401(k) Specialist Issue 1 - 2017 - 11

401(k) NEWS YOU CAN USE
401(k) Math Just
Doesn't Add Up
IF YOU WANT retirement and 401(k) plan statistics, Transamerica's
got 'em, and they point to a number of red flags in the way
participants are accumulating assets. Like, baby boomer workers
have just $147,000 saved in all household retirement accounts.
That's up from $99,000 in 2012, but at a 4 percent withdrawal rate,
it's less than $6,000 of sustainable income each year (read that
again, we'll wait).
The company released " A Compendium of Findings About
Breaking News:
CEOs Have
Really Good
Retirement Plans
NO REALLY, IT'S TRUE.
A recent report from left-leaning Institute for Policy Studies finds
the top 100 CEOs will only receive $253,088 each month for the rest
of their lives, on average, down from $277,686 from the previous
year's report.
Nonetheless, their companies must have a fantastic 401(k)
match, as these CEOs have company retirement funds worth $4.7
billion-a sum equal to the entire retirement savings of the 41 percent
of U.S. families with the smallest nest eggs, the Institute finds.
This $4.7 billion total is also equal to the entire retirement savings
of the bottom:
* 59 percent of African-American families
* 75 percent of Latino families
* 55 percent of female-headed households
* 44 percent of white working class households
Among ordinary workers, those lucky enough to have 401(k)
plans had a median balance at the end of 2013 of $18,433,
enough for a monthly retirement check of $101.
American Workers, " a multi-year study which also found that only
39 percent of workers said that they had either fully financially recovered
or were not impacted by the Great Recession, which was
slightly higher than in 2015 and represents a solid improvement
over 2014.
Further, 77 percent of workers were concerned
that Social Security won't be there for them when they
are ready to retire.
ONLINE
EXTRA
Fantastic 401(k) Advice
From Jim Cramer ...
Wait! What?
WHILE WE'RE OFTEN at odds with the
motor mouth " Mad Money " host, even a
stopped clock is right twice.
Cramer recently noted that for 401(k)
investors who are " serious about getting
rich, " it means preparing for retirement-
regardless of age.
" Notice I didn't say save for retirement, "
he explained. " I said prepare, because just
stuffing your money in the first national
bank of Sealy, a.k.a. stuffing it into your
mattress, or automatically saving it into an IRA or 401(k), great
though those two tax-deferred vehicles may be, might not be
enough to prepare for your retirement. "
His advice fits with suggestions from certain experts to position
the 401(k) as a retirement income distribution vehicles, rather
than a tool to help employees " save for retirement. " It could
be a relatively simple, yet massive, key to industry, advisor and
retiree success.
ISSUE 1 2017 | 401kSpecialistmag.com
11
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401(k) Specialist Issue 1 - 2017

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