Retirement Login HSA Login

Not sure?   Contact Us

It’s A Numbers Game – And We All Lose! US Debt Per Person

by

blog-spacer

Chad Parks is Founder, President, and CEO of Ubiquity Retirement + Savings, formerly The Online 401(k), has helped savers contribute over $1.4 billion towards their retirement since 1999. As one of the first flat-fee-for-service small business plan providers in the nation, Ubiquity delivers peace-of-mind with zero hidden-fees in the fine print. The company is headquartered in San Francisco with satellite offices from coast-to-coast. Read More...

Parks started out as a broker in the financial services industry by growing a portfolio of individual clients at San Francisco’s Piper Jaffray. Driven by a desire to better serve his clients while anticipating the phasing out of the traditional broker model, Parks left Piper Jaffray in 1997 to obtain his CFP designation and start his own fee-for-service, independent financial planning practice, Retirement & Education Group, Inc.

In his financial planning practice, Parks came across many small business owners looking for cost-effective and quality retirement plans. Finding the small business market highly neglected and underserved, Parks saw the opportunity and took it by launching The Online 401(k). Today, Ubiquity serves more than 7,000 small business customers in 50 states, providing solutions both directly and through partners, such as Zenefits, Charles Schwab & Co. and Morningstar, as well as payroll companies, financial planners and CPAs.

Parks has been quoted in many financial services as well as national publications such as The Wall Street Journal, The New York Times, Fox Business, Yahoo! Finance, USA Today, CNN Money, Bloomberg Wealth Manager, Business Week, Entrepreneur and Plan Sponsor for his considerable work performed in the space of small business retirement as well as his foray into documentaries with his independently produced Broken Eggs Film, released in 2014.

With his extensive work in Washington DC in getting legislation passed in order to stop the practice of hiding fees in the fine print, Parks has become the go-to expert on public policy as it relates to 401(k), as well as the looming retirement crisis in America, and what we can do to fix it.

blog-spacer

January 23, 2013 at 9:34 am
Retirement News

blog-spacer

Recurring Series: Volume 1

315,218,264 – US Population

(The population of the US according to the US Population Clock from the US Census Bureau.)

If you are like me, all of the talk about the national deficit, our taxes, spending and spending cuts, the debt ceiling, and our fiscal health as a nation, means so little out of context.

The numbers are enormous and they are incomprehensible to me.

To help make sense of it, and to personalize it, in these series, I will take a look at the numbers that our media and government throw around when discussing our fiscal situation and translate these into what it means for each of us.

I am comparing the big numbers to what it means to every man, woman and child in the US and to a family of four.

Let’s start with our national deficit. In an earlier blog, I talked about what our national budget looked like when thought of as a household budget. The national deficit was one component of that.

 

Let’s think about that for a minute.

My little family of four has been burdened with $205,297 of debt that we did not ask for. If that were a mortgage, the payments would be about $1100 a month, or $13,200 a year for the next 30 years. I can think of a lot of things my family could do with that $205,297 if we were given the option.

Doesn’t matter if you are rich or poor, this is the math. Of course, in our progressive tax system, the more you have, the more you pay, but that is a whole other discussion.

When you walk down the street, I want you to see a number over everybody’s head: $51,349. That is how much of a debt burden has been put on each of us, and we let it happen.

How can we possibly expect every man, woman and child in the US to come up with and pay off $51,349 when the average household income in this country, pre-tax, is $44,000 a year. Rich nation indeed.

So, when you hear talk about screwing our future generations, this is what it means.

Challenging times. Is it any wonder why we are facing a Looming Retirement Crisis when so many workers do not even have access to workplace savings, and no leadership when it comes to personal and fiscal responsibility?

What do you think about this? Did you know this is much of the national debt is on you? Do you have other examples we need to talk about? Tell me and share with your friends.