"Why You Can't Retire from Your 401(k) Plan:
You Won't Have 10 Times Your Salary In Your Account at Age 65"
Welcome! We’re here to help you tackle the biggest crisis that nobody’s talking about--that the first wave of Baby Boomers was scheduled to retire in 2011--and the vast majority of them can’t afford to.
The cause? Contrary to most media reports, it’s NOT the stock market slump but the fact that the typical 3% employer matching contribution to a 401(k) account is the second lowest in the world. The result: the typical 401(k) balance for people over 60 is under $50,000---when it should be AT LEAST $500,000 for most people.
The solution? Double the employer contribution rate to 401(k) accounts for most companies, triple it for Fortune 500 companies. The plan? Legislation that will pull this off--click on Stop the 401(k) Nightmare above to contact President Joe Biden and others to enact it.
Until reform gets passed, here are some tips on how to save wisely by taking the “big picture”of your household finances. Consider this your “one-stop saving source” on how to make your household more financially fit. Click on each of the bold-faced titles below for more information on each topic.
Investing: Forget most of what you’ve heard. Pretty much all you need to know is stick with stocks, don’t time the market, “buy and hold your investments” and keep your costs low with index funds.
Cutting down on debt: We realize it’s not always easy to stay out of debt, especially given the high cost of college, maintaining a car and other necessities but we all could use a refresher on “don’t buy overpriced stuff because everybody else does”—like $3,000 TV sets.
When banks compete…NOT: One of the biggest rip-offs in the lending community is the adjustable rate mortgage. We don’t blame you for looking for ways to “lower your bills” but the worst thing you could do is pay off your credit card debt with a mortgage whose payments could double in five years.
Shop for a competitively priced college: The best way to make college affordable is to save ON college costs, not save FOR it with a 529 plan. With the average tuition bill at a private college totaling $120,000 we help you find a quality education for less.
** Click here to hear and see interviews with the author, Jane White **