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Retirement Savings… Are You on Track?

September 21, 2016 by admin

By Mack Bekeza

Retirement savings… that thing you are supposed to live off of when you no longer want to work. Although people seem to talk about it frequently, most people do not realize how important it is to actually save for retirement. In fact, there are numerous statistics that show how little people save for it. For instance, 40% of working Americans are currently not saving for retirement at all. And on top of that, 80% of Americans ages 30-54 believe that they will not have enough saved for retirement.

So, how come Americans do not save for or are not confident about retirement? For starters, many believe that saving for retirement is not worth it because they can just rely on Social Security. However, what most people do not realize is that Social Security was meant to supplement retirement, not completely fulfill 100% of a retiree’s needs. And, if you fall into a higher income bracket, Social Security will only cover a small fraction of your income. Another reason people fail to save for retirement is because many families live above their means, meaning that they typically spend more money than they make. This also explains why many people lack sufficient emergency funds.

So, are you on track when it comes to retirement savings? First, do you know how much you need save to support 70-85% of your current income in retirement? If you do not, J.P Morgan offers a Retirement Savings Check Point. If you are surprised as to how much you need to have saved, consult with a Financial Advisor, such as Castle Rock Investment Company, to discuss what is an appropriate savings rate for you and how to get there!

Although the idea of saving for retirement can be quite intimidating, the need to have sufficient savings is becoming more and more crucial as the cost of living and reaching important goals are increasing every year.

© 2016 Castle Rock Investment Company. All rights reserved. Please share your insights with us at mack@castlerockinvesting.com or via phone at 303-719-7523

Filed Under: 401K, Advice, Blog, Castle Rock Investment Company, Mack Bekeza, Personal Finance, Retirement Plans, Roth Accounts, Services, Uncategorized Tagged With: 401k, budgeting, Emergency Savings Account, IRA, JPMorgan, money, retirement, roth, saving, Social Security

Rouge Broker Steals $1.3 Million From an 89-Year old!

August 3, 2016 by admin

By Mack Bekeza

On July 2016, FINRA discovered that Travis Wetzel, a former broker who was originally barred from the industry in 2013, had been making fraudulent annuity withdrawal requests for an 89-year old’s Variable Annuity with Prudential. Once Prudential got wind of this, it immediately investigated the situation and discovered that the withdrawals were being made from an account in the broker’s wife’s maiden name! Overall, there were a total of 114 withdrawals made to this account between July 2010 through September 2012. Unfortunately for Prudential, even though it responded promptly and reimbursed the 89-year old, it was fined $950,000 by FINRA for failing to spot this while the withdrawals were being made.

Even though this story seems to be very unfortunate for both the 89-year old and Prudential, things like this happen more frequently than most people would think. For instance, MetLife was fined $25 million dollars for similar reasons. And, on top of that, LPL has paid over $12 million in fines and restitution for failing to supervise fraud in variable annuities, non-traded REITS, and even certain ETFs.

Since variable annuities are complex products that are mostly sold to the elderly, FINRA places a very high level of scrutiny on possible fraudulent activity. And, it can be quite a task for brokers to spot these transactions since they process millions of transactions on a daily basis. So, being able to spot fraudulent activity the minute it happens can be nearly impossible. In fact, it can take up to a couple of years to find out what exactly happened!

Is there anything the client can do to avoid these mishaps? Fortunately, yes, there is! Individuals can hire a financial advisor, such as Castle Rock Investment Company, that operates as a fiduciary to help them make the right choices and not get sucked in by a dishonest broker. Another thing that a client can do is look up their broker or investment advisor through FINRA’s Broker-Check website to see if they have had previous client complaints. Although most financial professionals are honest people, it is important that individuals seeking financial advice do their homework to see if they are walking into a trap.

© 2016 Castle Rock Investment Company. All rights reserved. Please share your insights with us at mack@castlerockinvesting.com or via phone at 303-719-7523

Filed Under: Advice, Blog, Cases, Castle Rock Investment Company, Department of Labor, Fiduciary, Industry News, Mack Bekeza, Personal Finance, Uncategorized Tagged With: annuities, bekeza, broker, Fiduciary, finra, saving, theft

Save Up to Break Stuff: Retirement Saving Should Not be Taken Lightly

July 28, 2014 by admin

By: Katherine Brown, Research Associate, Castle Rock Investment Company

My grandmother loved to drive. After they took away her license, she enthusiastically offered the use of her 1989 Crown Victoria to anyone who was visiting her, whether they had a car of their own or not. She also purchased a motorized scooter to get around her elegant, eerily silent retirement home. Often, the only sound was the elevator music playing through the halls and the whirring of the small motor on her scooter.

My grandmother loved to drive fast. Gran’s scooter was notorious for knocking down other nursing home residents, potted living and plastic plants, and the occasional painting from a wall. Ever the charmer, she would convince the staff not to take away her precious wheels. And she always paid for the damage that she caused because her husband and children set up a generous retirement fund for her.

This chart is intended for hypothetical illustration only, and is not intended to be representative of the past or future performance of any particular investment. It assumes a 7% average annual total return with no withdrawals or distributions, and reinvesting of all dividends and capital gains. Actual rates of returns cannot be predicted and will fluctuate. It does not reflect an actual investment, nor does it account for the effects of taxes, any investment expenses or withdrawals. Returns are not guaranteed and results may vary. Investment returns cannot be predicted and will fluctuate. Investor results may be more or less.These stories aren’t possible without comfortable retirement savings. Rather than a funny family story, this could easily be a sad tale of an elderly woman who crashed into something and had to move out of her residence because the cost of damages were too high. In a worldwide Future of Retirement survey, 18% of US citizens said they would never be able to retire from all paid employment.

You don’t know where your passions will take you, or whether your spouse’s bad driving will become the stuff of family legend. Saving for retirement should not be taken lightly. Though you may not like to think about growing old, you will need an income one day when you’re no longer capable of earning one. Care for your 401(k) by saving as early as you can.

In case you can’t picture it, Merrill Lynch offers a free face aging service on their website. If you’d like to peek into the future and see what you’ll look like at 90, try it out.

 

Katherine Brown completed a Master’s degree in Global Finance, Trade, and Economic Integration from the University of Denver. Her research and writing focus on international monetary economics and central banking. She can be reached at Katherine@castlerockinvesting.com.

Filed Under: 401K, Blog, Castle Rock Investment Company, HSBC, Katherine Brown, Merrill Lynch, Retirement Plans, Roth Accounts, Uncategorized Tagged With: 401k, Castle Rock Investment Company, HSBC, Katherine Brown, Merrill Lynch, retirement, saving

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Castle Rock Investment Company, formed in 2006, is an independent woman-owned SEC-registered investment adviser located in Castle Rock, Colorado. We specialize in individual financial plans and qualified service plans.

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