Saving for Retirement

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Late In Your Career And Light On Savings? Here Are 4 Ways To Improve Your Retirement Prospects

By Walter Updegrave, RealDealRetirement @RealDealRetire

A recent study by the Insured Retirement Institute found that fewer than one in four baby boomers believe they’ll have enough money to support them through retirement. That’s not surprising when you consider the gap between how much people have saved and what they think they’ll need. For example, 80% of the workers polled for the Employee Benefit Research Institute’s 2017 Retirement Confidence Survey who attempted to calculate how large a nest egg they’ll need estimated they’d require $250,000 or more in savings to live comfortably. Yet Vanguard’s latest How America Saves report puts the median 401(k) balance for 55-to-64-year-olds at less than $72,000. So what can you do if you’re getting towards the end of your career and your nest egg is well shy of what it should be to maintain your standard of living? Here are four moves that can help: More»

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The 5 Things You Need To Know To Be Financially Astute

By Walter Updegrave, RealDealRetirement @RealDealRetire

In case you forgot to mark your calendar, April is Financial Literacy Month, that time of year when you’re supposed to assess how much (or how little) you know about money and finances. If you want to gauge your financial acumen, there are all sorts of tests out there to help you do so, ranging from this six-question Financial Literacy quiz from FINRA to the National Financial Education Council’s 30-question National Financial Capability Test. But while having a grasp of how compound interest and inflation work and knowing how lenders calculate loan payments and make credit decisions can help you make sounder choices with your money, I’d argue that understanding these five big-picture principles is even more crucial to reaching your financial goals. More»

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Why You Shouldn’t Assume A Roth IRA Is A No-Brainer

By Walter Updegrave, RealDealRetirement @RealDealRetire

A recent NerdWallet study says that most people are likely to come away with more money after taxes in retirement if they contribute the maximum $5,500 a year to a Roth IRA rather than a traditional IRA. One section of the study even shows a number of instances where maxing out with a Roth IRA instead of a traditional account could yield as much as an extra $184,000 in after-tax savings after 30 years. But before you start rushing to a Roth, you need to understand why even though Roths do come out ahead in many cases, they can also fall behind in many others. More»

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More Than 40% of Americans Are Wrong About Their Retirement Preparedness. Are You One Of Them?

By Walter Updegrave, RealDealRetirement @RealDealRetire

A new study by the Center for Retirement Research at Boston College (CRRBC) says that more than half of working-age Americans are at risk of seeing their standard of living drop in retirement. No shocker there. Many surveys and studies show that many, if not most, workers are well behind when it comes to preparing for retirement. What is surprising, though, is the number of people the researchers identified who believe they’re on track to a secure retirement but aren’t and, conversely, how many are worried they’re falling short but are actually doing fine. More»

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Think You’re Ready To Retire? Better Ask Yourself These 3 Questions First

By Walter Updegrave, RealDealRetirement @RealDealRetire

When researchers for a recent IPSOS/USA Today survey asked 45-to-65-year olds how prepared they felt for retirement 59% responded that they felt very or somewhat prepared. The same percentage said they expected to rely mostly or entirely on their own savings to fund their post-career life. Asked how much savings they had, however, only about a third had set aside even $250,000, while another third had saved less than $100,000. All of which suggests some people could be in for a rude awakening come retirement time. To get a better handle on whether you’re really on track when it comes to retirement, ask yourself these three key questions. More»

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Don’t Let “Trump-O-Mania” Divert You From Your Retirement Strategy

By Walter Updegrave, RealDealRetirement @RealDealRetire

Trump, Trump, Trump, Trump. Trump. Everywhere you turn these days people are hypothesizing about ways a Trump administration might affect your retirement prospects. But while this unrelenting focus may be understandable (and even possibly helpful), it can also be a bothersome distraction perhaps even enticing you to make moves you may later regret. Here’s how to put “Trump-o-mania” in perspective and keep your focus on preparing sensibly for retirement. More»