Financial vortex: How to manage while saving for retirement

There were a number of big takeaways from Goldman Sachs annual Retirement Survey & Insights Report, one of which was a decline in the impact of the financial vortex. So what is the financial vortex, and how well are people managing it? Robert Powell is joined by Chris Ceder, Goldman Sachs Asset Management senior retirement strategist, to discuss the financial vortex, whether to delay your retirement, personalized planning and advice, financial wellness programs, AI, and much more in this week's episode of Decoding Retirement.
According to Goldman Sachs, the financial vortex is a term used to describe the combination of personal and economic factors that can make it difficult for people to achieve financial stability. "What we're really interested in learning is how well people are managing what we call that financial vortex because it's really about competing priorities in terms of that impact [on] how people can actually save for retirement," Ceder explained. "And this is really the first year that we've seen ... people saying that things like saving for college or credit card debt or other competing priorities is actually on the decline this year."
Most people who are 401(k) plan participants have access to retirement planning tools from their employer. "Tools are helpful and people can access those tools, but we need to make sure that people can take those tools and really make a personalized plan out of that," Ceder said. He noted that aspects of an individual's life, such as their assets, family members, and spouse, all play a role.
On ask Bob, Powell explained the difference between the fed funds rate and the discount rate. The federal funds rate and the discount rate are both interest rates set by the Federal Reserve, but they serve different purposes in the US financial system. The federal funds rate is the interest rate at which banks and credit unions lend reserve balances to other depository institutions overnight. The discount rate is the interest rate the Federal Reserve charges commercial banks and other depository institutions when they borrow funds directly from the Fed’s discount window.
Decoding Retirement gives you the tools to navigate the years ahead, and take action now. Yahoo Finance's Decoding Retirement is hosted by Robert Powell. Find more episodes of Decoding Retirement at https://finance.yahoo.com/videos/seri.... Thoughts? Questions? Fan mail? Email us at [email protected].
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