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401K Loyalty, Boomer Shortfall, & More
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Workers are committed to their 401k savings plans despite the great bear market of 2007-2009. Although the average worker lost about 28 percent of the value of his 401k in 2008, about 74 percent of those eligible continued to contribute to the plans, says Hewitt Associates, a benefits consultant.
Only about 5 percent of workers quit contributing to their plans during the bear market, while 15 percent increased their contributions.
Boomer shortfalls
The youngest and the oldest Baby Boomers are not saving enough for retirement, a survey by MetLife has found. Forty-six percent of the oldest Boomers, who are age 63, and 57 percent of the youngest Boomers, who age 46, are falling short of necessary retirement savings levels, MetLife said.
The older Boomers have had to help out children and grandchildren to the tune of an average expenditure of $59,000 over the last five years, they said. Eighteen percent of younger Boomers have had to borrow money from their parents.
Greenspan stumbles
Former Federal Reserve Chairman Alan Greenspan made a whopping forecasting error in 2001 when he said the national debt might be paid off in a short period of time. He spoke before the 2001 terrorist attacks and bear market and the end-of-decade mortgage crisis, all of which have caused the United States to borrow record amounts to keep afloat.
©OSB Financial Services, INC. rights reserves.Information has been obtained form sources believed to be reliable, but its accuracy and completeness and the options based thereon, are not guaranteed. Always consult your a financial adviser and prospectus before making an investment
©2009, Kelly Ruggles Web site
Kelly C. Ruggles is a fee-based financial planner located in Spokane.
Kelly C. Ruggles, President of American Reliance Group, Inc., a registered investment advisor.
Kelly Ruggles is the author of "The Financial Playbook" for Retirement
Kelly C. Ruggles does not intend to provide personalized investment advice through this publication and does not represent the strategies or services discussed are suitable for any investor. Investors should consult with their financial advisors prior to making any investment decisions
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