It’s no secret that the financial services industry doesn’t have the best reputation. Despite significant and helpful efforts from the Certified Financial Planning Board of Standards, NAPFA, FPA, and other great standards organizations, our industry still hasn’t earned the trust of the general population. How is a layman to know who to trust?
Planting a Seed
According to multiple organizations that provide statistical data, over half of Americans are covered by an employer-sponsored plan. The 401(k) is the most common, but there are lots of other plan structures out there. The 403(b) is very common in non-profits, Simplified Employee Pensions (SEPs), and SIMPLEs are very common in smaller businesses.
Health Savings Account were created in 2003 by an act of congress, one of the few good ones in recent memory, to help Americans cope with increasing medical costs. Over the years, they have been expanded and the benefits have increased substantially.
Financial Advisor or Broker
The year 2019 closed out the second decade of the twenty first century on a strong note. The S&P 500 index delivered a return of 31 percent. In addition, foreign markets delivered strong double digit returns in both developed and emerging economies. Contrast that with a year ago. For 2018, the S&P 500 returned a negative 4.4 percent.