Clark Biweekly 10 10 24

Author

Anthony Hazzard
October 10, 2024

Did you know that switching jobs can often derail your retirement savings momentum? Learn all about it later in this email. 

💵 Today’s Top Stories

Inflation isn’t as high as it was a year ago when we got a 3.2% adjustment, or two years ago when we got a huge 8.7% adjustment. How much will your Social Security checks increase in 2025? Read more.

Unless you’re a hoarder, you probably don’t want to keep reams of years-old paper sitting in boxes in your home. Here are the things Clark says you need to keep – and for how long. Read more.

Home

Criminals have been squatting in houses when the owner is gone. They sometimes have legal rights and the homeowner is not allowed in their own home. Here’s how to prevent this. Read more.

Puzzle

Did you know one in seven people have money sitting in a database waiting to be claimed? Here are six free ways to check if any of those billions of dollars belong in your bank account. Read more.

Clark has consistently named three discount brokers as his favorites. But he thinks one is better than the rest for first-time investors. Read more.

📉 Vanguard: Switching Jobs Often Kills Your Retirement Savings Momentum

Job-hopping was not normal for those of a certain generation. It’s standard now.

Pension plans, which often required decades of service to one company, are nearly gone. And 401(k) plans with automated contributions for new employees are here.

A 401(k) plan often is better suited for modern work life. But changing jobs still can cost you tens or hundreds of thousands of retirement dollars, a new Vanguard study found:

  • Job switchers often get auto-enrolled at a lesser savings percentage than they were contributing at their previous company.

  • Some forget to sign up, although companies are required to auto-enroll new employees starting Jan. 1, 2025.

  • Some face life circumstances along with a job change that halt their retirement savings momentum.

“The typical U.S. worker has nine employers over the course of their career. The median job switcher sees a 10% increase in pay but a 0.7 percentage point decline in their retirement saving rate when they switch employers,” the report found.

The study said a worker starting his or her career earning $60,000 and switching jobs eight times will lose an estimated $300,000 in potential retirement savings vs. someone who never switches jobs.

Realize the importance of staying on top of your 401(k) plan when you switch jobs and try to maintain the same contribution rate. And always contribute enough to get the company 401(k) match.

📊 Stat of the Day

🏦 -13,000: The approximate drop in the number of physical bank branches in the United States since 2012. Clark is a big proponent of banking online if you can. The number of bank locations peaked at about 83,000 and fell to about 70,000 in 2023. JPMorgan is seemingly the only major player still expanding in terms of branches.

💰️ Deal Alert: Today’s Top Deals
🎙️ Podcast

Who wants to be a millionaire? Probably most of us. But is it really possible? New data from Fidelity reveals the number of people who are 401(k) millionaires – it might surprise you! Plus, Clark reveals how to reach the milestone in your own life. Also, Clark often talks about reviewing bank statements to see if there are any subscriptions or charges you can cancel to save money. But have you ever thought about reviewing your online accounts? Clark explains why it may be more important than ever to audit your online presence.

☎️ Need Money Help?

The Team Clark Consumer Action Center is a free helpline that can help you navigate your money questions. Call 636-492-5275. Visit clark.com/cac for more information.

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