Financial Planning Crisis
To any conscientious financial planner or mortgage consultant, the numbers are distressing. The federal government is so concerned that it has revamped provisions of the U.S. tax code at least three times in recent years in an effort to reverse the trend.
Recent studies have shown that most American families are now living beyond their means, cramped for cash, and few have taken adequate steps to secure their financial futures.
Only about four out of ten have established a tax-deferred savings fund – a 401(k), IRA or Keogh account – and even these forward-thinking Americans seldom contribute the maximum allowed. Today, the average balance on a 401(k) account nationwide hovers around $50,000; and half of all account holders have $15,000 or less saved against future uncertainties that often aren’t uncertain at all.