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Six Characters in Search of Retirement

By: DAVID MILLER | Thursday: March 26th 2009

Apropos of Monday's "The Future of Retirement" show, the NYT has an interesting blog feature: six different folks answering the question, "What might replace the 401(k) as the dominant savings vehicle?" Check it out here.

On Talk of the World 3/26/09, a blind U.S. citizen said he cashed out his 401-k before the crash and moved to the Phillipines were the cost of living is less. Read Four Hour Work Week by Timothy Ferriss who outlines a model of creating a business, outsourcing it to others to run, and living in countries where the cost of living is inexpensive.

The financial crises of this decade have been caused by irrational exuberance, greed, corruption and incompetence. If government and Wall Street continue to be kinky bed mates then the hope for developing stable retirements dwindles. We must find a way to keep crooks (government or corporate) from destroying value.

Still, I'd rather be in charge of my retirement. I'd have a year or three of cash in a money market account for emergencies. I'd diversify my retirement holdings using 401-Ks as well as taxable accounts. If you look at the equities market as a long-term investment and retain emotional discipline then you will force yourself to pay attention to long-term results not short term noise. But again, long-term investment is based upon whether the system is fair or rigged.

trurl9 —

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