Thursday, October 23, 2008

News You Can Use: Workers concerned about finances, but sticking to their financial strategies

Concerned about financial strains, employees want more information about how to handle their retirement plans and personal debts.

Debt, retirement planning and budgeting are the top concerns of employees calling a financial helpline run by Financial Finesse, a Manhattan Beach, Calif.-based financial education firm.

Most frequently, they are seeking information about how to deal with creditors, strategies to reduce debt, whether they are eligible for a hardship withdrawal in their retirement plan, the pros and cons of taking a loan from their retirement plan, and how much they should be saving for retirement.

Amid the crisis in the national economy, basic budgeting questions are up 6% over the same period last year, with workers seeking information about how create a household budget, make ends meet and manage financial affairs after a divorce.

Liz Davidson, CEO of Financial Finesse, says people are being more proactive about getting control over their finances. “People are getting back to the basics and what can I do today” to get in better financial shape,” she adds. “People are coming to reality, what they can and cannot afford.”

Meanwhile, a new survey from the Certified Financial Planner Board of Standards reveals that 78% of investors are sticking to their existing financial planning strategies, while 57% are reviewing asset allocation and 48% are reviewing financial goals. Another 45% are moving assets to lower-risk positions, while 37% are rebalancing their portfolio.

Clients of financial planners maintaining their long-term financial goals, with 45% moving their assets to lower-risk investments and 40% taking advantage of the lower stock prices.

No comments: