The next few months are very “wait and see” for Obama’s administration and our pocketbook.
Many of you voted for Obama even if you thought he is going to raise your taxes if you earn more than $250,000 as a family or $200,000 as an individual. Regardless of your income, he has come up with fantastic financial proposals that helps everyone’s pocketbook right away!
If you work a company that does not offer an IRA or 401(k), chances are inertia sets in and you are not likely to setup an IRA for yourself. I know I see it with my clients all the time! Or if you do contribute $5,000 a year to a ROTH or Traditional IRA, that probably isn’t enough to retire on. If you are 45 years old and start saving only $5,000 a year for the next 20 years, you will barely have $250,000, even if the market returns 8% a year, which certainly is not the case today.
Did you know that only 14% of small-businesses offer a 401(k) plan and 63% do not offer any retirement plan at all (study by Harris Interactive and ShareBuilder)? Good news is that Obama plans to help you out. He has proposed that employers that do not offer retirement plans are required to set up IRA-type accounts. This would be a fantastic benefit, especially if you work for a small business!