You Ever Be Able to Retire?
federal government and employers
are shifting the duty of
retirement funding from themselves
to workers. How will this affect
in the Day...
Twenty-somethings often refer
to their parents’ youthful
years as “back in the day”—and
little do they realize how much
things have changed since then—economically,
socially, and politically. These
changes impact every American,
but they are especially relevant
to those beginning to think about
target retirement dates and whether
they have saved enough.
in the day” people worked
long enough at one job that they
drew adequate pensions in retirement.
The luckiest (or most visionary)
ones are the “triple dippers”
who collect a civil service or
military pension, a pension from
years of working for a private
company, and social security.
triple-dipping is an enviable
way to fund retirement, at least
one dip of the trio is quickly
disappearing: the company pension.
Only about 40% of the baby boom
generation, just now beginning
to retire, will have any sort
of pension, and the life-long
health insurance benefits that
were once part of nearly every
retirement package are for the
most part a thing of the past.
the government introduced IRA
accounts in 1975, they seemed
like a great way for people to
amass tax-deferred savings, but
they are strictly the responsibility
of the individual. You have to
have the money, and you have to
hope you’ve found a good
place to invest it.
years later, 401K plans came along.
With participating employers contributing
some matching funds, employees
who participate defer taxes on
part of their income and get a
literal pay raise from the funds
match. Once again, it sounds like
a great idea: So why are economists
worried that America is facing
a retirement crisis?
begin with, only a little over
half of employees who are offered
a 401K plan actually participate.
Some cash out their plans when
they leave, often because they
need the money for living expenses
while they look for another job,
or they want to pay ahead on debts
they know they can’t handle
if they aren’t working.
some of the non-participants have
IRA accounts or other individual
savings plans, an alarming 31%
of workers 40 or older admit that
they have not saved anything at
all for retirement, according
to a recent
AARP Bulletin poll
The same poll revealed that 28%
of those who had
had saved nothing!
Like almost 60 percent of current
retirees, Social Security is their
major source of income.
“But I still have my
Many companies have converted
pension funds into 401Ks, expecting
employees who know little about
the stock market to figure out
how to invest for their futures.
Some companies simply fund 401Ks
with 100% company stock. Where
does that leave the employee if
the company goes bankrupt—as
Enron did, leaving thousands of
employees out of work and with
shares of company stock once valued
at $80 worth less than a dollar?
Where Do You Stand?
you participate in an IRA or 401K,
by all means keep doing so. Don’t
take out any “loans”
on them. And remember that according
to the fed’s own web site,
you should expect Social Security
to replace only about 40% of the
income you will need in retirement.
The average couple on social security
receives about $20,000 annually
from the government. According
to Bloomberg’s retirement
this couple needs
an investment portfolio of an
up the other 60% they need ($30,000)
to bring them up to a retirement
income of $50,000 a year.
this doesn’t worry you. Perhaps
you are right on target. Congratulations!
You’re in the fortunate minority.
more than half of all workers
who are over 55 have saved less
. That amount
is almost insignificant. It will
generate only about $3000 a year—and
that’s assuming a 6% return
and no unexpected nose-dives in
did people get into this fix?
There are plenty of reasons. For
one thing, real wages have remained
stagnant since the mid-1970s,
meaning that despite very hard
work, many have needed every penny
just to get by. Poor spending
habits—the desire to have
it all and have it now—have
led others down the road to debilitating
debt. 401Ks and IRAs are accessible
(although you pay taxes and a
penalty). People borrow to pay
for college and medical expenses,
and somehow the money never gets
paid back to the retirement fund.
retirement security a luxury you
an uncertain economy, skyrocketing
healthcare and energy costs, and
little help from employers, retirement
may seem like an impossibility
doesn’t have to be that way.
are living longer and longer.
Must we spend our retirement years
filled with anxiety about outliving
our money? Will we just have to
keep working forever?
doesn’t have to be that way.
if you are approaching retirement
age with little in the way of
savings, there is still time to
make up for the shortfall, relax,
and enjoy the rest of your life.
all in your hands. But you must
be willing to take control of
your finances and turn your life
we said at the beginning of this
article, the responsibility for
retirement income is yours now.
The government will help you out
a little bit, but you need to
find a way to earn about 60% of
what you will need.
if you must stay home to take
care of an ailing spouse or aged
there IS a way
There is a business you can run
from your home, your RV, your
vacation cottage, even a lounge
chair on a sunny beach. Technological
advances in the past few decades
have made it all possible, and
it’s working incredibly well
for thousands of people.
establish a viable business that
will produce income now and for
years to come, all you need is
an Internet connection and a telephone.
Skilled professionals who took
back their lives will be happy
to teach you the simple secrets
of their success.
haven’t you heard about this
before? If you had, you’d
be ahead of the game. But the
important thing is that you know
about it now, and the sooner you
the sooner you can begin
to free yourself from anxiety
about how to finance your retirement.
In fact, you can look forward
to enjoying the rest of your life
as you live out your best years
in the security of ever-increasing
the first step now. Fill out the
form below for free, no-obligation