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TMFBro (< 20)

"There is no God-given right to an easy retirement"

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July 16, 2009 – Comments (4)

Fund Manager Robert Rodriguez, of FPA, was recently interviewed by Consuelo Mack. He's not too optimistic about the next several years. Of note: His predictions (given his long-term success) and his view that retirement as we know it is a "fool's paradise":

"In my opinion it’ll take probably upwards of eight or 10 years for the S&P 500 to get back to where it was in October of ‘07. There has been severe capital destruction, and for some it is permanent because of where they are in their life cycle. If you are in your 20s or 30s or 40s, you have the benefit of time. If you are in your 60s and are part of the baby boom generation and you got destroyed, guess what? You better be working....

"There is no God-given right to an easy retirement. It was a fool's paradise out there. My parents and grandparents did not have an easy retirement out there. The world is unsafe and unstable. We had in this country, I believe, a perverse view of what reality truly was, and now that veil is being lifted, and I’m sorry but it's going to take a long time, and that nice retirement home or continuous vacations may not be there."

 

 

4 Comments – Post Your Own

#1) On July 16, 2009 at 2:14 PM, Option1307 (30.13) wrote:

"There is no God-given right to an easy retirement. It was a fool's paradise out there. My parents and grandparents did not have an easy retirement out there. The world is unsafe and unstable. We had in this country, I believe, a perverse view of what reality truly was, and now that veil is being lifted, and I’m sorry but it's going to take a long time, and that nice retirement home or continuous vacations may not be there."

I couldn't agree more with this statement...

This is easy for me to say since I am a mid 20's punk kid, but I feel that the recent generations have become too soft. Especially my generation. We have experienced very little, if any, real struggles in our lifetime therefore we do not understand the concept of sacrifice. Or that life is not easy in general. Unfortunately it is taking a severe recession to get the majority of people to wake up, but hopefully we will remember this lesson for a long time to come.

 Thanks for posting!

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#2) On July 16, 2009 at 3:15 PM, ajm101 (32.88) wrote:

The generations that experienced some of the greatest struggles of the last 100 years - the Great Depression, WWI, WWII were also the ones that conceieved of an implemented Social Security/New Deal (1935) and Medicare (1965). 

Personal savings tools such as 401Ks (1980) and Roth IRAs (1997) are both products of generations that were almost a generation removed from even the Vietnam war.

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#3) On July 18, 2009 at 12:28 PM, AdirondackFund (< 20) wrote:

Uhmmmm, actually, you have this backwards.  The Baby Boom Generation has already been given the chance to earn their Life Income, and if they were wise in obtaining it, they ought to be wise in protecting it as well.  The problems here are simply being shifted to the current place in time which will prevent those who are young from achieving the same goal.  In fact, the Government Bailouts virtually assure that the next Generation will earn LESS than the current Generation, simply because of all the money that was given away to Wall St. Banks and will require payment through higher taxes.  For the Baby Boom Generation, a massive Deflationary Wave will serve to protect their purchasing power, in fact it will even augment it. 

Ahhh, the late 60's and early 70's.  I think John Lennon wrote about them in the song 'Tax Man'.  All things do come full circle. 

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#4) On July 18, 2009 at 6:15 PM, HarryCaraysGhost (99.61) wrote:

Actually John Lennon wrote the song Taxman about Europes tax practices. Many bands (Led Zepplin noteably) Would spend at least half a year in America to avoid the 50% tax rate.

Unfortunatly We seem to be headed towards the same socialistic practices that have never worked in the past and will never work.

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