Thursday, November 20, 2014

Jonah Engler: Personal Finance - Crystal Ball or Solid Direction?

Jonah Engler NYCThe future of personal finance needn't be guided by the whims of a crystal ball. It can have a solid direction that provides financial security with minimal risk. The fluidity of personal finance depends entirely on the individual. Each person makes the final decisions on the direction their personal finances will take. What constitutes solid financial direction is less mysticism than it is astute financial wisdom.

Jonah Engler shares his thoughts on the future of Personal Finance.

Plot a Personal Finance Future Sooner than Later

In the early 1980s, the first company-provided 401Ks became the new financial vehicle that would plot a personal finance future. Those new to 401Ks soon learned they could invest in their futures by a simple 401K payroll deduction. Yet, the future of personal finances isn't totally enveloped in these types of retirement savings plans. For example, at the outset of these plans, employer contributions were a near match to that of the employee. Over time, that match has been reduced in many companies to under 10% of the employees contribution. Always, there are issues beyond the control of the individual that often create an impact on their personal financial future. Inflation is one, economic slow down another and changes in employee benefit like the 401Ks is yet another.