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Not at all. I "hyped"the program in advance so folks would watch. We were traveling & it aired so late in our vicinity I didn't see all. So, glad you linked it. Probably "fair - middling" overall quality. But gets into funds and fees. Worth a watch. Thanks again.
I watch something like this and I'm constantly surprised at the number of people who say things like "...I had this 401k plan that I was putting $xx,xxx into it every year and I didn't look at / can't figure out what's in my portfolio...", or, "...I sat down to read a prospectus, and I couldn't figure out what the difference between a stock and a bond is...", or "...I thought the market would go up forever...".
I'm reminded of the column, a year or two ago, by the NYT lead economic writer who admitted his folly in buying more house than he could afford and even borrowing against it to fund other stuff.
Not everyone need be a high-flying trader, but you should at least put as much thought into picking your funds and managing your money as you do choosing which coffee or beer to buy.
(Of course, this is not to say that the 401k industry isn't underhanded; I'm very disappointed by the range of funds offered by new employer, and even more frustrated to talk to my HR rep who is the liaison for the 401k plan and has very little sense of what diversification or risk are...).
Reply to @Shostakovich: All good points Shos. I guess the underlying question here (perhaps not directly addressed) is: What does society do with all the folk who will grow to be 75, 85 or 100 - NOT having planned for those years? I was young once - and assume everyone here was too. I will say - the Bob Cs, Investors, & Davids are a tiny minority compared to all those who do not view financial planning to be as important as what brand of beer to buy or how jazzy a rig they need to drive in their younger years.
Sadly - I belonged to the later group. Fortunately, have a DB pension and SS to compensate for my earlier neglect. Tomorrow's seniors will likely have neither to fall back on. Now - if these carefree "20 & 30 somethings" were reading MFO, they'd at least have a clue. But, what are the chances of that?
While there's for sure a huge need for better financial knowledge out there in the general population, I think that shouldn't be the only focus: the corruption, self-dealing, and conflicts of interest that are rife in the financial industry have to be addressed if there's going to be any hope of a non-catfood retirement for the average citizen.
Reply to @AndyJ: Thanks for adding that. I recall you viewed the full program (I haven't yet). Certainly, the program's title suggests you are closer to its main theme.
Reply to @hank: I recall a conversation I had with my sister-in-law several years ago when she was visiting from Europe. I was looking over a correlation matrix I had generated in an effort to optimize fund choice for my Roth account. She asked what I was doing. I explained in great detail my research, Monte Carlo simulations, and so forth. She (who is covered by a pension via her employer) then asked "but what do people who don't have your skills do?". I had no answer. I have no answer now. Certainly the PBS documentary brought to my attention for the first time the forces which brought about the great shift from pensions to 401k's. It angers me almost as much as the bonuses paid out at big banks following the Great Recession.
I understand that studying financial investments is not everyone's cup of tea. I undoubtedly would get fleeced buying a new car. Still, I would hope that for something that is so important as retirement, and which consumes so much of one's earnings, is at the forefront of more people's radar screens. And the NYT economy columnist who dramatically over-extended himself, or the think-tank guy featured in the PBS documentary really have to take a good hard look at themselves. Older people probably still came of age in an era where there was more fundamental trust of institutions; I see this in my parents at times and it saddens me that it cannot be so.
The financial services industry has by no means made it easy for the casual investor (and even Jack Bogle and Vanguard have their own interests to serve), and so I approach them with skepticism. And we in the US live a culture where we're bombarded 24/7 with messages stressing quantity of life over quality of life; everything is a product, we think only for the moment, common sense and financial education are often at a very low level. Circumstances in my life early on caused me to question such messages, but I still struggle to maintain a proper perspective at times. My only answer has been to remain vigilant and empirical and to fight (with mixed success) what I'm sure are very common tendencies. My wife, who I am blessed to have, has also provides an anchor of financial conservatism and common sense when I am otherwise lacking.
Comments
I'm reminded of the column, a year or two ago, by the NYT lead economic writer who admitted his folly in buying more house than he could afford and even borrowing against it to fund other stuff.
Not everyone need be a high-flying trader, but you should at least put as much thought into picking your funds and managing your money as you do choosing which coffee or beer to buy.
(Of course, this is not to say that the 401k industry isn't underhanded; I'm very disappointed by the range of funds offered by new employer, and even more frustrated to talk to my HR rep who is the liaison for the 401k plan and has very little sense of what diversification or risk are...).
Sadly - I belonged to the later group. Fortunately, have a DB pension and SS to compensate for my earlier neglect. Tomorrow's seniors will likely have neither to fall back on. Now - if these carefree "20 & 30 somethings" were reading MFO, they'd at least have a clue. But, what are the chances of that?
PS : Anybody have the age demographics for MFO?
http://www.marketwatch.com/story/how-madoff-cost-my-family-a-job-a-401k-and-a-worthy-cause
While there's for sure a huge need for better financial knowledge out there in the general population, I think that shouldn't be the only focus: the corruption, self-dealing, and conflicts of interest that are rife in the financial industry have to be addressed if there's going to be any hope of a non-catfood retirement for the average citizen.
Seriously, that's a really good question. Maybe we could try a poll thingy to give us a rough idea of our age brackets?
I understand that studying financial investments is not everyone's cup of tea. I undoubtedly would get fleeced buying a new car. Still, I would hope that for something that is so important as retirement, and which consumes so much of one's earnings, is at the forefront of more people's radar screens. And the NYT economy columnist who dramatically over-extended himself, or the think-tank guy featured in the PBS documentary really have to take a good hard look at themselves. Older people probably still came of age in an era where there was more fundamental trust of institutions; I see this in my parents at times and it saddens me that it cannot be so.
The financial services industry has by no means made it easy for the casual investor (and even Jack Bogle and Vanguard have their own interests to serve), and so I approach them with skepticism. And we in the US live a culture where we're bombarded 24/7 with messages stressing quantity of life over quality of life; everything is a product, we think only for the moment, common sense and financial education are often at a very low level. Circumstances in my life early on caused me to question such messages, but I still struggle to maintain a proper perspective at times. My only answer has been to remain vigilant and empirical and to fight (with mixed success) what I'm sure are very common tendencies. My wife, who I am blessed to have, has also provides an anchor of financial conservatism and common sense when I am otherwise lacking.