Posts Tagged 'retirement'

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Do you know how much the average American has in their checking account?

While it is difficult to know for sure, one study by bank consulting firm Moebs Services indicates that the average American has $4,436 in their bank account. This is an amount that accounts for averages in people’s checking accounts specifically and was notable a couple of years ago because it represented a significant jump from 2012’s numbers. What’s even more interesting is how much higher that figure is than it was in 2007, just prior to the Great Recession. At that time, the average American only had $788 in their checking accounts. This points to a change in financial behavior likely due to the scare of the downturn of the economy in 2009. People began to keep more available cash on hand. However, this study reveals a large increase in what is held in our checking accounts. It does not mean the average American has this much in a savings account. Studies reveal that 69% of Americans have less than $1,000 in a savings account. As Christians, we shoul ...

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What is the number one financial regret of older Americans?

“Most Americans are filled with regrets — financial regrets. Fully three in four, in fact, admit they harbor financial regrets, according to a survey of more than 1,000 adults by Bankrate.com. Their biggest regret: not saving for retirement early enough (nearly one in five Americans put this in the No. 1 spot). What’s more, among those age 65 and up, 27% said this was the biggest regret, compared with 17% of those aged 30 to 49." Those in the younger generation are probably just not old enough to realize they probably have also started saving too late!  Now, here is the tragedy of this regret. God’s Word teaches us to save. It should be a regular part of our life to regularly save money. And it’s never too late to start. You can also make progress on saving money by taking on an extra job or starting a small business or service to increase your income. God will be faithful to provide your needs; our part is to be faithful to obey His commands and princi ...

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Most college students focus on the present without any serious thought to what lies ahead 10-20 years from now. But, they should be saving for the future.

Students should save so that they are in the habit later in the workplace. Giving to the Lord first, then paying themselves should become a way of life even before graduating high school. Learning to delay gratification for a future need is crucial. In an August article at CheatSheet.com, Eric McWhinnie stated that spending less than you earn and investing the difference is the key to financial independence. I agree! Yet, most people fail to realize the benefit of starting early. In fact, only 27% of respondents in a survey at MoneyRates.com started saving in their 20s. The benefits are undeniable when observing the effects of compounding interest over several decades. A person who starts investing at age 25 and invests for only 10 years but allows it to grow will have substantially more at age 65 than a person who invests the same amount starting at age 35. Starting early makes a tremendous difference. * Retirement savings are growing more and more necessary because people are living ...

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Do you worry you may outlive your retirement savings?

According to a new Bankrate.com survey, “People who earn more than $75,000 have a greater fear that they’ll run out of money in retirement. Overall, 23% of survey respondents say their top worry is that their savings will run out, but 29% of those in the $75,000-and-up income bracket say the same.” According to an article at Time.com, “These fears persist despite thefact that about half of high-income Americans say they’re happy with the amount they’re socking away for retirement, compared to the 29% overall who say they’re happy with their current retirement savings. And even among those earning more than $75,000 a year, more than a quarter say just keeping up with basic living expenses is hampering their retirement savings”. A few ways to avoid outliving your savings is to get out of debt, learn to live on a budget, and reduce your cost of living as much as possible. This will enable you to increase your savings and add to your cushion now as opposed to ...

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Are you confused by retirement accounts and investments?

Christine wrote me with this question: I have worked several different jobs. I have retirement money affiliated with each employer. I am considering consolidating to one new account, but I am confused on who to invest with and what type of account to open? Your suggestions would be greatly appreciated. Christine, you have a few basic options to consider: Leave your money in your former employer's plan, if your former employer permits it. Roll over your money to a new 401(k) plan, if this option is available. Roll over your money to a Traditional IRA. Roll over your money to a Roth IRA. Take a cash distribution. First, be sure it is to your advantage to move the money from your former employer’s 401(k) plan. It you are allowed the same options and controls over the account as an existing employee, it may be to your benefit to leave the money where it is. Ask a professional financial advisor to help you analyze this option. Depending on some variables, you can chose to l ...

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Good Advice On Planning For Retirement

Are you thinking about and planning your retirement? My guest today is David McAlvany, President of McAlvany Wealth Advisors and author of his newest book, The Intentional Legacy. David, what is the single-most important tip you would give a person planning their retirement? “Through no fault of their own, the rules have changed. You used to be able to count on 4% of your savings to supplement your retirement income. Today, it’s no longer possible. This is for two reasons. One, interest rates have been set so low by the world’s central banks that you can’t count on the magical 5% coming in from your bank’s certificates of deposit. Two, in the equity markets, things are so overvalued that you now have a growing list of professional investors. This includes John Bogle of Vanguard funds, who says you can expect only 2% per year over the next decade because things are so overpriced today. You have to lower your expectations and anticipate to draw 2% instead of 4% - which ...

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