Skip to main content

Planning for Retirement (Part 1)

Back in April, the Financial Sense Newshour produced a series of program segments devoted to the issue of retirement planning.

Today we're going to look at the first installment of FSN's retirement special, and guide you to the archived broadcast link and a written transcript of this program.

But first, a quick overview. Why is retirement such an important topic?

Retirement is currently a very big issue not only in America, but in other developed nations as well. These countries face a demographic overhang of "baby boomers" facing retirement, and there is no shortage of news stories and articles covering this trend.

How will these nations deal with the structural changes taking place as a result of this mass retirement? Are individuals in North America, Europe, and Japan ready for this shift? Are Americans better prepared or less prepared for retirement than their counterparts in other nations?

A recent Financial Post article entitled, "Ill-prepared spendthrifts", speaks to some of these questions. Excerpt:

"Being ill-prepared for retirement appears to be a global phenomenon. The largest global retirement study of its kind, released yesterday by HSBC Insurance, has identified an entire demographic cohort it calls the "IP" generation -- as in Ill Prepared for Retirement.

Failure to prepare for retirement is directly related to overspending and low savings rates, says University of Virginia business professor Ronald Wilcox, author of Whatever Happened to Thrift? [Yale University Press, 2008].

He says North American savings rates of negative 1% are lower than the plus 2% of the United Kingdom, or the 10%-plus of Germany and France, and even higher savings rates in Asia. He suggests the failure of profligate North American Baby Boomers to save means they will eventually pressure governments to introduce "measures that transfer wealth from the people who have saved responsibly to those who have not."

"The U. S. really sticks out," Wilcox said yesterday, "American citizens are less prepared to shoulder their burden relative to their counterparts in other developed nations."

Unfortunately, this seems to be a global phenomenon. High taxes and low savings levels in many developed nations have left a large number of Boomers ill-prepared and desperate to implement tax-thy-neighbor policies for transference of wealth (government-sponsored theft).

Keep your eyes and ears open to this, as wealth transfer and onerous taxation are key themes for the future, and all these things are discussed in the Financial Sense Newshour retirement programs.

Now let's get started with Part 1 of the Planning for Retirement series.

In the intro to the first part of this program series, FSN hosts Jim Puplava and John Loeffler discuss the differences in retirement for baby boomers, as compared to that of preceding generations.

"Now, you look at our generation. Both you and I are boomers, John. We didn't -- well, I have had my own business now for almost three decades but other than that, most boomers have had three or four, five job changes, maybe two or three career changes in the sense that you may have started out in one field, you moved over to another field.

The pension systems changed in this company. Companies downsized as the country changed from a manufacturing to a service to a financial economy, so a lot of these structural changes in the economy have taken place. And now, you have the largest population in US history heading into retirement. That's going to have a profound change, I think, both economically and in the financial markets."

Jim and John follow up their discussion on the changing face of retirement with an overview of some important considerations for retiring individuals.

There's a lot of ground covered here in the opening segment of this series, from some very straight talk on Social Security and Medicare, to inflation and the expected rising costs for food, services, health care. You might find some very worthwhile insights here.

Listen to the FSN "Planning for Retirement - Part 1" program.

Tune in tomorrow for Part 2. See you then!

Popular posts from this blog

The Dot-Com Bubble in 1 Chart: InfoSpace

With all the recent talk of a new bubble in the making, thanks in part to the Yellen Fed's continued easy money stance, I thought it'd be instructive to revisit our previous stock market bubble - in one quick chart.

So here's what a real stock market bubble looks like. 

Here's what a bubble *really* looks like. InfoSpace in 1999-2001. $QQQ$
— David Shvartsman (@FinanceTrends) February 24, 2015
For those of you who are a little too young to recall it, this is a chart of InfoSpace at the height of the Nasdaq dot-com bubble in 1999-2001. This fallen angel soared to fantastic heights only to plummet back down to earth as the bubble, and InfoSpace's shady business plan, turned to rubble.

As detailed in our post, "Round trip stocks: Momentum booms and busts", InfoSpace rocketed from under $100 a share to over $1,300 a share in less than six months. 

In a pattern common to many parabolic shooting stars, the stock soon peaked and began a…

New! Finance Trends now at

Update for our readers: Finance Trends has a new URL! 

Please bookmark our new web address at

Readers sticking with RSS updates should point your feed readers to our new Finance Trends feedburner.  

Thank you to all of our loyal readers who have been with us since the early days. Exciting stuff to come in the weeks ahead!

As a quick reminder, you can subscribe to our free email list to receive the Finance Trends Newsletter. You'll receive email updates about once every 4-8 weeks (about 2-3 times per quarter). 

Stay up to date with our real-time insights and updates on Twitter.

Moneyball: How the Red Sox Win Championships

Welcome, readers. To get the first look at brand new posts (like the following piece) and to receive our exclusive email list updates, please subscribe to the Finance Trends Newsletter.

The Boston Red Sox won their fourth World Series titleof the 21st century this week.

Having won their first Series in 86 years back in 2004, the last decade-plus has marked a very strong return to form for one of baseball's oldest big league clubs. So how did they do it?

Quick background: in late 2002, team owner and hedge fund manager,John W. Henry(with his partners)bought the Boston Red Sox and its historic Fenway Park for a reported sum of $695 million.

Henry and Co. quickly set out to find their ideal General Manager (GM) to help turn around their newly acquired, ailing ship.

This brings us to one of my favorite scenes from the 2011 film, Moneyball, in which John W. Henry (played by Arliss Howard) attempts to woo Oakland A's GM Billy Beane (Brad Pitt) over to Boston with an excellent job off…