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Old 09-20-2011, 12:44 AM
 
5,128 posts, read 5,846,404 times
Reputation: 8396

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Quote:
Originally Posted by Texas User View Post
Why do you chose to live this way?
This happened to one of my relatives.

They retired with a lump-sum of money and went to a financial planner at Fidelity. Fidelity (may they rot in Hell) was the worst mistake they ever made.

They immediately wanted to pay off the house, but the Fidelity financial planner talked them out of it. They were told to keep making payments so they could deduct the interest from their taxes. This is lousy advice for retirees.

The financial planner portioned out the money in various investments. They were told there was a designated amount of money they could safely withdraw every year. A smaller amount went into stocks to reduce risk since they were already retired.

So they were withdrawing the set amount each year until they found out a year ago that they were not withdrawing interest; they were actually drawing down their principal because of the way it was set up!

They were in shock. They had drawn down nearly everything. Not long after that revelation, the portion that was in stocks was wiped out with the economic meltdown.

They found out later that the stock portion could have been set up so that they couldn't lose their initial investment, but they were never told about that plan even though it was available. And of course the main investment could have been set up differently.

So now they're in their seventies, living on social security, with zero retirement savings and still paying a mortgage. They got very little benefit from their own money since the financial planner bungled it up so badly.



They would have done better to research and plan it themselves instead of relying on the incompetent Fidelity financial planner. If they had relied on their own counsel, at least the house would be paid off.

The moral of the story is to never do anything you don't thoroughly understand. Read about investing and read the damn fine print!

Don't TRUST.

 
Old 09-20-2011, 04:14 AM
 
Location: Grove City, Ohio
10,134 posts, read 12,387,762 times
Reputation: 13984
Quote:
Originally Posted by Cattknap View Post
I'm appalled at the OP's tone.......life happens and sometimes people have absolutely no control over adverse circumstances....and some people, Heaven forbid, actually make mistakes that they can't fully reverse. I believe there are many people who rely primarily on social security for their income - we don't know why that is and really it isn't our business is it? Forty years ago no one would have blinked if you told them that you were relying on social security to be your primary support in your retirement years.
Tens of thousands of people had their life savings and retirement dreams pinned on WorldCom, Enron and Bernie Madoff.

Like you they thought they were smarter than most and certainly more sophisticated. I am sure many who had invested at one time scoffed at social security, many wishing they could opt out saving thousands in taxes for a program meant for 'the little people'.

Nothing is sure in this life and that fantastic retirement fund you seem to be gloating over can turn to pig mud in the blink of an eye.
 
Old 09-20-2011, 04:53 AM
 
Location: SW MO
23,605 posts, read 31,487,261 times
Reputation: 29071
Quote:
Originally Posted by Texas User View Post
Obama does not think that way.
And his campaign is paying you how much for these posts? Bet they donate the kool-aid as well.

I love 30-something, life experts. They're so amusing!

I've yet to come across a present-day politico with a true lock on how to protect and expand the best interests of our country. As one who worked in politics for the better part of 20 years I can assure you that their primary emphasis is to remain in office and rise to the next higher one. If you want to know where they really stand, just follow the money - the "Mother's milk of politics!" (Jesse "Big Daddy" Unruh, Speaker of the California Assembly 1961-69).

Last edited by Curmudgeon; 09-20-2011 at 05:11 AM..
 
Old 09-20-2011, 05:43 AM
 
Location: Prospect, KY
5,288 posts, read 17,960,936 times
Reputation: 6544
Quote:
Originally Posted by nicet4 View Post
Tens of thousands of people had their life savings and retirement dreams pinned on WorldCom, Enron and Bernie Madoff.

Like you they thought they were smarter than most and certainly more sophisticated. I am sure many who had invested at one time scoffed at social security, many wishing they could opt out saving thousands in taxes for a program meant for 'the little people'.

Nothing is sure in this life and that fantastic retirement fund you seem to be gloating over can turn to pig mud in the blink of an eye.
??? I have no idea what you are talking about - is your remark directed at me?
 
Old 09-20-2011, 06:56 AM
 
Location: Grove City, Ohio
10,134 posts, read 12,387,762 times
Reputation: 13984
Quote:
Originally Posted by Cattknap View Post
??? I have no idea what you are talking about - is your remark directed at me?
Not at all.

I was expanding on your remarks.
 
Old 09-20-2011, 06:59 AM
 
Location: State of Being
35,885 posts, read 67,172,097 times
Reputation: 22373
Quote:
Originally Posted by Texas User View Post
I don't see how high income is based on being rich. You can make $1 Million a year and be in debt.
LOL. Very very true.
 
Old 09-20-2011, 07:07 AM
 
Location: Prospect, KY
5,288 posts, read 17,960,936 times
Reputation: 6544
Quote:
Originally Posted by nicet4 View Post
Not at all.

I was expanding on your remarks.
Thank you - I looked at this when I first got up this morning - I was a little groggy
 
Old 09-20-2011, 07:11 AM
 
Location: State of Being
35,885 posts, read 67,172,097 times
Reputation: 22373
Quote:
Originally Posted by nicet4 View Post
Tens of thousands of people had their life savings and retirement dreams pinned on WorldCom, Enron and Bernie Madoff.

Like you they thought they were smarter than most and certainly more sophisticated. I am sure many who had invested at one time scoffed at social security, many wishing they could opt out saving thousands in taxes for a program meant for 'the little people'.

Nothing is sure in this life and that fantastic retirement fund you seem to be gloating over can turn to pig mud in the blink of an eye.
Absolutely the truth.

Most folks who have worked for 40 plus years and are now retired or looking at retirement (or at NOT being able to retire!) never expected to "depend" on social security. However, they were fully aware that the money was being taken out of their checks and invested for them, as a safety net (gubment term, not mine!) should they need it.

Anyone who has weathered the ups and downs of the economy since the 60s, raised a family, put kids through college, bought a home - has very likely also faced some medical situations (hope they had insurance!), could have lost a spouse, may have been in an accident, likely served in Viet Nam, may have found themselves scraping by for a lot of those years without much $$ to put into ANY fund. Or they could have had money and lost a sizeable chunk of their assets with a divorce. LIFE HAPPENS, to paraphrase John Lennon.

I honestly don't know anyone who graduated w/ me from high school (and the guys were facing VN draft, may I add) . . . who said "Gosh, I hope the next 40 years, I work my arse off, be a good parent, employee and citizen, have a vacation now and then, see my kids off to college, do a little fishing (or gardening, or make some pottery) . . . and find myself at 65 (fill in blank: still in debt, in bad health, raising grandchildren and living on a string, as a widow w/ no assets, etc).

Ask the folks who had their pensions invested in funds that held WorldCom or Enron in them how they feel about scraping and saving and then seeing it go <poof>.

No one at 18 looks ahead and says - "I am gonna take a low-paying job, barely scrape by, end up w/ two divorces, disabled, and living in subsidized apartments eating cat food at 65 on a SS payment of $660./month."

Life happens.
 
Old 09-20-2011, 07:13 AM
 
Location: Coastal New Jersey
56,093 posts, read 54,581,442 times
Reputation: 66491
Quote:
Originally Posted by Hillrunner View Post
I wonder why some people choose to play passive-aggressive, Monday morning Quarterback. Judging from your questions and answers, your idealistic youth and wet behind the ears attitude tells me that our future does not look bright.
It sounds to me like an updated version of "Women get raped because they wear short skirts. I don't wear short skirts, therefore, I will never get raped."
 
Old 09-20-2011, 07:18 AM
 
Location: The Land of Reason
13,300 posts, read 10,497,579 times
Reputation: 3541
Quote:
Originally Posted by Texas User View Post
Why do you chose to live this way?

Did you plan for your retirement at all in your early years?

Not enough education on investments and how money works?

Unfortunate life events? (Disability, Long-term unemployement in your career, very low-income earnings, etc)

How about the vast majority of the population now on Social Security were not:
1. Born with a silver spoon
2. Never had a chance to save, considering many of them lived through the depression
3. May not had a job that had any kind of investment plans such as 401k
4. Were only taught to save and not to invest
5. Were never giving the opportunity to an education as to how to invest

I really think that people who did have the opportunity to plan for their retirement should not thumb their noses at those who did not
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