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5 Financial Goals to Consider with Help from Fidelity and TIAA

Published on by MSU Human ResourcesLeave a comment

As a benefits-eligible employee, you may be aware of the generous retirement savings programs and resources MSU offers to help set you up for a successful retirement. However, MSU’s retirement plan vendors, Fidelity and TIAA, can help you with more than just retirement planning. Whatever your financial goals may be – such as funding a big purchase, paying down debt, or creating a sustainable budget – Fidelity and TIAA can help you create a plan to achieve them.

Fidelity and TIAA are financial professionals who can provide strategies and advice to help you take charge of your finances. Review the goals below and then reach out to your vendor using the following contact information.

Everyone can benefit from having a clear financial plan. Yet, many people need clarity on their goals or the strategies necessary to make them happen. If you’re not sure where to start, the following financial goals with resources from TIAA and Fidelity are recommended for all individuals at any stage of life:

  1. Create a Budget: Many people only have a vague understanding of their spending habits or financial situation. Between trying to comprehend financial jargon, figuring out your money goals, and understanding how to balance debt, saving, and investing, it’s no wonder people often choose to bury their heads in the sand. Luckily, Fidelity and TIAA have tools, resources, and advice to help us make a plan and stay on track.
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  2. Build an Emergency Fund: Setting aside money for an emergency – such as unemployment, surprise medical or vet bills, or unplanned home repairs – is a key element of basic financial planning and often the first step advisors will recommend. According to TIAA, “it’s good to maintain an emergency fund that would cover three to six months of living expenses” (Waltenberger, 2024). These living expenses include the things you absolutely must pay for each month, such as food, housing, utilities, child care, health care, transportation, debt payments, or similar.

    The latest report released by the Federal Reserve found that 37% of adults would not be able to afford a $400 emergency expense (2022, Federal Reserve), which means they would have to use credit cards, personal loans, early retirement withdrawals, or ask family/friends for assistance. Saving towards an emergency fund – even if it’s only a small amount each month – can help you build a safety net that can keep you out of debt.
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  3. Pay Down Debt: The average American owes $104,215 in debt across mortgage loans, home equity lines of credit, student loans, auto loans, credit cards, and personal loans (Experian, 2024). While it’s important to note that having debt isn’t necessarily bad – a mortgage loan, for instance, can help you build wealth and eventually own a home – having too much debt or high-interest debt can lead to serious financial stress. Fidelity clarifies, “Good debt is generally considered any debt that may help you increase your net worth or generate future income. Importantly, it typically has a low interest or annual percentage rate (APR), which experts say is normally under 6%” (Fidelity, 2023).

    If you’re only able to make the minimum payment on your credit card, have trouble paying your monthly bills, or have debt payments that are more than 35% of your gross income, you may need help managing your debt (TIAA, 2024). Luckily, TIAA and Fidelity have actionable steps to help you move in the right direction. Review the resources below for advice on managing debt and reach out to your vendor directly to receive personal financial advice.
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  4. Maximize Your Retirement Investment: Most benefit-eligible employees1 are enrolled in the 403(b) Base Retirement Program, which consists of a 5% employee contribution of your eligible compensation and a generous university matching contribution of 10%. That’s an immediate two-for-one match of your investment for a total contribution of 15%. While this provides a great foundation for your retirement savings, you may eventually want to consider additional options. It’s important to note the IRS places limits on how much employees can contribute to their retirement savings accounts each year. However, many people may discover there is a lot of room before their current contributions reach that limit. Fidelity and TIAA can help you determine what your retirement contributions should be to help you reach your personal retirement goals – whether that date is 30 years in the future or just around the corner.
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  5. Plan Your Estate: According to TIAA, “Pondering your incapacity or mortality, and what might happen to your loved ones when you are no longer with them, can be tough to face. It’s what keeps most people from starting the estate planning process” (TIAA, 2024). Despite the challenging nature of the topic, creating a solid plan can give you and your family peace of mind and the confidence that your wishes will be carried out as desired.
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Questions? We encourage you to reach out to Fidelity (800-642-7131) or TIAA (800-732-8353) with your financial or retirement planning questions.

1 Certain types of employees are excluded to participate in the 403(b) Retirement Plan. Please see the 403(b) Base Retirement Program Eligibility Chart for more detail. 

Sources:

Five Essential Estate planning questions to ask. TIAA. (n.d.-a). https://www.tiaa.org/public/learn/retirement-planning-and-beyond/important-estate-planning-questions

Good debt vs bad debt. Fidelity. (2023, October 9). https://www.fidelity.com/learning-center/smart-money/good-debt-vs-bad-debt Horymski, C. (2024, March 22). Experian study: Average U.S. consumer debt and statistics. Experian. https://www.experian.com/blogs/ask-experian/research/consumer-debt-study/

How to make a financial plan. Fidelity. (2024, February 21). https://www.fidelity.com/learning-center/wealth-management-insights/how-to-make-a-financial-plan-video

 Report on the economic well-being of U.S. households in 2022 – May 2023. Board of Governors of the Federal Reserve System. (2023, May 22). https://www.federalreserve.gov/publications/2023-economic-well-being-of-us-households-in-2022-executive-summary.htm

Tips for managing and reducing your debt. TIAA. (n.d.). https://www.tiaa.org/public/learn/personal-finance-101/debt-consolidation

Waltenberger, A. (n.d.). 5 must-have financial goals. TIAA. https://www.tiaa.org/public/learn/personal-finance-101/5-must-have-financial-goals