The financial news that caught my eye today was Clinton’s proposed retirement plan. The basic gist is to provide matching funds for a 401(k) type plan for all middle income Americans (making under $60k). The feds would pay fifty cents on the dollar for those in between $60k & $100k (meaning you get a $500 bonus for your $1,000 contribution).

Clinton points out, “We’ve got a lot of workers — more than half in America right now — without any employer-based retirement system.” While us DINKs are certainly all for saving for retirement, I think the issue goes a bit deeper than simply providing matching funds.

I’ve looked for any mention of financial education tied to this program and haven’t been able to find anything. In my opinion you could do a lot of good by putting some of that money towards a solid financial education. That goes for not only the youth, but those of all ages.

Certainly matching funds are a nice incentive that parents with the ability to do so would offer to their children to promote savings. I would argue that unless that comes with a fair dose of education about financial basics that the money just won’t go as far.

I do agree with Clinton’s statement, “Through the discipline of good planning and the miracle of compound interest, you should be able to build wealth for yourself.” I would also add to that the importance about learning through that process.

Happy Savings!

Miel

You can get the full story and details from the New York Times.

MANAGE YOUR MONEY TOGETHER

Here are some simple guidelines for DINKS to build wealth:

1) Collaborate: Meet regularly to talk about money, set goals together, track and monitor them.

2) Understand and respect your partner. Take time to understand your partners values about money.

3) Watch the numbers. Get a budget, monitor your spending and track your net worth.

4) Max your retirement. Maximize contributions to your tax deferred retirement accounts.

5) Invest in stock. Stocks perform better than bonds or cash.

6) Avoid high interest debt. Credit cards and title loans are financial cancer.

7) Diversify. Don't put all your eggs in one basket.

Couples Finance

Blogs You Should Read

Companies Supporting The DINKS

Please consider visiting our gracious supporters:

Get an education with the Online Certificate Programs at Washington Tech