The savings crisis in America is driven by a combination of factors that hinder individuals' ability to save money effectively.
Stagnant wages, when juxtaposed with the rising costs of living, have significantly reduced disposable income available for saving. This is further exacerbated by the absence of comprehensive social safety nets, leaving many Americans financially vulnerable in times of unexpected expenses or emergencies.
Additionally, high levels of consumer debt, including student loans and credit card debt, divert a considerable portion of income towards debt servicing, leaving little room for savings.
As of 2020, Nearly 70% of Americans have less than $1,000 stashed away in their bank accounts.
That number rose from 58% in 2018.
Only 12% of Americans are savings between $1,000 and $5,000.
That’s 82% of Americans with less than $5,000.
Only 5% of Americans have savings accounts that range between $10,000 and $20,000.
That’s 87% have $0 to $20,000 in savings!
Retirement Age Used to be 62
Currently, the age is 67 according to SSA
Our kids will likely retire at 70+
Starting age: 0
Save til age: 18
Monthly savings: $100
Growth Rate: 7.30%
Starting age: 18
Saving years: 18
Monthly savings: $100
Growth Rate: 7.30%
In a world filled with financial options, it’s natural to wonder about the best path to secure your child’s financial future. While traditional routes like the 529 plan, Roth IRA, Custodial Account, or just a plain old Savings account at the bank are commonly touted, it’s time to uncover the shortcomings they conveniently omit.
The 529 plan might promise college savings, but it shackles your child’s future to a single educational path. What if their aspirations evolve beyond the confines of traditional education? And let’s talk about the Roth IRA - designed for retirement, it hardly considers the pressing financial needs your child might face along the journey to adulthood. Custodial Accounts? Sure, they grant control, but only until your child comes of age, leaving them a windfall of financial responsibilities they might not be ready to handle. And don’t be fooled by the humble Savings account, where interest rates often struggle to keep up with inflation, essentially eroding your child’s savings over time.
Isn’t it time for a more versatile and holistic approach? One that empowers your child to embrace their unique path, be it in education, entrepreneurship, or unforeseen opportunities. At KJN Advisors, we’re rewriting the savings narrative. Our innovative investment strategies are designed to adapt to your child’s changing needs, fostering financial growth and resilience. It’s time to break free from the limitations of traditional savings and give your child the future they truly deserve.
Our Tax-Free Child Savings Plan (CSP) is a non-traditional approach to saving for your child’s, or grandchild’s, future. Allowing you to maximize their savings potential all while completely avoiding the fees, penalties, and limitations of the traditional status quo plans. By utilizing a flexible and tax-advantaged growth plan, you can set your child up for success without worrying about unexpected costs or missed opportunities. Our CSP can not only help your child save for college, but can also be used to help pay for things like their wedding, a first home, or to start a business. Discover the difference and schedule a consultation to learn more about our Child Savings Plan.