Sunday, September 19, 2010

Stashing It Away


A new study ... says Americans are $6.6 trillion short of what they need to retire. The study, conducted by Boston College's Center for Retirement Research, says savings have been squeezed by declines in stock and housing values. ...

The $6.6 trillion figure is based on projections of retirement and income for American workers ages 32-64 ... including a 3 percent rate of return on assets and no further cuts in pension coverage or increases in the Social Security retirement age. ...

I think workers in the 32 to 50 age bracket can rely on Social Security and Medicare changing before they reach their sunset years. Which means that saving, funding Roth IRAs, and 401(k)s are more important than ever.

It's always a good idea to live smaller than your income and put the excess into investment instruments and CDs. One of the things that I've learned tramping down the great highway of life is that you can never have too much retirement or emergency money, and it's way too easy to spend every dime of every paycheck.

The sooner you start funding your retirement, the better off you'll be. And if you've got thirty or more years in which to do it, the task will be way easier than playing "catch up" when you hit, say, forty-five.

(Here's a video report of Boston College's retirement study.)


cantpee said...

I've lost money investing. I'm making next to nothing in bonds, gold is ok,silver goes nowhere.
At this point, prostate cancer is my best retirement plan.....

Anonymous said...

How many times and in how many ways can you keep repeating the same thing?

You take up a significant amount of space in this blog discussing investment plans, as if that were the only factor relating to retirement. Of course CNBC would be concerned with portfolio matters, that's their area of concern- they are a financial channel.

Many of the readers of this blog, however, have depleted saving for reasons quite beyond their control, like having an increasingly difficult time remaining employed as retirement age approaches. I promise you, Steve, I will heed your advice very, very carefully, I will make sure to invest my nothing wisely.

Steve Hulett said...

Anon., sorry I ticked you off.

You don't like the post, skip over it. I only wish I had followed my own advice decades ago.

Anonymous said...

Thanks for the info Steve, it's always appreciated.

Building a savings means never having to take that storyboard test for 'The Cleveland Show'

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