Posted on 12/10/2013 5:29:43 AM PST by reaganaut1
Fewer than half of blacks and Latino workers have retirement plans on the job, leaving the vast majority of them with no savings designated for their golden years, according to a report to be released Tuesday.
Americans of all races face the growing prospect of downward mobility in retirement, the report said, but the problem is particularly acute for blacks and Hispanics.
More often than not, blacks and Latinos benefit little from the tax breaks and other policy initiatives aimed at bolstering retirement security because they typically have no money to save for retirement in IRAs and other vehicles outside the workplace, according to Diane Oakley, executive director of the National Institute on Retirement Security (NIRS), which conducted the study. In addition, they are much less likely than whites to have defined-benefit pensions, particularly outside of public sector jobs.
“Those are startling findings,” Oakley said. “The typical household of color has nothing saved in a retirement account.”
The report highlights the retirement security problems looming for a nation grappling with serious debt even as an aging population is demanding more services from government.
A broad sweep of policy makers, including the Bowles-Simpson deficit reduction commission and President Obama, have endorsed trimming future Social Security benefit increases as a way of reining in the national debt.
Charles Blahous, research fellow with the Hoover Institution and one of the trustees appointed to oversee Social Security and Medicare, argued that Social Security has the perverse effect of discouraging cash-strapped people from making a priority of retirement savings.
“A true answer to the problem would mean decreasing our society’s dependence on income transfer programs as a source of retirement income, and increasing the net amount of saving that we do,” he said in an e-mail.
(Excerpt) Read more at washingtonpost.com ...
The fable of the ant and the grasshopper comes to mind.
The number one rule in investing is that more than asset class, diversification, tax loss harvestig, taxable v. non-taxalbe, savings rate is what matters most of all for income earners. If you don’t save, you won’t have a retirement savings.
In retirment, it will be spending rate that will matter most.
Those who don’t save deserve exactly what they have coming to them.
Thats because they spend all their money on bling, low riders, spinner wheels, and on and on. Our money, no less.
The easiest way to accomplish this is through inflation.
Government overspends on its favorite groups and doesn’t fund it directly, but just by printing money. Meanwhile the purchasing power of your retirement and bank accounts melts away.
He wasn’t kidding when he told Joe the plumber that he wanted to spread the wealth around.
It’s just amazing to me that 1/2 the country still hasn’t figured it out yet.
No worries! Just take money from those evil, privileged whites and give it to them!
Somehow, individual choices and the results of those choices just “don’t compute” with leftists.
It affirms my assertion that leftism/liberalism is based on the lies of the serpent, the first of which was “you will not die”, ie, that there will be, and should be, no consequences for wrong choices.
Key statement from the Executive Summary of the report this article is based on:
“Finally, the wide racial gap in retirement assets holds even after accounting for age and income.”
It’s always good to read primary sources rather than editorialized “news” articles.
And those who do save wind up paying for them.
I remember reading the words of a sports agent some years ago who represented a number of NFL football players who were making great gobs of money. One the players was accused of non-payment to the mother of one of his children, and was taken to court.
His agent said the player literally had no money left after making half a million dollars a year for a number of years. The agent said many people didn't understand the mindset of many pro athletes which was to spend everything they earned and save next to nothing.
Sure they do, they have all the white people’s that are soon to be be taken for them.
....This is the beginning of the nationalization of our 401k’s discussion. They have to fire up the class and race warfare machine to get the ball rolling....
It seems they would have to do it quickly and covertly, to prevent everyone from cashing out and hiding money...
I’ve a few words for the vultures looking at my 401 and IRSs. It goes back to what a buddy told me about why he quit the repo business. First day out he was repoing a caddy in a “disadvantaged” neighborhood when the semi owner yelled down from the second floor of the walk up: “Put your hands on that car and that is where they are going to stay”. That is exactly what will happen when the vultures try to tow away my savings. Hopefully everyone else will join me.
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