Most People Won’t Have Enough to Retire
The other day I was watching CNBC, and they reported a really alarming story. Particularly scary for anyone who EVER wants to retire.
Now the large majority of “talking heads” on TeeVee have absolutely no idea what’s really going on in the market… and they just report whatever statistics will manipulate people’s fear and greed glands…
But every now and then, they report golden nugget that is so valuable it should be shouted from the rooftops…. and everyone should know about it. Because it is YOUR future that is at stake.
So that’s why I wanted to make sure all of my loyal subscribers saw this short video.
Watch it below for yourself.
If you have friends who are not trading, and are not in active control of their own money… do them a favor and pass this video along so they can see what lies ahead if they don’t make a change.
Looks like the majority of our peers are headed right to a boiled-hot-dog-for-dinner lifestyle.
Love to hear your plans for the future… and I’m not just talking about how you will trade… but tell me where your going to go and where your going to live.
Put that vision for the future right below.
Jeff
3 Responses to “Most People Won’t Have Enough to Retire”
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I’m seeing this story come to life in my extended family. *sigh* They are reducing their contributions for the future, but actually taking from what retirement $ they have to buy things like, house, car, etc.
As for us, we plan on traveling (living off our IRAs) and allowing the kids to have a college education debt free (through 529 Plan). Our thoughts are there will be no Social Security since all the Boomers are taking it…so we better have a Plan B (B meaning Better).
Jeff,
This is just so very sad. Like the previous comment from Jennifer, I think this is going to be a new normal where many people will never realize their dreams of retirement.
After getting into some problems with using “plastic” over a decade ago and digging out of that situation, our plans included a firm reslove to eliminate all our consumer debts and live within our means. That required sacrifice and we had to struggle with the temptation of wanting it all right now. As a result though we have been able to save quite a lot for the kids college via 529′s, put money into 401k’s and IRA’s and almost payoff a mortgage. But to do that we had to learn to operate on pretty much a cash basis and accept the concept of delayed gratification.
I’m 47 and I believe that even for persons in my age group that Social Security is not going to be there for us at least not in the way we expected it to be. I’m horrified to think though that for more than half the population this is all they have for retirement. It’s truly a sad situation.
My Plan B? Well I look at retirement savings like a multi legged stool…more legs the more stable the platform. So in addition to learning how to trade Credit Spreads for extra income (thanks Jeff!), a few years ago I also decided to limit my participation in my companies 401k only up to extent where I can receive matching funds (its free money after all). Beyond that, faced with the prospect of pitiful returns and a long term decline in the market, I came to realize that nobody is going to care about my money more than I do. So the rest of my retirement savings contributions I put into a self directed IRA.
A few years ago someone turned me on to the idea of buying shares of high yield dividend stocks but only from a very select group.(Clorox and Statoil are two current examples). The twist is that up until a few years ago I had no idea about how to use options as risk management tools. In order to understand this though, I had to go out and get some education about how to use options to hedge the portfolio risk. At certain times now when I percieve greater risks I use Collars, ie I sell Covered Calls and buy Protective Puts in order to lock in gains and hedge the downside risk & continue to collect the dividends. I consider this a long term program (like a kind of insurance for Social Security not being there for me) so I am not worried so much about the day to day fluctuations in the portfolio. So far this has worked pretty well during the recent volatile markets.
One other thing we are looking at seriously too is retirement overseas. I’ve been researching this and there are a surprising amount of low cost places where you can live very well and really stretch your retirement dollars.
Jeff,
I am 61 and planning to kick in SSI next year. What? Take the early penalty? Yes, because there is a marriage penalty. When my wife pushes the button in 2012, SSI will place a combined limit of $2,400/month on us, no matter when we push the button. This is a little known fact that people planning to to do this should look into.
Right now I use 10% of my IRA for active trading. Of that 30% is in conservative (Covered Calls) and 70% is in spread trading (Credit Spreads, Calendars, etc. – depending on the market).
Your course got me seriously started on the Credit Spreads and lead to other spread combinations. Thanks for that.
My daughter was going to put money into one of those college funds and asked my opinion. I looked them over and recommended that she just open a regular saving account and buy good high dividend yielding stock and sell a few Calls now and then. The problem I have with the 529′s are all the restrictions and the poor choice of investment funds (I would never recommend a mutual fund). That’s just me. Pay the dividend gains now when you can afford it and then have the money for college and go wherever you want when you want.
Thanks – Jeff