Our members’ savings

This USA Today article sums up some points very nicely.

We need to help our members save. Astonishing, I know. If the economy and the stock market are going to slow next year, (enjoy the high while it lasts) then our members should slowly start putting more money back into their savings accounts. We need to be there to help them make the transition! And not just in this short-term economic downturn, but we need to be helping our boomers get ready for retirement.

According to this Fast Company article, about 40 million US consumers have saved about 1.6 trillion dollars in 401k’s. After 52 months, that 1.6 trillion dollars would be gone if it were dispersed by the average social security monthly payout, about $800.

I don’t know about you, but I want to last longer that 4 years with more than $800 a month i my retirement.

Nearly any financially savvy person knows they need a cash emergency account first, then start up the IRA contributions (you should already be contributing to the company-match 401k). Credit unions need to help with those emergency savings account by providing innovative products and they need to offer competitive IRA products.

We need to help our members save, and we need to figure out how to do it inventively.