Until recently, many retirees have been able to rely upon the three-legged stool of retirement income sources: A defined benefit pension plan that guarantees a lifetime income, their own savings, and Social Security.
It may have passed quietly last month, but did you know April was National Financial Literacy Month? Or a better question might be: Do you know about National Financial Literacy Month? Very few do, so let me tell you what it is. National Financial Literacy Month is recognized to highlight the importance of financial literacy and teach Americans how to establish and maintain healthy financial habits.
The other day while I was driving, I thought about a recent report I read concerning Americans and their IRAs. According to the TIAA-CREF annual survey on individual retirement accounts and Americans’ savings habits, only 8 percent responded that making contributions to their IRA is a priority with their retirement savings. This is probably because the #1 motivation for saving money relates to short-term expenses—like housing, appliances or a car—rather than saving for retirement.