Picture this scenario: Suppose you are a habitual spendthrift and have great difficulty putting money aside for savings, so you ask a trusted friend to hold money for you. Each month for a year, you give this friend $200 a month, which you cannot borrow against or ask to be returned to you until the end of a [...]
A new survey from the Employee Benefits Research Institute and reported in the Wall Street Journal found that 0.2 percent of 401(k) participants have reached $1 million in savings in their 401(k) plans. They keys to this success? Consistent saving over at least 20 years and contributing high amounts – if possible, the maximum annual amount allowed [...]
I will admit, I am a bit of a “retirement nag,” and am quick to point out the doom and gloom stories of hard-working individuals who may not have enough to retire at the age they wish. Yes, I am the finger-wagger when it comes to preaching the benefits of saving early, saving often, and [...]
Another sobering article about retirement, or lack thereof: Households that expected to find retirement just around the corner will have to work longer. The main reason? Debt, debt, and more debt: mortgages, home equity loans, kids’ college expenses and credit card debts are saddling 60- to 64-year-old households who expected their retirement-age years to be [...]
An article from yesterday’s Wall Street Journal was disconcerting — and misleading. It said there may be unintended consequences to the law that allows firms to automatically enroll their employees into 401(k) plans. In one of many scenarios, an analysis done by the Employee Benefits Research Institute for the WSJ found that up to 40 percent [...]