and portfolio managers should tunities that have existed help their clients understand this. Most for multiple decades, risk-adverse investors can be a bit malaccording to Rich Ramasleable, but fundamentally will not change sini, director of strategy their belief system. and sales performance Wealth managers must also consider the with PNC Investments. time horizon existing until client retirement. Ramassini He urges investors to This demands creation of an appropriate ignore gloomy predictions portfolio that respects the realities of the cliproclaiming they should limit or even leave ent’s situation. the investment markets, and noted anyone Ramassini emphasized that it is never too who recently exited missed on solid market late in life to start investing, provided that expansion that has taken place. the client understands the portfolio must be “Investors must realize they can control practical. Priorities must match reality and only the ‘controllable’ and must not let the never deny limitations of where the portfogloom and doom of the 24-hour news cycle lio’s funding will come from. and normal market swings get them down,” With many clients, drastic reduction in exsaid Ramassini. “We therefore recommend penses may be needed in order to provide the investors go on a restricted information diet financial input for the plan to meet the inveswithout burying their head in the sand.” tor’s goals. This also may include strategic According to Ramassini, the keys to downsizing that has been carefully evaluated investment success are discipline with parfor its true consequences. ticipation. Uncle Sam continues to encourage With federal debt levels now tallying $1 investment and savings, while Roth IRA and trillion per year and total federal debt exceed401(k) plans can create sizeable tax and wage ing $21 trillion, Ramassini is pragmatic about match advantages. the debt and its effects on the economy. He He also preaches that all retirement noted that Washington has been subsidizportfolios should be managed with conscious ing the nation’s economy regularly for many diversity, which is the opposite of playing decades by borrowing and spending, but by Dave Gardner

despite this mounting scenario it would be very difficult for Congress to unwind the financial commitment made to retirees for Social Security and Medicare. Instead of a sudden financial crisis with these programs, Ramassini envisions incrementally reduced benefits for those now with ages of 55 and older. He therefore urges clients to focus on their individual situations, while keeping only an eye on macro-economic trends. “History clearly proves that fear and worry can create bad decisions,” said Ramassini. “It’s true that we are going to pay a price for all of this government debt, but that day is not here yet and we must not let worry about the future sabotage today.” Savers before investors Investment should never become overly complex, according to Lou Ingargiola, president of the Ingargiola Wealth Management Group. He urges potential clients to consciously become savers before becoming investors, and he adds that estate planning and living wills are both key parts of retirement planning. According to Ingargiola, investors need to Ingargiola live below their financial means, avoid letting the daily “noise” of the media distract them and not react to normal market fluctuations as investment numbers move up and down. With young potential investors, he has noticed many millennials are now buying homes as they become savers. “Most of these millennial kids have been burdened with heavy school debt they had to get past, and that takes time,” said IngarPle ase se e Digital, Page 5

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Discover the Abingtons

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Valentine’s Day shopping outlook

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February is Heart Health Month

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