And while the proposal echoes previous "concepts of a plan" for the president, the idea that there could be a path for all Americans earning less than the national median income to access a government-backed retirement plan seems like a no-brainer. I reached out to a few financial pros to see what they thought about the possibility of something like this coming to fruition. Here's what they had to say.
As many as 78 percent of businesses that have fewer than 10 employees don't offer employer-based retirement plans, according to Sara Wright, CFP® Professional with Domain Money, who notes that part-time employees and contractors are also out of the loop here.
Related: 10 States Are Temporarily Closing Social Security Offices. Is Your State on the List?
It Doesn't Offer as Robust an Impact as Traditional Savings Plans
“I think in theory it’s a good idea," Lewis says. "The main benefit compared to something like a Roth IRA is the government match. But it kind of stays more positive in theory, because the match is only $1,000, and that’s only if someone is actually contributing to the account."
Another thing Lewis thinks the plan has going against it is the potential for long-term risk. "We’re already dealing with the Social Security trust shortfall, and we’re already running deficits while trying to fund that," he says. "So I don’t really see the logic of adding something new on top of that without fixing Social Security first."
Related: Financial Expert Jim Cramer Endorses Controversial Social Security Solution That Will Infuriate the Rich
Lower-Income Americans Will Still Miss Out
"The big problem I see is that you have to put money into the account before you can get the match," he says. "For a family that is already struggling to make ends meet and is $80 short every month, getting a 50 percent match, on no money, is still no money. This is the part that people who make policies keep ignoring."
Disclaimer: This article is for informational purposes only and does not constitute financial advice.
Hence then, the article about trump has a proposal to help retirees here s how real financial pros actually feel about it was published today ( ) and is available on Parade ( Saudi Arabia ) The editorial team at PressBee has edited and verified it, and it may have been modified, fully republished, or quoted. You can read and follow the updates of this news or article from its original source.
Read More Details
Finally We wish PressBee provided you with enough information of ( Trump Has a Proposal to Help Retirees—Here's How Real Financial Pros Actually Feel About It )
Also on site :