Money Matters -Let Me Give You the Bad News: You Probably Haven’t Saved Enough for Retirement

 According to a recently completed survey, the 2017 Retirement Confidence Survey about 24 percent of workers and only 21 percent of retirees said that they had less than $1,000 saved for retirement.
55 percent of workers and 38 percent of retirees have less than $50,000 saved for retirement.
20 percent of workers and 38 percent of retirees said they had more than $250,000 for retirement.
The bad news is that if you plan to withdraw just 4 percent per year, that is just $10,000 a year from an account of $250,000.
The good news is that in 2017 savings accounts grew and set a record! Fidelity Investments, who services 26 million clients and has total assets under management of $6.2 trillion, noted that larger contributions were being made in both IRA’s (13.1 percent increase over 2016) and 401(k)’s (12.8 percent increase over 2016).
Average balances of 401k’s (10-years) were at $233,900 and (15-years) were at $318,500. Please remember the market (S&P 500) gained nearly 22 percent in 2017 so values went up but not necessarily due to the market, i.e. because portfolios have a variety of investments such as bonds, mutual funds, cash, etc. so there was some savings being injected into these accounts as well. This influx was determined, by Fidelity, to be an increase of 8.6 percent over the previous year.
While those increases are promising, they are a drop in the bucket compared to the 401K and IRA contribution limits which are as follows:
401(k) accounts for tax year 2018 = $18,500 + $6,000 if you’re 50 or over.
IRA accounts for tax year 2018 = $5,000 + $1,000 if you’re 50 or over.
Whether you’ve saved more or less than the average retirement account holder, if you want to strengthen your financial future, you have options. The best option is to take the time to review your income, budget/expenses, and savings and then make the necessary financial sacrifices in your life style so that you can save more and then enjoy life when you retire free of any financial concerns!
The five-excuses people give to their financial advisors for not properly saving and or investing for their retirement are:
#1 – I don’t make enough money.
#2 – I won’t need a retirement savings.
#3 – I’m prioritizing paying down debt.
#4 – My job doesn’t offer a retirement plan.
#5 – I’m struggling to pay my bills.
Don’t let one of these excuses stop you from having a financially sound retirement.
For more information, please call Douglas J. Sedam at 1-866-549-3900, 661-295-2400 #1 or email: Doug.Sedam@ThePaseoGroup.com. You may also learn more at www.ThePaseoGroup.com.
Securities and Investment Advisory Services offered through Western International Securities which is a member FINRA/SIPC. OSJ Office: 19510 Ventura Boulevard #211 Tarzana CA 91356 818-996-3375 The Paseo Financial Group, Inc. and Western International Securities are unaffiliated companies.