NEW YORK, Jan. 7, 2015 /CNW/ -The average savings rate in the US is about 5% of disposable income, according to the Bureau of Economic Analysis1. But, that's hardly enough to save for important life events like buying a home or retirement. So, to celebrate Financial Wellness Month, which takes place each January, First Investors would like to remind everyone that they can get financially fit and achieve their savings goals.
While most New Year's resolutions revolve around getting physically fit, January is the perfect time to take a closer look at your finances and get in better financial shape.
"According to the most recent Dalbar survey on investor behavior, one of the biggest mistakes investors make is failing to create a financial plan and sticking to it," said Paul Prete, Vice President, for Retirement Programs at First Investors. "Most people don't realize that creating a plan is easier than it sounds," he said.
There are simple things the average person can do to get financially fit, such as saving more and spending less. To save more, try paying yourself first. Setting aside a specific amount of money each month—before you start paying your bills—is a good approach.
To spend less, try creating a budget and sticking to it. If you can't afford a purchase, delay your gratification by saving up for it over time. Ask yourself, do I really need that item, or do I just want it. If you can live without it, then don't make the purchase.
"First Investors clients follow simple strategies like these, and many others, with great success," explains Mr. Prete. "Since their financial representatives help them effectively plan, establish goals, and choose investments based on their risk tolerance and time frame, they tend to stay invested in both up and down markets. As a result, they typically stay invested for longer periods of time and often outperform the 'average' investor," he said.
Getting physically fit and financially fit both take time, patience and discipline. Take advantage of Financial Wellness Month, by sitting down with your Representative. He or she can help you take a more disciplined approach to your financial plan by utilizing a building block approach to maximize its effectiveness.
If you'd like advice from an experienced Representative, contact First Investors. Their expertise covers a wide array of services, including investment and retirement planning, and life insurance.
* FIMCO is the investment adviser to the First Investors family of funds and an affiliate of First Investors Corporation.
For more information about First Investors Funds, you may obtain a free prospectus and summary prospectus by contacting your Representative, writing to the address below, calling (800) 423-4026 or visiting our website at www.firstinvestors.com. You should consider the investment objectives, risks, charges and expenses carefully before investing. The prospectus and summary prospectus contain this and other information and should be read carefully before you invest or send money. An investment in a mutual fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency.
Life insurance policies are offered by First Investors Life Insurance Company and distributed by First Investors Corporation; each is a wholly owned subsidiary of First Investors Consolidated Corporation (FICC).
Insurance policies contain certain exclusions, limitations and other terms for keeping them in force. For complete costs and details, see your Representative. Policy guarantees apply only to certain insurance features and are subject to the claims-paying ability and financial strength of First Investors Life.
Variable life insurance policies are offered by prospectus only. For more information about First Investors Life variable life insurance policies, you may obtain a free prospectus by contacting your Representative or calling (800) 832-7783. The prospectus contains information about a policy's features, risks, charges and expenses, and the investment objective and risks of the underlying investment subaccounts as well as other information about the variable life policy. Consider this information, and read the prospectus carefully before you invest or send money. Policy availability and features may vary by state. The purchase of a variable life insurance policy is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation ("FDIC") or any other government agency.
Neither First Investors Life Insurance Company nor its affiliates provide legal, tax or estate planning services. Should you require such services, you should consult a legal, tax or estate planning professional.
About First Investors
First Investors is a diversified financial services company helping everyday families reach their financial goals, offering solutions such as investment products, and life insurance as well as strategies spanning saving, investing, education funding and retirement. First Investors Corporation and First Investors Life Insurance Company are subsidiaries of First Investors Consolidated Corporation. All securities products are offered through First Investors Corporation. To learn more about First Investors please visit us at: www.firstinvestors.com
For 140 years, Foresters™, an international financial services provider, has fulfilled its purpose to enhance family well-being for its members and the communities where they live. A fraternal benefit society, Foresters offers quality life insurance and investment products, unique member benefits and inspiring community activities. Foresters shares its financial strength with more than one million members in Canada, the United States and the United Kingdom. Foresters has assets of $10.5 billion, total funds under management of $25 billion and a surplus of $1.7 billion (all figures in Canadian dollars as of December 31, 2013) and maintains an "A" (Excellent) rating by A.M. Best2. Foresters subsidiary Foresters Life Insurance Company's rating is "A-" and First Investors Life Insurance Company, also a Foresters subsidiary, received an "A-" rating. For more information, visit foresters.com.
Foresters™ is the trade name and a trademark of The Independent Order of Foresters, a fraternal benefit society, 789 Don Mills Road, Toronto, Canada M3C 1T9; its subsidiaries are licensed to use this mark.
1 U.S. Department of Commerce Bureau of Economic Analysis Personal Income and Outlays: November 2014, December 23, 2014.
2 An "A" (Excellent) rating is assigned to companies that have a strong ability to meet their ongoing obligations to policyholders and have, on balance, excellent balance sheet strength, operating performance and business profile when compared to the standards established by A.M. Best Company. A.M. Best assigns ratings from A++ to F, A++ and A+ being superior ratings and A and A- being excellent ratings. In assigning the ratings for The Independent Order of Foresters (Foresters) and its subsidiaries Foresters Life Insurance Company and First Investors Life Insurance Company on July 2, 2014, A.M. Best stated that the outlook for all ratings is "stable", which means they are unlikely to change in the near future. See ambest.com for the latest ratings.
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