Retirement Bully

Are we seeing more reports about American workers who cannot afford to retire, or is it my imagination?

Just the other day, I saw 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 with 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 required to publish a sensational story. In other words, I don’t take mass media seriously when I want to know what’s happening financial markets. That’s not where you get information 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 mighty good one, too) is that there is an abundance of surveys taken from suspects who are given the universal treatment of measuring current income, savings, investments and real assets in what might be loosely called 'realistic' or standard investment models. This is where the projections fall short of being functional and investors start to frown.

When I first became an investment broker, I took the position that mutual funds are to financial planning as aspirin is to bodybuilding. Sure, you can try each one, but you’d better have a deeper, well-designed personalized program if you want to reach your objective. I was right in 1988 about my views on 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 goals, meet their marks on or close to schedule. The key was in the right counseling that helped them make critical decisions about their money. Mutual funds were not at the center of their success. As time permits, I will continue this series on the dilemma and the solution for most workers who would like to retire in fifteen or twenty years.

It's time some of us broke away from public inertia. We'll be back with some really good news!

Hudster