Winston-Salem Business Magazine - April 2008 - (Page 28)

MONEY Matters | Financial Planning Workplace Benefits By Al Seymour ChFC , CLU , CRPC , CASL ® ® ® ™ , AEP Senior Financial Advisor Choosing workplace benefits can be confusing and costly. Finding the time to read the benefits package your human resources department offers and researching the facts about benefits can be all-together daunting, especially if you choose to do it alone. Each year benefits packages become more complicated and expensive. The average employee contribution to a company-provided health insurance has increased more than 143 percent since 2000*. Furthermore, health plan benefits continue to evolve from being all-inclusive to having very limited coverage. Benefit holders may also need to adjust coverage for life-changing events, such as a APRIL 2008 newborn, caring for elderly parents, or even a sick relative. And for many who are starting a new job the options can seem overwhelming when you are trying to compare costs and coverage to what a spouse’s employer might offer. Rising costs of workplace benefits may make these tough choices even more challenging. Too many people sacrifice their retirement contributions when making benefits selections during open enrollment. They cut the percentage of income going to a 401(k), in order to cover the higher health care premium. But that is a short-term solution. Although it might lead to a slightly larger paycheck now, in the long run you’ll likely face a bigger tax bill at the end of the year and a significantly smaller nest egg when you retire. While most people recognize their future retirement needs, most are unable to find and apply strategies to meet those challenges in order to alleviate financial stress levels. But as pension programs and retiree healthcare fall by the wayside, a solution to this is financial planning offered as a workplace benefit. Many people are increasingly recognizing how financial planning could be of assistance in making effective and balanced benefit choices. In fact, two-thirds of those questioned in a new survey by Ameriprise Financial said they would be very interested or moderately interested in one-on-one financial planning if it was offered through their employer. An even larger group (81 percent) said it would take advantage of a financial planning option if their company paid for a portion of it as part of the employee benefits package. Currently, less than one in five workers has a written, professionally prepared and paid-for financial plan. Those lacking a financial plan are more likely to cut back on savings and investments to cover increased out-ofpocket benefit expenses, which can be detrimental to future planning. A financial planner may help you make the best choices for your family and your retirement. A financial advisor can help develop a plan that helps you identify the best benefits decisions and retirement goals. * Hewitt Associates, LLC. Health Care Expectations: Future Strategy and Direction, 2004. This information is provided for informational purposes only. The information is intended to be generic in nature and should not be applied or relied upon in any particular situation without the advice of your tax, legal and/or your financial advisor. Neither Ameriprise Financial nor its advisors or representatives provide tax or legal advice. The views expressed may not be suitable for every situation. Consult with qualified tax and legal advisors concerning your own situation. Financial planning services and investments offered through Ameriprise Financial Services, Inc., Member FINRA & SIPC. © 2007 Ameriprise Financial, Inc. All rights reserved. 28

Table of Contents Feed for the Digital Edition of Winston-Salem Business Magazine - April 2008

Winston-Salem Business Magazine - April 2008 Contents Wake Forest University Smitty's Notes BBB Marketplace Ethics Awards Better Business Bureau A Winning Market Strategy ENFO Solutions Serving Winston-Salem for 80 Years Business Bites Money Matters Intelligent Communities Smart Marketing Local Business Calendar

Winston-Salem Business Magazine - April 2008

For optimal viewing of this digital publication, please enable JavaScript and then refresh the page. If you would like to try to load the digital publication without using Flash Player detection, please click here.