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The Great American Do-It-Yourself Retirement Fraud, Brought To You By Big Finance & Co.

Wednesday, August 7, 2013 - 5:43 PM
The United States is on the verge of a retirement crisis. For the first time in living memory, it seems likely that living standards for those over the age of 65 will begin to decline as compared to those who came before them—and that’s without taking into account the possibility that Social Security benefits will be cut at some point in the future.

The culprit? The 401(k).

The Great American Do-It-Yourself Retirement Fraud, Brought to You By Big Finance & Co. | Alternet
10
ShorebreakShorebreak2,364 posts since
Apr 6, 2010
Rep Points: 12,576
1. Wednesday, August 7, 2013 - 7:34 PM
If the financial advisors had all the answers they would be independently wealthy and would have no need to work. I will stay with saving and CD's and trusting my gut feeling and spending less if we have to but never trusting others with our money. 

Like I have said many times if the companies with their paid money managers could not make pensions viable, how can we expect the average person to be able to invest and survive for up to 30 years of retirement? 

We can be thankful that we no longer have to pay taxes all the money from a house sale if we have to live on that money like our grandparents did. How did they survive? Now we can have a PROFIT of $250,000 or $500,000 before any taxes are due. How things have changed. 
4
AllyAlly772 posts since
Jan 16, 2010
Rep Points: 2,248
2. Wednesday, August 7, 2013 - 7:56 PM
In the past one would work for a company for 30 years, receive a small pension and then start drawing Social Security. The small home they managed to pay-off during their working years was free and clear. Also they managed to accumulate an amount of money, through deposit accounts such as certificates of deposits, to supplement their income. If they were lucky they would live another ten or fifteen years to enjoy their golden years. That was then and now is now. Times have changed. Sometimes not for the better.
6
ShorebreakShorebreak2,364 posts since
Apr 6, 2010
Rep Points: 12,576
3. Wednesday, August 7, 2013 - 8:31 PM
Don't remember CD's before the late 60's. Actually my husband's grand parents lived until their 90's and so did his parents. My parents were in their 80's. They had no health insurance at work until the 50's. The grandparents had to sell   their homes to pay for medical bills and back then if the money on the sale of a home was not invested in a more expensive home all of the money was taxed after improvements were deducted I was told. I do remember on our first house we had to keep track of any improvements in case when we sold we did not buy a more expensive home. 
4
AllyAlly772 posts since
Jan 16, 2010
Rep Points: 2,248
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