MARIA: CHANGES COMING TO YOUR
RETIREMENT NEW BILL INTRODUCED
BY HOUSE WAYS AND MEANS
CHAIRMAN BRADY AIMS TO REMOVE
AGE LIMIT ON CONTRIBUTIONS TO
YOUR INDIVIDUAL REQUIREMENTL
REQUIREMENT ACCOUNT RAMSEY
FINAL EXPERT AUTHOR OF
EVERYDAY MILLIONAIRES CHRIS
HOGAN GOOD TO SEE YOU --
>> THANK YOU GOOD TO BE WITH
YOU.
>> THE IMPACT ON REMOVING AGE
IN TERMS OF CONTRIBUTIONS TO
401(K) YOUR RETIREMENT I THINK
GOOD TO ALLOW PEOPLE TO KBT
PAST AGE 80 1/2 I'VE GOT TO BE
HONEST AS WE LOOK AT THIS
PEOPLE NEED OPPORTUNITIES TO
PUT MORE MONEY IN EARLIER.
YOU KNOW, THE WAY TO GROW
MONEY WITH TIME COMPOUND
INTEREST SO I WOULD LOVE TO
SEE CONTRIBUTION LIMITS
INCREASE FOR PEOPLE WHAT ARE
IN 20s, 30s TO GIVE THEM AN
OPPORTUNITY TO BUILD UP THE
MONEY THEY NEED FOR FUTURE.
>> WHAT IF YOU ARE OLDER WE
CAN'T GO BACK IN TIME HOW CAN
YOU CATCH UP?
>> WELL GOOD THING IS IF YOU
ARE OVER AGE OF 50, THERE ARE
CATCH UP PROVISIONS, IN YOUR
401(K) YOU'VE GOT AN
OPPORTUNITY TO ADD EXTRA 6,000
A YEAR IN IRAS OPPORTUNITY FOR
EXTRA THOUSAND STUDIES HAVE
SHOWN THERE ARE 78% PEOPLE
SOMEWHAT OR EXTREMELY
CONCERNED ABOUT RETIREMENT.
SO IT IS A LITTLE TOO LITTLE
TOO LATE AT THAT AGE TO BE
OPENING UP OPTIONS FOR PEOPLE,
NOW I LOVE THAT PEOPLE HAVE AN
OPPORTUNITY TO CONTROL FUTURE,
I NEVER FEEL LIKE IT IS TOO
LATE I TALK ABOUT THAT IN MOO
I BOOK RETIRE ASPIRE NEVER TOO
LATE TO MAKE CHANGES WE HAVE
TO LIKE LIEFL ADJUSTMENTS LOOK
AT WAYS TO ADD TO SAVINGS FOR
LATER WE'VE GOT TO STAY IN
CONTROL OF OUR MONEY, AND NOT
LET IT CONTROL US.
>> WHAT DO YOU THINK MAKES
SENSE TO HAVE AS A LIMIT?
YOU WANT TO INCREASE THE
LIMITS OF THE AMOUNT OF THE
CONTRIBUTION WHAT SHOULD IT BE
A SLIDING SCALE WHEN YOUNGER,
IT IS NOT AS HIGH AS WHEN YOU
ARE -- YOU KNOW SAY MY AGE 58
TRYING TO CATCH UP?
>> WELL DO ON A GREAT
QUESTION, I WOULD LOT OF TO
SEE THE IRA'S BURNED HAVE UP
TO 10 TO 15,000 GIVE PEOPLE AN
OPPORTUNITY TO PUT MONEY AWAY,
MOVING 401(K) ALLOWING PEOPLE
TO MOVE IT UP AGAIN TALKING
ABOUT PEOPLE'S FUTURES, WE ARE
SEEING PEOPLE HAVE TO WORK
HARDER AND LONGER BECAUSE THEY
DON'T HAVE ENOUGH PUT AWAY DON
I THINK THIS BOILS DOWN TO
RADIATION AND UNDERSTANDING
HOW IMPORTANT IT IS.
PEOPLE HAVE A FALSE SENSE OF
UNDERSTANDING THAT THEY THINK
SOCIAL SECURITY IS GOING TO
SAVE THE DAY THE PLAN GET
YOURSELF OUT OF DEBT BUILD UP
EMERGENCY FUND, AND START
INVESTING 15% OF INCOME INTO
YOUR 401(K) OR 403(B) WILL
PULL THE YOU ON THE PATH TO
LIVE YOUR DREAMS LATER.
>> SPEND IT WHEN YOU ARE YOUNG
SPEND IT SPEND IT SPEND IT
CHRIS BECAUSE WHEN YOU ARE OLD
GOT BIG RETIREMENT NEST EGG
GOING TO BE ACHEY NOT GOING TO
WANT TO GO ON A CRUISE NOT
WANTING TO GO TO ITALY IF ROME
TOO MUCH WALKING TO DO.
PEOPLE --
>> WAY TOO MUCH ABOUT --
RETIREMENT.
>> THAT INFORMATION LISTEN,
YOU CAN HAVE SOME FUN NOW, BUT
YOU GOT TO PREPARE FOR THE
FUTURE.
DON'T YOU TELL PEOPLE THAT.
YOU CAN HAVE FUN.
>> TAKE MONEY OUT OF 401(K)
DAGEN.
>> NO!
ABSOLUTELY NOT.
>> DO NOT TOUCH THAT MONEY.
DAGEN: A DEBATE FOR ANOTHER
DAY I WILL SAY THIS I KNOW
ENOUGH PEOPLE WHO DROPPED DEAD
RIGHT AFTER THEY RETIRED, THEY
HAD ALL THIS MONEY YOU KNOW
WHO GOT TO SPEND IT?
THE EX-WIFE AND HER NEW
HUSBAND GOT TO SPEND IT.
>> WE NEED TO GET DAGEN MORE
COFFEE, ALL RIGHT, LISTEN PUT
MONEY AWAY, LEAVE IT THERE,
AND -- BE PREPARED, BE
PREPARED.
MARIA: I THINK SHE IS JUST
DOING THIS TO BE PROVOCATIVE.
>> I AM NOT POSTPONING A
INTEREST UP TO MAKE CATCHUP
CONTRIBUTIONS TO 401(K) PLAN.
>> YOU CAN BUDGET FOR THE TRIP
PAY CASH.
>> LIVE FOR THE DAY BE MINDFUL
OF TOMORROW.
>> THANK YOU DON THANK YOU DON