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Well there's a stunning new report this week shedding light on the growing retirement crisis in America -- suggest that most people working right now.
Don't have enough money saved to pay for their first year of retirement and a good majority feeling like be old.
It's not going to be able to retire that's not good news Scott Dan is here he's the author of the upcoming book more money police.
He's also the founder of the website helped save my dollars dot com -- Scott Harriet.
-- good to see Europe now what's driving this retirement crisis well look over the past thirty years wages have remained stagnant the cost of living is going up so.
If consumers struggling to find ways.
To fit retirement savings into their budgets were also seeing Americans live an extra year issue and that's increasing the the didn't amount of money need to retire post pensions.
-- -- in the private sector are becoming a thing of the past the number of workers a percentage of workers with pensions.
At 3% in 2011 that's down from 28%.
In nineteen said he and -- answer a lot of factors to blame here.
That's a that's habits is definitely the -- in -- we're just saying that most of the future retirees they're saying that they don't have enough money.
And it -- said to to put a way to cover their first year after work so.
What do you think when you suggest -- to be done.
Well first off you have to figure out how much money do you need to retire as a great calculator on choose to save dot org -- from the employee benefit research institution the answer fifteen questions here Ager and come.
-- not a social -- security you're expected to receive.
And the calculator will tell you how much money you need to retire as this is a great first step to figuring out a plan to get to -- -- -- But then if you go to choose to -- dot -- you need to know before you go there what -- is your comfort level for retirement exactly how much money you'd like to have when you retire.
Exactly a lot of what retirement savings is is figuring out the type of lifestyle you wanna leave during retiring -- -- right now you wanna think about.
What your financial life gonna look like in retirement he may have your mortgage paid off by then we -- also gonna have a lot more health care costs.
Especially if you need to be nervous system living Hollywood restricting about long term care insurance now to cover those expenses.
Also think about you know.
Do your parents you -- to care for your parents your grandchildren all of these things -- something you wanna think about before retirement OK in an egg and we're talking about people not having enough money to fund their retirement in your right.
These are factors that they have to considers it is -- wage.
That you might recommend how they can maximize their retirement savings.
Well first off you want to start with that traditional 41 K from your employer.
Have employer automatically.
Deduct money for your paycheck so it's directed to this account what -- for 6% of your income now this is gonna mean you're gonna have less money to spend.
But it's gonna build up your retirement savings in addition to the 41 K.
Want to make sure you have a Roth IRA this is from a discounted brokerage firm and this is where you contribute money that you've already paid taxes on.
Unlike before -- -- you're you're paying the taxes -- your retirement age and to give folks an idea of how powerful these Roth IRAs are.
If you start seeding in your thirties compared to your forties.
Up to the maximum -- IRA contribution limit which is 5500 dollars a year you have an extra 200000.
Dollars just in that ten years.
That's how powerful.
Compounding interest is.
In wildfire race it's important to start as soon as you can -- in your right but let's talk about the folks who are you know.
Not right there in their twenties are there even their thirties perhaps -- a -- a couple things together this last answer.
And that is you've you do look if you are close to retirement age you want to be reluctant in -- hasn't too.
In to invest in the stock market his beak could be too risky end.
Is -- see the commercials for the reverse mortgages is that good idea or not so good or is it just last resort.
It's a last resort effort if you're -- that you were older and you have equity in your home this might be.
An optimal choice to tap into that equity in your home over the time that you're going to be retiring you need to get in and a lot of sun.
Or monthly installments so when you die though -- beneficiaries are gonna have to pay back that money so if you were hoping -- do you -- the house to pay back the money exactly but if they wanted to keep the house and -- it.
That's going to be an issue for them so there's a trade off but a reverse mortgage is.
An optimal Astros -- an effort McCain try to be careful laden investing in stocks is the bottom line -- -- can be too risky -- close to retirement right Ari.
Gotta go Scott -- and jobs lots of information appreciate it -- -- RA.
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