Help for DuPont Employees

DuPont announced this week that it will cut 1,700 jobs from the Wilmington, Delaware area. In a filing with the SEC, the company announced the cuts as part of a broader, 5,000 job downsize as the company prepares to merge with Dow Chemical.  The company expects to notify employees by January 4, 2016.
An icon for the Northern Wilmington business community for over 200 years, DuPont has employed generations of Delaware residents. The downsize and merger is part of a global trend of large corporations seeking to increase earnings by consolidation and selling off smaller, specialized business units.  Shareholders and activist have been pushing DuPont in recent years to make significant changes to the company balance sheet.

The Brandywine Valley Advisors Group will offer no cost workshops and seminars to those DuPont families that have been affected by this recent news.  B Michael Shanley has hosted monthly workshops in the area that help local retirees understand the complexity of social security, pensions, and IRA income strategies. These workshops will focus on how to plan a retirement that can provide guaranteed lifetime income to families, without fear of economic downturn, poor investment returns, and health problems.  A schedule of workshops will be released soon.

Please visit www.BrandywineValleyGroup.com for more up-to-date information.

2013 Retirement Survey - Bracing for A Retirement Crisis

The annual EBRI retirement report was published this week and it has trends that are pointing to a retirement crisis in this country.  Even as the equity markets in the US are hitting all time high levels, the survey is reporting that Americans are just not prepared for the golden years.  The survey highlights that 28% of Americans have no confidence that they will have enough money to retire comfortably.  This is the highest level of non confidence that the survey has reported in its history.

Why is retirement confidence hitting all-time lows?

• Americans are living longer.
• Employment worries and delayed retirements.
• Worries about Social Security and Medicare Benefits and Costs.
• Lack of growth in Retirement Accounts.

The report is trending toward a delay in workers retirement date, citing the economy (22%) and lack of faith in Social Security and Government (19%) as the top reasons.  The trend is heading back to the all time high, as seen in 2009 after the credit crisis.  A downturn in the stock market could again force soon-to-be retirees into a holding pattern.  The report does not address the current low yield environment but does point out that  only 42% of retirees feel confident that their retirement account will grow.  

Expenses, Expenses, Expenses.....

The baby boomers are leaving the workforce in record numbers, estimated at 10,000 per day.  The EBRI report is pointing out that many have not identified the true cost in retirement.  The survey indicated that only 67% now feel they can confidently meet basic expenses in retirement, down from 80% last year.  The numbers are similar in the estimation of covering the cost of medical expenses, down 4% from the high of 71% in 2012.  Long term care cost seem to be the elephant in the room, with only 44% confident they have this problem covered in retirement.  

Failure to Plan is a Plan to Fail

Only 23 percent of workers and 28 percent of retirees report they have obtained advise from a professional advisor who was paid through fees or commissions. Of these workers, 27% followed all of the advise, but more disregard some of it and followed most (41%) or some(27%).  If this pattern was similar to following the advise of a doctor, retirement income would not be a big issue for most.  Take the time to consult professional advisors. Baby boomers have to plan for 25-30 years of guaranteed income, most not having defined benefit (pension) plan, debt free home, and inflation protected savings. 

To RetireSmart!:

• 45- 55 year old workers should be creating a supplemental income to Social Security, remember 2033 is coming and it is YOUR problem. 
• 55-60 year old workers should have an expense and income plan in place and in conservative investment or annuity programs.  
• 60-66 year old pre- retirees should have a housing plan, health care plan, income plan, Social Security Plan, LTC plan, tax plan, transition plan, and the important distribution plan.
• 66 plus - Follow the plan, if any questions, follow the plan!  Enjoy!

Call us today at 484-881-8899 and request our guide, "10 Things to Know about Planning YOUR Retirement"  Check our event schedule for a workshop in your area HERE.