The Retirement Gamble Analysis

In a recent find, the whole financial system that was created to keep the lives of normal everyday citizens like you and I afloat, will be absolutely dismantled by the “Baby Boomers” this age group would have drained almost all of the financial resources available in the Social Security System by the time the 2030’s arrives. With that there will be clouds of doubt cascading upon the lives of everyday middle class Americans moving forward especially with the Millennials, out of all the age groups they are viewed as being less optimistic of the financial future, and who can blame them? As evident in the article written by David Bass “The Millennial Perspective” he noted in a recent Pew Research report that 72 percent of Millennials don't believe

There is much debate on whether Canadians are financially prepared for retirement. For every study claiming that Canadians are saving enough for their retirement, there is another that claims savings levels are too low. However, one point that nearly all experts will agree on is that retirement is changing. Advances in the health field are allowing people to live longer and be more active in their later years. As people live longer, they have to work longer to maintain their standard of living. And working longer could be beneficial to individuals, as well as to the economy. This paper will discuss how these reasons are causing the face and timing of retirement to change.

Suze Orman’s The Money Book for the Young, Fabulous, & Broke stands as an in-depth guide to the financially struggling, younger generation in today’s prospering yet wallet-emptying economy. Through 300 pages of detailed advice and explanations, Orman shares her expertise. She is the author of New York Times bestsellers and national bestsellers including The 9 Steps to Financial Freedom, The Road to Wealth, and Suze Orman's Financial Guidebook and the host of her award-winning CNBC-TV show, The Suze Orman Show. The start of her big financial career began early: she was an Account Executive at Merrill Lynch from 1980-83, served as Vice President of Investments for Prudential Bache Securities from 1983-87, and directed the Suze Orman Financial

I don’t know much about the planning financially for retirement either. I have not seen an article like this before, but I think it is simple, easy to understand and straight to the point. I would like to share it with my three daughters while they are still young and hopefully it will help them understand what they need to do now for their future.

In the book “All Money in the World” by Laura Vanderkam discusses about ways that people get and spend money in their lives and the relative between money and happiness. Each title, the author shows us different ways to use and earn money like getting, spending and sharing. But in chapter 3, “Rethink Retirement” of getting, Laura Vanderkam shows the creative way to approach retirement. There are three of the ways that the author suggests people can rethink and plan for retirement such as saving, making extra, and using time efficiently.

The Vanguard group offers some investment options that one can consider investing in. These investment options include; retirement planning services, brokerage services and educational information for individuals. The retirement planning services are more of the services that have grabbed a wide range of the company’s customer base. There are some costs associated to the long run investment which cannot be avoided by all mean.

Over the holidays, I had occasion to socialize with a group of very bright, successful people who are saving for retirement. We talked of many things, including their investments. And, sad to say, not one of them could coherently explain what he or she was doing, and why.

Cooper’s description of the “shift in risk” speaks on the changes in the type of safety nets that people use and have nowadays. Starting in the 1980s, the people benefiting from pension decreased by 50% in 24 years. In contrast, more people began to be covered by a 401k program- which the saving and managing of money would rely on the individual. This puts more strain on the individual because now they have to try and create their own safety net by continuing to put away money. Furthermore, individuals with a 401k and no pension are at more risk for having enough money put away and have a more fragile safety net. Another trend that took place during this time frame was a drop in the number of people health care coverage. Even now with the Affordable

A 401K works in a very unique way. If you are to contribute 3% of your pay each year, the company will take 3% of each paycheck and transfer it to your retirement account. Where your money can vest much quicker is if a company will match you $1 for $1. The contributions that you would be paying, the company will match it for each dollar. Your intake going home may go down $100 and your contributions are at $200, the company will match the $200 so you take home $400. In essence, you still lose the $100 but gain another $400. This is very beneficial because over time, the money will vest faster than you think. For example, in three years, you may put it $3500 but your account balance will

Some economic observers predict financial disasters, both national and personal, when the baby boomers retire. They say that as nations of workers and investors become nations of retired consumers, withdrawals will far outweigh deposits in investment and savings vehicles.

When attempting to save better to ensure you have a better quality of life in retirement age is not a venture you have to go it alone. The daunting task of navigating the options of retirement, getting out of debt, and preparing for unexpected events can seem impossible; employing a trustworthy retirement advisor greatly decreases the

In the coming decade, over 20 percent of the national population will reach the age of retirement. Not to mention, many studies have shown that numerous baby boomers are not financially prepared for retirement. A survey taken place in 2015 with 12,000 Canadians showed that 49 percent of people aged 55 to 64 had saved less than 10 percent of their savings target for retirement to date. In addition, there will be a decline in workplace pension plans due to the aging baby boomers which means that only 24 percent of private sector workers are funded through the pension plan. This indicates the importance of baby boomers to finance their retirement. On the other hand, the current low interest rates are making it more difficult for the boomers to save for retirement. The result will undoubtedly have many boomers maintaining a steady life or cause suffering to many others living a lower standard of living. In conclusion, the pre-retirement baby boomers cannot fully reply on the government for financial support and should think about their future financial state if they want it to resemble their current

Overall, there is a notable mismatch among college-educated Millennials between their perceived and demonstrated levels of financial literacy, with the form exceeding the latter. They also have less financial knowledge than might be expected given their educational attainment. On the other hand, given that only 29 percent have received financial education through school or work, perhaps low financial literacy is to be expected. This indicates a need for increased financial education, as improved financial literacy would mean more informed financial decision making. (p. 18)

When you are young you always hear people saying it is never too early to start saving for retirement, but at that age the last thing you want to do is put your money towards ending the career you are just trying to start. It is hard to imagine a time where you won’t have to go to work on a daily basis, to make a wage, in order to pay your bills, but the ultimate goal is getting to that time in your life where you don’t have to go to work and the bills are already taken care of. The hope for everyone is that the bills are taken care of and you are able to focus on leisurely things you did not have an opportunity for while employed. What we fail to realize is that the longer we wait to save the more we have to be concerned with the pressure of time running out and not enough money saved. Not to mention the sooner you start saving the more time you give your money to grow.

Coming off the heels of the 2008 Financial Crisis, millennials have developed a widespread mistrust of banks. For many young adults, they witnessed their parents’ struggle through the worst recession since the Great Depression. This has invoked more conservative money habits and investment behaviors, with many millennials choosing to save rather than invest. When they do decide to delve into the market, emotions tend to influence investment decisions. An emotion driven approach tends to neglect stocks which are subject to high rates of volatility. As a result, estimates suggest 26% of Americans under age 30 are investing in the stock market, compared to 58% of investors 50 years and older.