There are some who would argue that money is the root of all evil; there are yet others who would insist that a lack of money is truly the root of all evil. Regardless of your philosophical stance on this issue, it can be agreed that money is truly a necessity in our daily lives. Millions of Americans spend the better part of their lives working hard to keep bread on the table and unfortunately they have little left to invest in their future afterwards. While it is never too early to start saving up for retirement, the key to growing your wealth may lie in the diversification of your investments.
Saving for Retirement
We live in a country where more often than not the livelihood and well-being of the employee is acknowledged by the employer. Around 80% of full-time government employees have access to employer-sponsored retirement plans; an additional majority of full-time employees across the nation likewise enjoy such benefits thanks to regulations that require employers to provide for their employees. The most recent statistics from the U.S. Department of Labor indicate that there are 638,390 defined contribution retirement plans across the nation. With so many avenues for retirement savings, one has to consider why so many retirees are struggling financially.
To many retirees, the assets that they have been investing into for so long are disappointingly miniscule. Although the widely cited average for 401k account holders is held to be $60,000, in reality approximately 75% of account holders have balances that are less than this “average.” In actuality around 70% of 401k and retirement account assets are in fact held by the richest 20% of Americans. This means that around one out of every five people who are nearing the retirement age actually have no money saved up for retirement. Saving starts early, unfortunately 41% of surveyed individuals between the ages of 18 and 29 have actually stated that they have never even thought about retirement planning.
Diversifying Your Investment Strategies
Those who work hard deserve to have the peace of mind that comes with retirement, this means consulting with investment firms to create a diversified investment portfolio custom tailored to your individual dreams and needs. Around 44% of those surveyed invested in a contribution plan such as a 401k or 403b, making it the most common savings vehicle for Americans by far. Many investment firms insist that this is not enough as most wealth management services instead focus on stocks in part with other investment strategies to help ensure that all of an individual’s financial bases are covered; this means if one investment falls through there will be other investments in position to lessen the impact on one’s finances. For those looking to invest in their future, consider contacting local investment firms to determine which financial strategy will ensure your retirement goals.