America has a Saving Crisis
The savings crisis in America is a result of various factors that impede individuals’ effective money-saving capabilities.
Stagnant wages, coupled with the increasing costs of living, have significantly diminished disposable income for saving. This challenge is further intensified by the absence of comprehensive social safety nets, leaving many Americans financially vulnerable during unexpected expenses or emergencies.
Moreover, substantial levels of consumer debt, such as student loans and credit card debt, redirect a significant portion of income towards debt servicing, leaving minimal room for savings. Planning for retirement is a crucial element in ensuring long-term financial well-being, whether that’s 35 years or 35 days away. Everyone should have a plan to secure income when they decide to retire.
A valuable tool for achieving this is a tax-free retirement account (TFRA). This proven strategy is how the wealthy generate tax-free generational wealth. The best part? When appropriately established, these tools comply with IRS regulations and are accessible to qualifying individuals (with potential restrictions based on factors like age, profession, geographic location, and marital status).
Key Takeaways
- As of 2020, the percentage of Americans with less than $1,000 saved in their bank accounts has increased from 58% in 2018 to nearly 70%.
- Just 12% of Americans have savings ranging from $1,000 to $5,000, leaving a substantial 82% of the population with less than $5,000 in savings.
As a result Americans have to work longer
- At 1983, Retirement age was 62
- Today Retirement age is 67
- Tomorrow’s Retirement age 70
A Solution is to focus on the rising generation and begin to create Generational Wealth
Plant the tree now for a better and tomorrow
The Child Savings Plan (CSP) offers a unique approach to securing your child’s or grandchild’s future financially. With this non-traditional savings option, you can optimize their savings potential while completely sidestepping the fees, penalties, and limitations associated with conventional plans.
Through a flexible and tax-advantaged growth plan, you can pave the way for your child’s success without concerns about unforeseen costs or missed opportunities. The CSP not only aids in saving for college but also provides support for significant life events such as weddings, the purchase of a first home, or the initiation of a business venture. Explore the distinctive benefits and arrange a consultation to delve deeper into the advantages of the Child Savings Plan.
