SETTING FINANCIAL FOUNDATIONS

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Reaching retirement goals through investing

Story and photo by Dalondo Moultrie

Like most anything else worth having, great financial standing after retirement starts with a good plan.

Developing that plan is what financial advisor Kathy Nossaman of Edwards Jones does for her clients. Making it work is tougher and requires focus on the part of the client, she said.

Creafting the best plan involves being open and honest with an advisor and taking a detailed look at the big picture. In figuring out that picture, it helps to determine what things a person or couple wants to own later in life, telling that to the advisor and letting the advisor work, Nossaman said.

“My job is to show them the pros and cons and how they fit them depending on what their longterm goals are,” she said.

One of her personal secrets to being good at what she does and helping the clients is breaking down the information into “bite-sized pieces so people can understand,” Nossaman said. She tries to avoid using stock broker terms or fluffy financier language.

Just plain English helps clients stay on track and not be intimidated by the process of making a better future for themselves, Nossaman said.

Plans work out best when people prepare for retirement well before retirement age, she said. The bulk of most people’s more profitable years are earlier on in life and what they do at that time can affect how they live out their later years in retirement.

She finds a lot of people don’t think about how they spend money, Nossaman said. That can lead to issues.

“People need to recognize that rarely do you make as much money in retirement as when you’re working,” she said. “You cannot outlive your money. The worst-case scenario is you run out of money before you die and somebody else has to pay your bills.”

Once a client has chosen to work with her, Nossaman said she chooses to invest their money in the most beneficial way to achieve that individual client’s goals.

You cannot outlive your money. The worst-case scenario is you run out of money ... and somebody else has to pay your bills.

Financial Advisor Kathy Nossaman - Edward Jones

She tries to remove the guesswork and worry for investors. Usually it’s the people who have been good savers in their earlier years who make the better investors, sticking to the plan and reaping the benefits.

One way of achieving that is buying good stocks, making good investments in quality assets and letting them appreciate over time. Panic buying and selling as the market fluctuates generally is a bad call when someone is in it for the long haul and planning to fund a comfortable retirement.

“Nobody’s ever told me, ‘I should’ve spent more money when I was younger,” Nossaman said. “But I do hear all the time, ‘I wish I had started saving earlier’ or ‘wish I knew what you know earlier.’”

Once clients begin to learn from their advisor, they better understand how to make wise decisions for the future. Those decisions often include preparing for health care, longterm care and emergencies, Nossaman said.

Also important is setting up a will or trust. Planning for what happens to an estate upon your death, is a solid way of looking out for the people you leave behind, she said.

No matter when a person starts, reaching retirement goals is possible, but that means setting realistic, attainable goals, Nossaman said. She is available to help and enjoys preparing people for the later years of their lives and helping them navigate them once they reach those ages.

“It’s not my money but I treat it like it is,” Nossaman said. “Actually, I treat it more like it’s my mother’s money.”

– 48% of Americans have less than $10,000 saved for retirement. And that includes Baby Boomers—the ones who are nearing retirement age! Even if you keep $10,000 invested for 30 years at 10% growth, you’ll wind up with just $175,000 for retirement. That’s not enough to cover your medical expenses, much less your housing or other basic needs. Scary!

– Almost 35% of women have zero retirement savings (compared to 15% of men). Ladies, listen up! Women make less than men on average, but that doesn’t mean you shouldn’t contribute to your retirement fund. Some of you ladies may be stay-at-home moms without a 401(k) to contribute to. No matter your situation, you can’t let any rationale keep you from planning for the future. There are lots of options for you.