Here is an excerpt from an article in a local Pennsylvania newspaper. They ask a straightforward although complex question of two candidates. What they get as answers is buzzwords and bullshit. But I have to admit there is one grain of wisdom here which I highlighted.
What would you do to help future retirement in America ?
Not having enough money to live during retirement could be an issue for many in the future, as studies consistently show American workers are saving far too little for retirement.
The Meadville Tribune posed the issue to the two candidates for Pennsylvania’s 3rd Congressional District, which includes almost all of Crawford County.
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Both candidates were ask what role, if any, should the federal government play in attempting to head off skyrocketing rates of seniors living in poverty and outliving their savings?
“We need a dynamic and robust economy,” Kelly said. “All (government) revenues are drawn off the economy. Middle income and lower income families have suffered the most under this economic downturn. President (Barack) Obama’s economic policies aren’t working, but they may have been well intended.”
Kelly said he believes there are enough programs and opportunities available for retirement, “but people need more education about saving for retirement.”
“I like to see it take place in schools. Why and how to save, how credit cards work, make it part of how people are educated,” Kelly said.
LaVallee said there needs to be leadership to protect both Medicare and Social Security programs for retirees.
“We need to protect those programs and make them more solvent,” LaVallee said. “We cannot vote to increase prescription drug costs as Mr. Kelly has done.”
To make the programs more financially sound, “we need to cut fraud, waste and abuse,” LaVallee said. “We can pay doctors more on the outcome of their patients. To cut the fraud, we need more rigorous enforcement of existing laws that are on the books.”
via 3rd Congressional District candidates on retirement – News – Meadville Tribune.
PS. I recently listened to a radio talk show on financial planning. A man age 57 called asking for advice. It seems he had saved $750,000; some in IRAs; the rest in the bank. All of it was in money market funds or simply CDs and all were earning less than 2%. “How am I doing?” was his question. As the show’s host quickly pointed out, his fear of the stock market or more accurately of risk had doomed him to lose money every day. Even with low inflation he was not keeping up and his retirement buying power was eroding. The host suggested the caller take just a portion of the money and build a diversified portfolio to improve his return … the caller said he would think about it … but he won’t do anything.
QUINNSCOMMENTARY 
Yes well at least he has $750,000. My middle class family just a bit older we were taught to save and to save in the bank. We didn’t come from families of accountants, lawyers or financial advisors. We didn’t know how to invest in the stock market. We only knew to invest in real estate and and save in banks. IRA’s certainly helped when the pensions no longer existed. An easy way to put money away. When we first started putting money into an IRA we were getting 12% interest. Really. Interest rates went down the bank tried to lower the rate but soon found out they weren’t allowed. We got that interest rate for 6 years. Now IRA’s get nothing. Just 7 short years ago I was getting 5% in an ING savings account. 5% on $750,000 is over $35,000 a year a decent pension. We too saved money into the IRA. We were set to retire knowing we could live off just the interest of the IRA without touching anything else we had. Then the recession hit our business suffered and is still down we couldn’t save for retirement we were barely making enough to survive without taking out of savings. As happened to many we know. Only we lucked out buying real estate, paid of mortgages and had few bills. Funny part the only family member educated enough to know how to invest and take chances, an accountant, financial analyst, again our age lost so much he will never recoup what he once had before retiring. He will have to work far longer than the rest of us. Not saying investing in other things is a bad idea, just most of us don’t know how to or trust those who can advise in that area. IRA’s was suppose to be the answer for those people.
Sometimes safe isn’t a bad thing.
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IRAs were never intended to be solely invested in bank deposits or CDs, they are long-term investment vehicles which means a diversity of investments. Was it so hard over the years to learn a bit about investing or even to use market index funds which track the whole stock market?
Except for bad decisions there is no reason for anyone to have lost their savings in the recession. If they had just left their money alone, even invested more, they would have it all back plus much by now.
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