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View Diary: New IRS report confirms upcoming retirement crisis (95 comments)

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  •  I'm Tired of this Old Lie (7+ / 0-)

    Americans should save for retirement is a lie.  The majority of Americans don't make enough to have any money LEFT to save for retirement.  Many are just getting by with their insurance premiums or medical expenses NOW.

    If you want to solve the problem work on bringing down prices and raising pay!  That's the only way it will happen.  
    If you don't want to do that then shut up government and economists!

    And for those who DID save for retirement prior to 2008, they lost huge amounts in the bank bailouts and recession.  Yeah, they are not convinced that giving the money to wall street or to a bank is such a good idea any more.

    •  i sometimes wonder if (0+ / 0-)

      this idea of retirement wasn't just a temporary situation caused by us being the only intact country after WWII. Blue collar jobs could provide a higher standard of living than ever before and we decided it was the new normal.

      then Europe rebuilt, China/India became economic competitors and those wages are no longer supportable.

      Until just recently it was work till you drop for virtually all of us. Still is in most of the world.

    •  Temporary decline doesn't always mean loss (0+ / 0-)
      And for those who DID save for retirement prior to 2008, they lost huge amounts in the bank bailouts and recession.  Yeah, they are not convinced that giving the money to wall street or to a bank is such a good idea any more.
      The DJIA, NASDAQ Composite, and S&P 500 index are all above their 2007/2008 highs and inflation has been low in the intervening years.

      Obviously in both good and bad times particular equities will go up and down, but a diversified portfolio invested in US equities should be above where it was in 2008 (esp. if one reinvests dividends).

      Unfortunately, some who didn't have cash around for a rainy day were forced to liquidate to pay their bills. But those that panicked and elected to bail out of the market when they had other options just got an expensive education in the cost of panicking.

      I think we can blame the education system in part for the stupid ways many people act in market declines. We need to teach more economics, finance, and probability and statistics and not grant HS diplomas to those that can't pass simple tests on such matters.

      As Warren Bufett is reported to have said:

      Unless you can watch your stock holding decline by 50% without becoming panic-stricken, you should not be in the stock market.
      and
      Much success can be attributed to inactivity. Most investors cannot resist the temptation to constantly buy and sell.
      and
      Lethargy, bordering on sloth should remain the cornerstone of an investment style.
      and, most usefully IMHO
      Be Fearful When Others Are Greedy and Greedy When Others Are Fearful
      •  All excellent advice, but (1+ / 0-)
        Recommended by:
        OHdog

        it does not really matter how your retirement savings are invested if you do not have any, or have a grossly insufficient amount. And that is unfortunately the case for a lot of people in the Boomer generation who are now approaching or are in retirement.

    •  It's not a lie (0+ / 0-)

      It's about as true as anything one could say.

      Everyone, if they want to retire someday, should save for retirement. To suggest otherwise is silly and very bad advice.

      As for this:

      And for those who DID save for retirement prior to 2008, they lost huge amounts in the bank bailouts and recession.  Yeah, they are not convinced that giving the money to wall street or to a bank is such a good idea any more.

      Also false.

      I'm nearing (early) retirement and have been saving for decades. The 2008 recession was a blip in the rear view mirror and has been more than regained in the past five years. In my view, the key is (if you're in any way able) to keep saving, don't worry about short-term ups and downs, and don't do early withdrawals to pay for pre-retirement expenses.  

      I'm currently 55, plan to retire in about 4 years, and am researching the feasibility of moving to the EU in retirement to facilitate travel and experiences I've gone without due to being such a diligent saver.  I would not have been able to even contemplate this if I had followed your advice.  Thankfully, I didn't.

      •  Not giving advice (0+ / 0-)

        I'm pointing out reality.  For boomers in their 60's who lost a third of their savings in the crash and are already living on those saviings, it's much, much harder to recover.

        For 30 year olds working at McDonalds or Walmart, not able to find other jobs and who have children, please enlighten them about whether to save for retirement or feed the kids.  Many are relying on food pantries now.

        Get your heads out of the sand and look at what's really happening.  If you're the age you say you are, you were able to plan for retirement because the economy was good for most of your working life.   Me too.

        But reality has changed, my friend.

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