Cause And Effect Essay On Retirement

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Our retirement is our responsibility, yet many people do not think about how they are going to spend their retirement time. More importantly, even fewer people plan on how to fund it until it is too late. If you are old enough to buy a drink at a bar, it is time to think about your retirement.

In March 2013 the Employee Benefit Research Institute (EBRI) found 57% of U.S. workers have less than $25,000 in total household savings and investments, excluding their homes.

Of workers and retirees, 28% reported no confidence that they will have enough money to retire in comfort, the highest level of concern in the 23-year history of the EBRI study. Only 66% of Americans report having any retirement savings, compared to 75% of workers in 2009.

Only 50% of Americans say
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Mistake #4: Not taking advantage of the ROTH IRA (Individual Retirement Account) while you still can. The ROTH IRA is a fantastic retirement medium because it allows your money to grow tax-free forever. You are not taxed on the capitals gain, dividends, or profits you make within a ROTH account. Because this is such a good deal, Congress and IRS have income limitations restricting who can invest in a ROTH. A single person can contribute $5,500 per year into a ROTH IRA account (like a Traditional IRA) but only if they make less than $112,000 per year. For married couples the income restriction begins at $178,000.

Mistake #5: Underestimating your costs of living in retirement. Chances are, with more free time, you will spend money. During retirement you want to travel, visit friends and family, and spend more time on activities that interest you, such as hobbies. Golf (as well as many other activities) costs money. For years, many financial planners were telling their clients that they only need 65% of their working income for

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