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As America takes this week to talk savings via the America Saves Week campaign, we wanted to take the time to make note of a major spend, a $19 billion dollar spend to be exact.
Recently Facebook acquired WhatsApp for $19 billion. While that chunk of change could buy many years of retirement, what Facebook does get for that price tag is a 5-year old mobile messaging service with over 450 million users. Oh, and WhatsApp is adding more than 1 million new users each day.*
We have come a long way since the fax machine as a way to exchange information.
This week is America Saves Week 2014. America Saves Week is “an annual opportunity for organizations to promote good savings behavior and a chance for individuals to assess their own savings status.” The campaign is managed by the nonprofit Consumer Federation of America and encourages individuals and families to promote savings throughout the year.
8 in 10 workers say that they need to save more to be on track for retirement.* This week serves as a great reminder to review your current savings, set your goals and save for your future.
The Advisors role in a 401(k) plan is an incredibly important one. Acting as a guide, advisors can help plan sponsors maintain the health of their 401(k) plan. There are a number of opportunities to add value when working with plan sponsors:
Google develops and buys technology that creates a better and easier user experience. One of their most recent examples of this is the purchase of Nest. If you aren’t familiar, Nest is a digital thermostat that “learns your schedule, programs itself and can be controlled from your phone.” Instead of leaving your home the same temperature all day long, the Nest makes adjustments based on your temperature needs, when you need it.
The retirement challenge our country faces today is larger than any one organization can manage alone. Retirement plans were once known to be complex, mysterious and exclusive, but today any small business, in ten minutes or less, can install a full-service retirement plan from a recognizable brand with online service and complete professional call center support. And yet, the retirement crisis in America continues to grow. According to the Government Accountability Office, only 20% of employers with 5 to 25 employees sponsor retirement plans.
As more and more of the baby boomer generation reaches retirement we will continue to see a shift in how people educate themselves on retirement savings.
Today, we are connected to an extensive amount of knowledge through our electronics. When we need to learn more about a topic, we often reach for our smartphones or tablets to find the answers. Retirement savings is no different.