Life gets busy for quite some time before things start to slow down: this is to speak of retirement. Since life for most of us is so busy, it can be helpful to picture life as a very long, dynamic chess game. In the game of chess, the victor must be several steps ahead of his or her opponent in order to win. In the game of life, the individual must be several steps ahead in order to save up for retirement and prevent working for their entire life.
A Penny Saved
The unfortunate reality is that one out of every five people near the age of retirement do not have a single penny saved up. Retirement is something that needs to be thought about early on if individuals are to have any chance of saving; a recent survey found that around 41% of people between the ages of 18 and 29 have never thought about retirement planning. Whether through an individual’s company or through private financial planners, those who save now could avoid future difficulties.
Corporate Wealth Management Strategy
Generally speaking, those companies that invest in their employees through benefits packages typically do better than similar companies; this is due to what may be referred to as a motivation factor instilled in employees. The U.S. Department of Labor estimates that there are around 638,390 defined contribution retirement plans in the nation. These contribution retirement plans are different from pensions which takes the form of a fixed amount paid at regular intervals to an employee or the employee’s surviving dependents. Although many businesses offer similar retirement plans, only 53% of the civilian workforce participates or contributes to a retirement plan according the U.S. Bureau of Labor Statistics — this means that 47% of the population ought to find some kind of wealth management strategy before it is too late to save up.
Individual Wealth Management Strategy
A recent survey found that the most common savings method used by 44% of the surveyed population was through a defined contribution plan including a 401k or a 403b. By partnering with private financial advisors, many Americans are gaining increased clarity on the nature of savings and investments for retirement. Due to the gravity of these financial investments, it is no surprise to learn that 70% of 401k and individual retirement account (IRA) assets are owned by the richest 20% of Americans — investing as early as possible can help young Americans guarantee the rest and relaxation that ought to come with retirement. The future is never predictable, but taking the steps and investing your finances into that unpredictable future is one way to gain some small semblance of certainty with respect to retirement.