Posted on 03/08/2006 3:32:46 PM PST by Choose Ye This Day
I've had a couple of bad experiences recently that sharpened my worry about what life will be like for retirees in the future -- I fear that a catastrophe of declining standards of life is heading our way.
I'm thinking about how bad it has gotten in terms of how customers are treated. A few days ago, I called the saleswoman at an auto dealer who sold me my last car a few years ago. I asked her to come over and show me the newest model of my car and told her if I liked it, I would buy it on the spot.
"Sorry," she said. "Too busy."
"Really? Are you selling that many Cadillacs?"
"Well, I'm not really selling any, but a lot of people are looking and wasting my time," she said.
"But you know I'm a qualified buyer who has bought from you before," I protested.
"Maybe I'll fax you some stats," she said helpfully. I never got them.
How Much Worse for the Masses?
Today, I was supposed to have a nice comfy seat on United Airlines. Full-fare first class. When I got to the gate, the agent said my seat had been changed to one up against the bulkhead, and there was no way she could move me. No apology, not even looking me in the eyes.
On the plane, no flight attendant would help until an older one, from the days when United actually had some self-respect, asked a young man to change with me. He did, and I was happy. But meanwhile, the flight attendant who did help me told me I was the only full-fare first-class passenger in the cabin, and still no one had wanted to help me until she came along.
My point is how terrible service is -- even at the higher end in 2006 -- and then to add this chilling thought: If this is how bad it is at the high end now, can you imagine how awful it'll be for everyone in 2020? When all vestiges of service are gone? When no one speaks English? When all customers are just ciphers?
Look at it this way: Think of the most crowded freeway you're on every day. Imagine what it'll be like in 10 years. That's what hospitals will be like -- if they're not that way right now.
Retiree Vulnerability
To make the situation worse, retirees and those who will soon retire are far from financial safety (see "Living Hand to Mouth -- and Barely Getting By"). I recently calculated that the Baby Boomers need to have saved -- on average -- $400,000 per household to even start to come up with what they need to live on. Instead, they have saved about $50,000 per household if they have a rental home and about $110,000 if they own their home.
So, what will they do when they retire? What will it be like to cut pills in half, to have to sell your home and move into a trailer, to be faced with unaffordable repairs for your car?
Try this experiment: Imagine you have to slash your spending by half. What goes first? Restaurant meals -- fine. Vacations -- fine. New clothes -- fine. But that won't even come close to cutting spending in half for most people.
The sad fact is that retirees will suffer. And for the leading edge of the Boomers is: It's too late. Many of them cannot escape a drastic ratcheting down in income and lifestyle. A crisis akin to the Great Depression is racing our way: A ruinous drop in standards of life.
Shoring Up Your Retirement Savings
What will it be like to live in the horrible new dog-eat-dog world, with no one caring whether you live or die -- and have no money? What will it be like on that crowded freeway? You don't want to find out.
How do we get to high ground? I suggest -- unless you're already on track to have 15 times what you need to live on at retirement socked away by age 65 -- taking 20 percent of your paycheck if you possibly can, putting it in the Fidelity Fund (FFIDX) or the Vanguard Total Stock Market Index Fund (VTSMX) until you're 55, then putting half of it into the Fidelity Total Bond Fund (FTBFX) or Vanguard Total Bond Market Index Fund (VBMFX).
Maybe if you have a few bucks extra, buy the iShares MSCI Emerging Markets Index ETF (EEM) or the iShares Russell 2000 Value Index ETF (IWN) for developing market or small-cap exposure. But for heaven's sake, do it now.
When you get to 65, put half of it into a fixed or variable annuity -- chosen so you know what every dime in expenses goes for and without buying anything you don't need or understand -- and then know you won't totally run out of money ever (see "A Retirement Portfolio With Staying Power"). Or do something else with a reputable financial planner.
But be very scared -- and start doing something about it now. Tomorrow is too late. Do it now.
Keep the kidney.
Are you using your liver?
I don't think he really cares WHICH funds you buy, but the point is, invest in some, or you'll be sorry.
These are broad-based index funds for the most part. He's not trying to drive up the NAV of some small fund that he owns most of the shares.
"I meet far too many people who are well into their 40s and 50s who have yet to begin planning their retirement."
Sad, ain't it? I've listened to and loved Ben Stein for a long time. I'm on track to retire in 10 years at age 55. Debt free, income from investments, the selling of my business, a military retirement, a little SS money (though that's not factored in, that's gravy) and real estate. I can make chump change working at whatever I FEEL like working at, at that time. (I'm one of those people that will always "work" at something for fun and profit.)
That's the plan, anyway. However, I could be run over by a bus tomorrow, LOL!
Anyhow, great reality check as always, from Ben Stein. :)
Sadly, anyone with a history book doesn't have wonder what it will be like. It will be like it's been for most of human existence.
This is the Ant and Grasshopper story writ large, and your local friendly Democrat will be there to offer "compassion" to the old folks who elect them, and our children and grandchildren will be hammered by taxes, loaded up with resentment and bitterness.
I think the addiction to credit is largely responsible for this train wreck that's about to arrive.
Have you read your ss statements? If I was in charge, I'd refund every penny to everyone who's put into ss and cancel ss. I won't be in charge anytime soon.
Do you mean under?
LOL. We are so damn unhealthy--bet you had bacon and eggs for breakfast, drank whole milk, ate meat, potatoes and gravy with bread spread with real butter and drank coffee. Home cookin' and good. Most kids don't know how to cook and would rather pay someone to make it for them. I will be standing beside you.
As long as I get to keep my McMansion.
That acid is really a trip, hey?
It's probably shot, but you can have the leftovers.
Hell they can have that. Just leave my IRA and 401k alone.
You baby boomers made one mistake. You didn't teach the younger generations any morals. So now when your 70 and voting in record numbers to steal our money, we won't have too big of an issue with snuffing you out.
I've always suspected the fed govt would change the rules retroactively on 401ks and enact a super surtax on withdrawals to subsidize social security, sometime in the next 10 years.
Yea, and do you see any of our Congressmen doing anything about their loan sharking?
Isn't life grand? Too bad you weren't born 30 years earlier, and you too could be living the life of luxury.
Why do you think so many of them also want you disarmed? Hmm?
BTW, I'm a boomer, YoB 1949, and pretty well armed.
What about those senator and rep's bennies?
Not to worry - by then all those illegal aliens will be given amnesty and be ready to take care of you.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.