Ed Murphy, CEO of Empower, recently shared his top tips for retirement planning on Wealth!. He emphasized the importance of both employer-sponsored retirement plans and individual retirement accounts (IRAs). Murphy encourages Americans without employer-provided retirement plans to set up an IRA account.
For those with employer-sponsored plans, he suggests contributing up to the employer’s match, if offered. He also advocates for contributing more money whenever possible and choosing auto-escalation over a set target date fund to better reach retirement goals. “People aren’t saving enough is a little bit of a myth, just based on the numbers that we see.
Top tips for retirement planning
We have 19 million Americans as customers. And so what we’re seeing is they are saving at a rate of about 8%.
What we need to do is to get more people in the system,” Murphy said. Murphy also weighed in on the debut of spot ether ETFs and advised against including them in retirement portfolios. “I personally wouldn’t be a proponent of crypto inside a qualified plan,” he stated.
“I think that you can take a longer-term view and you can take a little bit more risk because if you’re a younger person, you’re not likely to tap into those dollars until 20 or 30 years down the road. That being said, I think there are better investments and more of a diversified equity portfolio that make more sense, perhaps, than crypto.”
For more expert insights and the latest market action, watch the full episode of Wealth!.
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