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5 Uniquely American Responses to the Financial Crisis
Tweet Share on Facebook January 29, 2010 CommentThe financial crisis had a bigger impact on American’s retirement plans than on people in other parts of the world. A new Towers Watson survey of employers found that U.S. workers were much more likely to have recently pulled their money from the stock market or decided to delay retirement than workers in Europe, Latin America, Canada, or Asia-Pacific. Here are a few largely American ways retirement plans have been reset since the economic meltdown.
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College Graduates More Likely to Delay Retirement
Tweet Share on Facebook January 28, 2010 CommentThe most educated members of our population are the most likely to continue working after age 65. Male college graduates age 65 to 69 were 58 percent more likely than high school graduates to participate in the labor force in 2009 and nearly twice as likely to work as those who did not complete high school, according to a recent Urban Institute analysis of Bureau of Labor Statistics data. The contrast is even more dramatic for women. Females with at least a bachelor’s degree were 61 percent more likely than high school graduates to be employed during their late 60s.
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How Automatic Enrollment Affects Your 401(k) Match
Tweet Share on Facebook January 27, 2010 CommentAutomatically enrolling workers in 401(k) plans unless they take the initiative to opt out is generally viewed as a good way to get more people to save something for retirement. Signing up more workers for the plan also helps companies meet 401(k) nondiscrimination requirements meant to insure that 401(k) contributions for rank-and-file employees are proportional to retirement payouts for owners and managers.
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Obama's 7 Retirement Initiatives for the Middle Class
Tweet Share on Facebook January 26, 2010 Comment (7)The White House previewed several tax cuts and spending programs yesterday that President Barack Obama will discuss in Wednesday's State of the Union address. Many of the proposals aim to help middle class families prepare for retirement. Here are 7 ways your retirement benefits could soon change.
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Study: 3 Effortless Ways to Get Higher 401(k) Returns
Tweet Share on Facebook January 25, 2010 Comment (3)401(k) participants who use target-date funds, managed accounts, or online advice get better returns on their retirement investments than those who do not, according to a Hewitt Associates and Financial Engines study released today. The median annual return for 401(k) account holders using any of these forms of investing assistance was 1.86 percent higher than among investors who choose their own investments with no guidance from their employer, the study of 400,000 401(k) plan participants at 7 companies between 2006 and 2008 found. The improved return takes into account fees paid on the investments.
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Record Numbers Claimed Social Security in 2009
Tweet Share on Facebook January 22, 2010 CommentNew Social Security applications surged in 2009. Some 3.2 million Americans age 62 and older began collecting their due last year, up about 20 percent from 2008 and the most new awards paid out since Social Security payouts began in 1940, according to a new Urban Institute analysis of Social Security Administration data.
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Free Retirement Financial Advice
Tweet Share on Facebook January 22, 2010 Comment (1)Meeting with a financial adviser can be expensive. The National Association of Personal Financial Advisors (NAPFA) says its members, who receive only fees and not commissions, generally charge clients between $150 and $300 an hour. But for two days only NAPFA and Kiplinger’s Personal Finance magazine are making financial advisers available for free to address your personal investment, tax, or insurance concerns.
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How To Crack Into Your Nest Egg Early
Tweet Share on Facebook January 19, 2010 Comment (1)Retirement accounts are generally intended to finance life after you leave the workforce. When you crack into your nest egg before retirement you rob yourself of tax-deferred growth. But if you do need to access to your retirement stash before age 59 ½, there are a variety of ways to avoid paying an early withdrawal penalty. Medical bills, a first home, and even college tuition are among the Uncle Sam approved ways to spend your IRA balance.
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Why Job Hopping Makes You Worse Off In Retirement
Tweet Share on Facebook January 15, 2010 Comment (11)Frequently changing employers can make it more difficult to save for retirement. The median job tenure of American workers was 5.1 years at the same job in 2008, according to a new study by the Employee Benefit Research Institute. Many pension formulas reward long-term and highly paid employees more than workers with a shorter job tenure. Some job hopping workers also move in and out of retirement plan coverage throughout their career and cash out small 401(k) balances when they change jobs, both of which lead to smaller retirement account balances.
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What Retirees Wish They Had Done Differently
Tweet Share on Facebook January 14, 2010 Comment (5)Even relatively wealthy Americans have begun to significantly cut back on spending. More than half of affluent investors have downsized their lifestyle over the past year, according to a new Merrill Lynch Wealth Management telephone survey of 1,000 Americans with investable assets of $250,000 or more.
