Bohemia, NY (PRWEB) March 27, 2013
On March 27, 2013, developer of Savings2Income, Jerry Golden, issues a statement in response to a FOX Business article about how the lack of retirement planning is why Americans of all ages are unprepared for the financial challenges of their golden years.
According to the Fox Business article titled “Poor Retirement Planning Causes Misery Later” published on March 7th, writer Chris Kissell outlines the thoughts in an interview with Linda Burilovich, a professor in the Department of Accounting and Finance at Eastern Michigan University who believes that the major contributor to Americans suffering through their retirement years is poor retirement planning.
According to Kissell, Burilovich states that we Americans are inclined to live above our means, and on the surface we could say that a lack of savings does contribute to the retirement crisis, and that the underlying issue is a lack of planning. Burilovich also believes that a good financial plan focused on individual retirement objectives forces an individual to consider what amount of income will be necessary to fund their standard of living during the retirement years, and also quantifies the amount of savings that will be necessary over the long term.
Burilovich also recognizes that it can be difficult for a young family to save on a regular basis, but it is never too late for those who get a late start. The current maximum 401(k) contribution of $17,000 is increased to $22,500 for workers 50 years and older. Ten years of savings at this maximum with a 6% return can provide an additional $300,000 of retirement savings, according to Burliovich.
Jerry Golden, developer of Savings2Income, knows how important it is for Americans to start planning for retirement as soon as possible. “ I recommend, however, that the planning do two important things: (1) Consider all sources of savings and income, including Social Security, any pensions earned and any income from part-time work, and (2) Make sure the plan is defined not only as savings, but also in terms of spendable income in retirement.”
Golden also adds, “If investors can see the difference between current income and projected future retirement income, they may want to reduce that income gap. While saving more is a necessary first step, other actions could be delaying full retirement, taking partial retirement, and using fixed payout annuities to increase the income yield from their savings. “
An innovative retirement planning method called Savings2Income (S2I) created by Jerry Golden seeks to provide a clear path to retirement security for those saving for retirement, soon to retire, and recently retired. S2I incorporates Rollover IRA savings, personal retirement savings held outside an IRA or 401(k) plan and Social Security into an integrated solution.