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W W W. M A I N E B I Z . B I Z 15 F E B R UA R Y 2 2 , 2 0 2 1 F O C U S W E A LT H M A N A G E M E N T / R E T I R E M E N T need to catch up. Hopefully, when the market dropped in March or April, they either invested more aggressively or just stayed the course. Making changes during turbulent times can have a drastic impact on long-term planning which is exactly what we want to help people avoid. If someone was laid off during the pandemic and now is unable to con- tribute to their employer's retirement plan, they may have the ability to con- tribute to an IRA or Roth IRA. ere is no match with these investments, but they do provide opportunities for tax savings and deferrals. ey should seek advice from their advisor or accountant before going at this alone. MB: What are some tips for employ- ees and employers? ZM: A basic rule of thumb is for people and businesses to have six to eight months of basic expenses in cash. After this pandemic, we think that goal should be closer to 12 months. For employees that need to build their emergency fund, we recognize it may be helpful to temporarily reduce retirement contributions; however, those contribu- tions should never be reduced to the point where the employee is unable to maximize any matching contributions from their employer. For employ- ers, there are a number of stimulus options available to help bridge the gap through the pandemic. Working with your banking institution and/or accountant can be key. While it may seem like a difficult time to consider investing, historically, in times of pullbacks or corrections, one should not run from the market but to the market. MB: Is there an emotional element to the situation? ZM: Absolutely. Any time money is involved, there can be stress and anxiety. We've found that how well you deal with this stress and anxiety ultimately either worsens or improves your financial situation. Staying calm and levelheaded in times of stress and uncertainty can pay off in spades. Susan John Managing director and head of financial planning at F.L.Putnam Investment Management Co., Wolfeboro, N.H. (she serves Maine clients) Mainebiz: Has the pandemic affected people's ability to plan for retirement? Susan John: COVID-19 layoffs have had a significant impact on employee retirement savings rates. But the shift to work from home has been financially challenging for many employees, and many of our clients, due to the increase in childcare and work-related expenses. Retirement savings rates have declined as a result as there is simply less money to contribute every month. We believe retirement savings rates will improve over time, but this is a real issue for many clients today. MB: What's the effect on older workers? SJ: We have many clients who are contemplating an early retirement. For example, we work with a number of teachers who find it difficult to keep kids engaged and learning as a result of the pandemic. Some of our clients have relocated to different schools that offer a more flexible work environment, but many have made the difficult decision to retire. Our discussions have been focused on how soon they can retire and what can they do now to improve their odds of retirement success. MB: What are some tips for employ- ees and employers? SJ: Employees are incurring a larger number of expenses because of the pandemic. A formal work from home expense program would help offset the increased cost burden for these individuals, especially for cell phone and office equipment expenses. Not all companies are reimbursing their employees for these expenses. Student loan debt is a significant issue for younger employees. Any form of company sponsored student loan reduc- tion program would be well received. e CARES Act allows an employer to make a non-taxable payment of up to $5,250 for qualified education debt and the employer gets to deduct the expense. A win-win for both. is may be a simple one, but routines are important, regardless of your age. Routines set the tone for your entire day and keep you focused and productive. Laurie Schreiber, Mainebiz senior writer, can be reached at lschreiber @ mainebiz.biz To read the rest of this article and learn more about planning for your retirement, visit: berrydunn.com/retire 10 common retirement mistakes The road to retirement is filled with potholes. Many of them, like emergency medical situations, ballooning education costs, and job losses, are out of your control. We can help you control what you can control. We've compiled ten of the most common retirement mistakes, and included strategies to avoid them and keep you on track. Securities offered through Commonwealth Financial Network ® , Member FINRA/SIPC. Investment advisory services may be offered through Commonwealth Financial Network, a Registered Investment Adviser, and/or BerryDunn Wealth Management, LLC, a Maine and New Hampshire licensed investment adviser. Advisory services offered by BerryDunn Wealth Management, LLC are separate and unrelated to Commonwealth. Fixed insurance products and services offered through CES Insurance Agency or BerryDunn Wealth Management, LLC. 100 Middle Street | Portland, ME 04101 | 207.541.2200 How to ensure your retirement plan is strong and sound. Routines are important, regardless of your age. — Susan John F.L.Putnam

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