Empower CEO Ed Murphy joins Wealth! to discuss his top tips for retirement planning.
For Americans who don’t have retirement plans provided through their employers, Murphy encourages them to set up an IRA account. For those who do, he recommends contributing up to their employers’ match if they offer matching. He explains that in both cases, contributing more money whenever possible and choosing auto-escalation rather than a set target date fund is best to help reach retirement goals. He adds, “People aren’t saving enough is a little bit of a myth, just based on the numbers that we see. 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.”
As spot ether ETFs made their trading debut this week, Murphy advises against including it in retirement portfolios: “I personally wouldn’t be a proponent of crypto inside a qualified plan. 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.”
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This post was written by Melanie Riehl
