Report: Most U.S. workers have less than a year’s salary in savings
Expert financial planners have long taught us that, as investors, we need to preserve about $1 million in savings in order to have enough cash for a comfortable retirement. However, while this benchmark is well known, a new report finds that many Americans are falling short of this goal.
This March, the Employee Benefit Research Institute released its "2013 Retirement Confidence Survey," which determined that more than half – 57 percent – of U.S. workers have less than $25,000 in total household savings and investments.
More troubling, is that many employees are not confident they'll be able to leverage their investments for retirement, as roughly 49 percent reported being either "not at all confident" or "not too confident" in their current positioning.
Though the report did not factor in the value of worker assets, news sources like Fox Business were clear about the study's main takeaway: today's Americans don't have "nearly enough to retire."
Further, Fox Business says that young investors can still take steps to maximize the performance of their equities.
"One of the most important decisions we can make is optimizing our portfolio around the types of investments that fit our goals and risk tolerance," the news source noted.
To meet this goal, the publication suggests that investors use diversification to achieve goals with appropriate risk tolerance. Specifically for retirement, the article noted, diversification has key benefits, as this strategy will prevent equities from being severely diminished due to issues with a certain asset class or sector.
Still, diversification is not enough to manage risk in our 21st century economy. With recent research indicating that S&P 500 stocks are increasingly moving in herds due to the increased popularity of ETFs, investors need to be constantly monitoring their equities for signs of sudden, elevated risk.
Both conservative and aggressive investors can rely on risk management services like SmartStops to help them achieve their long-term goals. To find out how our analytics engine can provide you with the knowledge you need to outperform buy-and-hold strategies, trailing percentage stops, broker recommendations and technical analysis, visit SmartStops today by clicking here for more information.