inside costco
Connecting
For more information, or to sign up for
Capital One Investing, go to Costco.com, click
on “Services,” then on “Online Investing,” or
call 1-866-684-4568 to talk to a representative. Remember, when investing, there is no
guarantee you will make money. Knowledge
is key to minimizing risk. See the Capital One
website for terms and conditions.
cial media to make investing decisions.
Beyond Social Security.
Other resources for retirement funds included 401(k)
plans ( 48 percent), and 21
percent said an IRA will help
support them in retirement.
And 32 percent said they plan to leverage pension plans, 23 percent cited investment portfolios and 22 percent have real estate to help
fund their retirement.
Taking action
Costco helps out in the retirement planning process by offering an online investing
program through its online provider Capital
One Investing.
“Just as we take time to plan vacations and
shop for new technologies or gifts, we must
plan for our financial futures,” says Silver. “Our
goal is to simplify the process and empower
Americans with the right tools and education
so they can make a plan, stick to it and work to
save for a more comfortable retirement.”
Capital One Investing offers a variety of
tools, including:
PortfolioBuilder. This helps you build a
portfolio that aligns with your goals and circumstances, including asset allocation and
diversification, and then allows you to invest
in it for just $9.95. Non-members pay $18.95.
RetireMy Way. This online tool, included
with the package, helps investors visualize
their financial needs and goals for retirement,
and understand how their actions today can
have an impact on long-term savings. C
Online investing can help grow your savings
Smart retirement
YOU DON’ T HAVE to be approaching retirement age to start thinking about retiring. In
fact, the younger you start preparing for that
desired time in your life, the better.
Capital One ShareBuilder (part of Capital
One Investing LLC, Costco’s online investing
provider), recently released details of a
national study measuring sentiments and
behaviors related to investing and retirement.
The Financial Freedom Survey found that
Social Security is still one of the most popular
sources for funding retirement, despite concerns about the program’s future.
Also, although a majority of non-retired
Americans say retirement investment is a top
priority, many are not investing at all. Part of
the reason is fear that the individual just doesn’t
know enough about investing options to do it
confidently, says Garrett Silver, head of investment products at Capital One Investing.
“This year’s Financial Freedom study
indicates a continued gap between Americans’
actions and the tried-and-true investing principles that they know are important—and it
signals a need for better tools, education and
transparency in our industry,” he says.
The survey uncovered the following key
themes related to retirement and investing.
Americans know it’s important, but
aren’t taking action. In the survey, 91 percent
of respondents believe they should be saving
something, but only 76 percent are currently
setting aside any funds for retirement. Only
24 percent are saving more than 10 percent of
their income.
Distrust of the markets is a key issue. A
majority of respondents— 58 percent—
indicated that distrust of the markets and/or the
financial services industry is negatively affecting their confidence in investing. Lack of
knowledge, experience and transparency, as
well as investing complexity, are also widespread impediments.
Many Americans aren’t talking about it.
The survey found that 27 percent of non-retired Americans who have a spouse or significant other say they never discuss retirement planning with their spouse. More
Americans are comfortable talking about religion and sex than about money.
Transparency and education may be the
key. Nearly three-quarters ( 74 percent) of
respondents said product and pricing transparency would be helpful for understanding
their investment options. Meanwhile, 84 percent of respondents said improving their
knowledge about investing is important, yet
only 66 percent said they spend any time
doing just that.
Advice is important, too. The survey
found 36 percent of Americans say financial
advisers are their most trusted source for
financial advice. Older Americans and
women are the most likely to turn to an
adviser, while men are more likely than
women to trust themselves or look to finan-
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