None of us are going to get out of here alive (meaning life overall) and ignoring the fact that you are going to die is never a good idea. But since you could very well live into your mid-80s—and be retired for 20 years or more—not planning for those 20 years is a huge mistake.
Over the past several weeks I’ve been examining our retirement portfolio in order to decide on when we could/should/probably-will retire. We’ve saved all of our lives (even when we didn’t have two nickels to rub together) and thankfully are in great shape, but it turns out that most people are not and the recent economic downturn didn’t help (though investment assets and 401ks are rebounding).
BlackRock Inc. chief executive Larry Fink said during a speech Tuesday that longer life spans and underfunded retirement plans are the defining challenge of our age, and went so far as to recommend that the U.S. consider making retirement savings mandatory.
Radical? Probably not, especially if someone 25 years old expects to get anything out of social security when they retire. Yes, Fink has a vested interest in sparking interest in retirement funds management, but he’s not the only one talking about this as a crisis. [Read more...]