A NEW RESOLUTION FOR 2015 Each day, roughly 10,000 baby boomers turn 62—the average age at which people actually retire, according to a recent Gallup poll. By some estimates, there are more retirees living in our midst than ever before. And their numbers are growing: By around 2030, nearly one in five Americans will be over the age of 62. According to the Census Bureau’s Supplemental Poverty Measure, roughly 15% of people over age 65—that’s 6.1 million people in all--live in poverty. And tomorrow’s retirees aren’t in much better financial shape: Among workers age 55 and older, nearly 60% have saved less than $100,000 for retirement, and 24% have saved less than $1,000! OK; what to do about this? Perhaps those young people who shell out $400+ p/mnth for car payments - forever - but neglect to fund their future, need a change. That amount of money invested over a working lifetime of 40 years can be simply astounding! Americans will need roughly 11 times their final working salary when they retire, so someone with a $50,000 salary would need $550,000 upon retirement to maintain his or her standard of living. This doesn’t factor-in Inflation, which can skyrocket at any time. One cannot claim that s/he only makes half that much income because the math works regardless of income level. So, maybe you’ll have only $250,000 at the end. Ditch that expensive car payment and you’ll make it, but you‘ll still need 30 years to do it. Start early; switch over to monthly IRA contributions. Retirees say that they rely heavily on Social Security--which pays an average monthly benefit of around $1,290. Indeed, 57% of current retirees consider it a major source of income, according to a recent Gallup poll; only 33% say that pension plans are a major source of retirement income, 24% say 401(k)s, 23% home equity and 15% individual stocks and mutual funds. Saving/investment/spending practices have to improve even more now that interest rates on CDs and Money Market accounts are so low they don’t even keep up with inflation. Your move. RESOLUTION: I will start saving/investing in the New Year, and I will put aside those things which would keep me from my financial goals. My grandchildren deserve it. Happy New Year! ----------------------------------------------------------
Posted on: Tue, 30 Dec 2014 19:17:29 +0000
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