The new 2014 Employee Benefit Research Institute survey found that 57 percent of workers have less than $25,000 in total household savings and investments. Two-thirds (68 percent) of those with annual household income of less than $35,000 report less than $1,000 in household savings.
Financial advisors agree that making savings a regular part of your household budget is the surest way to grow a nest egg and have the means to weather a financial emergency or retire in the future. HomeWork Solutions can help your nanny or other household employee automatically deposit part of their weekly or bi-weekly paycheck into a savings or retirement account.
Regular savings, particularly when the deposit is made automatically, allows the nanny or senior caregiver to put the time value of compounding interest to work for her savings. It is true, money does grow! Retirement savings invested in the stock market, which has been a wild ride in the last few years, historically will grow for an average of 8-10% per year. As one gets closer to retirement age, the advice of a good financial planner should be sought to gradually move retirement savings from the more volatile stocks to more conservative savings vehicles - a process known as asset allocation or rebalancing.
If a nanny saves the first $25 of each weekly paycheck over 30 years, she will have a nest egg of $70,000 - $225,000 according to My Daily Finance. HomeWork Solutions makes this easy, and best of all it doesn't cost the employer anything extra.
You can find a ton of financial experts and advise when it comes to retirement and retirement savings. One common theme is TO START NOW. It makes an big difference on how much you will have when you retire if you start sooner.
You may be thinking, this post is not about me. And well, it’s not. It’s about your employee! Your nanny or caregiver is investing in your beloved family members daily. You don't need to get into "their business," simply letting them know that these options exist can make their financial house more secure and their future retirement more comfortable.