A new survey has revealed that middle-income Americans need financial planning help when compared to the wealthier Americans. The former don’t have comprehensive financial plans and often don’t ensure the necessary savings. There are some financial topics that both the types don’t address. Experts say that the chances of achieving financial goals reduce significantly when a person doesn’t have a proper plan.
Why Middle-Income Americans need Financial Planning Help?
The survey that states middle-income Americans need financial planning help has mentioned the facts behind the same. It found out that about 37 percent people with annual income between $35,000 and $100,000 have a comprehensive financial plan. In wealthier Americans, this percentage is about 48 percent. Wealthier Americans are categorized as those who earn more than $100,000 per year. The study that highlights middle-income Americans need financial planning help was conducted by America’s largest independent investment advisor, Financial Engines.
The Financial Issues
The survey concluded that middle-income Americans need financial planning help after witnessing a lack of some of the most crucial financial goals among the middle-income Americans. About 41 percent of the middle-income Americans had savings to support their child’s college education but this percentage is 61 percent for wealthier Americans. Also, about 67 percent of middle-income Americans had scope for life or disability insurance while 83 percent of wealthier Americans had the scope. In estate planning too, the middle-income Americans are lacking. Just 57 percent are doing it right as compared to 77 percent of the wealthier Americans.
A Common Mistake
The survey also highlighted that there was a common mistake made by middle-income and wealthier Americans. Both the groups are not addressing the vital topics like creating strategies to maximize their social security benefits and ensuring adequacy of a savings rate to achieve all the retirement goals they have set.
Wei-Yin Hu who serves as the VP of Financial Research at Financial Engines has also shared the opinion on survey results that state that middle-income Americans need financial planning help. He stated that earning should not be a concern with regard to having a full financial plan as people from all income groups need it. If a person doesn’t have a financial plan, the chances of successfully reaching the financial goals go down significantly. The goals can be anything from retiring at a specific age to paying for the education of a child. All of them need streamlined financial plans.