This post is in honor of America Saves Week 2017, an annual, national campaign of social media, and live events on the state and local level, to promote good savings behavior and give individuals a chance to assess their own saving status. America Saves Week is coordinated by America Saves and the American Savings Education Council to provide societal encouragement and support to persuade more Americans to: Set A Goal. Make A Plan. Save Automatically.
According to the report "Are Americans Ready for Retirement?", employer-based retirement plan sponsorship rates declined to 53% in 2011. This means that almost half of U.S. workers do not have access to a retirement plan through their employer. Still, if you are an employee with an employee-sponsored retirement plan, saving for retirement is still your responsibility and is the only way to secure your financial future.
Although there are individual retirement account (IRA) options available via various brokerages like Vanguard ($1,000 minimum) or Fidelity Investments ($2,500 Minimum), minimum contributions required can be a barrier for you to start investing for your retirement.
Of course, you can always save up the minimum contribution amounts in a savings account and then fund an IRA, but your funds will earn a near 0% interest over that period and you risk losing motivation and falling off track, when life gets in the way.
Saving for Retirement with myRA
A great way to overcome the barrier of minimum funding thresholds and avoid the risk of not investing, at all, is to open a myRA savings plan. The myRA savings plan is a simple, safe, affordable way to start saving for retirement.
With this plan, you can:
- Start funding your retirement account with a minimum of just $2.
- Get a guaranteed annual rate of return of over 2%.
- Access the tax advantages of a Roth IRA.
- Have the ability to roll-over funds at any time.
Plus, you have the option to automate and increase your contributions to make saving for your retirement, effortless.
Start Securing Your Retirement, Today
You can learn more about how the myRA works, on the myRA.gov website and sign up in 3 easy steps:
- Open an account on myRA.gov
- Fund your account and automate contributions.
- Watch your savings grow.
If you've been confused and discouraged about saving for retirement, or just don't know where to begin, use these simple steps to get started. Your future self will thank you.
~ Melisa Boutin
SECURE YOUR FUTURE
Grab this Retirement Start-Up Guide