Most Americans aren't financially ready for a $1,000 emergency?!!

Most Americans over fifty are not ready for retirement either. I think the average 50 yo has less than $50,000 saved for retirement.
 
Most Americans have less than $1,000 in savings​
And over 20% don’t even have a savings account
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Americans are living right on the edge — at least when it comes to financial planning.

Approximately 62% of Americans have less than $1,000 in their savings accounts and 21% don’t even have a savings account, according to a new survey of more than 5,000 adults conducted this month by Google Consumer Survey for personal finance website GOBankingRates.com. “It’s worrisome that such a large percentage of Americans have so little set aside in a savings account,” says Cameron Huddleston, a personal finance analyst for the site. “They likely don’t have cash reserves to cover an emergency and will have to rely on credit, friends and family, or even their retirement accounts to cover unexpected expenses.”

This is supported by a similar survey of 1,000 adults carried out earlier this year by personal finance site Bankrate.com, which also found that 62% of Americans have no emergency savings for things such as a $1,000 emergency room visit or a $500 car repair. Faced with an emergency, they say they would raise the money by reducing spending elsewhere (26%), borrowing from family and/or friends (16%) or using credit cards (12%). And among those who had savings prior to 2008, 57% said they’d used some or all of their savings in the Great Recession, according to a U.S. Federal Reserve survey of over 4,000 adults released last year. Of course, paltry savings-account rates don’t encourage people to save either.

http://www.marketwatch.com/story/most-americans-have-less-than-1000-in-savings-2015-10-06
 
Mott the Hoople said:
Most Americans over fifty are not ready for retirement either. I think the average 50 yo has less than $50,000 saved for retirement.
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Jeebus... Is that true? I had more than that in my 401K when I was 24. I still feel that I haven't saved enough and I have far more than 50K... Holy moly... I thought Topper with his $1M stated goal that he reached was not ready.
 
I am currently reading The Total Money Makeover. I like Dave Ramsey, so I wasn't upset when my sister thrust the book at me a couple of months ago upon hearing I had refinanced my house. I'll probably get around to reading his other stuff.

But, yeah, most people don't have an emergency fund, and most people aren't ready for retirement.
 
Eno L. Camino said:
I am currently reading The Total Money Makeover. I like Dave Ramsey, so I wasn't upset when my sister thrust the book at me a couple of months ago upon hearing I had refinanced my house. I'll probably get around to reading his other stuff.

But, yeah, most people don't have an emergency fund, and most people aren't ready for retirement.
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Makes me feel a lot better about my own situation... but not so good for the country as a population.
 
If it's most then it's most of you!
Check it, Ira or 491k is all you need.
The way to motivate yourself is, you return is your tax rate plus the market return, plus the company match.
Why give it to Uncle Sam, leaving the company match is like refusing a raise
 
Damocles said:
Jeebus... Is that true? I had more than that in my 401K when I was 24. I still feel that I haven't saved enough and I have far more than 50K... Holy moly... I thought Topper with his $1M stated goal that he reached was not ready.
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No, I was wrong, the average retirement savings for a 50 something is around $115,000.

I have a little more than double that, which puts me on track to where I need to be according to the experts. It doesn't hurt that my wife, who is significantly younger has around $100K saved in her mid 30's. I would be in a much better position if I hadn't of gone flat assed broke due to circumstances and events associated with the break up with my ex. Lost about $100,000 in savings for various reason there.

You're fortunate Damo. Most couples with children don't earn enough to start saving for retirement till they hit their late 30's, early 40's. Then it becomes a struggle.

I'm not going to be rich in retirement. If things go as planned I'll have half a million at retirement age. However, my wife won't be of retirement age until, assuming I live to the median age, kick the bucket. If we continue to invest like we are currently doing until my retirement, supplement her income with a 4% draw down on my retirement fund and SS to live on plus have the condo paid off, we'll live at around 80% of our current household income, which would still be well above the median household income and she should be able to retire with around $1 million in savings.

Let's hope it works out that way! LOL
 
Mott your situation parralells mine down to the 100,000 k divorce penalty.
Are you the one buying bonds, I maxed my 402k contributions way before 40 always 100 percent stocks.
 
Mott the Hoople said:
No, I was wrong, the average retirement savings for a 50 something is around $115,000.

I have a little more than double that, which puts me on track to where I need to be according to the experts. It doesn't hurt that my wife, who is significantly younger has around $100K saved in her mid 30's. I would be in a much better position if I hadn't of gone flat assed broke due to circumstances and events associated with the break up with my ex. Lost about $100,000 in savings for various reason there.

You're fortunate Damo. Most couples with children don't earn enough to start saving for retirement till they hit their late 30's, early 40's. Then it becomes a struggle.

I'm not going to be rich in retirement. If things go as planned I'll have half a million at retirement age. However, my wife won't be of retirement age until, assuming I live to the median age, kick the bucket. If we continue to invest like we are currently doing until my retirement, supplement her income with a 4% draw down on my retirement fund and SS to live on plus have the condo paid off, we'll live at around 80% of our current household income, which would still be well above the median household income and she should be able to retire with around $1 million in savings.

Let's hope it works out that way! LOL
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Must be nice to have SS to rely on. My generation won't be so lucky.
 
Vepr 12 said:
Must be nice to have SS to rely on. My generation won't be so lucky.
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That's what I said when I was your age. If you don't have it that will be your own fault for not fighting to defend it. Which wouldn't be difficult as the shortfalls in SS can be easily fixed if there is the political will too.
 
The Dude said:
Mott your situation parralells mine down to the 100,000 k divorce penalty.
Are you the one buying bonds, I maxed my 402k contributions way before 40 always 100 percent stocks.
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No I actually only have like 5 or 10% in bonds. The rest is in stock and yea I'm maxing it out. Between the generous contributions of my company and the large contributions I'm making have dropped me into a lower tax bracket that parts working out pretty well. Recently though the market has not been to kind to me. Not since the Chinese market plunged at least.
 
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