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.
Decisions have consequences. Some things just don’t work out the way we plan.
Who has heard of the Income-Based Repayment (IBR) plan the US government has implemented for federal student loans? The truth is: not many. More than 12 percent of student loan borrowers are defaulting, even while there are other options-such as Income-Based Repayment available to them. And while IBR can help many struggling graduates, it is quickly becoming a big burden for American taxpayers.