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Retirement Planning

Why young savers should adopt a long-term mindset

Four key considerations could help young adults create a mindset to succeed with saving and investing for the future.

Michelle Wan, Wells Fargo Investment Institute senior wealth investment solutions analyst, has met many younger clients who have had reservations about investing. “Young investors may find themselves delaying investing for retirement because it seems so far in the future. Alternatively, they may enjoy trading volatile investment instruments for rapid profits,” she says. “They don’t realize how important it is to methodically develop planning and investing goals at a young age. Time is a young saver’s greatest ally.” Here, Wan shares four key considerations for young savers when it comes to prioritizing long-term savings and investment plans.

1. Adopt a planning mindset

One key factor is having a planning mindset — a positive and proactive stance that could set savers on a path to positive financial outcomes. A planning mindset can provide a road map that can help strengthen a person’s financial future.

2. Start with small changes

Small changes in your financial behavior today could have a big impact on long-term success. Creating a budget, building healthy financial habits, and becoming more comfortable and familiar with investing could go a long way in contributing toward achieving long-term financial goals.

Some practices to consider:

• Automatically transferring part of your income into a savings account or an investment account

• Paying down student loans to avoid late fees and damage to credit scores

3. Begin saving and investing now

Start saving for retirement as soon as you can. The sooner you start, the more time every dollar saved has the potential to grow. If dollars saved early in your working years generate investment gains year after year, they can have a much bigger impact on the size of your account balance at retirement than you might think. Thanks to the power of compounding, as the dollars invested potentially earn returns, those reinvested returns can start earning returns, and so on — year after year.

“For younger investors, compounding returns become especially powerful given their longer time horizon, so an early start can make a dramatic difference in helping investors reach their financial goals,” says Wan

4. Take full advantage of retirement savings plans ate

If your employer offers a 401(k) plan, be sure to participate — and max out any kind of matching-contribution offers. They are the equivalent of free money.

Roth IRAs — to which you contribute after-tax dollars — are also worth a closer look because they offer tax-free growth potential. Investment earnings are also distributed tax-free in retirement if specific requirements are met.

“Another savings vehicle to consider is a Health Savings Account (HSA), which offers tax benefits to qualified investors,” Wan says.

A discussion with an investment professional about your investment goals can help you develop a long-term plan and strategies to potentially help you achieve those goals.

Fargo

>> BANKING & FINANCE

1 - Mike Kebler , a financial advisor in Morgan Stanley’s Wealth Management office in Traverse City, has been named to the firm’s Pacesetter’s Club - a global recognition program for financial advisors who, early in their career, have demonstrated the highest professional standards and firstclass client service. Kebler joined Morgan Stanley in 2020.

2 - Mark Lundmark has been promoted to executive director of Morgan Stanley’s Wealth Management office in Traverse City. Lundmark has been with the firm since 1986 and most recently served as a financial advisor and senior portfolio management director.

Honor Bank in Traverse City announces the following:

3 - Max Anderson , assistant vice president and commercial lender, has been chosen as a 40 Under

40 by the Independent Community Bankers of America (ICBA). According to the ICBA, “the winners are making a difference in their banks and communities through trailblazing innovations, a philanthropic spirit and a dedication to their industry.”

Anderson practices in the areas of business formation, business sales and purchases, business mergers and acquisitions, general business counsel, contracts, commercial real estate, residential real estate and estate planning. Prior to joining the firm, Anderson was a partner at Anderson & Huff in Traverse City.

4 - Christina Kachiros has been promoted to branch manager of the Lake Ann location.

5 - Alesha Paulsen has been promoted to Bank Secrecy Act (BSA) Officer. She joined Honor Bank in 2020 as an assistant branch manager at the Traverse City Union branch and moved into the Security and Compliance department in 2021.

>> LAW

- Cynthia A.

>> REAL ESTATE

8 - Nancy Packer is now a realtor with KW Northern Michigan. She first joined the company in 2019 as part of the leadership/agent support team. She brings more than 20 years of customer service experience to her new role.

>> OTHER

12 - Bill Knable is the new president of Grand Traverse replacing the recently-retired Bob White. Knable brings more than 25 years of management experience to the company, with a track record of improving profitability and stakeholder experiences in

13 - Jerry Swanson , the City of Traverse City’s geographical information systems (GIS) coordinator, has been awarded the GIS for Everyone Award from IMAGIN. The award is presented to an organization/ individual that seeks to make GIS data or analysis accessible to other organizations and the public. Swanson was also honored with the Best Cartographic Design for the development of the City’s Hickory Hills Trail Map. He joined the city in 2018.

14 - Brittney Primeau has been named director of communications for Crystal Mountain. Primeau first joined Crystal Mountain in 2021 as manager of public relations. She is responsible for leading all aspects of public relations, including partnerships, media coverage, and community engagement.

15 - Captain Matthew Richmond of the Traverse City Police Department has been named interim police chief. Richmond follows Chief Jeffery O’Brien, who retired last month. Captain Richmond began his career with the city in 2004. Most recently, he served as captain of patrol services.

United Way of Northwest Michigan in Traverse City announces three new staff members for its new health initiative, United We Smile:

16 - Ashley Johnston is the new office manager. She brings extensive administrative experience and a background in working with adults with cognitive disabilities in the medical field to her new role.

17 - Danielle Oswalt is the new community health worker. Oswalt brings a background in public health and an interest in community outreach.

18 - Jay Rangel a registered dental assistant, is clinic manager. Rangel brings more than a decade of experience in the dental field.

Please send Newsmakers by the 10th of the month to news@tcbusinessnews.com

Exposures

Jim Modrall and Tom Menzel attended the recent Grand Traverse Regional Community Foundation’s Legacy Brunch, which celebrated Community Guardian Legacy Society members, a group of community-minded individuals and couples dedicated to making a long-term investment in the region. The event was held at the Village Piazza at Grand Traverse Commons. Photo by Courtney Kent Photography

Traverse Connect’s Cocktails & Connections event was held at Flight Path Creative’s new building and sponsored by Dart Bank. Pictured are Aaron Swanker, Flight Path creative director/co-founder, and Cooper Riehl, a software engineer.

The

Construction team won the HBAGTA Third Annual Golf Challenge at Interlochen Golf Course. (Pictured l-r): Randy Hutchinson, Nick Pinto, Greg Pinto and John Pinto. The golf challenge raised over $18,000 that will go to support construction workforce development efforts in northern Michigan, including scholarships and educational programs.

Serra Subaru of Traverse City (in partnership with Subaru of America as part of Subaru Loves to Care) presented the Cowell Family Cancer Center with 100 blankets and arts and craft kits, and donated $2,500 to help offset treatment expenses patients may incur. Presenting on behalf of Serra Subaru of Traverse City were Sales Manager Mike McFarlan and Executive Manager Jerry Zezulka.