In 2016 in the United States, there were large differences in retirement savings by age. Taking strict retirement savings, households headed by 30-34 year olds averaged $24,254.48 in retirement savings with a median of $700. Households in the final retirement stretch headed by a 60-64 year old averaged $229,101.05 with a median of $16,000. With […]
In 2016, American households headed by someone aged 32-61 averaged $120,809.40 in retirement savings, or $264,453.30 using an expansive calculation. Using the same calculations and definitions, American households have a median of $7,800 and $17,000 saved, respectively. American Retirement Savings in 2016 In 2016, the Economic Policy Institute released a study with an interesting dive […]
The Individual Retirement Account or IRA is an excellent tax free account available to many American workers. Unlike its cousin the 401(k), IRAs are completely portable and tend to have fewer restrictions on the number of investments allowed. IRAs are available to workers without access to a 401(k) or similar plan, and to workers with […]
The 401(k) is one of the best accounts available to save a significant amount for retirement. It has always boasted sizable contribution limits, allowing workers a convenient method to shield their income from taxes. Of course… those sizable limits mean not everyone maxes out their 401(k). The vast majority of people don’t contribute the maximum […]
The IRA or Individual Retirement Account, just like its cousin the 401(k), was an invention of the 1970s. First introduced in the Employee Retirement Income Security Act of 1974 (better known as ERISA), the IRA is a portable retirement account which allows contributions from workers outside of the worker’s employer. The IRA family also claims […]
After this article, you’ll be convinced: you should max out your retirement accounts as early and often as you can. Having money in tax protected accounts will give you piece of mind now, and a cushion in case of unplanned issues and bumps down the road. The Failure to Contribute Is Costly We came across […]
At the end of last year, I stated that I wanted to pay down ~$34,000 in consumer debt (outside of my mortgage). I am writing today to report on both a level of success and a switch in strategy. How am I faring? In short: decently. I am not currently on track to hit my […]
We became aware of a particularly interesting Government policy about 2 weeks ago (along with the rest of America) when the Washington Post wrote about the Social Security Administration attempting to collect debts that were generations – quite literally – removed. It forces us to ask… where should debt responsibility end? Where do we draw […]
In a case of great timing, DQYDJ’s article guessing how Mitt Romney has so much money in his IRA is now the third most popular article on the site! While I hold no belief that this situation will continue past November of this year, I think that, in the moment, it’s interesting to ask how a retail investor (read: the rest of us) might have fared had we contributed as much as the Romney family must have during Mitt’s 24 year stint in the public sector (whew). So, how much out-performance did Mr. Romney achieve?
If you read a lot of Personal Finance, you’ve probably noticed a similar theme on your favorite websites this morning: they are all talking about Roth IRAs. As dues-paying members of the blogosphere, we also joined Jeff Rose’s “Roth IRA Movement” slated for this morning! So, let’s talk about the Roth.