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On August 14, 1935 President Franklin Roosevelt made Social Security law, so in honor of its 75th birthday we thought we would let you know a little bit more about this sweeping legislation. All employees are required to pay into the system and it is the largest income source for most Americans 65 and older. A government program this big is filled with many aspects that are not widely known. Here are 10 things you may not know about Social Security
1. Traditional IRA’s are never joint accounts. They are meant only for the individual. 2. There is no minimum age requirement to participate in traditional IRAs. Your children can have a Traditional IRA as long as they have earned income. 3. However, you must be under 70 ½ in order to make contributions to a [...]
401K, 403B, IRA & Roth IRA Maximum Contributions The IRS has determined the 2011 maximum allowable retirement account contributions and nothing much has really changed since 2010. A few of the numbers have budged a tiny little bit but since the Consumer Price Index shows very little official inflation then the adjustments have been kept [...]
Boston College’s Center for Retirement Research released a study that shows 51% of US households simply do not have enough savings in their retirement funds to exit the work force at 65. This is an increase from 2006’s study which showed that only 44% of households were in the same ugly financial position. The current financial crisis has hit those near retirement age doubly hard. Namely, their dismal 401Ks and the decreased value of their homes.
Are you a member of the Echo Boomer generation, those born between 1977-1999? There is a growing concern among members of the Echo Boomer generation regarding their future retirement. When planning for retirement, financial advisers typically discuss counting on three sources of income to fund retirement: Private funds such as savings and IRA’s, employer sponsored funds such as Pensions and 401(k)s, and government sponsored funds such as Social Security. While these sources of income provide for the retirement needs of the Baby Boomer generation, they will not support the needs of the Echo Boomers. First of all, most companies no longer offer pensions to their employees.
