Tuesday, July 15, 2014

The American Dream has retired

                     


by The Urban Blabbermouth
~
 The American dream, a house, 2.5 kids, and a dog, has retired but can you retire too?  Too many of us cannot afford to retire anymore.

Corporations, that is, your employers, have terminated the traditional corporate pension plans and moved their employees into 401Ks.  The corporations did this because they wanted to increase their profits and they saw that ending their pension plans as a way to accomplish this.  The corporations did this knowing that there would not be enough money in those 401Ks for their employees to afford retirement.  They did not care since the CEOs who made this decision would be long gone before the problem became large enough to be noticed by their employees.  So, you now have a 401k and you cannot afford to retire.  Ironically, those CEOs are now comfortably retired on their corporate pensions.

We are now faced with having 401Ks that do not have enough money for us to retire.  What can we do about this?  Irritatingly, the same corporations that forced us into underfunded 401Ks are now trying to make a business of advising us what to do about our lack of retirement money.  Perhaps you have seen the commercials on TV asking, "Will you outlive your retirement money?"  They may indeed have a solution, but now you have to pay them to tell you what to do or buy whatever product they have that will solve your retirement money troubles. 

Let me guess what their advice is: YOU MUST PUT MORE MONEY INTO YOUR 401K AND THEN PAY US TO INVEST IT FOR YOU.  This from the same corporations who caused the problem in the first place.  How self serving.  Instead, their advice should be that your employer must contribute more to your 401K and that your employer should pay us to give you investment advice as part of your benefits package.

Historically, people worked until the day they died.  Then, we were able to get pension plans and to retire at a reasonable age.  We may be back to working until we die.