It’s time to estimate how large your retirement nest egg will need to be and how much you need to save each month to buy that goal. This Financial Planning step is critical. The vast majority of people never take this step, yet it is very difficult to save adequately for retirement if you don’t at least have a rough idea of how much you need to save every month.

There are numerous worksheets and software programs that can help you calculate approximately how much you’ll need to save. Professional financial planners and other financial advisors can help as well.

Regardless of what source you use, here are some of the basic Financial Planning questions and assumptions the calculation needs to answer:

MFS Announces the Formation of Defined Contribution Investment Only (DCIO) Business Development Office

Twenty Year MFS Veteran Matt Gannon to Lead DCIO Initiative

BOSTON (October 28, 2008) – MFS Investment Management^® (MFS) announced today that it has completed the formation of a business development office for the defined contribution investment only (DCIO) marketplace. The initiative will be spearheaded by Matt Gannon, senior vice president and director of DCIO and Strategic Alliances at MFS Investment Management.

“MFS brings more than 80 years experience in managing money, working with financial advisors,” said Martin Beaulieu, managing director and head of Global Distribution for MFS.  “Our value proposition is unmatched in this marketplace: a long history of working with advisors, of managing money and understanding the needs of plan sponsors and plan participants.  We believe we can support advisors – through our products, our people and our experience – and help them grow their DCIO retirement practices.”

Gannon, previously the director of Dealer Relations for the firm, leads a collaborative effort across MFS distribution groups, supported by a team of dedicated DCIO investment specialists, a specially trained sales desk and more than 120 sales and relationship management professionals with experience servicing the retirement investing requirements of advisors. 

“Formalizing a DCIO initiative was part of a natural transition for MFS. We were already acting in this capacity for various insurance company, retail, and institutional platforms,” said Gannon.  “Following the sale of our proprietary recordkeeping platform to The Hartford last year, MFS made the strategic decision to be a pure asset manager and to provide investment solutions across various markets and platforms, including DCIO. Advisors serving the DCIO marketplace want a trusted partner with a longstanding, proven track record of both investment acumen and support of advisors serving the retirement market.”

MFS has the products, tools and resources to service the DCIO marketplace.  MFS investment options, including mutual funds, subadvised portfolios, and collective investment trusts (CITs) are available on major investment platforms, including The Hartford, ING/Citistreet, Principal, Nationwide, Fidelity, Prudential and Charles Schwab, in addition to others. MFS sales and client service personnel have access to the latest analytic tools to help provide investment support with analysis and performance attribution for advisors.  Furthermore, MFS can support advisors with a full array of marketing collateral, whitepapers and other business building programs to help grow and build their retirement business offerings.

“Our organizational structure and service delivery model were already built and staffed to support this opportunity.  We feel we are well positioned from the outset to grow assets in this market,” said Bill Loesch, vice president and director of Investment Only Marketing. “MFS has prior experience as a defined contribution service provider having previously provided recordkeeping services to over 6,000 plans.  Today, we continue to serve the DC market as an investment manager, working with retirement platforms, financial advisors, TPAs, and consultants, helping them service a growing and multi-faceted clientele.”

MFS offers mutual funds and other investment strategies in equity and fixed income products, supported by a global team of portfolio managers and analysts. MFS has investment research personnel based in London, Singapore, Tokyo, Sydney and Mexico City in addition to its Boston headquarters location.  MFS traces it origins to 1924 and the creation of the United States’ first mutual fund. Over time, MFS has been a leading innovator in developing new products, including previously launching the first high yield municipal bond fund and the first global balanced fund and more recently creating “outcome-oriented” products, such as its line of target-risk, target-date, and other asset allocation funds. MFS manages approximately $183 billion in assets on behalf of more than 5 million individual and institutional investors worldwide as of June 30, 2008.

Will You Have Other Sources of Income?

For instance, will you receive a pension that provides a specific amount of retirement income each month? Is the pension adjusted for inflation?

What Savings Do I Already Have for Retirement?

You’ll need to build a nest egg sufficient to make up the gap between the total amount of income you will need each year and the amount provided annually by Social Security and any pension income. This nest egg will come from your retirement plan accounts at work, IRAs, annuities, and personal savings.

Contact Atlantic Financial

Do you have Financial Planning questions? Please call 1-800-559-2900, or use this form to contact Atlantic Financial:

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Sources and Disclosures

Source: Department of Labor (www.dol.gov)

Financial Planning and Investment Services

Atlantic Financial has been serving clients since 1994.  Atlantic Financial enjoys a solid reputation for service, selection and value. We can review your wealth management plan, assist with your or 401k / IRA Rollover and assist you with global wealth management.