Affluent Americans Face Financial Uncertainty In Retirement

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The state of the national and global economy has had considerable effects on the nest eggs of even affluent Americans, facing them with financial uncertainty and making them reconsider priorities such as liquidity versus retirement savings. Which should be more important? Also, are certain financial practices, such as keeping CDs and savings accounts (among other low-risk and low-yield investments) actually problematic for their funds in the long run?

A recent poll conducted by MetLife said that almost 60% of all respondents who had upwards of $200,000 in investments stated that they kept a portion of their nest egg in a liquid account to cover any major emergency expenses. Half of all surveyed have realized the importance of this move because of an unexpected expense that amounted to a couple of thousand dollars or more, while almost 30% experienced up to 5 unexpected and urgent expenses. Others say that they've maintained some money in liquid accounts, with 43% wanting access to freed-up funds outside of long-term investments and around 31% establishing a sort of buffer fund against the effects of the fluctuating stock market. The poll was conducted in September of this year, with over 1,850 workers 45 years and up.

500 of all survey participants had more than $200,000 in assets they could use to invest, and of that figure, only about 250 or so stated that they would be able to hike up their savings by 10% - not much slack in terms of financial freedom, says MetLife Retirement Products VP Julia Lennox. She added that many workers who encountered unexpected expenses tended to pay for these by rotating or reprioritizing debt, using their credit cards, or making withdrawals from their retirement accounts. Lennox further explains the gravity of the situation and the financial uncertainty many workers encounter by concluding that they want to save much more for retirement by attaining liquidity or accumulating enough retirement savings, although they do not have the flexibility to do so.


About the Author:
Carina Smith is an author who specializes in financial topics concerning seniors. Puritan Financial Group gives seniors ways to earn stable income with strong investments that can help decrease financial uncertainty in retirement. For more information on how Puritan Financial Group can help you, please visit our website at http://www.puritanlife.com.



Article Originally Published On: http://www.articlesnatch.com


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