How To Plan For Saving & Retirement

“Low wages, long-term unemployment and underemployment have prevented two-thirds of Americans from adequately saving and planning for retirement”, as reported by Sharon Epperson Contributor with Finance Yahoo.

Screen shot 2014-02-25 at 9.47.50 PMEllis Liddell, President of ELE Wealth Management with over 30 years of experience in the financial arena offers his expertise on financial planning.

Biography
Mr. Liddell started Ellis Liddell Enterprises 33 years ago, and is also an author.  From 1990, to the present, he has been lecturing on a national level and is a highly sought-after inspirational speaker. His brand of financial planning is uniquely rooted in sound financial and Biblical principles.  He presents complex financial information in layman’s terms, giving clients and seminar participants a wealth of knowledge, some homespun humor, and common sense.                                                

Mr. Liddell is a regular guest on WCHB 1200-AM’s “Inside Detroit” radio program hosted by Mildred Gaddis, and has appeared on television programs as an expert on investments. In Dallas, he gave financial tips on Fox 4’s “Insight”, and has appeared on CBS Channel 11.  He has appeared in Detroit on Channel 7 Action News and on PBS television’s America’s Black Journal. He has also been featured in the Bermuda Times, as a contributing writer for The Dallas Weekly Newspaper, and has been quoted in Upscale Magazine and the Michigan Chronicle.

He is the recipient of numerous awards, including a Proclamation from both the City of Atlanta and Rutherford County in Tennessee, and has also received a key to the city of Greenville, South Carolina. In 2006 and 2007, Mr. Liddell became the first African-American to be named the top producer at a major investment firm.

Among his most recent accolades is the honor of being the recipient of the ‘Entrepreneur of the Year’ Award from the Alabama A&M University Alumni Association. In recognition of this honor, he also received:

  • A Resolution from the Wayne County Commission, District 2
  • A Certificate of Tribute from former Governor, Jennifer Granholm, and Lt. Governor, John Cherry, Jr.
  • A Certificate of Congressional Recognition from U.S. Senator Debbie Stabenow
  • A Certificate of Appreciation from Mayor of Detroit, Dave Bing,
  • A Letter of Acknowledgement from House of Representatives member, John Conyers, Jr.
  • The ‘Spirit of Detroit Award’ from the Detroit City Council.

Mr. Liddell earned a Bachelor’s Degree in Business and Education from Mississippi College.  His motto, “Wealth is our legacy, pass it on” is at the forefront of his decision to serve the community and to create Wealth Management in everyone’s household. When not working with clients, he enjoys traveling, golf, reading and spending quality time with his family.

Mr. Liddell suggests the following for getting started:
First, you have to make it a game.  Visit our website, (www.elewealth.com), to review options listed under the ‘Art of Savings.  For example, you can start saving one dollar ($1) per day based on a 30 day month.  On the first day, save one dollar, on the second day you save two dollars ($2), on the third day three dollars ($3), and so forth, until the 30th day.  You’ve saved $30!  Then you repeat the process for each month.  If you continue this process for an entire year you will be surprised that you’ve managed to save just over $5,500.

Should you invest aggressively to play catch up?
Ideally, you want your savings to be 10 percent of your gross pay.  However, if you found yourself going into each year and your New Year’s resolution is, “Next year I’m not going to be broke on New Year’s Day.”  To get something different, you have to do something different.  Most of us understand that the best way to save money is a concept called ‘Out of Sight, Out of Mind’.  This means setting up an auto-deduction program so that funds come out through your employer or your checking account, automatically.

Should you borrow from your retirement funds?
It is my fundamental belief that money set aside for retirement should remain in the account until retirement.  However, we also call this our ‘foot in the grave account’.  These monies should not be touched unless your economic circumstance reflects you having one foot in the grave and if you don’t use these monies you will die a living death.

What are the benefits of having an insurance policy?
The benefits of having an insurance policy are two-fold.  On the one hand, you have Whole Life Insurance, whole life is designed to build cash value in a very similar way that our home builds equity.  With both the whole life insurance and your home, expenses are paid first.  So the cash value build up in a life insurance policy occurs, in many cases, after the 5th policy year.  Some policies have what they call- accumulation value, which in a sense tracks the amount of money paid into the policy. After about 12 years, often times the accumulation value and the cash value will mirror each other.  On the other hand, you have Term Insurance.  Term insurance is related to renting an apartment.  When you need a place to stay and your money is funny and your change is strange, term insurance provides a very economical solution.  In the case of policy loans, it can only be accomplished from whole life policies that build cash value.

Can you borrow from the policy and are there any penalties?
There are no penalties for borrowing.  However, you will pay back a fixed interest rate.  Should you choose not to pay the policy loan back the unpaid balance will be deducted from your death benefit.

How do you find a reputable financial advisor?
The essential thing to remember is that you are forming a relationship.  In any relationship there are certain qualities that must exist:

1) Do you like this person?

2) Are they qualified to coach you in an area that represents your financial needs?

3) Do they have the staff to support them in supporting you?

What are the main steps to follow to start planning now for retirement?
After any individual secures employment, setting up the proper retirement plan should be one of the first steps to a long career.  Anyone who has ever gone into a battle, and life is a battle, is well aware that you need an exit strategy.  To work all your life and never prepare for retirement is child’s play.

What services does ELE Wealth Management offer?
Our current offering of services are Advice (Coaching), Insurance, IRA Rollovers, Mortgage, Retirement, and Wealth Management.

Do you offer free financial planning workshops?
Yes, please visit our website at www.elewealth.com for dates and locations.  Our seminars/workshops are free and offered on a monthly basis.

Conclusion
According to a report by Natixis Global Asset Management, The United States ranked 19th in the nation in its capacity to meet security needs and expectations, per the 2014 Retirement Index (February 2014).

What actions are needed to help with alleviate uncertainty and make improvements?  Individuals must be proactive in financial planning and saving, more flexible employer plans (over 50 percent of U.S. workers are not covered) and collaborative efforts by policy makers.

I wish to thank Mr. Ellis Liddell for his time and expertise.  If you are interested in more information, please contact ELE Wealth Management at (248)356-6555.

ELE Wealth Management
18700 W. 10 Mile Rd., Ste. 100
Southfield, MI  48075
(248) 356-6555 (office) / (248) 356-6578 (fax)