Posted on 03/08/2006 3:32:46 PM PST by Choose Ye This Day
I've had a couple of bad experiences recently that sharpened my worry about what life will be like for retirees in the future -- I fear that a catastrophe of declining standards of life is heading our way.
I'm thinking about how bad it has gotten in terms of how customers are treated. A few days ago, I called the saleswoman at an auto dealer who sold me my last car a few years ago. I asked her to come over and show me the newest model of my car and told her if I liked it, I would buy it on the spot.
"Sorry," she said. "Too busy."
"Really? Are you selling that many Cadillacs?"
"Well, I'm not really selling any, but a lot of people are looking and wasting my time," she said.
"But you know I'm a qualified buyer who has bought from you before," I protested.
"Maybe I'll fax you some stats," she said helpfully. I never got them.
How Much Worse for the Masses?
Today, I was supposed to have a nice comfy seat on United Airlines. Full-fare first class. When I got to the gate, the agent said my seat had been changed to one up against the bulkhead, and there was no way she could move me. No apology, not even looking me in the eyes.
On the plane, no flight attendant would help until an older one, from the days when United actually had some self-respect, asked a young man to change with me. He did, and I was happy. But meanwhile, the flight attendant who did help me told me I was the only full-fare first-class passenger in the cabin, and still no one had wanted to help me until she came along.
My point is how terrible service is -- even at the higher end in 2006 -- and then to add this chilling thought: If this is how bad it is at the high end now, can you imagine how awful it'll be for everyone in 2020? When all vestiges of service are gone? When no one speaks English? When all customers are just ciphers?
Look at it this way: Think of the most crowded freeway you're on every day. Imagine what it'll be like in 10 years. That's what hospitals will be like -- if they're not that way right now.
Retiree Vulnerability
To make the situation worse, retirees and those who will soon retire are far from financial safety (see "Living Hand to Mouth -- and Barely Getting By"). I recently calculated that the Baby Boomers need to have saved -- on average -- $400,000 per household to even start to come up with what they need to live on. Instead, they have saved about $50,000 per household if they have a rental home and about $110,000 if they own their home.
So, what will they do when they retire? What will it be like to cut pills in half, to have to sell your home and move into a trailer, to be faced with unaffordable repairs for your car?
Try this experiment: Imagine you have to slash your spending by half. What goes first? Restaurant meals -- fine. Vacations -- fine. New clothes -- fine. But that won't even come close to cutting spending in half for most people.
The sad fact is that retirees will suffer. And for the leading edge of the Boomers is: It's too late. Many of them cannot escape a drastic ratcheting down in income and lifestyle. A crisis akin to the Great Depression is racing our way: A ruinous drop in standards of life.
Shoring Up Your Retirement Savings
What will it be like to live in the horrible new dog-eat-dog world, with no one caring whether you live or die -- and have no money? What will it be like on that crowded freeway? You don't want to find out.
How do we get to high ground? I suggest -- unless you're already on track to have 15 times what you need to live on at retirement socked away by age 65 -- taking 20 percent of your paycheck if you possibly can, putting it in the Fidelity Fund (FFIDX) or the Vanguard Total Stock Market Index Fund (VTSMX) until you're 55, then putting half of it into the Fidelity Total Bond Fund (FTBFX) or Vanguard Total Bond Market Index Fund (VBMFX).
Maybe if you have a few bucks extra, buy the iShares MSCI Emerging Markets Index ETF (EEM) or the iShares Russell 2000 Value Index ETF (IWN) for developing market or small-cap exposure. But for heaven's sake, do it now.
When you get to 65, put half of it into a fixed or variable annuity -- chosen so you know what every dime in expenses goes for and without buying anything you don't need or understand -- and then know you won't totally run out of money ever (see "A Retirement Portfolio With Staying Power"). Or do something else with a reputable financial planner.
But be very scared -- and start doing something about it now. Tomorrow is too late. Do it now.
I never vote to raise taxes and I pay for my own diapers, paid for my kid's diapers and for my mom's too. You seem to be quite a selfish generation to me. Your parents are in the way, so kill em off. Never mind they paid for your diapers, food, education and probably loaned you money to buy a house and gave you your first car. They are useless now, just sucking money from the economy and besides, they may leave you some life insurance proceeds or other property you could use, so kill em off, right? You are right, our mistake was not taking you to church.
Fidelity and Vanguard are mainstream major funds, and competitors of each other. No way does Stein represent either or both of them. He is just suggesting getting into a mainstream mutual fund.
They're in their 40s, living paycheck-to-paycheck, and the only reason is that they could never tell themselves, "No. I don't NEED that. And I can't afford it."
We got cell phones, computers, video games, cheap cars, food costs almost nothing, HBO and FX have amazing TV shows, and porn is free to all on the internet. Life is pretty good for us Gen X and Yers.
I knew the old bastard was over the hill, but I didn't know he had gone senile, sprung a leak in 1st class, and had started reciting sales brochures into his Ipod while the attendants were administering intravenous Chateau LaFitte on the way back to solid ground.
Pull the plug before the Air Marshall has to step in.
Boy, I guarantee you that you want nothing to do with one of my organs when I'm done with them.
I hope you're just being flip. My sister used to say the same thing, and she didn't save for retirement. She had a minor stroke at 57, and now she can't work at her high paid jobs. She's living on SS and small other incomes, and it isn't pretty.
If you don't plan like you might have to retire tomorrow, you're at real risk.
I've also always been really suspicious of the deferred tax savings. Got some in a company 401k type plan only because I wanted their matching contributions. Most of my retirement savings are in normal savings and investments. I just don't believe that tax rates will be lower for me when I retire!
I doubt retiring Baby Boomers will suffer that much, they, as a voting block, will demand the younger Gen X and Y generations pay 100% of their incomes in taxes to fund the quality of life for retired Baby Boomers, the younger generations will reply with euthanasia for the retired Baby Boomers.
It's sick, tragic, but also ironic in it's own way.
That's a good synopsis. He is flip with his comments; but there are good points in what he says.
Show me one thing in this particular article you disagree with, and tell me why--other than the author's name is Ben Stein.
"My point is how terrible service is -- even at the higher end in 2006 -- and then to add this chilling thought: If this is how bad it is at the high end now, can you imagine how awful it'll be for everyone in 2020? When all vestiges of service are gone? When no one speaks English? When all customers are just ciphers?"
He is soooooooo right about this. File under: nobody wants to do their jobs anymore.
You will retire. Everybody does. The only question is whether you will retire on your terms and with enough money to sustain your life style.
A half million is a good start at your age, but you shouldn't assume that is enough. What if you lost your job tomorrow?
"LOL. We are so damn unhealthy--"
Well, with your name, you should be real healthy. All that fish....
How can I possibly save for retirement? I've got to pay for the new 50" plasma, the new kitchen, the new 7-Series in the garage, the kids private schools, the country club, and annual vacations in Hawaii. I don't see any way I can possibly save for retirement.
You sound like that AD on television. "How do I do it all? I'm in debt up to my ears! Can somebody help me?"
"I doubt retiring Baby Boomers will suffer that much, they, as a voting block, will demand the younger Gen X and Y generations pay 100% of their incomes in taxes to fund the quality of life for retired Baby Boomers, the younger generations will reply with euthanasia for the retired Baby Boomers."
LOL! That's deliciously sick. I like the way you think.
I think if the government knew how to do that, and could manage it, two very big IFs, they would. After all the more the common man gets ahead, the more they make, the more the government can collect in taxes, and thus more power for the politicians. But they don't know how, or rather they do know, but it means collecting less in taxes, which is outside their acceptable solution space. Furthermore if there was some other way, they'd screw it up.
I'm well armed too, but don't see that as helping in this case. it's not like they will come to my home and try and rob me face to face. No the weasels will steal my money by getting the pols to take it BEFORE I can even get it out the accounts. All in the name of "social justice" and "fairness".
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