Those between 30 and 50 should find themselves ranging from moderately aggressive to moderately conservative.
Edison, NJ (PRWEB) April 6, 2010
CheckPoint HR, the trusted ally in web-based Human Resources management for small to mid-sized companies, today honors National Employee Benefits Day by offering retirement options, goals and advice. According to Donny Sheinwald, Director of Retirement Services at CheckPoint HR, everyone from millenials and baby boomers should take the time to examine their retirement strategies, regardless of their age or number of years left.
From an organization's perspective, the first step to any retirement strategy is understanding a plan's demographics - age, salary, retirement goals and investment styles. A plan sponsor can create an appropriate retirement program that best fits employees' needs, as well as a company's budget.
"When your employees think about retirement, they all have different needs, concerns and expectations," explained Sheinwald. "Regardless of how many years they have until retirement, every participant must develop a personal strategy that should factor in their investment style, risk tolerance, age, etc. From this, they can select an investment plan and appropriate asset allocation."
According to Sheinwald, one way to determine investment style is to complete an online investment quiz. In a few short minutes, employees can find out exactly what asset allocation they fit into - anywhere from conservative to aggressive.
"Generally speaking, participants under the age of 30 will find themselves with a recommended aggressive allocation," said Sheinwald. "Those between 30 and 50 should find themselves ranging from moderately aggressive to moderately conservative."
Individuals that have many years until retirement should consider an aggressive allocation. While the financial markets can fluctuate, investments are in a better position to appreciate and risk can be mitigated over the long-term. Around the age of 50, capital preservation becomes important and deep market fluctuations may not rebound before retirement - forcing older employees to have to continue working. One way to overcome this potential hurdle is to consider Guaranteed Income plans. This option is designed to provide a fixed amount of money for the rest of your life.
"In addition to asset allocation, a retirement program should have many of the latest features such as a Roth 401k and web access to complete any type of transactions," said Sheinwald. "For employers, there are more plan designs than a 401k. By sitting down with a benefits administrator in your company, or retirement advisor, they can work to develop the most appropriate retirement program."
About CheckPoint HR
CheckPoint HR, based in Edison, New Jersey, is the trusted ally in web-based Human Resources management for small to mid-sized companies. The company's complete portfolio combines payroll, benefits and HR management services with a web-based Human Resource Management System (HRMS) technology platform to offer customers an affordable and centralized solution. This allows small to mid-size companies to improve efficiencies, streamline operations and reduce costs. Clients include The Applied Companies, Innophos Holding, Inc., New York Organ Donor Network, Hamon USA, Kyowa Pharmaceutical, and Starwood Capital. For more information on CheckPoint HR, please visit http://www.CheckPointHR.com or call 800.385.0331.
# # #