Monday was an unchanged session, for the most part, by a continuation of the resolve witnessed last week. The Dow was off by as much as 75 points before staging a slow rebound that barely crossed into the plus column by the closing bell. Now, the real fun begins.
Invest or Die
We need to talk more about how to carve out enough cash to enjoy life in retirement, but people are not prepared, and are doing little about it as the clock keeps ticking.
| 70% |
| Social Security notPrimary Source of Funding |
Last year, mouths were agape when it was discovered that the median amount of money saved for retirement by a middle-class American was on average $25,000... Now it is $20,000, and oddly, the number will continue to drop as we become older.
| Median Savings by Age | |
| 40s | $40,000 |
| 50s | $20,000 |
| 60 to 75 | $25,000 |
| Average | $20,000 |
America is great, and there is one thing I can say for sure: it will not be as great when you are older and broke, which is why it is not surprising, though sobering, to hear that 22% of people say they would rather die early than be elderly and broke.
Getting In the Game
As we barrel toward next week’s mid-term elections, there will be lots of talk about incomes and fairness, and those mean old rich people.
The fact is that too many people got out of the stock market in 2008 and 2009, and those that remained and continued to invest have been richly rewarded.
The chart from the Wall Street Journal (WSJ) clearly shows the top ten percent added to stock holdings; consequently, their “share” of wealth is higher, while the bottom 90% is lower.
One in four people say that they would rather die early than grow old without money. I say that it does not have to be so drastic.
Of course, over the past four weeks, investor resolve has been tested, and there will be other tests, along with serious heartache. Nevertheless, if history repeats itself, as it has done for more than one hundred years, then the pain will be soothing for those that endure, and it will be an amazing opportunity for those with guts and an understanding of history.
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