According to an international survey of over 18,000 people from 17 countries, with more than 1,000 Americans included, researchers at HSBC noted that one of the main difficulties to maintaining a retirement savings plan is that over half of respondents in their 60s said they are still supporting other people financially. Shockingly, that percentage actually rises for those in their 70s, with nearly two-thirds, 64%, saying they actively support other people on a daily, weekly or monthly basis.
Supporting others is not the only way retirement savers run into trouble, the report notes. While only 20% of respondents said they expected to still be paying off credit cards when they retire, only 5% said they expected to still be paying off other loans, 40% of those respondents not yet retired are still currently paying off credit cards. Another 12% are currently paying off other debt, as well.
For more on this important research, check out our new article on Thursday.

Saving early might not be enough to ensure a comfortable retirement, and continuing to save during difficult financial times is just as important as when a person begins saving for retirement. According to a global report by HSBC analyzing responses from over 18,000 people in 17 countries, 14% of those not-yet-retired haven’t started saving for retirement, with a whopping 12% in their 50s. For those who have started saving for retirement, over one-third, 35%, have needed to stop saving or have had trouble meeting their savings goals. It is these “lost years” of savings that can destroy a successful retirement savings strategy, the researchers noted.
Additionally, the report findings show that while current retirees, globally, started saving for retirement at age 31, those who have yet to retire began saving at age 29 and plan on working an additional five years compared to their already-retired counterparts. This additional seven years of savings might still not be enough because of other factors eating into retirement savings and thwarting plans.
For more on this important research, check out our new article this Thursday.

by Ryan W. Smith
Summer is winding down and the Dog Days are here, which of course means college classes are about to start again with a whole new crop of freshman on campuses across the nation. Paying for college has become one of life’s major expenses, alongside buying a house, buying a car and saving for retirement. However, even after a family has worked with a financial advisor to help their college student pay for school, filled out the FAFSA, filed loan papers, paid tuition, emptied out the 529 accounts, registered for classes and purchased textbooks there are a plethora of mistakes that she can make that can have long-term impacts on her financial future.
While analytical tools like AdvisoryWorld’s SCANalytics program can assist parents in finding the best investment plans to help make these large payments, there is no program that can help a new college student with day-to-day financial management. Freshman year is a year of significant change for most students. It marks the first steps into independence, the first time away from home, the first time she is being recognized as an adult. However, because entry into college also has so many social and academic adjustments as well, financial challenges often become overlooked even though financial decisions are made on a daily basis.
Multiple studies have shown that establishing good financial habits as soon as possible is very important. Since college is most likely the first time a student has had control over her everyday finances, early in freshman year is the perfect time to learn these good habits.
Here are some of the most common mistakes college freshman should try to avoid, like the egg salad sandwiches in the dorm cafeteria:
1) Not Creating a Budget
The vast majority of college freshman have never created a budget. They have never needed to pay bills, nor have they needed to make sure they have money for food and other necessities. They do not know, yet, how to stretch a dollar because payday isn’t for another week and a half. They have not yet learned to keep track of their expenses and keep their receipts. A budget helps this learning curve shrink dramatically.
This does not even yet factor in credit cards. Although laws have been passed at the federal level and by many states, credit card companies are still finding new and inventive ways to make sure that broke college kids are able to get plastic. And those freshman students without budgets, without experience, without resources, are typically the easiest targets. According to a 2013 Fidelity study, the average college graduate receives his diploma with $3,000 in credit card debt.
2) Overspending
Hand-in-hand with the dreaded “Freshman 15” where the first forays of independent food choices quickly lead to weight-gain, the first experiences with financial independence often lead to dramatic overspending. Even if a student avoids the tempting free t-shirts given with credit card applications, it is difficult to avoid spending too much money when first away at college.
Keeping receipts and tracking spending is most likely a new process for most incoming college freshman, but this simple habit can greatly assist in reducing spending and eliminating unnecessary expenses.
3) Too Many Credit Cards
It is inevitable, sadly, that college students end up with credit card debt by graduation. As mentioned above, 2013 college graduates walked away from school with their diplomas and $3,000 in credit card debt, on average. There are ways that students can utilize credit in a positive way, but without much high school financial education, without parental supervision and the ease to apply by which student can apply for and receive new credit lines, most students will not get the opportunity to see the positive side of credit until well after college.
4) Overlooking Discounts and Other Types of Free Money
There are many options for students already in college to obtain additional funding when work hours might not be available. Student Discounts are nearly as common as Senior or Military discounts and available on all kinds of items and services. There are also plenty of scholarships that are only available to students already enrolled in classes, though many students are not aware of them.
5) Not Using Online Banking
Online banking has effectively rendered going to a branch obsolete. For tech-savvy college freshman, online banking is a no-brainer. But many don’t realize the wealth of information available on most bank websites to assist inexperienced students with money management. Students can monitor spending history, pay bills at the site for easier tracking and also to deposit checks, all tools to make financial management easier to control.
6) Buying the Wrong Textbooks
One very common mistake that college freshman will make, especially if a college is located near an affluent area, is to buy only new textbooks. Most experts now agree that paying full price for textbooks is unnecessary. Used versions of the books can easily be found online. Some professors will ask students to only read a few chapters of a text book or to buy several books for a single class so a more cost-effective way to access that knowledge would be for the student to check that book out from the college library.
7) Using non-Bank ATMs
It might not dawn on most college freshman that bank fees are regularly applied to any non-brand bank ATM withdrawal, according to a study by Bankrate released in 2015. This same study also showed the ease by which students could use cash-back features at checkout counters to avoid these fees without having to go a bank branch to avoid fees for withdrawing their own money.
8) No Emergency Savings
Bad things can happen, even in the insulated world of college. Having an emergency fund is important for college students who often have expensive new computers and older vehicles to service. Those who are homesick might need additional money for a bus ticket home.
9) Being Afraid to Ask Questions or Advice
The first taste of real independence is a learning experience on all fronts, finances included. The more readily available assistance is, the more likely a student will ask questions. Parents, mentors, trusted high school teachers, friends, older siblings can all be valuable resources for first-time students.
Many students taste independence for the first time when heading off to college and the experience can be overwhelming. Having the freedom to choose is not necessarily the same as freedom itself. Without experience, knowledge loses power and without knowledge experience leads down dead-end paths. For students who utilize their resources effectively, college can be the experience of a lifetime or for those who don’t learn quickly enough, lifetime of debt and cascading poor decisions.
But no matter which direction they head in life financially, it is the first few months of freshman year where habits can be made, both good and bad.

The vast majority of college freshman have never created a budget. They have never needed to pay bills, nor have they needed to make sure they have money for food and other necessities. They do not know, yet, how to stretch a dollar because payday isn’t for another week and a half. They have not yet learned to keep track of their expenses, to track their expenditures. A budget helps this learning curve shrink, dramatically.
Another method is utilizing online banking. For tech-savvy college freshman, online banking is a no-brainer. But many don’t realize the wealth of information available on most bank websites to assist inexperienced students with money management. Students can monitor spending history, pay bills at the site for easier tracking and also to deposit checks, all tools to make financial management easier to control.
For more on this topic, check out new article tomorrow.

Yes, credit cards are still a major financial issue for most college freshmen away from home for the first time. There are ways that students can utilize credit in a positive way, but without much high school financial education, without parental supervision, and the ease to apply by which student can apply for and receive new credit lines, most will never get the opportunity to see the positive side of credit until well after college.
Although laws have been passed at the federal level and by many states, credit card companies are still finding new and inventive ways to make sure that broke college kids are able to get plastic. And those freshman students without budgets, without experience, without resources, are typically the easiest targets. According to a 2013 Fidelity study, the average college graduate receives his diploma with $3,000 in credit card debt.
But at least they got a free t-shirt.
For more on this topic, check out our new article on Thursday.

Freshman year is a year of large changes for most students. It marks the first steps into independence, the first time away from home, the first time she is being recognized as an adult. However, because entry into college also many social and academic adjustments as well, financial challenges often become overlooked even though financial decisions are made on a daily basis.

Multiple studies have shown that establishing good financial habits as soon as possible is very important. Since college is most likely the first time a student has had control over her everyday finances, early in freshman year is the perfect time to learn.

Some of the most common mistakes made by college freshman include:

1) Not Creating a Budget
2) Overspending
3) Overlooking Discounts and Other Types of Free Money

For more on this topic, check out our new article this Thursday.

by Ryan W. Smith
Nearly all married couples argue about finances from time to time. In years past, disagreements about finances were cited in many studies as a primary reason for divorce. However, in recent years it appears this trend has dissipated greatly, at least according to a recent report from Ameriprise Financial. Finances are no longer a deal-breaker for many American couples with over three-quarters, 77%, of couples reporting they are on the “same page” with their finances.
In fact, seven in eight couples, 88%, told Ameriprise that they were happy with the division of financial responsibilities in their household, with 68% of couples saying they communicated well about finances with their spouse. Most couples also rated themselves as confident and engaged in managing their finances.
While other studies might cast doubt on Americans’ actual ability to manage money, Ameriprise’s report centered on communication within couples, not debt, savings, retirement preparation or financial acumen. 1,514 Heterosexual and same-sex couples, married or living together for more than six months, between the ages of 25 and 70 with more than $25,000 in investable assets, were interviewed for the survey by Artemis Strategy Group, on behalf of Ameriprise of Financial. One result of the research was clear: the happiest couples know how to work through their financial disagreements.
According to the report, the happiest couples have five main financial habits:
1) Priorities
More than 50% of surveyed couples said that money is an important factor in their relationship, while only 15% said finances were not important.
2) Goal Agreement
Nearly seven in ten couples, 68%, said their communication on financial matters was “very good” or “perfect,” according to the report. Further, 82% of couples have discussed retirement and said they have similar goals on their approach to saving for retirement and lifestyle expectations during their golden years.
3) Spending Limits
The vast majority of respondents, 66%, said that any major purchase, defined by those surveyed as $400 or more, needs to be discussed and agreed upon.
4) Shared Accounts, Shared Responsibilities
For couples with success in discussing financial matters, nearly all said that if one partner keeps money in a separate account, the other partner must be aware of that account. However, by and large most couples happy with their financial communication felt that joint finances like bank accounts, retirement or investment accounts, are a must.
5) Retirement for Two
Out of the 68% of respondents who said they communicated well about finances with their partner, 92% said that both partners agreed on their retirement savings target.
The study also looked at financial disagreements and their causes. While 82% of couples said they worked hard to quickly resolve financial disagreements, 31% said they argued about money at least once a month. The most common sources of disagreement, according to the study:
1) Major Purchases
34% of couples reported regular disagreements about major purchases.
2) Children
24% of couples with children said they regularly disagreed about financial decisions where their children were involved.
3) Partner Spending Habits
23% of couples said they regularly disagreed about how one partner was spending money.
4) Investment decisions
14% of couples in the survey said they regularly disagreed about important investment decisions.
Of the couples who disagree about finances, 40% said that a financial advisor helped them make financial decisions regarding sensitive subjects where tension might have otherwise been created. Even the happiest couples, those who were on the “same page” financially, told researchers that financial advisors, or other neutral third-parties, were particularly effective in helping the couple deal with financial disagreements.
Analytical tools like AdvisoryWorld’s SCANalytics data-analysis tool or the Advisor Proposal Generator can be of great assistance to financial advisors looking to assist clients with financial disagreements or miscommunication issues. Programs like these will allow for multiple scenarios to be shown side-by-side in the same report. This could greatly assist the couple by making the ramifications of their decisions a bit clearer to both parties, hopefully helping to deescalate tensions.
Researchers pointed to four strategies that couples can use to help improve communication about finances.
1) Discuss financial issues extensively before getting married or cohabitating
2) Agree, or at least come to a mutual understanding, of each partner’s role and responsibility to the couple’s finances.
3) Make investments and retirement goals a priority in the relationship
4) Use a joint financial advisor to tailor a plan specific to the couple’s financial reality and goals.
One key takeaway from the study that even the researchers didn’t seem to highlight is that 73% of respondents in this survey felt that their individual financial management style is dramatically different from their partner’s style. Yet, more than of the couples stated that their relationship has made them more financially responsible, with 54% also claiming that the role of money in their relationship has improved over time.
source:
https://www.ameriprise.com/retirement/insights/ameriprise-research-studies/couples-and-money-study/

According to a recent report from Ameriprise Financial, finances are no longer a deal-breaker for many American couples with over three-quarters, 77%, of couples reporting they are on the “same page” with their finances.
One of the clearest results of the research was that the happiest couples know how to work through their financial disagreements. According to the report, the happiest couples have five main financial habits:
1) Priorities
2) Goal Agreement
3) Spending Limits
4) Shared Accounts, Shared Responsibilities
5) Retirement for Two
For more on this research into love, money and happiness, check out our article tomorrow.

According to a recent report from Ameriprise Financial, finances are no longer a deal-breaker for many American couples with over three-quarters, 77%, of couples reporting they are on the “same page” with their finances. Not everything is roses, however, with 31% of respondents saying they argued about money at least once a month.
The researchers pointed to four strategies that couples can use to help improve communication about finances.
1) Discuss financial issues extensively before getting married or cohabitating
2) Agree, or at least come to a mutual understanding, of each partner’s role and responsibility to the couple’s finances.
3) Make investments and retirement goals a priority in the relationship
4) Use a joint financial advisor to tailor a plan specific to the couple’s financial reality and goals.
For more on this research into love, money and happiness, check out our article on Thursday.