In this issue, read about the "last word" on the Traditional vs. Roth IRA debate, strategies to close the 401(k) financial wellness gap for participants, and the unique challenges women face in retirement readiness.
Apparently, it’s not even close.
NerdWallet’s Arielle O’Shea writes up the results of their latest research and finds savers who make maximum annual contributions to an individual retirement account will net more after-tax retirement dollars if they use a Roth IRA instead of a traditional IRA.
In some cases, she adds, it could be well over $100,000.
“Conventional wisdom on IRAs suggests that a Roth IRA favors savers who will occupy a higher income tax bracket in retirement than in their working years, while a traditional IRA favors those who occupy a lower bracket in retirement,” O’Shea writes. “But the NerdWallet study reveals that at the maximum contribution level, Roth IRAs beat traditional IRAs far more often than that wisdom suggests.” The margin of victory for the Roth is significant, she claims.
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Network with top local advisors and discuss what's working now, what's not working, and how to capitalize on the current environment to win new business, all in an advisor-centered fast-paced environment. Learn more here!
Thursday, April 20th, 2017
Thursday, April 20th, 2017
Thursday, April 27th, 2017
Thursday, May 11th, 2017
A troubling issue plagues the American workforce—a lack of savings and retirement preparedness. The results of a December 2014 poll conducted by Bankrate revealed that a staggering 62 percent of those responding did not have sufficient savings to cover large, unexpected life expenses.
Americans have been declining in savings efforts over the past several decades, and the 2007-2008 financial crisis compounded the problem. If a majority of Americans don’t have enough savings accrued to cover unexpected life events, then they also do not have adequate savings set aside for retirement.
Around half of U.S. businesses are spending resources in efforts to address retirement savings issues with their employees and only a handful of employees are taking advantage of the tools made available to them. Many of those who are making an effort to place money in retirement savings plans are often borrowing against them to meet pressing financial needs.
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October 22nd - 24th, Paris Hotel & Casino, Las Vegas, NV
Excel 401(k) is an advisor-driven conference experience intentionally designed to help you make valuable connections and create actionable goals to grow your 401(k) practice. This year our interactive, advisor-driven sessions will focus on helping you leverage technology and build more effective sales teams. We want you to walk away from each session with actionable information and ideas that you can actually use.
While it’s commonplace to see research on the number of Americans who are not well prepared for retirement, new surprising research from the Employee Benefits Research Institute (EBRI) and the Filene Research Institute reveals just how much more unprepared women are for retirement than men. These findings should be especially alarming to credit unions—where the majority of employees are female.
The EBRI, which previously assessed individuals’ probability of running out of money in their retirement years, published new research measuring the size of the deficits various demographic groups would generate in retirement. The research found, on average, significantly larger savings deficits for women and projected that an early Baby Boomer family will generate a $19,304 average deficit per individual in retirement. This is even more problematic for single women, where an early Baby Boomer will generate an average deficit more than three times larger, at $62,734.
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