Tag Archives: Savings

60-Second Retirement Savings and Income Checkup

I think that the American public has largely tuned out the myriad studies showing that most households are woefully under-saving for retirement.  Even if we’d prefer not to think about this issue, however, it is crucial to regularly check on how we are doing.  There are two major questions.  First, during your working years, are you saving enough?  Second, during retirement, how much income can you sustainably plan to draw from your savings each year?  The good news is that there are some simple tools that you can use to do a fast estimate of how you are doing, how much you need to save to stay on track, or how to get on track. Continue reading

Saving and Investing for Retirement: Part One

We Are In Trouble: Part One of Our Special Five Part Series

As the presidential election season of 2012 has gotten underway, there is a massive issue that has gotten very little attention: how Americans will sustain themselves in retirement.  In 2010, there were 40 million Americans over the age of 65.  By 2030, that number is expected to rise to 70 million, which represents 20% of the total population.  At the same time, we have moved from a workforce with traditional pensions to one in which each person chooses how much to save and how to invest that money.

Only 42% of American private-sector workers between ages 25 and 64 have any type of retirement plan in their current job. The majority of Americans (67%) who have access to a pension plan have only self-directed accounts such as 401(k)’s and similar accounts (such as 457(b) plans which cover those who work at non-profits or who are employed by the state or local government organizations).  A large number of Americans also have IRAs.  We refer to these types of retirement plans as Defined Contribution (DC) plans as opposed to Defined Benefit (DB) plans, the traditional pensions that used to be the norm. Continue reading

Fox’s Gerri Willis: Don’t Get Too Conservative

Yesterday the New York Times ran a front page piece about how risk-averse investors have become. Long-time personal business correspondent Gerri Willis warns against becoming too conservative.

Willis was CNN’s face of personal finance for many years. Now she hosts her own shows The Willis Report at 5PM EST on Fox Business Network. She calls it “personal finance plus” and covers saving and investing as well as keeping a close on “the money you’re giving to the Federal government  as tax dollars.”  She spoke to Nanette Byrnes from Fox Studios in New York City and here is an edited transcript of their conversation. Continue reading

10 Investor Traps

Affinity schemes, complex leveraged investments and gold bullion scams are among the investor pitfalls highlighted by  The North American Securities Administrators in their annual list of “10 Investor Traps” published today. Continue reading

Americans Face Steep Retirement Shortfall

A study released July 13 has found that nearly half of early Baby Boomers – those 56 to 62 – may not having sufficient income to pay for basic retirement expenditures and uninsured medical expenses. “Generation X” is similarly poorly positioned. Continue reading