Yesterday, across the East Coast, Americans felt the shock of a 5.9 magnitude earthquake. People were frantic, buildings were evacuated and the West Coast endlessly mocked the East Coast. But the earthquake isn’t the only thing causing shakiness amongst Americans – financial insecurity is also causing some tremors and panic amongst families from coast to coast.

Earlier this week, USA Today reported that more and more families are drawing money from their retirement funds to pay for their children’s education. According to a recent Gallup study, “the number of parents who withdrew or took a loan from their 401(k) plans more than doubled” in the last year. This shaky financial environment is causing families to solely think about the immediate future and not about the long term consequences.

So how do Americans calm their fears about their financial security? The same way they calmed their fears about the earthquake:

• Talk to loved ones. Talk about all your options for a secure retirement. This may include diversifying your assets and looking at employee sponsored plans or purchasing an annuity.

• Consider your options for the situation you are facing. Explore ways for funding current expenses. For example, when it comes to funding a child’s education, many colleges offer scholarships which can help families support their children and protect their own finances.

Posted in annuities preparedness recession Resources retirement saving
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