ABC of Michigan is preparing for our upcoming Planning Retreat. Now that PLAs are illegal on public construction projects in Michigan, we are moving into a new era for our industry and our association in the state.  

The leaders of our four chapters and the state office will be taking some time in the fall to discuss where ABC should be headed in the future. We want to know where YOU think we need to go next as an organization. To get your input we've designed a short survey to give us direction as we look at what's next for ABC of Michigan.

Completing the survey should take 5 minutes or less. Please complete the survey, by clicking the link below or pasting this link into your browser.

ABC of Michigan Planning Survey

If you prefer, you can visit www.abcmi.com and click on the link on the home page, visit our facebook page or contact our office to receive the survey via fax. The survey will be available for only two more weeks! So take 3-5 minutes to complete it now.

If you have any questions or need additional information please contact the ABC of Michigan office at (517) 853-2545 or email Mary Boardway.

We value what you have to say and really need your input. Thank you for your participation.

NOTE: Since the survey is completely anonymous, we cannot eliminate sending this request to those of you who have already completed the survey so we apologize for requesting your participation again.
 

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Michigan tops all other states in actual gain of construction workers from May to June 2011. A gain of 3,900 workers pushed Michigan's construction workforce to 129,700. This increase ranks nationally second for percentage gain (9.2%) behind North Dakota (17.3%) and second behind Texas (26,000) for actual number gain with 10,900 new workers in Michigan's construction workforce according to data released by the AGC of America. As in May, demand for specialty trades workers comprise the majority of this increase.

Economists traditionally identify a three-month cycle as a trend. This milestone is one month away as employment levels have increased to 500 less workers employed than in January 2011.

Looking at local employment data across Michigan, all Metropolitan Service Areas show steady construction workforce growth from April to June. Actual workforce growth follows directly population size with increases being largest in the Detroit, Grand Rapids and then Lansing MSA's.

Comparing seasonally adjusted construction employment levels in June for the past decade shows current levels swing through the trough of 2010 with 118,800 workers and above the 2009 level of 126,300. The sobering reality is Michigan has 76,300 less construction workers than in June 2001. See chart below for further detail.

Who Wants Needs To Be a Millionaire?

How much money are you going to need for retirement? One reason people dread this question is that they don't know how to come up with an answer. But it doesn't have to be complicated. Here's a simple approach to estimating how much you'll need.

Estimate Your Income Needs

You could plan a detailed retirement budget to come up with an estimate of your annual income needs. But that's not necessary at this point. For the sake of simplicity, just assume you're going to need the same disposable income you had before retirement.

Review Your Income Sources

Look at where the money will come from. There's Social Security, of course. Your annual statement has monthly benefit estimates for various retirement scenarios. If you're eligible for a pension, add that amount. If the total doesn't provide enough income, you'll generally have to make up the difference from your own savings and investments.

Example: A fictitious married couple on the cusp of retirement has disposable income of $45,000 a year. The average Social Security benefit for a retired couple in 2011 is $23,000, and that's the amount they expect to receive. So the couple will need to take $22,000 a year from their savings and investments.

Look at Longevity

How long will you need an income? Obviously, there's no way to be sure of this estimate. But according to the Social Security Administration, one in four 65-year-olds will live to age 90, and one in 10 will live to age 95. To be safe, figure on needing an income for 25 or 30 years.

Estimating your total savings isn't as simple as multiplying your annual income need by the number of years you think you'll be retired. Over time, inflation will erode the buying power of your savings.

Your Final Answer

The last factor is investment earnings. Investing to stay ahead of inflation is key to helping your retirement assets last. If our couple earns, on average, 3% more than the rate of inflation over time, they'll need to save about 20 times their required annual income from savings by the time they retire: $22,000 × 20 = $440,000.

Clearly, this is a very simplistic approach to calculating a ballpark figure. Going into more detail regarding inflation, returns, taxes, existing assets, and your intended lifestyle will produce a more precise goal.