America Has a Retirement Problem, Ghilarducci Says
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- เผยแพร่เมื่อ 23 ก.ย. 2024
- Labor economist Teresa Ghilarducci talks about the problem with America's retirement system. She speaks to Bloomberg's Sonali Basak in a wide ranging interview about the shortcomings and what needs to change.
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More and more people might face a tough time in retirement. Low-paying jobs, inflation, and high rents make it hard to save. Now, middle-class Americans find it tough to own a home too, leaving them without a place to retire.
The increasing prices have impacted my plan to retire at 62, work part-time, and save for the future. I'm concerned about whether those who navigated the 2008 financial crisis had an easier time than I am currently experiencing. The combination of stock market volatility and a decrease in income is causing anxiety about whether I'll have sufficient funds for retirement.
45% of Americans do not invest in the stock market because of lack of guidance. Every year you don't invest, you are falling behind. I’m hitting numbers in the stock market I used to dream of… Going from $50k to $600k in my portfolio is surreal all thanks to insights from my financial advisor.
Your adviser must be really good, I hope it's okay to inquire if you're still collaborating with the same adviser and how I can get in touch with them?
Finding financial advisors like Carol Vivian Constable who can assist you shape your portfolio would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.
I just looked her up on the web and I would say she really has an impressive background in investing. I will write her an email shortly.
Retirement becomes truly fulfilling when you possess two essential elements: ample financial resources and a meaningful purpose in life. Make prudent investment choices to secure good returns and ensure a comfortable retirement.
Rising prices have affected my intention of retiring at 62, working part-time, and building my savings. I'm worried about whether individuals who weathered the 2008 financial crisis found it less challenging than my current situation. The stock market's volatility, coupled with a reduced income, is making me anxious about having enough for retirement.
I completely agree; I am 60 years old, recently retired, and have approximately $1,250,000 in external retirement funds. I am debt free and have very little money in retirement funds compared to the total value of my portfolio over the past three years. To be honest, having a portfolio-advisor for investing is genius!
great gains there! mind sharing details of your advisor pleas? i've started gaining more cash flow with my employment and looking at putting money into stocks and alternative assets that can help build wealth over time
Annette Christine Conte is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
I just googled her and I'm really impressed with her credentials; I reached out to her since l need all the assistance l can get. I just scheduled a caII.
I am in my early 60s and retired at 53. Lots of people gave me pushback because they had difficulty grasping the concept of not working if you don’t have to. I looked at my life as stages. I earned everything I have now through a lot of hard work, but I owe it to myself to “stop and smell the roses” in my final stage of life. In my case I left the country after I retired and live in Latin America. It allowed me to get away from all the negative things happening in America while appreciating my new environment. I have yet to meet anyone who regrets retirement.
Nice way to retire. For me, I believe retirees who struggle to meet their basic needs are the ones who could not accumulate enough money during their active years to meet their needs. Retirement choices determine a lot of things. My wife and I both spent same number of years in the civil service, she invested through a wealth manager and myself through the 401k. We both still earning after our retirement.
It's unfortunate most people don't have such information. I don't really blame people who panic. Lack of information can be a big hurdle. I've been making more than a million dollars by just investing through an advisor, and I don't have to do much work. Doesn't matter if the economy is misbehaving; great wealth managers will always make returns.
I think this is something I should do, but I've been stalling for a long time now. I don't really know which firm to work with; I feel they are all the same but it seems you’ve got it all worked out with the firm you work with so i surely wouldn’t mind a recommendation.
I definitely share your sentiment about these firms. Finding financial advisors like Marisa Breton Dollard who can assist you shape your portfolio would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.
I greatly appreciate it. I'm fortunate to have come upon your message because investing greatly fascinates me. I'll look Marisa Breton Dollard up and send her a message. You've truly motivated me. God's blessings on you.
The concept of mini-retirement changed my life. I'm no longer waiting for some retirement paradise when I'm 65. It helps to know how to fund the lifestyle. You know, making money while you sip that piña colada by the beach does help. I wouldn't have been able to do it otherwise.
Yeah, people miss that part. You don't jet out to Puerto Rico with your life savings. Proper investing and a good business acumen are big pluses. Invest in the stock market, real estate, build businesses. That's just it.
Safe to say not everybody has the skill to pursue investing. But it's always easy to follow the advice of someone who knows how to i.e a financial advisor. You could anywhere between 10--40k with the right ones. Online businesses are a good bet too if you are savvy.
Your advisor must be really good. How I can get in touch? My retirement portfolio's decline is a concern, and I could use some guidance.
Thank you so much for your helpful tip! I was able to verify the person and book a call session with her. She seems very proficient and I'm really grateful for your guidance
The advantage to a national pension plan is they wouldn’t have to know anything about investing. They contribute as much as they can and get the returns accordingly. Simple and effective.
I’m 60 years old working a physically demanding job. When I get out of bed in the morning to go to work every joint and almost every muscle in my body is screaming at me. I long for the year I turn 62 so I can finally rest.
You earned it
God bless, I’m 50 and getting pretty tired of it too.
Amen brother
We used to die at 70, people are living longer. My advice if u can get a job less physically demanding. &/or cash in on social security at 67 & work a less physically demanding job. I won’t retire (ever) it’s just an economic reality. Imo the trick is to find long term jobs that don’t destroy our bodies And pay a living wage
Hopefully, you have more than SSI to retire on.
Most Americans find it hard to retire comfortably amid economy downtrend. Some have close to nothing going into retirement, my question is, will you pay off mortgage as a near-retiree, or spread money for cashflow, to afford lifestyle after retirement?
as most investing-related questions, the answer is, it depends.. my best suggestion is to consider advisory management
Agreed the role of advisors can only be overlooked, but not denied. I remember in early 2020, during covid-outbreak, my portfolio worth around $300k took a slight fall, apparently due to the pandemic crash, at once I consulted an advisor in order to avoid panic-selling. As of today, my account has yielded big fat yields, and leverages on 7-figure, only cos I delegate my excesses right.
Can you share details of your advisor? I want to invest my increased cash flow in stocks and alternative assets to achieve financial goals.
Vivian Jean Wilhelm is the licensed advisor I use. Just search the name. You’d find necessary details to work with to set up an appointment.
Thank you so much for your helpful tip! I was able to verify the person and book a call session with her. She seems very proficient and I'm really grateful for your guidance
I left my job at 61 as an RN because of anxiety and stress in the level one trauma center I worked in. Working longer wasn’t an option.
Totally understand, I quit and took early retirement end of 2020 due to the stress and short staffing, unsafe working conditions and felt I would have a stroke if I didn't. Didn't look for a clinic job as I had back pain standing and have since found out I have spinal stenosis from all the wear and tear of bedside. Just waiting till I can take SS at 62! Considered disability but they make it almost impossible to get I think they hope people die first.
And the damage to your body after being a nurse for years. We get it!
Exactly, RN in the ER. They tried to push older nurses off the boat at 61 and onwards
@@kiranwingelaar7009 Descension as I call them would fire the older workers and then make them reapply for their jobs for a lower wage when they took over a hospital. Unless you were union and they couldn't do that, then they would try to start a paper trail to push you out! Witch mgr during 2020 covid starting harassing and writing us up. First poor nurse she texted her on her Vacation about a vague problem demanding a disciplinary meeting to ruin it for her! Such a witch and she looked like Cruella DeVille complete with one long streak of grey hair LOL Then the 6 new grads one by one said she told them in the job interview how she was going to get rid of us! Shortly after covid peaked and she was then running around telling us how much she valued us and needed us! The new grads were leaving in 6 months' time instead of taking the bonus that would tie them to the place for 2 plus years! I wasn't the only one to quit. Now there are only 2 senior nurses left of my whole floor, everyone else quit or retired.
I am an RN who had to retire on disability. Nursing is hard on the body, mind and soul. After 42 years, my body just gave out, and I had left bedside nursing after 30 years.
I think she’s one of the few who truly understands our retirement system. And I don’t believe Larry Fink would be preaching Work Longer, Retire Later if he was a Roofer.
Precisely!
And Larry Fink can keep his job as long as he wants, unlike the rest of us who get laid off in our 50s and can't get re-employed at any job paying a livable wage.
I agree on the role, however I can see (and hope for myself) that work can adapt as I age. I don't want to roof in my 60s, but my 30s and 40s I'd appreciate it and save like crazy. By 50 I'd rather do something less impactful on my body, but have a job all the same. Same in my 60s and 70s. Having a purpose each day is a really underappreciated thing, no matter how much it makes you hourly.
take a good look at a person in there 70’s. People at that age (who are working) don’t move around like they used to.
@@clauderobotham6261 Worse yet if you've been working for decades at low wages or took until your 50s to reach a livable wage. Only to be laid off and now you are unable to even find a job for the lower wages again anymore either.
Most people hate their jobs and want to retire ASAP. I retired at 65 because I could go on Medicare. My so called retirement age was 66 and six months. Best decision ever.
That is my plan also. However, I need to move to a cheaper region because I would not do well on only SS and my savings.
Exactly,I retired at 63,moved to a lesser costly state & happy to enjoy my little nickel & dimes,my peace & decent health.Working longer can cost people their health with stress,physical activity & one can end up with savings they can’t use.
my husband retired at 62.He retired from army and then spent 21 at Toyota.If you work a job that is physical you wear out.He had hour commute and hour time difference and half 2nd job was nights and about 2 hours overtime a day. It was rough on him,I’m glad he is done.
I retired at the age of 65 five years ago my full retirement age was 66
I retired at 57 because I hit 30 years with my company and at that point they would let me stay on their health insurance at employee price until I was eligible for Medicare
Baby boomers are retiring or on the verge to, so how do we deal with such recession-influenced market conditions? Typically my $250k worth of holdings go up 8% then lose 20% right after and the cycle continues, I’m confused and truly sick of the system
Inflation gives the illusion of growth
De-risk your portfolio, shore up your core holdings, and take some profits while balancing your portfolio allocations. I’d also suggest you go with a managed portfolio, but even those don’t perform so well, so it’s best you reach out to a proper fiduciary to guide you, that’s what works for my spouse and I. We've made over 80% capital growth minus dividends.
@blaqueopaque I'm scared about retirement as I turn 60 on my next birthday. I need to ensure I have enough money to survive on. How can I consult your advisor? My retirement account isn't performing well.
There are a handful of experts in the field. I've experimented with a few over the past years, but We've stuck with ‘'Kristin Amber Landis” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look her up.
I looked up her name online and found her page. I emailed and made an appointment to talk with her. Thanks for the tip
Teresa was my economics professor back at Notre Dame. While I didn’t agree with her viewpoints on some topics, I thought that she provided really great ideas that made me think. In this interview she makes excellent points about needing more revenue into the retirement system rather than age extensions or benefit cuts. The abandonment of corporate pensions was a disaster for the American worker.
You’re so lucky!
Have your views changed since you had Guilarducci as a teacher? Are there things you didn't agree with her back then that you might agree with now? I'm asking have you grown wiser?
The professor’s comments are very insightful and she brings the receipts
"Well, a lot of these kids didn't pick the right parents"... This lady kicks ass 🎉
Me too
Yes, find someone else to blame on day one.
@@perrynillup It's called sarcasm.
This is the first time I have seen someone hit the nail on the head. She is awesome
This comment is the comment that is absolutely correct and should be the most liked! This lay is a retirement genius!
Of course, someone from Blackrock wants us to work longer. The retirement age should be 62.
Most refuse to study the speakers back ground . Mike Johnson was a leader of a university,, that had no students and was another traitor trump university knock off for republican resumes.
Numbers 8:25
New King James Version
and at the age of fifty years they must cease performing this work, and shall work no more
That’s right the more you save, the more they can manage.
And the work houses, are they no longer in operarion?
@@gobot4455 they’re coming back. The question with robots and so many other labor saving devices why will work houses be needed. People who want you to work until you drop aren’t paying attention that labor is increasingly unnecessary. It’s really hard for right wingers to accept that you can’t punish poverty by working people to death. I wonder what evil they’ll do.
It's recommended to save at least 20% of your income in a 401k. You can use online calculators to estimate how much you should save based on your age and income. Saving at least 20% of your income in a 401(k) can help ensure that you have enough money to retire comfortably. By saving this much, you can take advantage of compound interest and potentially grow your retirement savings over time.
Effective personal finance management is more important than the amount of money saved, regardless of whether income is earned through job or investment. Individuals can seek counsel from a certified financial advisor to optimize financial outcomes, who can provide specialized advice and methods to decrease expenses and maximize income.
I agree, that's the more reason I prefer my day to day investment decisions being guided by an advisor, seeing that their entire skillset is built around going long and short at the same time both employing risk for its asymmetrical upside and laying off risk as a hedge against the inevitable downward turns, coupled with the exclusive information/analysis they have, it's near impossible to not out-perform, been using my advisor for over 2years+ and I've netted over 2.8million.
I definitely share your sentiment about these firms. Finding financial advisors like Marisa Breton Dollard who can assist you shape your portfolio would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.
401k are a terrible idea. Don't trust others with your money ever.
It’s so hard to save 20% of your income when your income is sucked up by taxes and overpriced priced cost of living.
This woman should have a position in government!! Finally someone speaking sensibly!! The system is set up for failure. Why is it countries send so much money to other countries in aid, yet the leave their taxpaying citizens in poverty in their senior years.
Our political leaders seem to make decisions based on helping and taking care of non citizens instead of our citizens.
Because the gov't people who are directing that money overseas, are profiting from businesses in the country where the money is being sent.
Because the republicans want something to fight over-like their refusal to pass the immigration bill THAT THEY NEGOTIATED so that they can complain about it because trump thinks its a talking point that he can use to his advantage. He and the republicans didn’t and don’t have our best interests at heart, unfortunately.
Except that we are the richest country in the world, and our capital markets attract foreign investment. 5 per cent of the population 25 per cent of the wealth of the world. Our people are not in poverty, there are many in humble circumstances because they did not save and they voted for Supply Side politicians who have comforted the rich while afflicting the poor.
I’m shocked that someone speaking this truth is on Bloomberg.
It’s left wing propaganda. She was wrong on almost all counts.
M too! She's making great points!
Me too. Bloomberg is usually quite biased in my opinion.
This is actually shocking
Lol..........but true.
Teresa Ghilarducci is a very well informed and speaks truths that aren't discussed by corporations.
They’re discussed, but only in the context of how to put more money in the c-suite.
Larry Fink is approaching the issue with corporate, financial biases that make him unable to accept empirical data. As boomers age and they pull staggering amounts of investment dollars out of the financial system it is going to get really interesting. A consumer based economy that looks toward younger, poorer generations to prop it up is going to be in trouble.
didn't think of it that way. but certainly, the greatest transfer of wealth ever seen is picking up steam.
Maybe we will realize that we aren’t meant to be ‘consumers’, striving for endless growth. Younger generations understand that we live on a finite planet with finite resources.
@julieburkhardt61 What wealth transfer? Long term health care is depleting those assets faster than I have ever seen.
First time hearing Teresa Ghilarducci speak. So articulate! Wish she would run for President!!
“Work longer, retire later” yes our society of constantly increasing productivity and wealth ‘needs people to continue to work longer is a fallacy that makes no sense if you understand the numbers.
That's because the portion of profits distributed to labor is an ever shrinking piece of the pie. Productivity is continually rising while wages remain flat. Prior to Reagan wages rose with productivity.
And then they tell you Social Security will be underfunded by 2033, so if your work to 70 good luck with collecting anything.
@@buffycat4641 which is something that doesn’t have to be inevitable. There are policy changes that can be implemented. But doing that might mean raising the amount collected from the wealthy, so instead they’re trying get us all to believe that social security will completely evaporate within a decade
I remember when I was in my 20's and Nationsbank, now Bank of America, was pushing out 50 year olds by reassigning them territories hundreds of miles away. Now I'm 56 and I try to play defense. It was an important lesson I learned 30 years ago.
This lady is a boss. Standing up for the working class and vulnerable elderly folks. She should run for office.
Teresa Ghilarducci nailed it! On all counts. Including, our aging demographic, and the fact that many older Americans simply are not financially prepared for retirement. Some people live longer, more are developing Alzheimer’s, others suffer death by despair. And so much more. All of these cost money.
Don't forget about Diabetes! My uncle died at 62!
@@loveydovey4u So sorry to hear.
Wear and tear on the body is different for a financial planner than a plumber or a roofer. Although the psychological stressors might be higher for the financial planner. Not one size fits all.
Some of us are unlikely to retire until the point where we'll need full time care. I work every hour I can get and barely have a savings account and we have people who drool over the idea of taking away our social security. They want the poor in this country to work until we die.
Thanks for talking about the health aspect and not just the financial side.
More people need to see this video and be educated
I liked Ms. Ghilarducci’s wisdom in creating and improving a retirement plan. I retired in my early sixties. I decided to work a few extra years, which benefited and enhanced my retirement funds. Thank you for this interview.
Having people work longer is not the answer. We weren't made to work that long.
I know a lady that worked at cleaning houses most of her life. She sent a lot of money to Mexico and has a 2 story home and at least 7 small properties that she rents. Now she has cancer and it’s looking worst everyday and might not make it. She never setup her property in mexico under her kids name so now it seems like her relatives in mexico are going to keep all her properties. Leaving her kids in the USA with nothing.
If you want to improve retirement, deal with runaway drug prices. Just one of my meds is $75k a year and when I transition to medicare it will not be covered. My insurance is $2k per month not including a 12k annual deductible. Get real.
Runaway drug AND medical care costs.
If money is tight in the US during retirement, you should simply try moving to another country. There are long stay visa's for retirees in many countries where you might have to buy private insurance, but it will be many times less expensive than the US and the drugs will be many times less expensive. Add to that the weather and food quality will be better too.
Amen! I am 69 and retirement is not an option. I work as a self-employed non-medical senior caregiver for 17 years. I no longer take clients who require lifting. I had both hips replaced in 2022 due to osteoarthritis. I am very grateful to be in good shape again. Love the reality check of this program. Thank you!
Great video, Another factor to add is Do they spend a lot of time planning their financial future? The majority of people do not engage in planing for their future
People over the age of 60 have a hard time getting a job because they are discriminated against by HR people.Why don't you interview some of the top accounting firms and ask them?How many people over the age of 50 do they have in staff?Senior or manager rolls you'll find next to none
This lady would be a good treasury secretary.
She should be the head of the treasury.
@@angieprice7206 Treasury secretary is the head of the treasury. I agree with you.
The rare segment on here where uncomfortable truths of wealth inequality is actually discussed
Its kind of scary how reliant we are on the stock market. Vast majority of people who invest in the market don`t even know who or what they are invested in. The only thing they expect is that the portfolio magically goes up in value by the time they retire.
Refer to Peter theil and Eric Weinstein growth obligation theory
You are responsible! Know what you own!
It has been going up, but the first 8 years I was investing seriously the market went down year after year from 12,000 to 6,600 (the Dow). I did not hold my nerve and under-exposed my retirement accounts to the market after that so here I am wondering what to do with a very expensive market having missed out on a lot of the run up........
Start saving for retirement and investing for retirement right away. I waited until 30 and had to plow 25% of my income into a SEP. If I had started with my first job at 18, it would have been closer to 20%. Compounding is magic. I didn't need all those silly things that I bought. I could have put away the amount I spent on lip gloss and had it amount to thousands 45 years later.
This lady is awesome. I’m going to watch more of her videos.
With all the stress of just working and trying to afford the basics, many won’t live long enough to reach retirement age. If you do you will be too old to enjoy the things you always wanted to do. Only the wealthier, smart investors & the lucky has such opportunity.
Smart lady with very complicated issures most people will not talk about
At age of 55 I agree my body is not keeping up with my pink collar and desk work.
This lady really knows what she is talking about. We need to listen to her more.
Why does the government limit us so bad funding our IRA. I'm 63 and ready to retire but they only allow me to contribute 8000/yr. This is supposed to be my future, cmon let's double that at least. Good info thanks for educating us with this. Jon
Because the government wants your tax money now.
Because they want the taxes.
I agree. Why aren’t the IRA and 401k contribution limits the same? The IRA contribution limit should equal the 401k limit
@@martuccijr good point.
@@martuccijr 401ks and IRAs were born from totally separate ideas. IRAs were made by Congress and explicitly made for retirement purposes, hence the name Individual RETIREMENT Account, so that a worker's retirement wasn't solely dependent on their employer providing a pension. 401ks were made as a way for employers to provide their employees with tax -deferred cash bonuses and stock ( we see this today every time your employer matches your contributions, these are in fact cash bonuses). 401ks weren't designed to be used exactly how they are today, so think of it more as a bug that became a feature of the system.
Teresa is an exceptionally intelligent woman. The investor class see the 401k system as a giant pool of money for them to skim for profits.
Don’t punish the investor by raising capital gains tax, just take off the cap for social security tax. Right now anyone earning more than $168k doesn’t pay any social security tax on those earning above $168k. It’s a very simple solution. Also someone needs to put the government in check to stop spending soo much money on wasteful BS. Just balance the checkbook. However, I do also like the plan of individual investment accounts set up for everyone. Combining these three things would be a great for people without pensions or 401ks. Nothing beats the power of years and years of compound interest.
Government spending is spent into the private sector. Government spending doesn't make money vanish.
@@MrSteeDooso you think it’s ok to add 100s of earmarks into a bills that has nothing to do with those earmarks? You don’t think there are any misappropriated funds?
@@davewhitegt The money goes into the private sector. How much more simple can I make it for you?
@@MrSteeDoooh no, you made it very simple. 🤣🤣🤣
Plus, stop taxing us again on our Social Security income!
Sitting in a chair is not the same as lifting things when it comes to work 🙀
Weight training works wonders.
@@nellyjohnson7316 Many times but not always. If you have medical issues like stenosis, osteoporosis or severe arthritis you can actually do damage. Always get the approval of your physician first.
@@nellyjohnson7316 Old age catches up to everyone inevitably. Not to mention you can't predict any health issues that arise. No certainty in avoiding it by doing everything right even if you could.
Sitting in a chair if very hard for me as a 52 year old with fibromyalgia. It makes me hurt so much worse.
Nobody talks about mental stress! With technology breakthroughs real time solutioning and HIGH demands for instant answers and 24 X 7 time availability are killing people even though they aren't blue collar. Sure the big wigs in Blackrock that are at the top..sure they can work longer just telling everyone under them what to do. "Hey I will be golfing this weekend but I need to see the revenue numbers by monday"
Yes, the modern workplace has become very very stressful!!
Indeed ! I (over 60) need to keep up with the young co-workers in the office. New ways of communicate with them, chatting, texting, zoom meeting, all sorts of new thing to learn. The worst part for me is to type fast and spell correctly... My poor eyes, I keep 3 pairs of different glasses in my daily bag. Can't wait to retire.
Want to retire? 1) Don't be single 2) Don't have health problems or disabilities 3) Don't have children 4) Don't be a minority 5) Have rich parents 6) Have kind parents. I am terrified of dying of a broken hip living out of my car in my old age. I have a job and insurance but still cannot afford to save for retirement or get the medical care I need. This year I decided to simply stop going to the doctor and accept whatever happens.
I don't go to doctors either. I'm afraid they say the big c word and so long to live. I'd rather not know that.
Don’t be a singe mom out of wed lock is missing from your list
@@fedguy9182Bingo.
Are you 65? Are you on Medicare?
I guess I failed because I am a minority, but fortunately for me I spent 25 years between active and reserve military duty so I’m able to retire with a decent pension with a COLA. Not a whole lot of money but it pays all my bills and leaves a little over.
For 50 years I have seen great workers over 55 being pushed out first.
Same happened to me...I fully expected it and on day minus two when the said they had made a mistake, I told them no thanks.
ISSUES I SEE REGARDING RETIREMEN:T Spending problems, not savings problems, having/raising and educating children. not enough financial education. divorce (loss of assets) lower wages and Autoimmune conditions, My husband is age 79 and STILL works three days a week (because he and I were previously divorced and he work in city government and never earned more than $50,000 at his peak.) My husband stands on cement 8 hours per day (three days per week) on feet with severe neuropathy, high arches, hammertoes, and multiple neuro-physical issues. THANK YOU for recognizing and calling attention to the difficulties of aging and continuing to work in jobs that take a huge toll on the body.
I agree with the "spending problem." That seems to be epidemic in America and is a killer when it comes to saving for retirement. I was a spender until I hit my early 40s, then as a single woman with no one to rely on by myself I developed a plan. I got a job with a County agency and stayed there until I was 67. My highest paycheck was $66,000 toward the last 2 years. The County provided a state pension, plus I contributed to a 457 plan. Whenever I got a raise, the raise went directly into the 457 savings plan. If you don't have it, you don't miss it.
I bought a tiny home 842 sq ft and kept it for 22 years, paying the mortgage off in 13. After I paid the mortgage off that mortgage then went into the 457 savings plan. I do live frugally but was able to retire comfortably. Life is all about choices.
You think you're a hard-nosed realist but you're just a deluded idealist.
work longer? But I thought AI was going to take 90 percent of all the jobs. How are they supposed to support 80 percent of the population with ubi but can hardly afford to let the elderly retire. Not adding up.
Ai is already taking jobs. Its only going to ramp up from here. Dark future for lower middle class and below.
Tax the f-ing robots already! :)
@@Zero11_ss Actually, AI is a greater threat to white collar jobs. One accountant doing the work of five -- that sort of thing.
@@gordongekko2781 sure but look at whats happened to basic jobs even before this, gatekeeping them behind college degrees that have nothing to do with the job or locked behind "networking" which is really just nepotism. Those white collar workers might lose their job but they'll just be taking the lower tier jobs.
There is a solution.
So many issues that could be fixed if we had campaign finance reform so that politicians were not in the pockets of corporations.
If people bought less shit they could retire earlier. Sure, convincing people that they need the next gadget, to be happy, has served share prices but if you dont own those shares, you just prolong the time that you have to spend in work.
Let's give the government more money to manage because they've done such a great job managing what they currently take in. Great idea.
Because Public Schools don't teach retirement preparedness.
Not their job. It's the parents. It's always the parents.
@@stephenharper6638 It's the mandatory Public Schools job to TEACH the necessary skills. How is a Parent supposed to teach complicated subjects ?
@@PrettyGoodLookin Teaching teens retirement? hahaha
Schools are good. Anyone graduating with 10 AP classes has a good education. They know they can learn.
@@stephenharper6638 Yes, teaching teens retirement, Retirement preparation starts right out of HS for those who understand compound interest and investing.
not so much retirement preparedness versus just overall financial literacy when it comes to managing ones own personal finances
I meant to pick wealthy entrepreneurial parents as well, but didn't my bad.😊
She totally gets it! I retired early from nursing because of neck and back wear and tear. Better to have less chronic pain but I will have to be more frugal.
She’s absolutely right! Most Americans are NOT living longer.
If you want to live longer as someone who is not rich, the best course of action is to leave the US and Canada.
Yeah, the three-legged stool approach got the pension leg kicked out from under it by corporate greed.
With legislators in Washingtons help!
The pension leg got kicked out by voters, like frogs and lobsters not realizing they are on the boil, electing politicians who fed the corporate greed for 45 years with supply side economics and voted down minimum wage legislation every time it came up for a vote.
I like the way she thinks. She'd make a perfect advocate for the COLA adjustments retirees get, which is nowhere near what they should be year to year.
If only some mechanism existed for individual workers to work together and negotiate for better wages and benefits. 🙄
This is the smartest woman that I’ve ever met. Can we have her as our next President?
You'd think the Board of Education would make Financial Education mandatory in Elementary School, JHS, and HS. Yet, no one is tested on their understanding of interest rates before they leave school.
We should.
Defund the defense department and put the money towards social security.If we can fund billions of dollars to governments we don't care about and we can fund social security
Sure, and when we are invaded by Russia or China we tell them to leave our SS alone so we can retire comfortably.
Pulling military aid is different t than funding humanitarian issues. We should continue to assist the poorest people on our planet with food, water and shelter. They are equal human beings.
Teresa has been preaching this for decades. The rich & bought politicians refuse to do anything to truly help the vast majority of the populace. I hope one day voters force changes like she talks about. 🙏🏻
The voters are responsible for voting on culture war issues and not for politicians who would actually do good for the majority
Why doesnt the U.S. have a sovereign wealth fund to fund a pension system?
Because that money would not be able to be used for other government expenses. It all goes into one big pot.
SS is our social pay as you go pension system. SS is excellent in many ways but needs improvement.
@@johnnyretires SSI is not a pension.
@@dpporlando yes. It is more technically an annuity. It is the mother of all annuities
@@johnnyretires SS branched out to other areas like Disability. If it stayed just for retirement, it would be in a better position.
Great convo. Thank you for the long form to hear out the thoughts. Great interviewer also.
agreed
I retired at 58 with a guaranteed public pension of $8,500 per month for life. Didn’t have to contribute a dime to the plan... just 30 years of loyal service. I get annual COLA increases and the pension is 100% passed to my surviving spouse for life. Add our combined $4,500 of monthly SS at 62 and retirement is great even if we didn’t touch our savings. I chose to work for an employer that supported my retirement. Others choose different paths.
All is well till the public pension plan collapses due to no longer being funded sufficiently. A number of US and Canadian pension plans have already reported that they'll run out by 2030. Just another part of the retirement problem with more people, such as yourself, taking out of the plans than are now funding it. Social security itself is set to have more people taking out than funding it by the mid-2030s.
@@theonlycaulfield My public plan is 90% funded and the state Supreme Court has already ruled that earned benefits can’t be reduced. Life is good.
They’re waiting on a bailout from the liberals
Military
@@Fell214 Illinois had a similar ruling, but the ruling is meaningless if the pension funding is insufficient. We are only at the tipping point of the retirement crisis. The funding now doesn't matter as much as the projected funding in 10 years after we have a large wave of new retirees.
This woman should be president, 👍
Saving for retirement is not how much you make. It’s how much you save. Without 401k, there would be much less savings in retirement
We could have funded Social Security, but we spent it all on weapons.
Bingo! And then they gaslight us for not saving enough…
What about removing the cap on SSI contributions?
We have responsibility. Some individuals take their retirement funding seriously, most don’t.
Most can't.
@@joegehlert8160 I am a single female who made fairly low wages all my life with no one else to rely on. If I could do it so can others, but it takes fiscal responsibility and learning how to live within or below your means. People feel they should have it all, well guess what sometimes you can't.
@@buffycat4641 ,well life is funny for some, cancer,divorce, and much much more. I quit work after itp and lung issues. Oh, and then 700 a month child support from the Rome I was 38. 😆
@@joegehlert8160 how’s that?
The answer isn’t working longer. The answer is paying ceos and shareholders less and putting that money into pensions.
Pay ceos less
Great ideas, but do we have politicians honest enough to carry out these reforms? If we gave them more money, they would just spend it on nonsense.
This lady was spot on and told nothing but the truth
Please don’t tax unrealized capital gains and destroy our economy for a temporary sugar high.
I've been saying this since 401's started. Now at 61 I'm living through it.
This is the difference between smart and wise. Thanks.
Yes, we’ll need to work till we collapse to continue to pay the increasing rent from Blackrock creating sky high rents. Thanks a lot FINK
We don't save and/or invest because we have short attention spans and lack impulse control. This is why SS is essentially compulsory. And while I applaud this economist's ability to define the real world problems and target solutions, we are going to have to raise education levels above that of a fifth-grader to get people to embrace the shift in sensibilities toward investing.
She mentioned that the issue is NOT a lack of education, but rather a sense of despair and resignation that no matter what people do they will have to work in old age.
@@aryaastark9201 I understand that perspective, however, I have been investing for about eight years and telling my mostly younger coworkers about it and how to do it, too. My experience is they don't listen until they see how it has benefitted someone from similar circumstances.
I figured it out on my own but doing simple math. Most people can do the same, however, my observation has consistently been they get sidetracked and derailed by their impulsive behavior.
I've officially left my corporate job at 50....I would have given them 5 more years, but early savings and low debt are the only reason I'm not freaking out right now. I'm loving this conversation, and I think I need to write my congress critters about the pension bill she mentioned.
Numbers 8:25
King James Bible
And from the age of fifty years they shall cease waiting upon the service thereof, and shall serve no more:
New King James Version
and at the age of fifty years they must cease performing this work, and shall work no more
Insurance companies hiking rates, interest rates are insane, food prices are outrageous, who knows what “enough money” to retire even means anymore
The tax advantage has little to no benefit for middle and lower income people.
Our problem is financial illiteracy and limited access to affordable education/training- Increasing access to education and early education on fundamentals of financial management/investing should be standard.
You can learn all you want from TH-cam. That is if you want to learn and not play video games for 40 hours a week
add medical gaslighting, medical upcoding, 33% kickbacks between medical doctors robbing taxes and leading to increased taxes,
Correct. There are so many useless procedures to inflate medical bills: it is criminally aburd.
Politicians have it made! We the taxpayer foot their retirement while they become instant millionaires in office. Explain again how we are supposed to save when prices have sky rocketed and taxed to death! Watch this country become a new third world with such a big gap in wealth.
At 63 having a corporate career I agree about the stress and cortisol. Have to wait to get Medicare before retiring
The average stock in my portfolio has been cut in half, and the only way to make money this year has been to either short or to trade long in very short time frames. I'm still at a crossroads deciding if to liquidate my dipping $117k stock portfolio, what’s the best way to take advantage of this market?
It’s precisely at times like these that investors need to be on guard against the next certainty. You don’t have to act on every forecast, hence i will suggest you get yourself a financial-advisor.
I agree, having a financial - advisor for investing is genius! Not long ago amidst the pandemic crash in March 2020, I was really having investing nightmare prior touching base with advisor. In a nutshell, i've accrued over $550k with the help of my advisor from an initial $120k investment thus far.
That's impressive!, I could really use the expertise of this advisors , my portfolio has been down bad....who’s the person guiding you.
I personally work with Vivian jean wilhelm she covers things like investing, insurance, making sure retirement is well funded, going over tax benefits, ways to have a volatility buffer for investment risk. many things like that. Just take a look at her full name on the internet. She is well known so it shouldn't be hard to find her.
Credits goes to Vivian jean wilhelm one of the finest portfolio managers in the field. She's widely recognized; you should take a look at her work.
Uncap fica on high earners. That would fund social security forever.
So far I'm doing good, approaching retirement with about 800k in savings. Transitioning from building wealth to spending can be scary, especially with soaring inflation. My question is, after maxing out my tax-advantaged retirement accounts, what next?
In my opinion, some financial situations can be handled on your own if you research enough, while others are best navigated in consultation with a financial advisor
Agreed, the role of advisors an only be overlooked but not denied. I was shocked that I made more money with investing than hard work, not even my CEO income. Earning ''return on investment'' fetched me millions within a space of 5 yrs.(But I still enjoy working)
Could you possibly recommend a CFA you've consulted with?
Her name is Rebecca Nassar Dunne can't divulge much. Most likely, the internet should have her basic info, you can research if you like.
Stop buying new cars. The average car payment is 700 dollars.
I agree but what happens to the workers that manufacture parts for those cars and car manufactures. Of course not many are here in America. People don't buy American first. This is the problem.
@@lindakingsley-gx2td: Yes, we should strive to do this, but the reality is, a lot of products can't be found that are made here. The flipside is a lot of the people I see waving the flag and saying America first, are also buying cheap overseas goods because they don't want to spend the extra money on the US made products.
@@waynebrissette9459 Yes and the reason is that the billionaires do not want Labor laws or environmental laws to take away their power controls. This is about trade routes and controls of the world's manufacturing and natural goods. It is about East vs West with the big boys of EU & US vs China. China is a bad player but so is the Western billionaires. They both want control of OUR lives and make us slaves and only give crumbs. Its all of us in the world's populations to wake up to this, come together, and take OUR power back. That ain't easy to do with a few rich male patriarchy in control on both sides.
That’s a problem of the corporation. Just five years ago, my car payment for a new care was $350/month
@@down-to-earth-mystery-school Yes all the rich do is raise prices and lower quality just like China does. Do you see similar patterns here??? Project 2025 looks like Russian propaganda but if you compare it to China; It is more like the Chinese government billionaire oligarchy they have. I wish people would read and get a better perception on what the billionaire rich are doing. They are propping up China in Hong Kong and the North to control and take Siberia where they both get rich. Oil & gas plus the North Pole shipping routes that will be open as the warming of climate change takes place more and more. America and Canada have got to get together and protect the Bering Straits or China will take it and possibly Alaska too. China wants world wide control. My question is How much are the western billionaires are helping them for the slave indigenous population control of Ugyhurs and Tibetans to produce goods and ship them to US to buy??? I wish people would wake up and see this?? connect the dots on this. I am so frustrated at what I see. And nobody gets it.
Lift the maximum amount to be earned from $21K approx. without impacting Social Security for those taking it before full retirement. Serious impact on senior finances immediately and retains skills in the workplace.
citing Ray Dalio and Milken as the 'investor class' is risible, they are the Madoff fraud class
How about we go back and look at all the times Congress "borrowed" from the social security trust fund and insist they pay it back plus all the interest it should have earned. And why is Musk not paying social security on his paycheck? Why is he any different than the rest of us? And keep social security out of the stock market.
Insightful and straightforward analysis. Thanks.
In the UK we have the same problem. We have 9.2 million people who are economically inactive, they are not in work and not looking for work.
Thankfully, we at the moment have low unemployment rates in America.
@@buffycat4641 The same in the UK, we have low unemployment at 4.3%. Also in the UK out of the 9.2 million economically inactive people 3.5 million are over the age of 50 and these people have taken early retirement, some because of illness and the majority of these people have no intention of returning to work.
They are tired of working for nothing, then being blamed for not having a ‘good’ job.
Birds that can’t afford to buy nests won’t lay eggs let alone save for the future. I guess you want consumption but not sustained consumption.
It’s remarkable to hear someone being truthful about this!