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Retirement Planning: Did Our Grandparents Have It Better?

By U.S. News & World Report

Mobile technology and digital innovation have simplified many aspects of modern life, with things like grocery shopping, vacation planning, and even banking and investing now managed directly from a smartphone or desktop — no travel, phone call or human interaction necessary.

But when it comes to retirement planning, despite technology’s advancements in making the markets more accessible and transparent, many Americans feel they’re at a disadvantage today compared to previous generations.

In fact, Capital One Investing’s Financial Freedom Survey found more than three-quarters (76 percent) of Americans believe saving for retirement is more challenging now than it was for their grandparents’ generation. Sixty-five percent say it’s grown more complex and confusing, with many attributing struggles to uncertainty about Social Security (62 percent), distrust of the financial industry and markets (58 percent), and fewer pension plans (54 percent).

[See: 20 Awesome Dividend Stocks for Guaranteed Income.]

The good news is there are newer industry players committed to helping everyday investors build a retirement plan by offering accessible “hybrid” investing experiences that leverage digital investing technology while also offering affordable access to a financial advisor.

And while many Americans believe financial advisors are out of reach if they aren’t established, high-net worth investors, there are advisor tools and resources available to help investors of all levels create a holistic financial plan, no matter how much you have to work with. Here we’ll discuss the benefits of using a financial advisor, and how they can help you prepare for retirement so you can enjoy your golden years, just like Grandma did.

An advisor makes sure you don’t have to go it alone. Whereas generations past relied on pensions and Social Security, most 21st century investors don’t have these luxuries. Today’s investors are fully responsible for ensuring they’ll have enough saved to retire comfortably, and they’re living longer (requiring them to plan for more years of retirement). That’s a pretty scary thought for many of us, but a seasoned financial advisor may help you build a long-term plan to reach your goals and get on the road toward financial freedom.

There’s no right age to take advantage of a relationship with a financial advisor. The earlier you begin discussing your long-term goals with an advisor, the better equipped you’ll be to tackle any financial roadblocks that may pop up in the future.

If you’re concerned you can’t afford financial advice, look for an advisor who prioritizes transparency and communication who’ll clearly walk you through pricing. Most investors are looking for an advisor who’ll charge a consistent, low fee for their unbiased advice (meaning they don’t get paid differently for investing your assets in certain products). Also ask about low-cost index exchange-traded funds that can help keep investment expenses low so the majority of your dollars can go toward growing your nest egg.

[See: 10 ETFs That Pay Sky-High Dividends.]

An advisor can help you keep a cool head during turbulent times. From major life events that change our financial needs to market events that create volatility, it can be easy to feel overwhelmed about your investment choices.

Given today’s round-the-clock exposure to news and market activity, it’s often more difficult to tune out short-term swings and focus on end goals than it was for our grandparents, but a financial advisor can help you navigate through changes and keep you on course. In fact, Capital One Investing’s survey found three-quarters of investors want to hear from their advisor during times of market volatility. Don’t underestimate the positive impact hearing from an expert you trust can have on helping you understand what’s driving markets.

An advisor can help you learn about digital investing options. Remember to take advantage of what our grandparents didn’t have. While financial planning may have seemed simpler way back when, today there are a great selection of tools and products aimed at making investing transparent, straightforward and accessible — but the challenge is finding the right tools that work for you.

Leverage your advisor’s professional insights to determine which digital tools can help you get a handle on retirement planning. Set aside time to customize your tools and resources so they reflect your personal risk tolerance and long-term goals.

[See: 10 Long-Term Investing Strategies That Work.]

Investing today may be more complex and come with a different set of challenges than what previous generations faced, but a trusted professional can help you think holistically about your future, offer advice and perspective, and help you leverage cutting-edge tools to establish and follow-through on your plan.

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Retirement Planning: Did Our Grandparents Have It Better? originally appeared on usnews.com

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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