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Georgia residents not saving enough money

In some not so happy news, Georgia has been listed last among states with concerns to the overall financial security of its residents. It has been estimated by the Corporation for Enterprise Development, a think tank from the nation’s capitol, that 56 percent of the state’s residents do not have adequate savings to cover financial emergencies or to save for the future.

The report looks at household finances overall. What has happened in Georgia is that there are many poor and even middle class individuals that would have almost no finances left should they suffer a loss of job. And more than a third of individuals making between $51,000 and $82,900 have less than three months of savings set aside.

With no money to begin with, there is nothing left to invest for retirement. The solution of the think tank mentioned above is to put in place an Earned Income Tax Credit and to raise limits for welfare and Medicaid payments.

Naturally, what this entails is a political solution that may take months to put in place or may not be implemented whatsoever. Individuals facing foreclosure, huge financial debt and a lack of retirement savings do not have the option of waiting for such solutions.

Unfortunately, there are many so-called financial advisers in place that work on commission, have very little real training regarding investment or financial planning, and have a vested interested in getting individuals to rollover retirement accounts and to encourage individuals in debt to place money in questionable investment tools.

What individuals instead need is the advice of experienced estate planning attorneys or other financial planners whose only professional loyalty is to the client that has come to them for help.

Source: The Augusta Chronicle, “Georgia last in annual study with so many people living paycheck to paycheck,” by Tim Rausch, Jan. 30, 2013

  • Please visit our Alpharetta, Georgia law offices website for choices regarding estate planning and other financial and retirement issues.