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The other way to look at this is a guy smart enough to rise to VP of Marketing at a major corporation and make in the low six figures isn't smart enough to mana

by FfejL 13y ago

The other way to look at this is a guy smart enough to rise to VP of Marketing at a major corporation and make in the low six figures isn't smart enough to manage his own retirement savings. He's a VP of Marketing. Why is it that we expect him to know how to manage a retirement fund, even if it is his own? The wide-spread end of the pensions system and the rise of 401(k)s is going to be a disaster as more and more Baby Boomers retire.

rb2k_ 13y ago
Because it's not very hard. Probably a lot easier than most of the things he coordinated in his job. I'm not American and I still know what to do: 1. Do montly investments in a few cheap ETFs (S&P 500, Emerging Markets, MSCI World) within your 401k 2. Once you get closer to retirement, roll most of the money over to more secure asset classes like bonds 3. done
- HarryHirsch 13y ago
  It's right there in the article: The median 401(k) balance for households headed by people aged 55 to 64 who had retirement accounts at work was $120,000 in 2011. This is a fact. No matter how easy saving for retirement is, it's a fact that the majority of Americans have retirement savings that are utterly insufficient. I have no idea how this will play out.
  - rb2k_ 13y ago
    Germany has a state run retirement fund that gets deducted from you paycheck (about 19%. split between employer and employee). That mostly solves that problem, but leaves people like me that would like to handle retirement savings themselves a bit annoyed.
    - RandallBrown 13y ago
      The US has Social Security which is basically a state run retirement. The problem is that it's funded by the people currently working. This worked out great when there was a surplus of workers. Now that less people are working than are retiring, the social security funds are in danger of running out.
      - NonEUCitizen 13y ago
        Apparently German system is also "pay as you go" : http://en.wikipedia.org/wiki/Pensions_in_Germany http://en.wikipedia.org/wiki/Pensions_in_Germany
      - Retric 13y ago
        SS has a surplus designed to keep it solvent for the reasonable future. The real issue is a low cap on contributions when most economic growth in the last 30 years has been in the top 5%. Coupled by an ever growing disability burden that has nothing to do with retirement and who's growth is linked to states trying to shift burdends to the federal level.
    - ArtB 13y ago
      > That mostly solves that problem, but leaves people like me that would like to handle retirement savings themselves a bit annoyed. Ironic, because that's how I feel about speed limits: it's for the best overall but annoying to those that drive well... and you're from Germany where they have the Autobahn. That said, my concern for my dim-witted but well meaning citizens makes me willing to bear this for the overall good.

by FfejL 13y ago

rb2k_ 13y ago

Because it's not very hard. Probably a lot easier than most of the things he coordinated in his job. I'm not American and I still know what to do: 1. Do montly investments in a few cheap ETFs (S&P 500, Emerging Markets, MSCI World) within your 401k 2. Once you get closer to retirement, roll most of the money over to more secure asset classes like bonds 3. done

HarryHirsch 13y ago
It's right there in the article: The median 401(k) balance for households headed by people aged 55 to 64 who had retirement accounts at work was $120,000 in 2011. This is a fact. No matter how easy saving for retirement is, it's a fact that the majority of Americans have retirement savings that are utterly insufficient. I have no idea how this will play out.
- rb2k_ 13y ago
  Germany has a state run retirement fund that gets deducted from you paycheck (about 19%. split between employer and employee). That mostly solves that problem, but leaves people like me that would like to handle retirement savings themselves a bit annoyed.
  - RandallBrown 13y ago
    The US has Social Security which is basically a state run retirement. The problem is that it's funded by the people currently working. This worked out great when there was a surplus of workers. Now that less people are working than are retiring, the social security funds are in danger of running out.
    - NonEUCitizen 13y ago
      Apparently German system is also "pay as you go" : http://en.wikipedia.org/wiki/Pensions_in_Germany http://en.wikipedia.org/wiki/Pensions_in_Germany
    - Retric 13y ago
      SS has a surplus designed to keep it solvent for the reasonable future. The real issue is a low cap on contributions when most economic growth in the last 30 years has been in the top 5%. Coupled by an ever growing disability burden that has nothing to do with retirement and who's growth is linked to states trying to shift burdends to the federal level.
  - ArtB 13y ago
    > That mostly solves that problem, but leaves people like me that would like to handle retirement savings themselves a bit annoyed. Ironic, because that's how I feel about speed limits: it's for the best overall but annoying to those that drive well... and you're from Germany where they have the Autobahn. That said, my concern for my dim-witted but well meaning citizens makes me willing to bear this for the overall good.