Join us the morning of
Tuesday,
November 28, 2017
For a Lunch Meeting with Guest Speakers:
J. Mark Iwry
Non-Residence Senior Fellow
Brookings Institution
and
Senior Strategic Policy Advisor
AARP
Who will speak about
Automatic Enrollment Emergency Savings Plans
Location:
The Tax Foundation
9th Floor
1325 G St. NW
Washington, DC
Date:
Tuesday,
November 28, 2017
Noon-1:00 p.m.
RSVP
(Lunch will be provided)
J. Mark Iwry is a Nonresident Senior Fellow in Economic Studies. He also is a Visiting Scholar at the Wharton School of the University of Pennsylvania. He served from 2009 to January 2017 as Senior Advisor to the Secretary of the Treasury and concurrently as Treasury’s Deputy Assistant Secretary for Retirement and Health Policy. He previously was a co-founder and Principal of the Retirement Security Project (2003-09). He is an honors graduate of Harvard College and Harvard Law School, and has a Masters in Public Policy from Harvard’s Kennedy School.
David C. John is a senior strategic policy advisor at the AARP Public Policy Institute, where he works on pension and retirement savings issues. He also serves as a deputy director of the Retirement Security Project (RSP) at the Brookings Institution. David is a member of the National Academy of Social Insurance. He holds an ABJ in journalism, an MA in economics, and an MBA in finance—all from the University of Georgia.
Posts
1 comment:
"Automatic enrollment for retirement saving is both effective and popular among all income, gender and ethnic groups. It has increased participation, helped people to both start saving earlier and to make appropriate investment choices.This mechanism would be even more useful, especially for younger workers and those with low-to-moderate incomes if retirement savings plans also allowed employees to save for unexpected expenses."
I have a been a big proponent of retirement savings. However, over the last four decades I have found that my generation was raised in a totally different era. My my was stay at home mom, my dad worked. He saved from day one, paid cash for everything. My siblings and I all turned out to be savers as well as good budgeters. We were able to have one pile of money and from there allocate where the money went.
Today there are both parents working, credit debit cards abound. There is a definite difference between using cold hard cash and a debit card when making a purchase. One sibling did not like direct deposit, but wanted to take the check to the bank and see the transaction. This took decades to overcome and now likes direct deposit. I on the other hand learned the hard way that a direct deposit of a paycheck grants both deposit and withdrawl from the account by the employer. If the employer makes a mistake and thinks they paid you twice, they can withdrawl money as well. Though this only happened once to me, it was an eye opener.
Dave Ramsey has good a good message on wealth building. Though I only recently heard of him and listen to him, I did not totally agree with his first four steps.
Baby Step 1 – $1,000 to start an Emergency Fund.
Baby Step 2 – Pay off all debt using the Debt Snowball.
Baby Step 3 – 3 to 6 months of expenses in savings.
Baby Step 4 – Invest 15% of household income into Roth IRAs and pre-tax retirement.
He has a lot of success with this process. Credit card debt carries fees for having a balance from the previous month in terms of a high interest rate and a flat fee generally $25. So saving for retirement while still having this type of debt is just stupid. Therefore, automatic enrollment in both retirement and emergency funds is dumb to stupid.
Having five children with the span being about ten years, I have seen differences in their spending. The youngest by far gained an awareness of money far better than the others. I attribute this to having him pay for groceries and all other things I bought from my wallet. He had to count the money and the change received. He also went to the bank when I made withdrawls. He saw the amount of money it took. He may never leave the house now.
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