There is a retirment crisis in America and it is becuase people do not start investing. After working with numerous people of ages and incomes, I have come across an alarming amount of people that do not focus on investing in their retirement and the problem is that they never started investing. People have other areas of concern from bills, children, and various types of debts. For many, investing becomes foreign and obscure. There needs to be more education on personal finance and an importance on investing early.
The main problem, for soon to be retirees, is that they have no source of retirement income. This can be explained by the fact that they put no money away in the first place. How can you have leftover food for tomorrow when you eat the entire meal today? For most people, that is how they handle their bills. After taxes, rent, food, car payments, and Netflix there is little to nothing. The big hurdle in retirement investing is simply starting. Once someone gets started they become active in the market and want to participate in the ebbs and flow of being an investor. This can make investors want to put more away and actively watch their investment.
This generation can not solely rely on the government for social security or on companies for a pension. This is where the 401(k) comes into play. Some business owners say plans are costly, cause headaches and that their employees won't even participate. I argue that if you find the right 401k specialist those problems can be solved. Every employer from McDonalds to a mid-sized firm should, at the minimum, have to offer a payroll deduction IRA for each employee if not a more complex plan. A 401k specialist can help you figure out what plan is right for your business. Most people do not care or notice that the IRS takes money out of their paycheck every week. Why? Because it is automatic from the first time you are paid. Payroll deduction IRAs automatically take a percentage of a paycheck and place the funds into an individual retirement account. These plans benefit from low cost, administration, and responsibility to the employer and allow every employee an opportunity to start investing in their retirement.
Thanks for checking out my article and let me know what you think. Please check out www.clayfinancial.com and let ask me how you can start investing today!