Why Saving for Retirement Is More Important Than Ever
Retirement savings statistics are usually pretty depressing. For instance,a recent study from the National Institute on Retirement Security foundthat the median retirement account balance across all age groups is$3,000,... Read More
Retirement savings statistics are usually pretty depressing. For instance,a recent study from the National Institute on Retirement Security foundthat the median retirement account balance across all age groups is$3,000, and for those nearest to retirement, the median is only slightlyhigher, at $12,000. To add insult to injury, companies have quietly beenshifting their benefits packages for years now, making those paltrysavings account balances even more troubling when it comes to youngerworkers.
The benefits of tomorrow's tax-free retirement withdrawals with a Roth IRA far outweigh the benefits of today's tax-deduction with a traditional IRA, says Stuart Ritter, Sr. Financial Planner at T. Rowe Price. According to recent T. Rowe Price customer data, investors under 34 years of age have over eight times more money in Roth IRA accounts than traditional IRA accounts. And within that group, investors between ages 18-24 have over sixteen times more money in a Roth IRA than a traditional IRA
It's hard to put your finger on the exact value of having a financial advisor. Morningstar recently attempted to quantify the benefit of hiring one, noting that investors who sought professional help gained an increase of 1.82% of retirement income per year. But with a wide array of business models, fee structures and certifications, it would be wrong to blindly apply that number to the entire financial services industry.
Boeing Company said on Thursday it will end pension plans for 68,000 non-union employees, including its chief executive. Boeing said it expects to take $110 million non-cash charge in the first quarter for the pension change. Under the latest plan, non-union workers including managers and executives will keep what they have earned in their pensions through December 31, 2015, and then switch to a new defined-contribution retirement plan, Boeing said.