Way Off Wall Street: Retirement dreams fade for younger workers

The people who are utilizing financial planning, either with professional assistance or on their own, are mainly seeking asset accumulation and protection through diversification while also requiring adequate asset growth. They generally favor stocks in long-standing companies with large global footprints; they also like high-quality, long-term bonds. Those who are a bit more aggressive with their money, and who focus more on the production of future income, seem keen on the acquisition of rental properties and in venture capitalism.

These portfolio builders comprise a thoughtful and patient group, not much shaken by the current economic tide. Because their outlooks stretch over a decade or more, they hold fast to the belief that economies go through cycles. For the most part, they feel that our economic downturn simply signals an opportunity to buy now while waiting for the inevitable rebound. They are classic, long-term investors, and I fear they are a dying breed.

The second ten-year personal retirement strategy group could possibly be best defined with the term eclectic collections. These well meaning people seem to believe that they each have found those special tangible items that will gain in value and that the world shall always want. Whether it's Beanie Babies, electric trains, Barbie dolls, or buffalo nickels, these people are seemingly convinced that their slowly amassed collections of baubles and trinkets will someday pay their bills. Notably, the majority of these people seem almost oblivious to current economic trends unless they've been negatively and directly affected.

Some of these private curators actually do have meritorious collections. Take for instance the fellow who for decades has spent his hobby budget purchasing low-quality silver dollar coins. While he may not have built up a collection of truly valuable collectible coins, he now personally holds hundreds of pounds of fairly high-grade silver. On the other hand, the fellow who has spent thousands of dollars over the years purchasing postal commemorative first day covers or collectors plates may be disturbed to find that these items will probably liquidate for only pennies on the dollar. The problem with large collections of anything is that they are only worth what someone is willing to pay for them in the end. Even the rarest of items are eventually subject to the whims of their respective markets.

I don't begrudge these people their wonderful collections. In fact the field of collectibles has created some truly massive fortunes. However, I am concerned that many of these people will find that they would have done much better, in relation to inflation and taxation, if they had just put that money into IRA accounts and CDs instead.

The last group that I'll present in this report is perhaps the most interesting to me because I am one of them. This is the group of future retirees who believe that the word retirement will never truly apply to them. For some people in this group, the attitude stems from a belief that financial conditions won't allow them to ever step away from the daily grind. They believe that the expense of medical insurance and/or escalated living costs will require that they remain fully employed as long as they possibly can. Sadly enough, I believe that under current conditions many of these people may unfortunately be correct. It appears that pressures from the insurance and medical industries have painted them into a corner that they cannot escape. However, the government and senior activist groups are rigorously addressing these problems. In ten years time, that landscape could look quite a bit different, if not better.

Finally, you have the folks like me, who see ourselves working right through our retirement years because that's simply the way we're made. We're the people like my father-in-law who ran his sawmill until he was 72 years old, or the former Marine sergeant who lives down my street and who still farms beef cattle at the age of 63, or my dear mother who at 70 years of age still changes bed linens in a nursing home, not because she has to, but because it keeps her feeling young, fit, and useful. Yes, people like us often do drop off of the traditional payrolls, making way for a younger and stronger crowd, but you'll not often find us on a golf course in Arizona or on a cruise ship off the coast of Mexico, because we're busy working for ourselves.

Like myself, many people in this group who shall never fully retire still need to follow a regimen of responsible retirement planning. We know that there may be some future income gaps to fill. We know that there may be insurance deductibles, drug co-pays, or other unforeseen expenses. The key is to start saving at as young an age as possible, and to put away some money each week in an appropriate retirement plan. We may each make a timely investigation of our retirement funding options, or we may allow our retirement years to come crashing down on us. The choice is clearly our own. Either way, I believe that we shouldn't depend on the government to finance our entire retirement for us. We need to take as much active control of our future financial success as we now take with our careers.

When it comes to retirement planning, I highly recommend that everyone consider seeking the advice of a retirement funding professional. There are too many tax angles for the average person to keep track of. There are too many investment vehicles for each consumer to examine them all. Investment professionals, while not perfect, spend their careers investigating and evaluating all the available options. I suggest that you make an appointment to discuss your future financial security with someone who works in that field. It's never too soon to get started on a secure retirement. Please take some steps today to help protect your own golden years.