Retirement

Myth?

Asked About Retiring, They Have a Simple Answer: Why?

Once at the courthouse, Judge Weinstein has coffee and gossips with colleagues. By 9, he’s at work hearing motions, reviewing filings, sentencing defendants. In the afternoon, he tries cases. 

None of that is so unusual. But Judge Weinstein is 96 — decades past the age when most Americans choose to stop working. 

Judge Weinstein is one of the more than 1.5 million Americans over the age of 75, who are still in the paid work force, according to the Bureau of Labor Statistics. 

While the study does not list their specific jobs, many work at occupations in which skill and brainpower count more than brawn and endurance. Some are self-employed and aren’t subject to mandatory retirement rules. Others are stars in their fields — no one has ever suggested that Warren Buffett, 87, quit investing. And there are others, a growing cohort, who remain at their posts because of financial necessity.

DYI:

A New York Times – written by Claudia Dreifus – puff piece highlighting upper income white collar professions with only one line mentioning those working past age 75 out of necessity.  Retirement has morphed into a myth for the majority of Americans – working full or part time – out of complete necessity.  Old style retirement plans replaced by do it yourself 401k plans thus shedding retirement costs for the corporate world.  State government workers – teachers, firefighters, and police, along with their vast support crews – are in the throws of shedding old style pensions replaced with 401k plans as well.

Today all aspects of one’s financial life rest completely on the shoulders of the individual – for the minority an improvement but for the vast majority of cases worse.  DYI is not going to delve into the politics of finance but address the hand that is dealt to most Americans with two simple suggestions [This is not addressing the financial problems of today that would require multi-set book.].  First for basic investment is to follow my model portfolio…Simple as that! 

Or for those desire a simpler approach here is my suggestion.  Use Hussman’s Strategic Total Return Fund have ½ reinvested and the remaining ½ paid out to your checking account.  Set up an automatic draft from your checking account and buy.  Every year or so increase the draft going into the fund; plus when  you get a raise increase the draft by ½ of the raise – a promotion, yep you get it, ½ into the fund AND as the dollars coming in from investment income increases – yep you get it again – increase the dollars.  The long term goal is to have your entire paycheck going into the fund.  Someday there will be an app that does this for you that start’s you off something like 5% of your pay and every year automatically increase 1 or 2 percent.  Never-the-less a simple approach anyone with a thimble full of motivation can achieve.

 DYI