How do you think you compare to other people when it comes to how much you’ve saved for retirement?
The results of a new survey from the Employee Benefit Research Institute (EBRI) reveal some surprising insights into America’s preparedness for retirement.
Read on for the highlights of the 2016 Retirement Confidence Survey and a 6-Step Action Blueprint to make sure your money lasts as long as you do…
The survey revealed that 54% of all workers report less than $25,000 in household savings and investments, excluding the value of their primary home.
That includes 26% who say they have less than $1,000 in savings.
10% have between $25,000-$49,999 saved, 10% have between $50,000 and $99,999 saved, and 12% have between $100,000-$249,999.
And how many have saved $250,000 or more? Just 14%.
Are people close to retirement any better prepared?
[Read more…] “Do You Have As Much Saved for Retirement As the Average Person?”
Judging by the questions we’ve been getting from subscribers, there’s a good chance you may have missed some of these 5 important recent stories…
1. New Wealth-Killing Revelations About Your 401(k) and IRA
While doing research for my new book (The Bank On Yourself Revolution, due out on February 11), I came across four stunning new revelations about 401(k)s and IRAs. If you have money in one of these plans, I urge you to read this exposé to find out how to protect yourself from making costly mistakes.
2. Is Bank On Yourself “Snake Oil”?
[Read more…] “Top Five Recent Stories from Bank On Yourself”
As detailed in the accompanying article, Sure-Fire Results: How Old Sensibilities Are Proving a Potent Balm for Modern Personal Finance Ailments,Tim Austin is one of the nation’s most-respected and leading proponents of revisiting the financial playbooks of our grandparents and great-grandparents.
Using the following core principles, Austin’s clients have reversed years of debt accumulation and money struggles, allowing them to pay for their children’s college educations, repay all bank and credit card loans, and save safely and effectively for retirement.
Here in a nutshell is what Austin advises:
- Whole life insurance consistent with the Bank on Yourself strategy should be a cornerstone of every family’s financial planning
- Save at least two years’ worth of anticipated expenses before investing a single dime in risk-bearing instruments
- Set aside 30% of gross income, then budget your lifestyle around the remaining 70%. Ideally, keeping spending to only 50%, or even 40%, of gross income
- Put 20% of gross income into short-term and mid-term instruments, including whole life policies, certificates of deposit, money market funds and savings accounts. Save 10% of gross income for retirement in multiple whole life policies, added strategically over time, and designed for income replacement
Avoid all bank, credit card and installment credit. When possible, buy cars, major appliances and even pay for your mortgage with cash, or by self-financing through a Bank on Yourself-compliant whole life insurance policy
[Request a free Analysis and find out the bottom line numbers and results you could have if you added Bank On Yourself to your financial plan]
- When you buy a car, hold onto it as long as it remains mechanically sound. Only purchase a new car when you are left with no choice. The same approach should apply to other major capital expenses
- Stop thinking of a home as an asset. Moreover, stay longer in fewer homes – or even a single home, thereby greatly reducing total interest spent on mortgages
- Teach your children, even at an early age, about the wisdom of saving, spending and investing with a 1940s and 1950s sensibility