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Even 75% Of Americans In The Best 401(k) Plans Won’t Have Enough To Retire
"Many Americans don’t save enough for retirement because they just don’t have the money."
They don't have the money to save, however they do have enough to purchase $1,000 smartphones (and their expensive monthly data plans), spend hundreds more eating out/happy hours, etc... There are certainly families out there that truly don't make enough, but there is also a large group of people that simply make more spending decisions.
Marketwatch often posts nonsense articles. This is one. Note how no details of the 'study' were provided.
Some obvious problems, just off the top of my head: -Overspending. Jojo is exactly correct. Many Americans are just profligate spenders. Its like the story of the Ant and the Grasshopper. The Grasshopper played during the Summer and was left to freeze in the winter. Stupid spenders should get their comeuppance.
-The study ONLY looked at 401ks. People change jobs. Advice columns like Marketwatch usually tell people to rollover their old 401ks to an IRA. But IRAs were not (apparently) addressed in this 'study'... -Many people on the West Coast don't save much in their 401ks. Instead, they choose to buy overpriced homes. Servicing those large mortgages serves as an alternative savings vehicle for them. So far, those homes have turned out to be a very viable alternative to 401ks. Again, the 'study' didn't look at alternative saving vehicles.. -One major problem with inadequate 401k savings, which the article -- and every article of this type is silent on -- is the aggregious divorce system in this country. Both the outrageous legal/professional/court fees incurred, but also the theft of 401ks via QDRO.
The article and 'study' are the equivalent of personal finance porn.
Comments
They don't have the money to save, however they do have enough to purchase $1,000 smartphones (and their expensive monthly data plans), spend hundreds more eating out/happy hours, etc... There are certainly families out there that truly don't make enough, but there is also a large group of people that simply make more spending decisions.
Some obvious problems, just off the top of my head:
-Overspending. Jojo is exactly correct. Many Americans are just profligate spenders. Its like the story of the Ant and the Grasshopper. The Grasshopper played during the Summer and was left to freeze in the winter. Stupid spenders should get their comeuppance.
-The study ONLY looked at 401ks. People change jobs. Advice columns like Marketwatch usually tell people to rollover their old 401ks to an IRA. But IRAs were not (apparently) addressed in this 'study'...
-Many people on the West Coast don't save much in their 401ks. Instead, they choose to buy overpriced homes. Servicing those large mortgages serves as an alternative savings vehicle for them. So far, those homes have turned out to be a very viable alternative to 401ks. Again, the 'study' didn't look at alternative saving vehicles..
-One major problem with inadequate 401k savings, which the article -- and every article of this type is silent on -- is the aggregious divorce system in this country. Both the outrageous legal/professional/court fees incurred, but also the theft of 401ks via QDRO.
The article and 'study' are the equivalent of personal finance porn.