The American Dream of retiring comfortably may be impossible for many. A recent study by the National Institute on Retirement Security (NIRS), whose mission as a non-profit is to contribute to informed policymaking by understanding of the value of retirement security, illustrates the retirement crisis that will be playing out in front of us. They find that the median retirement account balance for all working-age households is just $3,000. For households near retirement, the median balance is just $12,000. That includes all households, including those who haven’t saved anything. If you take out households that haven't saved anything, the median balance among working-age households who do have a retirement account raises to $40,000, while those closer to retirement have a median balance of $100,000. More than 38 million Americans, or 45%, have no retirement assets, NIRS found. Among those near retirement, more than 40% have saved nothing.
Do you fall into this group? What can you do?
** Know what you earn and what you spend.
** Make a plan.
** Start saving. Any amount possible.
** Learn about your company retirement plan. If you don't have one, learn about individual retirement accounts.
** Invest your savings so they will grow.
** Seek help from a Certified Financial Planner™ Professional.
** Just start. Doing nothing and avoiding the inevitable is not a plan.
Source: The National Institute for Retirement Security
Angie Furubotten-LaRosee, CFP® is a financial planner who helps regular people with "big picture" planning, focusing on their money and their lives.
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