For IMMEDIATE support, call 877.GROW.SAFE (877.476.9723)             

Will Your 401k Help You Meet Your Retirement Goals

When it comes to retirement saving plans, Americans can have a variety of options. For millions, employer-sponsored plans are a primary savings vehicle – especially 401(k) plans. It’s no surprise as to why. A 401(k) plan offers a number of benefits, including tax-deferred accumulation, a high contribution limit for pre-tax savings, and in many cases an employer match.

As retirement nears for many Americans, it brings up an important question: How will their 401(k) plan prepare them to enjoy a comfortable, meaningful post-work lifestyle? Even with these benefits, many Americans are dissatisfied with their 401(k) because they perceive shortfalls in other areas. Limited investment options, low access to personal financial advice, and lack of money control are just a few investor frustrations.

There’s also the issue of subpar financial knowledge. Surveys indicate many people don’t understand 401(k)s, even though these plans dominate the workplace savings landscape. According to the Investment Company Institute, as of December 31, 2016 Americans held $7 trillion in all employer-based defined-contribution plans. Of this, $4 trillion was in 401(k) plans – or 57.1% of total defined-contribution plan assets.

SafeMoneyMasterLogo img

In the past, we’ve talked about the importance of being prepared for retirement. Of course preparation is different for everyone. For one, women will have different retirement needs and goals than men.

It also depends on what employment capacity you’re in. If you’re employed by a large company, for instance, you may have a retirement pension plan via your employer (though these sorts of perks from employers are disappearing). But what about planning for retirement if you’re self-employed?

According to various data sources, there are roughly 10 million self-employed Americans – from business owners and independent contributors to freelancing professionals. In a recent TD Ameritrade survey, around 55% reported they’re behind on retirement savings. On the whole, baby boomers have an average windfall of being $335,000 down from their retirement savings objective.

SafeMoneyMasterLogo img

In the past, we’ve discussed how not planning for retirement comes with downsides. But what if you’re just a few years from retirement? Or what if you and your partner already are retired?

SafeMoneyMasterLogo img

Retirement security continues to be a pressing concern for Americans. But many people aren’t taking steps to prepare themselves. In late May 2015, The “Report on the Economic Well-Being of U.S. Households in 2014,” published by the Federal Reserve’s Board of Governors, offered many concerning insights into this landscape. 

In the study, 31% had no retirement savings or defined-benefit pension. It was reported 39% of those surveyed have “given little or no thought to financial planning for retirement.” Moreover, these trends were somewhat reflected in people’s expectations for the future. The study showed 26% said their retirement plan consisted of working as long as possible. Likewise, 12% said they never planned to retire, and 45% reported they would work somewhat to keep money coming in.

Proud Member

assessbest logo footer


Newsletter Signup

Contact Info

Safe Money Broadcasting Home no glow img

Safe Money Broadcasting LLC.
1107 Key Plaza #450
Key West FL, 33040-4077