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Why is it so important to save for retirement (Part 1)? Life Expectancy is a big reason. In addition to Social Security benefits (more to come on this next month), your investment portfolio is likely to be your most significant source of financial support in retirement. Naturally, the longer you live, the more financial support you will need and people do continue to live longer. The following chart uses information from the Social Security Administration to compare the probability of living to a specific age for someone born in 1950 versus 1990.
The absence of significant inflation, driven by gas prices which are substantially lower than a year ago, means bad news in 2016 for those who receive Social Security benefits - there will be no cost-of-living adjustment, or COLA. In an unintended consequence, Medicare premiums could also rise for many.
Are you on track to reach your retirement goals?
Those that fail to plan, plan to fail. We all know the old adage, but finding the time to sit down and create a retirement income plan can be daunting, and about as exciting as a trip to the dentist. Fortunately, Ascensus offers a Retirement Calculator on their website which takes the pain out of the process. This tutorial will answer common questions that arise while competing the tool.
The good news is that 401(k) contributions have increased, according to Fidelity Investments’ most recent quarterly retirement savings analysis based on data from the 401(k) and individual retirement accounts (IRAs) it manages. The bad news is one glaring problem for Baby Boomers; the asset allocation of their 401(k)s is drastically out of balance.