The Costco Connection

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-