Americans Regret Not Saving More for Retirement

A recent study shows that the biggest regret of American workers is not saving enough for retirement. In the latest study by American Century, 2031 full time workers participated in the survey. When asked about their biggest regrets, most participants said they should have dedicated more into their retirement funds, especially in the first 5 years of their career.

In light of this recent finding, Sense Financial recommends investors to start thinking about their retirement future early. All participants in the survey were workers who participate in their employer’s retirement plan. The regrets of not saving more can be more pronounced among self employed individuals and small business owners without access to an employer-sponsored retirement plan.

For this group, often retirement planning is pushed back behind other priority such as living expenses and business growth. However, Sense Financial recommends self employed professionals and business owners to plan ahead to avoid future regrets.

While traditional 401k may be off-limit to this group, other retirement options are available. Many self employed individuals and business owners have looked into the option of setting up a Solo 401k plan. This is a retirement plan that covers only the business owner and their spouse.

For people who did not save enough, a Solo 401k may be their chance to catch up. The plan allows participants to contribute up to $59,000 a year each, as of 2015. This is one of the highest contribution limits among qualified retirement plans.

Plan holders also have the opportunity to grow their funds even further, with many investment options available. Instead of being restricted to stocks and bonds, Solo 401k plan owners can also decide to invest in real estate, private placements, precious metals and more. In case of financial hardship, a Solo 401k loan is also available.

With the compounding effect, the earlier you start saving for retirement, the bigger the fund can grow. Therefore, for small business owners and self employed individuals, Sense Financial recommends creating a Solo 401k plan early and start saving for retirement as soon as possible.

Sense Financial is California's leading provider of retirement accounts with “Checkbook Control”: the Solo 401k and the Checkbook IRA.  Over the years, they have assisted hundreds of clients to obtain checkbook control over their retirement accounts while providing them with the ability to invest in virtually any investment class, including real estate, private lending, mortgage notes and much more without the need for custodian approval.

To learn more about the solutions they provide, please contact:  (949) 228-9394.