It is never too early or too late to plan for your retirement needs. The following facts illustrate the need for saving for retirement:
VARIED OPINIONS – 19% of Americans were not financially impacted by our nation’s 2008 recession. Another 20% was negatively impacted by the downturn but have since fully recovered. The remaining 61% have either “somewhat recovered” (41%), “have not yet begun to recover” (13%) or “may never recover” (7%). 4,200 Americans were surveyed in April 2016 for this report (source: Transamerica Center for Retirement Services).
HALF MISSED OUT – The S&P 500 gained +12.% in 2016, higher than the index’s trailing 50-year average performance of +10.2% per year. An estimated 52% of American adults were invested in the US stock market last year, either in personal accounts or through their retirement portfolios. The S&P 500 consists of 500 stocks chosen for their market size, liquidity and industry group representation. It is a market value weighted index with each stock’s weight in the index proportionate to its market value (source: Gallup).
WHEN? – Social security trustees announced on 6/22/16 that the trust fund backing the payment of Social Security benefits (OASI benefits) would be zero in 2035. When the trustees released their report in 2003, the Social Security Trust Fund was projected to be depleted in 2042 (source: Social Security Trustees Report).
Ann Arbor State Advisors provides advisory services for employer sponsored retirement plans. Please feel free to contact me if I can be of assistance to you.
Investments advised by Ann Arbor State Advisors: a) are not insured by the FDIC; b) are not deposits or obligations of Ann Arbor State Advisors, Ann Arbor State Bank or their affiliates; c) are not guaranteed by Ann Arbor State Bank, Ann Arbor State Advisors or their affiliates; and d) are subject to investment risk including possible loss of principal.