Author Topic: Is Everything Going According to Plan? - Rant  (Read 2202 times)

BodegaHead

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Is Everything Going According to Plan? - Rant
« on: April 30, 2016, 11:13:35 AM »
My money memories and experience begin in the 60s, back in the days when we actually saved for retirement.  Banks gave you 4.25% or more in exchange for using your money to lend out at 9% or more, accounts up to $250K were FDIC insured, but obviously somebody wasn't happy. Money saved and stashed away is not in circulation, and safe.

Don't now when scares regarding the failure of social security came into vogue, but do recall the mid-70s as the beginning of IRAs and 401(k) accounts, and in the beginning CDs were the way to go.

https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=5&ved=0ahUKEwiWvLvZ3rbMAhUPyGMKHT50AUkQFggxMAQ&url=http%3A%2F%2Fscholarship.law.georgetown.edu%2Fcgi%2Fviewcontent.cgi%3Farticle%3D1049%26context%3Dlegal&usg=AFQjCNFlJwNmVpezxPXtSBPEm8H-IGOyKw&cad=rja

Fast forward with inflation to barely 10 years ago, when the last of the air was let out of everything (virtually zero return on savings, money market accounts, CDs, bonds and for a time even California real estate), EXCEPT the stock market. What was saving for retirement in the private sector is now investing for retirement, with a huge business sector making a better living off of our retirement "savings" than we may ever experience. Every bank for quite some time now has been affiliated with a financial advisor and no longer offers its' customers anything but money making (for them) services.

Building, growing and sustaining, and investing in a company doesn't seem like it once did either. EVERY quarter now has to be better than the previous quarter. So much of it is about the stock price, for those fortunate enough to have incentive options, employee purchased stock and those other investors. The stock market and our retirement savings exist now pretty much to serve those who make a day to day living off of them.

The good news is that the FDIC should be off the hook. It always seemed pretty far fetched to me that if things ever go so bad financially that FDIC insurance would be needed, that it (our governement) would be able to handle it. Very little money left in FDIC insured accounts fixes that problem. Is social security next? Many people desperatetly want to get their hands on more our retirement money BEFORE we do, just like they have with our IRA and 401(k) funds. That would pretty much fix the problems with social security. Another government failure mode and responsibility eliminated. They've already got a chunk for Medicare too.

My apologies, but during the same time "low-paid" public sector job pensions seem to have crept up to the point that I hear many tales of employees who will make more in retirement than they now do or did while working. Put enough people with the same concerns and too much time on their hands together, and they'll develop the collective power of feeling oppressed, a voice, form a union and withold their services until they get what they want. They do pay into their own retirement, but those paying now are paying those already retired. What to do if there is not enough to pay current and future retirees? Do less, cry poor, add more paying workers, increase job security and desirability, and raise taxes.