Tag: retirement savings

Gen X No Longer Saving for Retirement

Guest Post by Martin Armstrong

A new survey by Clever Real Estate shows that 64% of Gen Xers have stopped saving for retirement. These are the people born between 1965 and 1980. Retirement has become a luxury, and people are working well into their golden years out of necessity. The cost of living is so high that the majority cannot afford to save for the future. Social Security will not be there to soften the blow, pensions are failing for those lucky enough to secure one, and we soon will have a nation of elderly individuals with no financial means. This is a great premise to usher in the Great Reset, where the government usurps all power, as people may have no other option.

Continue reading “Gen X No Longer Saving for Retirement”

This Reprieve from White-Hot Inflation Won’t Last Much Longer

Via Birch Gold Group

This Reprieve from White-Hot Inflation Wont Last Much Longer

From Peter Reagan

The latest official update revealed that inflation came in lower than expected. If you read the mainstream media’s spin, you might think inflation is actually cooling. Here’s an example:

The consumer price index, a key inflation barometer, jumped 7.7% in October versus a year ago. It rose 0.4% during the month. Both were cooler than expected, a sign inflation may be moderating. [emphasis added]

Keep in mind that the consumer price index (CPI) is an abstract — it’s a nationwide average. You and your family’s personal rate of rising costs will be different, and extremely unlikely to match the official numbers. Continue reading “This Reprieve from White-Hot Inflation Won’t Last Much Longer”

Avoid Financial Hardship with a Stable Foundation

Birch Gold Group

Avoid Financial Hardship with a Stable Foundation

From Peter Reagan

We are living through an economic crisis that will earn an entire chapter in introductory economics textbooks in the future…

Just a few of the many “highlights” this year:

Right now, many Americans are struggling with economic hardship, thanks especially to higher inflation.

In fact, 63% of Americans are living paycheck to paycheck, and that includes some six-figure earners, according to a recent report:

As of September, 63% of Americans were living paycheck to paycheck, according to a recent LendingClub report  — near the 64% historic high hit in March. A year ago, the number of adults who felt strained was closer to 57%.

Anuj Nayar, LendingClub’s financial health officer, put his finger right on the major issue:

Consumers are not able to keep up with the pace that inflation is increasing. Being employed is no longer enough for the everyday American. Wage growth has been inadequate, leaving more consumers than ever with little to nothing left over after managing monthly expenses.

Even the more affluent savers are cutting back on their holiday spending:

Getting shoppers to spend this holiday season won’t be easy.

The National Retail Federation said Thursday that it expects holiday sales during November and December to rise between 6% and 8% from last year — a decline when factoring in the effect of inflation. The sales forecast excludes spending at automobile dealers, gasoline stations and restaurants.

This isn’t promising, simply because consumer spending is the major driver of economic growth. Pullbacks in spending are often leading indicators of an incoming recession… Continue reading “Avoid Financial Hardship with a Stable Foundation”

How to Build a Crash-Proof Retirement Plan

Via Birch Gold Group

How to Build a Crash-Proof Retirement Plan

After several months of inflation that continues to accelerate above 5%, some retirement savers could be left wondering: When will inflation ease?

That’s a completely understandable question to ask. In fact, CNBC’s Jessica Dickler reported that some Americans saving for retirement are feeling the “bite” of inflation, and they might be starting to give up on the idea of it easing anytime soon: Continue reading “How to Build a Crash-Proof Retirement Plan”

Today’s Two Biggest Challenges to Your Retirement Savings

Via Birch Gold Group

Todays Two Biggest Challenges to Your Retirement Savings

It looks as though the next few years will be a bumpy ride for retirement savers. Not welcome news, considering the fact that today’s “stubbornly, persistently high” inflation looks like it will stick around.

Even worse, some projections we’ve seen forecast a negative annual return on stocks for the next decade.

With news like that, it’s easy to just give up and change your retirement savings strategy to, “Die at my desk.” With the right knowledge, we’re confident Americans can successfully navigate their way through the mess. It’ll most certainly be more challenging. Not impossible.

First, we’ll start with an important update to retirement laws. Then, we’re going to cover two expected hurdles, and finally discuss the advantages of fine-tuning your retirement savings.

Continue reading “Today’s Two Biggest Challenges to Your Retirement Savings”

The Best Path to Retirement Success Is Not What You Think

Via Birch Gold Group

The Best Path to Retirement Success Is Not What You ThinkAutumn Moon at the Temple Ishiyama-derMany pths lead up the mountain But at the top we all look at the same bright moon - Ikkyua, by Utagawa Hiroshige, 1834. Public domain image via Wikicommons

 

Sometimes, this koan credited to the Japanese Zen Buddhist monk and poet Ikkyū is translated as:

There are many paths to the top of the mountain, but the view is always the same.

There are so many ways for retirement savers to invest their hard-earned dollars it can make your head spin.

There are high risk investments like options. There are lower risk investments like Treasuries. There are both long-term investments and short-term investments. With so many choices, it’s no wonder that retirement savers might get confused.

Take Warren Buffett of Berkshire Hathaway. He’s notable for taking a long-term view on investing, with incredible, nearly legendary, success. But what’s interesting is how dedicated to that path Buffett is, sometimes at the expense of another route to the same success in the same timeframe.

Continue reading “The Best Path to Retirement Success Is Not What You Think”

Congress Has Big Plans for Your Retirement Savings

Via Birch Gold

Congress Has Big Plans for Your Retirement Savings

Uncle Sam may turn into a “retirement robber baron” if Congressional Democrats get their way.

In a piece titled The Tax Man Cometh, Mike Shedlock covers a partial outline of various tax reforms that the Democrats are putting together in their “Tax Hike” plan.

The most relevant part of that outline for retirement savers was particularly alarming because it aims to close a “backdoor” Roth strategy for high-income earners (at first):

In order to close these so-called “back-door” Roth IRA strategies, the bill eliminates Roth conversions for both IRAs and employer-sponsored plans for single taxpayers (or taxpayers married filing separately) with taxable income over $400,000, married taxpayers filing jointly with taxable income over $450,000, and heads of households with taxable income over $425,000 (all indexed for inflation). This provision applies to distributions, transfers, and contributions made in taxable years beginning after December 31, 2031.

Continue reading “Congress Has Big Plans for Your Retirement Savings”

Retirement Worries are Escalating (and the “Solutions” Don’t Look that Good)

Via Birch Gold

Retirement Worries are Escalating (and the Solutions Don’t Look that Good)

If you want a stress-free and secure retirement, the odds are stacked against you. Especially when Congress tries to offer their “reheated” solutions to the problem.

And worries are continuing to mount among Generation X, according to one MarketWatch piece:

The Bank of America 2020 Workplace Benefits Report, which surveyed 996 full-time and part-time employees participating in 401(k) plans, found that just 23% of GenXers feel a sense of progress saving for retirement; only 22% feel progress about growing their savings to pay for unexpected expenses and a mere 14% feel progress paying for current and future health care expenses.

Continue reading “Retirement Worries are Escalating (and the “Solutions” Don’t Look that Good)”

Americans Face These Gut-Wrenching Decisions For Retirement

From Birch Gold Group

Americans Face These Gut-Wrenching Decisions For Retirement

For the past six months, lockdowns across the nation have forced millions of Americans out of work, or dramatically altered their income in a variety of other ways (like cutting off sources of paying customers).

Many of those unfortunate folks have had to turn to other sources of money to make ends meet, such as raiding their 401(k) or IRA accounts.

In fact, a recent survey reveals that 30% of respondents have already turned to their retirement plans. Another 19% plan on doing so, but haven’t yet.

More than half of respondents said they spent the money they withdrew on groceries and necessities. You can see the other reasons for retirement plan withdrawals in the chart below:

Continue reading “Americans Face These Gut-Wrenching Decisions For Retirement”

Americans Growing Increasingly Anxious Over Retirement Savings

From Birch Gold Group

Retirement Savings

With all of the challenges that retirement savers already encounter, like inflation, regulations, economic uncertainty, and more, the coronavirus (COVID-19) pandemic sure seems to have hit at the wrong time.

Many governors in the U.S. opted to shut down their local economies, and even though some states have started the process of re-opening, the ripple effects have only just begun.

For anyone who is saving for retirement, those ripple effects will likely pile on top of the whole host of decisions that they already have to make.

And it appears to be making retirement savers from different generations nervous, according to a recent study:

Continue reading “Americans Growing Increasingly Anxious Over Retirement Savings”

Here’s What Could Destroy Retirement Funds… and What You Can Do About It

Via International Man

retirement

International Man: Back in the year 2000, a five-year CD would pay out about 6%. If you had $1 million, you could generate $60,000 per year with very little risk.

Fast forward to today. The average CD now pays less than 1%. That means you would now need at least $6,000,000 in retirement savings to generate that same $60,000 in annual income—six times as much as would have been needed back then.

There’s no question the Federal Reserve’s artificially low interest rates have eroded the quality of life for savers and retirees.

What do you make of all this?

Continue reading “Here’s What Could Destroy Retirement Funds… and What You Can Do About It”

China Plays Trade War “Hardball” With Yuan – 3 Ways Retirees Could Suffer

From Birch Gold Group

trade war yuan hurt retirees

The trade war between the U.S. and China has escalated once again. Except this time, China signaled its intention to weaponize the yuan to combat tariffs issued by POTUS.

According to a Forbes piece that detailed this signal, the stakes have been raised:

Yesterday China significantly raised the stakes in the trade war – basically warning that it’s willing to “weaponize” its currency by allowing the yuan to trade above the “magic line” of 7 yuan to the dollar. China also took the major step of suspending agricultural purchases and indicated that it’s prepared for a long protracted clash.

Continue reading “China Plays Trade War “Hardball” With Yuan – 3 Ways Retirees Could Suffer”

Averages Lie – Shocking Look At Mean Vs Median Household Savings In America

Authored by Mike Shedlock via MishTalk,

I have been on a rampage about average vs median income. Here’s a report about average vs median savings.

https://www.zerohedge.com/sites/default/files/inline-images/https_%252F%252Fs3-us-west-2.amazonaws%20%2811%29_4.jpg?itok=_q7h3GkJ

Magnify Money asks How Much Does the Average American Have in Savings?

The question is irrelevant. The story is how unprepared the median person is prepared for retirement. On that score, the article does explain.

Continue reading “Averages Lie – Shocking Look At Mean Vs Median Household Savings In America”

The next bear market in stocks will spark a retirement crisis

Guest Post by Howard Gold

Almost lost amid the torrent of recent news was a sobering item that will surely have far-reaching consequences.

The U.S. government announced that for the first time since 1982, it is tapping into Social Security trust funds to pay current benefits to recipients and it is dipping into Medicare’s reserves to cover the costs of that program.

The trustees also projected that the trust fund will run out of money by 2034 and that Medicare’s fund for paying costly hospital bills will be depleted by 2026.

That may ultimately force a cowardly Congress to cut benefits, raise taxes, increase the eligibility age, or some combination of the three. For the 52% of Americans who rely on Social Security for more than half their retirement income and the 25% of retirees who get more than 90% of their income from the program, that would be a disaster.

Continue reading “The next bear market in stocks will spark a retirement crisis”

Millennials haven’t saved two years’ salary — they’ve saved one week’s worth

Guest Post by Rex Nutting (raving liberal)

Click to visit the TBP Store for Great TBP Merchandise

If you saw that story on MarketWatch by my colleague Alessandra Malito that said you should save double your annual salary by the time you’re 35 for your retirement, you might be wondering along with half of Twitter if that’s even possible.

What with the stagnant wages, paying the rent, saving up for a house down payment, making the car payment, paying off the student loan, and all the other essential and frivolous expenses of day-to-day living, can your family really put aside $115,000 by the time you are 35, or $550,000 by the time you are 67, as recommended by the experts at Fidelity who were quoted by Malito?

Of course it’s possible for some people to save that much and more, but the reality is that almost no one does.

Continue reading “Millennials haven’t saved two years’ salary — they’ve saved one week’s worth”

The median U.S. household has only $1,100 in retirement account savings

Think about these charts for a minute and realize the implications.

The median (50th percentile) U.S. household held only $1,100 in its retirement account. Even the 70th percentile of households had only about $40,000.

Among these three age groups, households with heads who were ages 56 to 61 had the most savings, but underparticipation continued to be a problem: The median of this group held only $25,000.

Continue reading “The median U.S. household has only $1,100 in retirement account savings”