Americans are lousy savers. We can blame it on low wages, a tough economy, or a multitude of other reasons, but the end result is the same… we aren’t saving enough for retirement. The average American family has $35,000 in retirement accounts, can’t afford a $1,000 emergency expense, and only 38% believe they will retire comfortably.
So what can we do about it? You can’t change how much others are saving, but you can certainly change how much YOU are saving.
For many workers, it is open enrollment time. This is your chance to select the optimal health insurance plan, opt into using tax-advantaged accounts such as Flexible Spending Accounts (FSA’s) and your opportunity to reevaluate your 401(k) contributions for 2013.
The challenge, should you choose to accept it, is to raise your 401(k) contributions by at least 1%. This means if you were contributing 10% in 2012, you have to move to 11%. If you weren’t contributing at all, then start at 1% for 2013. And 1% is just a minimum… try for 3%, or even 5%!
Reprinted from Serenity Financial Consulting
Raskob Kambourian Financial Advisors is an independent, fee-only comprehensive financial advisory firm registered with the Securities and Exchange Commission. We offer expertise, competitive pricing, and personalized financial services to meet your “Life Planning” needs.