An interesting phenomenon is happening. The President was just impeached. People thought this significant event would have an impact on the financial markets. It did not. In fact the market finished the day with record highs. I guess there are more important things going on in Washington D.C.
The most important thing was the budget bill got passed and no government shut down will happen. That is a good thing. It’s Christmas time and no one wants news of not working because the two branches of government can’t work together.
The real news that got buried in the legislation is the significant changes to the U.S. Retirement System. It seems that congress recognizes that we are getting older and some of us may out-live our money.
The new law seeks to expand retirement saving plans like the popular 401(k), Defined Benefit Program. It is estimated that 30% of American don’t have a way to save for the future. According to the nonprofit Employee Benefits Research Institute, Americans between the ages of 35 and 64 face a shortfall of $3,830,000,000,000 (that’s right $3.8 trillion), with 41% of households projected to run out money later in life. Stay tuned. Income options are coming to 401(k) and other similar plans.
I am digging into this one. I will be looking at what the House of Representatives are doing to make these big changes. I will be addressing what the House Retirement bill will mean for you. Big missing piece: What will the Senate do?
2020 is going to be the beginning of a very exciting decade.
Robert L. Woods (a.k.a. R. LaMont W)