Financial Wellness Services for Cities, Special Districts, & Agencies

Financial literacy, stability, debt reduction, increased savings, and one-on-one counseling - Benefits of Financial Wellness that also drive retention & recruiting for public sector organizations.

This is the first installment of a three-part series exploring how public sector plan administrators and those involved with the success of their benefit and retirement programs can make improvements that are budget-friendly and effective.

As many strive to improve their city, district, or agency by hiring and retaining the best talent, it is crucial to recognize the importance of supporting employees' overall well-being. Fostering a culture of wellness both physical and mental leads to resilient, engaged, and motivated colleagues. Less stress has a ripple impact. Neglecting financial wellness can also have negative ripples that many of you have no doubt experienced. Financial concerns often lead to compromised well-being. Addressing financial health is essential to building a strong team committed to the city's success, the district's mission, and the agency's goals.

For those who have decided to pursue a financial wellness strategy or already have initiatives in place, I would like to share what many times can lead to poor results so you can avoid the same disappointment or fix what is currently not optimal.

Here are some common issues:

• Lack of Personalization: Generic programs that don't address the unique financial situations and needs of individual employees often fail to engage.
• Insufficient Access: Employees and retirees may not be aware of or understand the resources available and will only be interested when an event occurs- on-demand access is critical.
• Inadequate Support and Resources: Without ongoing support, resources, and follow-up, employees may struggle to implement the financial strategies taught in the programs.
• Lack of Leadership Buy-In: When leadership actively supports and participates in the initiative, it is perceived as important, meaningful, and beneficial.
• Short-Term Focus: Programs that focus on short-term solutions rather than long-term financial well-being often fail to create lasting change.
• Trust: There may be intimidation to discuss financial health. It may be very difficult for employees to seek help or participate fully in the initiatives. Trust is driven by many factors and removing any perceived or real conflicts of interest, encourages a more open and candid conversation.

Elements of a Financial Wellness program with the highest likelihood of success:

In today's world, both retirement and investment information is abundant yet often conflicting. Obtaining advice from an objective, conflict-free fiduciary expert is crucial.

"Show me the incentive, and I will show you the outcome" - Charlie Munger

1. Ensuring Unbiased Information / Conflict Free Advice

When seeking advice, it is imperative to receive information that is free from bias. This impartiality fosters trust and confidence. This is foundational and often the primary source of frustration. To state the obvious- nobody enjoys being subjected to a sales pitch when seeking help.

2. Personalized Care / On-Demand Access

A Financial Wellness consultant who operates without conflicts of interest can focus entirely on your situation. They are required to consider all available options, tailoring their recommendations to what is best for you. This leads to better outcomes.

3. Navigating the Complex

Financial decisions are often complex, requiring a nuanced understanding. Objective experts can provide clear, comprehensive explanations of your options, including potential risks and benefits, helping you make informed choices. Their guidance can be critical in navigating the often overwhelming array of investment and tax-related information and opinions available.

4. Building Trust

Credibility is built on the ability to offer honest, straightforward advice. Working with an objective, conflict-free expert cultivates a relationship based on trust. You want confidence instilled from the start, promoting a collaborative approach. It won't happen overnight but word spreads when something works - I have seen it firsthand.

Final thoughts

In conclusion, the importance of offering objective, conflict-free expertise within a financial wellness program cannot be overstated. The ability to provide unbiased, personalized, and up-to-date information is essential for making well-informed near and long-term decisions. That can be facilitated through a workplace offering in conjunction and coordination with the plan record keeper. The discussions focused solely on "457 deferral or the 401(a) contribution" differs from a broader financial wellness conversation, although these topics frequently overlap.

For more information on this please send an email: [email protected]