According to the Government Accountability Office (GAO), about half of private sector workers in the United States are not covered by a workplace retirement plan. That’s a problem when you consider workers are 15 times more likely to save for retirement when a plan is in place. To expand coverage, Congress is considering ways to encourage plan sponsorship by employers. Two bills under current consideration are the Setting Every Community Up for Retirement Enhancement (SECURE) Act and Retirement Enhancement and Savings Act (RESA). They have similar 401(k)-related provisions. I have mixed feelings about them.
Though it's synonymous with retirement savings, the 401(k) plan is best way to start investing, whether you're in your 20s or your 40s.
401(k)s make investing simple by directing part of your salary into an investment account and paring down investment options. Here's exactly how to invest in a 401(k) at work:
Lawmakers in the House of Representatives Thursday overwhelmingly approved the Setting Every Community Up for Retirement Enhancement (SECURE) Act, which would help to close significant gaps between the resources Americans need for retirement and the resources they have. The Senate is considering similar legislation, the Retirement Enhancement and Savings Act.
Each type of retirement benefit has a different eligibility age. Your age plays a big role in how much you can expect to receive from Social Security and what you need to do to avoid retirement account penalties. Remember to factor these important ages into your retirement plan.
We refresh our 2019 investment themes and take a deep dive on China. We see a narrow path ahead for risk assets to move higher. Yet rising risks could knock markets off this track. This calls for carefully balancing risk and reward in portfolios.