Skip to comments.The Retirement Gamble We're All Making (Review of PBS Documentary)
Posted on 04/22/2013 2:04:46 PM PDT by Kid Shelleen
Martin Smith, an Emmy-winning correspondent for PBS Frontline, is worried about his retirement and yours.
In his excellent Frontline documentary airing Tuesday, April 23, on PBS, The Retirement Gamble (check local listings), Smith, 64, says: I started saving for my retirement in my late 20s. But along the way I dipped into my nest egg
not once, but several times. And now, like millions of other baby boomers, I, too, dont have enough. Most of my savings went to pay for my kids educations. A divorce and the crash of 2008 didnt help either. Im now planning to work for as long as I possibly can.
(Excerpt) Read more at forbes.com ...
"Ah tuned up yo' nest egg too."
All investments are risky.
They are especially risky, though, when you disinvest them and spend them on consumer goods like education the way this bimbo did!
Retirement plan - Buy more lottery tickets!
Working is for suckers who don’t know how to scam EBT, Section 8 Housing, SSDI, etc.
Lottery tickets: a tax on the mathematically challenged...
Gamble? I wish it was a gamble. At least in a gamble, you have a small chance of winning. Retirement in America for anyone below the age of 50 is called “getting screwed.” No Social Security and there is a good chance that your 401K will be confiscated. All to feed the government spending beast whose appetite is never satisfied.
It's pretty easy to see this strategy on the horizon.
Most of us can only dream of earning the salary this guy did for YEARS. I know there are MANY good baby boomers (some fought in the Vietnam War), but I’ll bet this turd got a draft deferrment and spent his years spreading leftist BS to Americans. IF SO, he can kiss my a**.
It was more fun having a good time spending money than saving and exercising discipline in one’s spending habits. Always live below your means and pay yourself FIRST, simply by putting money into an S&P index fund. Not complicated or stressful at all.
Eisenberg didn’t save for his retirement, he saved in a retirement vehicle, but spent it on his kids’ “education.”
So what is he complaining about. No one “has his back?” he says. What the hell? Who is supposed to “have his back”? his fellow citizens who did save now have to take care of him like the grasshopper and ants in the fable? I hate scum like this fellow, seriously.
PBS laying the groundwork for the Theresa Ghilarducci 401K grab...
Get a government job...You can retire at 50 or so and live off tax payers money the rest of your life.
This article should be read by everyone. Most people are not well prepared for retirement and they will regret it. I think one of the quickest ways to poverty is divorce. So, unless you really detest your spouse, I would recommend separate living arrangements with amity and financial cooperation over divorce. I am too old for that stupidity and drama again. Been there done that. The grass is not greener on the other side. A better retirement strategy is to show your spouse that you love and appreciate them. Cooperation and respect will increase your chances of growing old with sufficient money and agreeable companionship. IMHO.
Or here in Indiana, retire and go back to work the next day at the same job and make 160% of what you were making the day before.
Winner, Winner, Chicken Dinner....
I have heard from one Uber Liberal that worked for an un-named investment house tell me once the numbers were horrible in regards to actual enrollement etc for 401k's etc., Which strikes a hypocritcal chord when their said firm was a big player in that arena, and the number of dollars for all Americans in total are huge. Being the progressive they were they thought defined benefit plans were much better....
"Say it! Say it! Say 'I lost the nest-egg.' Go on, say it!"
PBS does nothing without an agenda, and the agenda is always the same Democrat agenda - - turn America into socialist welfare state and thereby consolidate power, as the government-dependent masses will always trade their votes for more "free stuff" confiscated for them from their neighbors by scumbag Democrat politicians.
The definition of retirement was perverted.
Those folk who'd worked for government then turn around and tell the private sector peons, who's income has been stagnate for the past 15 years, "Ya should have saved more stupid, ya think social security will carry ya"...Then the private sector tax peon picks up the paper and reads, "Government loots social security fund"
Ya got to love it.
If we didn’t have to take care of millions of freeloaders, we could save more for retirement. If this guy doesn’t expose the destructive nature of Democratic policies on retirement savings, he’s nothing more than a fraud, and a tool of the DNC.
David: You know its a very sacred thing, the nest egg, and if you had understood the Nest Egg Principle, as we will now call it in the first of many lectures that you will get, because if we are ever to acquire another nest egg, we both have to understand what it means. The nest egg is a protector, like a god, and we sit under the nest egg and we are protected by it. Without it, no protection. Want me to go on? It pours rain. Hey! The rain hits the egg and pours off the side. Without the egg? Wet. Its over. But you didnt understand it and thats why were where we are.
Linda: I understood the nest egg
David:Please do me a favor. Dont use the word. You may not use that word. It is off-limits to you. Only those in this house that understand the nest egg may use it. And dont use any part of it either. Dont use nest. Dont use egg. Youre out in the forest, you can point - the bird lives in a round stick. And
you have things over easy with toast.
One of my all-time favorite movies.
I dont see Social security going away. Politicans will just print more money before they piss off voters. Nevertheless younger people should not absolutely count on it.
Confiscatation of 401K’s? no. They will reduce the lifetime cap. So increasingly you can save less tax free. It will mainly hurt the wealthy. But even if they lower the cap to zero you can still save for retirement the old fashioned way with after tax investments allocated across mix of stocks and bonds. a 40 year investment plan where you invest 10-30% of your salary should work out well even without tax deferral. The problem is most people dont have the discipline
The bigger problem is confiscatory taxation. Gambling is for mathematically challenged fools. Almost no chance to win legitimately. I do it occasionally as entertanment but thats it.
I am 52. My wife and I are about to “Retire” in the sense that we will not be working for the universities any more but will be living off passive income from rental properties.
There is no magic trick to this just some obvious things that everyone can do
1. Stay out of debt. The only possible exception is a mortgage but even then do not max out the finance. Credit cards are good but pay the bill in full every month
2. Never buy a new car unless you plan to drive it for 30 years
3.Give at least 10% of your income to charity it keeps you humble
4. Save or invest at least 20% of your income
The trick is to do the last 2 items when you make $1000 a month otherwise you won’t do it when you make $10000 a month
The bigger problem is inflation. It eats away savings whether before or after taxes, whether 401K or IRA or CDs or you name it.
Yeah I know about gold. If everyone tried to put all their savings in gold
guess what happens to the price of gold???
Do what I just did back in February this year. We sold everything in the USA, bought a house and land in San Juan del Sur Nicaragua...bought a 2 bd 2 ba house on 9 acres for $115,000 USD.
We live on much less because the fast paced rat race doesn’t exist, we have a stress free life hanging out on our Pacific beach 20 miles north of Costa Rica with other expats while learning Spanish and helping children learn Enlish. The kids are funny, they notice my Texan accent versus another friend’s who is from England.
Monthly expenses are 15 usd for propane for cooking, 25-40 a month or eclectic (depends if we run the A/C which is rarely needed), 600 for food, rum, beer and restaurants (a month), health clinics are free and routine things like dental cleanings and check ups are very inexpensive.
Couple across the street had their 3rd baby here, total bill...delivery baby care hospital EVERYTHING less than 3000 USD. The hospital is a USA accredited hospital with many expat doctors woirking here.
Ohhh...a Cell phone runs about 20 a month and wifi is 60
Paid my annual property taxes which were 250.00 a year a nd a 10% discount sinice we paid them before march 31.
Many many any young people here from USA raising families and many more retires heading here too.
Top destinations for a stress free and inexpensive retirement are:
Little more expensive are
Haven’t regretted my move and more family members are joining us after they visit us here and spend time seeing it is just like the 1950s pace of life and sense of community.
The government is about to start a canal from the Caribbean to the Pacific to pick up trade traffic fom Panama. Huge investments going on here.
Will be applying or a dual passport thru Panama in June, will soon travel internationally no longer as a USA citizen being spied upon.
Join the hordes of people who CAN see a way out of the looming disaster that will spread across America in the years to come from government financial bankruptcy, inner city riots and continued terrorism.
Do it while you can, some day the USA will prevent you and your money from leaving.
Yeah, Kulaks who do all the right things that you name (and I have done every damn single one of them) will be precisely the ones that the freeloaders will eviscerate, precisely because we did the right thing and played by the rules.
In a lawless world, it’s open season on the lawful.
US National Debt, April 2013, $16.8 Trillion
Almost looks like a plan.
Only if you started working for the federal government before 1980.
This makes perfect sense to me.
I make an above average salary - yet I drive a below average car and live in a below average house.
I instinctively know that many around me are not saving for their own future....and I am likely to get the short end of that stick.
Well taxes takes far more than inflation. But yeah inflation will get you too. And it is much worse than what they advertise.
“Most of my savings went to pay for my kids educations.”
And whose fault izat!? Stupid is as stupid does.
Retirement is a gamble for everyone now. Put your money in CDs (as many older folks have done) and the return you get is miniscule and eaten up by inflation, buy stocks or gold, and who knows? Spend it now before the government takes it? No matter what any of us do, we’re tooled.
Big deal. People on Clark Street in Chicago get their eclectic for free ;-)
“Only if you started working for the federal government before 1980.”
Federal (CSRS) retirement is 55 if you have enough years in. Yeah, it’s not a bad gig, but the idea behind it was to keep US Civil Servants from being like those elsewhere (like Mexico) who operate on bribes and corruption.
Sounds great - so why are so many South Americans coming to the US?????
Have been retired for a few years and I advise everyone I meet to not retire as long as you are able to continue working. After years of hard work and routines you can get bored in a hurry unless you like joining clubs, playing golf, bird watching, cruises, shopping or gardening. Tried the retirement community - but it was a bad fit for me - so I left. More better for married couples IMHO.
I am lucky to have great, successful busy adult children who live fairly close but since I moved around a lot during my working years I don’t have a neighborhood clan or ‘old friends’ network of shared memories. Money is not the only concern for retirees - there are health issues and loss of routines.....so plan to get involved in some (cheap or money-making) creative hobbies and stay active.
You left out India and China...you are not being honest with the illegal problem which is NOT solely Spanish speaking people from this hemisphere.
To be sure the Highest illegal immigration is from Honduras and Guatamala, 2 countries that are being destroyed from within by drug trafficking.
Nicaraguans typically are all cattle ranchers, coffee, rice, beans, sugar cane, bamboo, exotic woods, bananas and pineapple growers.
The canal project and the massive wind turbine farms here too keep the better educated locals employed.
The booming medical vacation resorts are springing up across the country.
I speak for Nicaragua and their path to improving their country and local pride they have no incentive to leave, they have family and work here.
Shame that no longer exists in the old decaying USA.
No darling, it ain’t free...YOU are paying for it....
Federal (CSRS) retirement is 55 if you have enough years in. Yeah, its not a bad gig, but the idea behind it was to keep US Civil Servants from being like those elsewhere (like Mexico) who operate on bribes and corruption.
Give those in gov lots of money and great benefits in the hopes of limiting corruption from those in government?
Boy that worked out swell...
WHAT MOVIE ??!!!!??
sorry for yelling,
I plan , I scheme ,I’ll drop dead At 60.
How about Costa Rica???
Got a Room for Rent?
SoCal is getting me down,
Lost In America
God Loves, Jesus Saves, Moses Diversifies
Spread your investments among non-correlated asset classes and not everything will be horrible all at once
We all got sold a bill of goods in the form of the 401. It traces its roots back to the Rats protecting the little people and punishing the rich. Seems they didn’t like the management getting bigger retirement benefits so they limited them via the 401. Look it up. Somewhere along the way other factors got involved to get rid of the burden of pensions to companies and Wall Street saw a great opportunity to increase revenue by fleecing the unwitting worker who was and still is ignorant of investing.
1. Pension fund managers disappeared and their ability to leverage for better rates of returns. Handling a big block of money with near certain funds flow gave great power and essentially allowed the pension fund managers to get annuities with very good rates of return.
2. IF you can make the traditional mean of about 7% you would be fine but the investment managers (hedge funds before 401s were about nonexistent) cream off 1 to 1.5%. Translated, they are taking about 14% of the gain each year. What was 4% over inflation returns has become about 2.5%... you can’t grow much with that.
3. Saving for retiremnt became a free for all with lots of wasted motion.
4. We have had this discussion here before all with the same result... unless you are part of a government defined pension plan that can get revenue to pay annuities by raising taxes from people who don’t have the means to fund their own retirement.... you are on the work until you die program or leave the country to live in Nicaragua until that system wises up and gets greedy.
5. Right now we aren’t even keeping up with real inflation. The growth in the last year or so has just been working on back filling the huge hole left by the losses of 2008... no real gain at all and we are not even back to the mean and I don’t see us getting there anytime soon or ever.
6. We have saved like fiends for nearly 40 years... mostly between 30 and 50% of gross and we have invested carefully. We can count the days of our vacations in the last 35 years and not use all our fingers and toes and had a close association with all the cars we have bought. Buy and hold have mostly been our plan because market timing responds to things that have already been factored in and generally has resulted in returns 2 to 3% under the buy and hold plan. Still, we suffered ‘87, ‘02, ‘08 and these are all huge holes to dig out of. Strangely, the inflation years of the late 70s and early 80s were some of our best. 20% 5 year zero coupon bonds were hard to beat if you bought them in about ‘82. Wish I had bought more for longer terms. I figure we might be able to harvest 3.2 to 3.5% of the egg per year but there is no comfort in that. It’s pretty clear hardly anyone has the $2,000,000.00 or so they should have to generate what I call a reasonable retirement. If the next 30 years are like the last 30 years disaster will come and we won’t be well enough to survive it and we won’t be back filling the losses to the egg with savings from income of working.
7. If you are on the horse (work) stay on it. If you fall off try to get back on as fast as you can and don’t let it run away. If you do let it run away you will be left behind to fend for yourself. Remember the guy who fell off his camel crossing the desert in Lawrence of Arabia? Lawrence isn’t coming back for you. Nobody has your back because nobody has theirs. It is every man for himself.
8. I told my guys more than 30 years ago when the defined pension plan was replaced with the 401 that we were all being suckered and that we all took a massive pay cut. I was dead right. Even the guy who dreamed up th 401 says it is a dreadful failure.
9. Health care costs and taxes are our greatest threats
10. The historical mean for inflation is 3% driven by the need to motivate people to continue to come to work, you have to provide raises, and 7% is the most prevalent rate of return throughout history, it is the reason we have almost always benchmarked to the alternate investment of NPV7. Strangely, if you manage to build a nest egg big enough for a trust it will run almost forever withdrawing about 4% per year... this is how the gentry of merry olde england lived once they built a fortune. Build a spreadsheet and let it run and see for yourself.
11. Retirement isn’t in the Bible
12. I sure am tired though and many days wonder how much longer I can keep on keeping on. The bad odds are going to catch up with me. I figure that if I am successful and play the odds right I will die wealthy, the kids will get some and the feds will get most of the fruits of my labor. It is damn depressing.
0430 comes soon. Most of us are well and truly screwed. Bye.
Ha, ha, very good!
About all I can afford to invest in is canned tuna, peanut butter, and dog food for our “auxilliary security system”.
I have a one bedroom one bath casita....when you want to come down?