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More media attention to the failure of 401Ks! January 15, 2009

Posted by shaferfinancial in Finance, Uncategorized.
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First the Wall Street Journal and now the LA Times have published articles about the failure of 401Ks as a retirement vehicle.  You know the media, it loves to print articles about terrible events!  Yes, I have been telling folks this for a long time now, unfortunately the reality is so bad after 2008 that it can’t be ignored.  I’m sure there will be much teeth knashing about how corporations have screwed the  American public by ditching those defined benefit plans and putting the 401K plans in place.  However, companies that have the defined benefits in place are paying a steep price now (see GM) and are mostly underfunding those plans.  And the next wave to hit  is the public arena, where towns and municipalities are having huge issues balancing current taxing revenues with expenses.  Expect public employees to start to feel the pressure as states, towns and municipalities deal with the loss of tax revenue ongoing!

Social Security will become even more depended on by the baby boomer generation as they retire with even less in their retirement plans!  Seniors will need to get their cash out of their homes, so you can bet on more crisis down the line as seniors fall for the reverse mortgage products in a last ditch effort to not have to sell their homes.  No it is not going to be pretty for the baby boom generation’s retirement.  

This keeps the pressure on, to set myself up with enough assets to go it alone through retirement without depending on social security or other government programs.  Knowing full well that Wall Street isn’t going to bail me out, like we did them, and not wanting to be dependent on a meager social security check I am left with only one position, do it myself.  Ten years ago I started to become an active investor (instead of a passive mutual fund  investor), three years ago I was laid off from a job and truly became dependent on myself, so when I talk to people about changing their approach, I speak from experience. Ten years and I am 1/4 of the way to my goal, despite the poor 2008 and starting from a negative net worth.

If there was ever a time for the lights to go on for people, it is now!  Become an active investor and/or start a business, join the investor/banker crowd, it’s not too late. 

Hope to have the new website up for the Shafer Wealth Academy  by next week.  Remember my book launches at the end of the month!

Have a great weekend (its a long one for us with my son off from school), sit down and consider what you are to do about your retirement!  The time to make changes is now!

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