A recent study released by ratelines.com reveals that most Americans retirement portfolios are underfunded, resulting in many being unprepared for retirement. ”Of the 1,153 workers surveyed, 43% have less than $10,000 set aside in their savings accounts for retirement. Approximately 27% of the workforce have less than $1,000 saved. Both percentages have increased since 2009 reports.” Though the number of workers surveyed was not large, I believe it echos the current status of retirement portfolios.
The study concludes that “The decline in retirement preparations could be directly related to companies no longer offering 401(k) matching, layoffs and the housing crisis. Lack of retirement planning forces many to work until they are much older.”
To that I say you need to start investing in the market by establishing your own individual retirement account (IRA). Look to start investing in low cost investment vehicles such as exchange traded funds (ETFs). Not only will you be able to save on fees, that in turn stay in your own portfolio and compound over time, but also they allow you to be in the market with less risk than individual stocks. ETFs are a basket of stocks or bonds that track an index, not individual equities, and thus are inherently less risky. I also suggest utilizing tools offered by marketriders.com to get guidance on how to build a portfolio with an asset allocation that suits your financial needs and offers you diversification.
I realize 2009 was a tough year, but know that any amount you can add to your retirement portfolio today will have greater benefits to you in the future.
