Read More About Ubiquity Retirement + Savings™
We’re so excited to see Ubiquity Retirement + Savings CEO Chad Parks is on the April cover of Employee Benefit Adviser!
Read his insights on recent state-mandated retirement plans and the future of 401(k).
When it comes to making money decisions during this time of crisis, “going with your gut” may not serve you in the long run.
Ubiquity Founder + CEO Chad Parks shares insight that may go against your instincts but can help create a foundation of financial stability during these uncertain times.
In times of uncertainty and upheaval, “people crave a return to familiar, predictable rhythms,”
– Monica Schoch-Spana, a medical anthropologist at the Johns Hopkins Center for Health Security to The Atlantic.
It’s easy to fall into a “normality trap” when dealing with a crisis. It’s basic instinct to want to return back to “normal” ASAP rather than facing the uncertain world we are now in. When thinking about your financial life, this may mean you’re maintaining your normal spending (or lack of saving) behaviors, if you’re not one of the millions of people who have lost their jobs due to COVID-19.
The pandemic has illuminated how quickly financial stressors can strike–and with minimal warning. An emergency fund, ideally made up of 6 months of expenses, is a crucial part of your savings.
While it’s important to build and maintain emergency savings, this doesn’t mean you should stop contributing to your retirement funds (as long as you can still afford to). If your employer has temporarily stopped matching contributions, your instinct might be to stop contributing — but this isn’t necessarily the right call.
If your company has suspended their 401(k) match, it’s likely so they don’t have to make more drastic cuts. In the words of our Founder and CEO at Ubiquity Chad Parks,
“Reduction in a long-term benefit is worth the short-term trade-off. For individuals, this loss of a company match should not modify your savings strategy. It will not make or break your retirement. Even if your employer is not offering a match, if you are saving in your 401(k), you are gaining a government match. Those tax dollars are going out the door one way or another. By saving in your 401(k), you are diverting those tax dollars from the government to your retirement savings”
Other tips include:
COVID-19 has turned our world upside down and forced us all to take a good, hard look at the state of our finances.
Now, it’s clear why we all must establish and maintain emergency savings in addition to our retirement savings. Though the amount of 401(k) distributions has been surprisingly low this year, we are here to remind you just how damaging it can be to borrow from this savings pile. Instead, we want to encourage everyone to adopt a dual-savings approach so you’re covered for today and in the future.
So, what’s the best way to establish this strategy? When exactly should you tap your emergency fund? And how can you be certain your future savings is secure?
Our Founder and CEO Chad Parks answered these questions and more in this Q&A with CompareCards.com.Read More
Retirement plans are no longer exclusive to large companies, with budgets to match.
Small business owners can now work with 401(k) providers to create affordable savings plans to attract, retain, and reward workers, not to mention save for their own futures. Ubiquity Retirement + Savings founder and CEO Chad Parks recently wrote an article and gave a video interview to The Street, giving small business owners 4 key considerations when choosing a plan provider.
Understand how your plan provider is getting paid, who is getting paid and how much.
Know which investments are offered in your plan, the variety of investments available and the expenses associated with them.
Consider the distinctive needs based on your ownership structure, goals, and number and types of employees.
Evaluate how the plan provider will deliver customer service to you and your employees.
Working for yourself comes with a lot of added freedom, but your retirement savings plan falls entirely on your shoulders.
For independent business owners and the self-employed, the task of funding future retirement and daily income has been always been a challenge.
According to CNBC, even before the pandemic, “just 13% of [self-employed] tax filers participated in a workplace retirement plan.”
Now, amidst the COVID-19 pandemic, many solopreneurs are facing an even greater struggle to save for the future. While many self-employed workers have been able to collect pandemic unemployment benefits created by the CARES Act, (According to CNBC, “Independent workers like the self-employed, independent contractors, and gig workers made up nearly half of the 31.5 million people receiving unemployment nationwide as of mid-June.”), these funds are primarily covering the losses businesses have experienced throughout recent months.
If you’re self-employed, how do you decide if, and how much to save? What kind of retirement plan will best fit your personal needs?Read More
Ensuring financial security after the events we are facing as a country is going to take the perfect storm of governmental support, institutional changes, and societal shifts.
In an in-depth Q+A with Benefits Pro, Ubiquity founder and CEO Chad Parks shares what lies ahead for the retirement industry, explores how the 2020 election may impact retirement saving, and explores what can be done to help improve the financial futures of all Americans.
Here are some highlights:
“First and foremost, there has been a renewed awareness of why what we do in the retirement space is so important. If we have learned anything from this pandemic, it’s that people are not only drastically underprepared for their future, but they don’t have the necessary savings in place for today. The pandemic truly shined a spotlight on the lack of retirement preparedness throughout the country.
As a response, there has been a big push in the industry toward solving the problem of financial wellness. The retirement industry is like a giant aircraft carrier — it’s usually slow to respond and adjust. Buzzwords like “financial wellness” get talked about often, but very little typically gets done on a larger scale. The pandemic has caused a seismic shift in the industry that will hopefully put us on a new course.”
“Set up a simple budget. Start by calculating your mandatory expenses per month. From there, determine the total amount you can afford to save each month. With a dual-savings strategy, you could then split that total monthly savings into two accounts: a short-term savings account or “emergency fund” to cover any unexpected costs or life events (e.g., losing a job, medical expenses, etc.), and a long-term retirement savings plan……This dual-savings strategy allows you to simultaneously prepare for the unexpected while still investing in the future, all without increasing the total amount you save each month.”
“Early Boomers are arguably the greatest beneficiaries of the retirement system as it was originally designed to work. Most people in this group are already retired and most likely have a pension, are receiving Social Security and have saved a good sum of money on their own. The traditional three-legged stool of retirement — pensions, Social Security and personal savings — is in place for them.
However, the trailing edge of the Boomer generation is far less likely to have all three of these pillars securely in place. Late Boomers are facing a lot of uncertainty surrounding the future of Social Security and a possible reduction in benefits, as discussed above. They also likely don’t have access to a pension and if they do, may soon realize the funds from that account are not as secure as they think. As these near-retirees enter retirement, pension plans will finally experience the full force or “pull” of everyone needing their money at once. Many might be underfunded and unable to pay the full benefit.”