Retirement bull, in some instances.
Are we seeing more reports about American workers who cannot afford to retire, or is it my imagination?
Just the other day, I read a news report indicating that nearly 40 percent of baby boomers will have to work for the rest of their lives. My first reaction to that information was: “so, what else is new?” When I decided to backtrack in my thinking, I immediately began to question such a broad prediction.
One of the reasons I think the media gets it wrong is that sifting through and analyzing data is not a requisite to publishing a sensational story. In other words, I don’t take mass media seriously when I want to know what’s really happening in financial markets. That is not where you will find guidance for future planning. No sir (ma’am).
Just from studying the statement above for a minute, one starts to wonder, why?
My best guess (a damned good wond, too) is that there is an abundance of surveys taken from suspects who are presented with the universal method for measuring current income, savings, investments and real assets in what might be loosely called ‘realistic’ or ‘standard’ investment models. This is where the projections fail to be functional.
When I first became an investment broker, I took the position that mutual funds are to financial planning as aspirin is to body building. Sure, you can try each one for a minor benefit, but you had better have a deeper, well-designed customized program if you want to reach your objective(s) on time. I was right in 1988 about the dangerous ‘vanilla effect’ of financial planning, and I am assured of being more correct today.
In up and down markets I have seen dozens of individuals with three, five and ten year horizons, meet their marks on or close to schedule. The key, in general, was counseling that helped them make important financial decisions at critical intervals throughout their investment terms. Mutual funds were not at the center of these success stories. As time permits, I will continue this series on the dilemma and the solution for most workers who would like to retire in ten to twenty years. Hint: don’t be bullied!
It’s time some of us broke away from public inertia. I will return with some really good news. Stay tuned.
Hudster
Capital Latititudes 