How Savings Accounts are Destroying Your Retirement Goals
In a world where saving money is praised and celebrated, your savings account is doing remarkably little for your future.
(I am not a licensed Financial Advisor. Please conduct your own due diligence and consult a professional before investing in volatile assets.)
Countless studies and articles emphasize that the mass majority of Americans are not saving enough for retirement. In fact, this study by the Transamerica Center for Retirement Studies suggests that the average American in their 40s has only saved about one fifth of the amount which they would need to retire on $36,000/yr.
Indeed, many Americans are not hitting their retirement goals, but these papers often point readers in the wrong direction to begin accumulating the wealth that is necessary to retire comfortably.
Saving money alone is not enough to acquire the long term wealth necessary to retire comfortably; you must invest your savings into assets that allow your wealth to grow in order to have a fighting chance at retirement.
There are two main reasons why just saving a percentage of income in your typical savings account will never create enough wealth for a comfortable retirement.
