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Tags: retirement | Americans | denial | Kiplinger

Kiplinger Editor: People Have 'Heads in Sand About Retirement'

By    |   Wednesday, 17 September 2014 06:36 PM EDT

Most Americans "have their heads in the sand about retirement" and are not prepared to be financially stable in their Golden Years, Susan Garland tells Newsmax TV.

"A significant amount of people in those pre-retirement years, between 50 and 65, have less than about between $50,000 and $100,000 saved," Garland told Ed Berliner on "MidPoint" Wednesday.

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"That may seem like a lot of money, but if we're talking about what they call the average or the rule of thumb withdrawals strategy at four percent a year, that's like $2,000 to $4,000 before taxes," she explained.

Kiplinger's Retirement Report editor recommends that people "start putting away money as soon as you can and as much money as you can."

She recommends a 401K if a person works for a company that offers one "and a lot of employers give an employer match."

For Americans who are self-employed, they "need to set up an IRA at brokerage firm or a bank."

"The more money you put away the more it compounds over time," she added.

Garland argues that saving for retirement is more important than saving for a child's education.

"Your kids could always take loans for college," she explained. "You can't take a loan for a retirement."

"It sounds cruel, but those are the things you need to think about now," she said.


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Most Americans have their heads in the sand about retirement and are not prepared to be financially stable in their Golden Years, Susan Garland tells Newsmax TV. A significant amount of people in those pre-retirement years, between 50 and 65, have less than about...
retirement, Americans, denial, Kiplinger
251
2014-36-17
Wednesday, 17 September 2014 06:36 PM
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