Defined Benefit Plans Down
Wednesday, June 13, 2007 - FreeMarketNews.com
Ann Combs, in an interview on vanguard.com. speaks of the changing landscape for savers as the DB programs decline in importance and availability, saying:"Save and save early. Nothing is more powerful than starting when you're young. So much of your ultimate income in retirement is determined by when you start saving and how much you save."Too often, the investment industry frames saving as a sacrifice: 'Give up lattes! Stop having fun!' The reality is, saving is freedom. It gives people a lot of choices. As they approach retirement age, they have different paths to choose from."She also notes:"The era (of DB plans) existed for only a select group of people. ..But the majority of workers never had this kind of gold-plated retirement plan. Half the workforce has no retirement plan at all, and that's been true for as long as the government has tracked the numbers."In a column entitled "Lowering the (financial) boom on the Boomers" Lewis J. Walker Past president of the Institute for Certified Investment Management Consultants writes:"For those still accumulating capital, maintain a heavily equity-oriented portfolio as your liquid component, and keep it well diversified by asset class. Buy on dips, especially when the dips aren't buying. One million dollars in assets for every $40k to 50k in annual cash flow that you wish to generate from a portfolio. That is THE NUMBER! (Now you don't have to buy the book)."
Ann Combs, in an interview on vanguard.com. speaks of the changing landscape for savers as the DB programs decline in importance and availability, saying:"Save and save early. Nothing is more powerful than starting when you're young. So much of your ultimate income in retirement is determined by when you start saving and how much you save."Too often, the investment industry frames saving as a sacrifice: 'Give up lattes! Stop having fun!' The reality is, saving is freedom. It gives people a lot of choices. As they approach retirement age, they have different paths to choose from."She also notes:"The era (of DB plans) existed for only a select group of people. ..But the majority of workers never had this kind of gold-plated retirement plan. Half the workforce has no retirement plan at all, and that's been true for as long as the government has tracked the numbers."In a column entitled "Lowering the (financial) boom on the Boomers" Lewis J. Walker Past president of the Institute for Certified Investment Management Consultants writes:"For those still accumulating capital, maintain a heavily equity-oriented portfolio as your liquid component, and keep it well diversified by asset class. Buy on dips, especially when the dips aren't buying. One million dollars in assets for every $40k to 50k in annual cash flow that you wish to generate from a portfolio. That is THE NUMBER! (Now you don't have to buy the book)."
No comments:
Post a Comment