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Retirement Savings Issues Being Studied by the Bipartisan Policy Center

Published on August 24, 2014

ARE YOU SAVING ENOUGH?

A Washington, DC think tank, the Bipartisan Policy Center (BPC) is taking a hard look at the problem of Americans not saving enough for their retirement. The non-profit organization formed a Commission on Retirement Security and Personal Savings this spring to examine “whether savings rates and available savings vehicles are meeting the retirement goals of Americans and the nation’s investment needs” according to its website, bipartisanpolicy.org. The commission will then devise recommendations on how to boost national savings, improve the defined contribution retirement system, improve the effectiveness of tax-advantaged savings vehicles (such as Traditional and Roth IRAs) and develop safeguards against the rising costs of long-term care.

One reason for the decrease in retirement savings is that defined benefit pensions, once the stronghold of prior generations’ retirement income, are also decreasing. Today’s retirees are leaning on other savings arrangements such as defined contribution plans (such as 401ks) and their Social Security benefits (which were never meant to be the whole of anyone’s retirement income). However, with the rise of self-employed individuals or those employed by companies that do not offer payroll-deduction savings plans, it is becoming increasingly difficult for many Americans to deal with forced savings. They are simply not putting enough away in their IRAs or other vehicles and those who are approaching retirement age have inadequate savings set aside to maintain their current standard of living.

The BPC’s commission is studying:

Its final report will be presented in early 2015.

What’s your retirement savings policy?

Are you a disciplined saver? Are you someone who wants to make your own investment decisions? Do you understand the ins and outs of investing in traditional and alternative assets? If so, you could open a self-directed retirement plan, and build retirement wealth with many diverse types of investments.

If you are self-employed, you can open a self-directed SEP IRA or as a business owner you may also offer a self-directed SIMPLE IRA to your employees (and yourself as well). If your employer offers a defined contribution plan (401k) at work, ask if a self-directed 401k is possible. Your retirement account will be able to invest in many more instruments to build up your retirement savings such as real estate, commodities, precious metals, loans and so much more.

Want to know more about self-directed retirement plans? Read up here or go to Next Generation’s Starter Kits to find out what you need to open one for yourself. As always, our customer service policy is to answer any questions you might have about this retirement strategy and provide guidance about these plans, so contact us at Info@NextGenerationTrust.com or call (888) 857-8058. However, we strongly recommend you consult your tax professional or financial adviser to make sure that self-direction is the best retirement policy for your unique situation.

 

 

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