Things seem pretty upside down right now; people who say they love the environment are torching electric vehicles they were so in love with a few months ago. People are protesting the downfall of Social Security when there is no evidence that it is being threatened. People hating on the “Orange Man” just because……well, he’s Donald Trump. And now, OH MY GOD, the stock market is down, and we are all going to die!
Well, I am not a millionaire, nor am I a stock adviser in real life, but I am in the market, and I have been for a long time. So, if I may, I would like to give some unsolicited advice to young people and couples who are just starting out. This advice was given to me by my dad, and it has worked out pretty nicely for me, and I hope it works for them as well.
When I first got married, 49 years ago this year, my Dad sat me down and told me to start saving for my retirement now. I was 22. I thought he was being a bit premature, but he had already set us up to meet a financial adviser. We met and decided after a couple of hours, we could save a little each month. We added to that each month, and low and behold, as we increased our income, we increased our savings. Now, I can retire fairly comfortably, all because of two things: we started early, and WE KEPT AT IT!
So, my advice to those starting out, and as a reminder to those who have been in the market for a while STAY CALM. I have seen ups and downs before (remember 2022?), and I continued to invest. I have learned the market always comes back, so chill out, don’t watch it every day, just keep on doing what you are doing with a good financial adviser(I use Edward Jones) and keep at it. You’ll be fine!
I have a plan for Social Security. I think Social Security is a plan that is fine but a little outdated and could use some refinement. I have thought about this for a while, especially since the stock market has proven to work so well. So, here goes, and let me know what you think.
My plan starts when people begin earning a wage from their work. They will be informed that at the age of say, 42, they will have a choice. I chose this because it is halfway between 22 and 62, when people usually start work and retire at an early age. They may continue, of course, until full retirement at 68 or so. If they start work earlier, that would be even better! People will be allowed to keep on with Social Security, or they will be able to withdraw from it. They will pay no matter what into Social Security until that time.
At 42, they will have one month to decide what they want. If they choose to stay in Social Security, no problem, just keep paying in. If you opt out, you will be given the money you have invested in Social Security, and it MUST be invested in some form of IRA. However, once you are out, you are out! You are on your own. You will, however, keep paying into Medicare. Now, I believe that enough people will be more than willing to do their own investing, so I think those who stay will be safe enough, too. I would much prefer to do my own.
The one hard fast rule is YOU MUST INVEST IN AN IRA FOR YOURSELF! The money you get back is never to be put anywhere else, thus ensuring that everyone will have some form of retirement, just like with Social Security. I would also make it so that you could not touch it at all before early retirement age. There should be a list of federally approved investment firms and brokers that will be provided six months before you reach 42.
Why Federally approved? I would set up and independent agency to watchdog over investment houses to make sure there is no hanky-panky going on. The agency has the full support of the Federal Government, but is an independent agency that does not bow down to the wishes of the government, nor the investment houses, only looking out for the interest of their clients, the investors, kind of like DOGE does now.
I do believe after about 20 years or so, everyone will be doing their own investing because the return will be much better than you get with Social Security. Yes, some months you will do great, some will really suck, but if you stick with it, I believe people will be better off. One other benefit to people is we have a choice; we are not being forced to keep a low-earning retirement device, and we make the decision, not some faceless bureaucrats.
Well, there it is. I am sure it could use some tweaks here and there, but all in all, it is a simple plan. That is why I don’t think the Government will go for it; it is simple and effective, two things they are not! I am going to send this to Warren Davidson and see what he thinks……that should be interesting! I bet I hear back from him, though; he’s really good about that. I might hear from his right-hand man, Ben Thaeler, and that’s ok too. Tell me what you think? This is just something else for us to talk about AT THE COFFEE SHOP.
