How to Overcome Your Retirement Savings Obstacles

How to Overcome Your Retirement Savings Obstacles

If you’re going to have a habit, it’s best to have one that will enhance your future, don’t you think? According to a recent retirement readiness survey, 52% of American workers are “habitual savers,” meaning they always save for retirement. That’s a pretty good habit to have, since those folks are likely well on their way to a secure retirement thanks to their consistent savings practices. Unfortunately, they make up slightly more than half of all Americans who will eventually face retirement. What about the other half? According to a survey conducted by Aegon, that other half is made up of four categories of savers: 20% are “occasional savers.” They save for retirement from time to time. 12% are “past savers” who are not saving for retirement now, but they have in the past. 11% are “aspiring savers” who intend to save for retirement someday. 5% are “non-savers” who have never saved for retirement and never plan to. So what’s standing in the way of people who aren’t currently saving for retirement? According to the retirement readiness survey, 87% of workers believe it’s their personal responsibility to build their retirement nest egg, and 77% are aware of their need to plan ahead for retirement. But only one in five has an actual written retirement strategy—one-third has no strategy at all! Clearly, there’s a disconnect between what we know we should be doing and what we’re actually doing. For a lot of us, we’re just too busy living our lives now to think too far ahead in the future. We’re afraid serious retirement savings will cut into our lifestyle. Don’t...
Haunted by a Late Start on Retirement Saving? Expert Advice to Help You Catch Up

Haunted by a Late Start on Retirement Saving? Expert Advice to Help You Catch Up

from daveramsey.com on 17 Oct 2015 This time of year, scary stories abound. Ghosts come out of the woodwork. Vampires lurk in the shadows. Things go bump in the night. Of course, if you’re behind on your retirement savings, spooky specters don’t hold a candle to what lies ahead. It’s enough to send a chill up your spine and back again. But your future doesn’t have to be frightening! We asked a few of Dave Ramsey’s investing Endorsed Local Providers (ELPs) to share their advice for retirement savers who’ve gotten a late start. Here’s what they had to say. Be Intentional You know how you avoid going to the doctor because you’re afraid of what they might find? Money’s no different. What you don’t know really freaks you out! But if you want to feel good about your future, you’ve got to dive headfirst into the details. Russell Kizer, an investing ELP located in Birmingham, AL, suggests starting with a budget. Put every dollar on paper on purpose, then look for ways to cut spending and free up more cash for retirement. It’s okay to take it one step at a time. “Go back and look at what you spent on entertainment in the last three months,” Chadd Hoeft, an investing ELP in Omaha, NE, says. “Can you eat dinner at home a couple of extra nights a month instead of taking the whole family out? Start there and contribute those dollars toward your future.” Being intentional with your budget requires commitment each month, but it’s well worth the time invested. Why? Because once you know where your money’s...
The #1 Lie That Will Keep You in Debt

The #1 Lie That Will Keep You in Debt

from daveramsey.com on 23 Sep 2015 You ever had one of those days? You can’t seem to get ahead with your money. Maybe you got into an argument with your spouse. The kids got a bad report from school. At the end of the day, when you lay your head on the pillow, you might feel beaten up and overwhelmed. You might feel like you’re never going to get to where you want to be. But here’s the truth: You will. One of the top lies we tell ourselves about money, and life, is that we’re never going to make it. We’ll never get debt free, never be able to afford a house, never pay off the student loans. But you will. With fall here and the kids back in school, it’s a great time to refocus. If you’ve had some bumps in the road during the summer, let’s get things back together as we move closer to the end of the year. Here are a few things I want you to remember: Your patience will pay off. The old saying goes “Rome wasn’t built in a day,” and you’re not going to get out of debt overnight either. Dave Ramsey has helped millions of people make a plan for their money and get out of debt—from just a few thousand dollars to millions of dollars. You can be one of them. And once you pay off that final debt, I promise you’ll be so relieved you stuck with it. You’re going to make mistakes. We all mess up. We all bounce checks. Yes, it is embarrassing, but we learn from it and moved...
Are You In Danger of Running Out of Money in Retirement?

Are You In Danger of Running Out of Money in Retirement?

It happens so often, you may not even notice it anymore—that flutter of anxiety you feel in the pit of your stomach whenever someone mentions retirement. You’ve grown numb to the sensation because you can’t watch television, go online or even check your email without hearing or reading about how unprepared Americans are for life after work. But when you do take the time to think about your future, you have only questions—no answers—about how much you need to save or how much you should have saved by now for any hope of a secure retirement. Because of the thousands of reports out there that claim you’re not taking the proper steps to retire comfortably, precious few offer any advice to help you make better choices. The Formula for a Successful Retirement Recently, however, the Employee Benefits Research Institute did attempt to predict a person’s chances of making it through retirement without running out of money based on their age, their income and how much they’re saving for retirement. Here are some of their findings:  A 25-year-old male who makes $40,000 and invests 15% of his income has a better than 90% chance of making it through retirement with money in the bank. Unfortunately, those of us who are saving for retirement are only saving about 7% of our income—less than half of what we need to save to avoid running out of money. At that rate, our 25-year-old investor will have a little better than 75% chance of supporting himself through retirement. So, this study confirms the age-old investing wisdom: The sooner you begin investing and the more...