Welcome back to another edition of the Cash Cow Roundup, featuring the best online content from the previous two weeks.
A Retirement Savings Crisis
Americans have very little saved for retirement. Take a look at this report by the National Institute on Retirement Security, which showcases the desperate situation.
Jaw-dropping highlights that stand out:
- The average American family has virtually no retirement savings, with a median retirement account balance of $3,000.
- More than 80% of all working households have retirement savings less than one times their annual income
- Nearly half of working-age households have NO assets in a retirement account
Other discouraging tidbits:
- Only 52 percent of working-age households participate in workplace retirement plans
- Pension Plans are going away in favor of defined contribution plans, like the 401k. Out of households with access to workplace retirement benefits, those between ages 55-64 are 2x more likely to have a pension plan than those aged 25-34.
According to the author, such issues are cause by two problems:
- Lack of access to retirement plans in and out of the workplace—particularly among low-income workers and families
- Low retirement savings
Can number two be more obvious? Apparently people don’t have enough saved for retirement…because they have low retirement savings…
But what are we to make of problem number one? Is the problem lack of access to retirement plans?
I don’t see it. Most employers offer a sponsored plan, and the IRA exists for everyone else.
It took me less than an hour to create and fund an IRA at Vanguard. The entire process was done online, for free. Where is the lack of access there?
Other Interesting Reads:
- Do you like the idea of multiple generations living under one roof? Not only does it make family bonding stronger, it also saves tons of money. Would you consider living in a multigenerational household?
- Everyone’s Facebook feed has been overflowing, (no pun intended) with the ALS ice bucket challenge videos. Regardless of your personal feelings on the fundraising scheme, we could all learn a valuable marketing lesson from Jenika at Psychology for Photographers.
- Ever thought that your ideas were too wacky to become a business? Think again. Both Dinner Lab and Steven Weinreb are recreating their chosen markets; restaurants and footwear respectively. Take a note from theses innovative companies and get your creative on.
Health and Wellness:
- Mr. Sisson shares nine reasons you aren’t effectively losing weight.
- Have you ever wondered what type of fish to eat? Wild or farmed? Domestic or imported? The New York Times is on it.
- We had an outstanding feature on Cardrates.com, discussing Credit Cards for Couples
- Check out our recent expert interview on the NewRetirement Blog.
- We were honored to be featured on BadCredit.org as one of the 7 Best Financial Blogs Run by Couples.
- We were interviewed by Mint.com, which was an honor!
- Money Talk News featured us on their Reading Roundup. Thanks Money Talk News!
- The Coastal Group featured our answer in 31 tips for first time homebuyers. Much appreciated, David!