As one who personally saw much of my hard-earned 401k vanish almost overnight when the Great Recession hit, I have been weary of the retirement scheme that replaced pensions as a consequence of Wall Street’s influence in Washington. And now a financial apocalypse is happening again.
The Fed’s monetary policy appears to be primarily designed to do prop up Wall Street at the expense of average Americans. Over the past decade, the rich got richer while most people still struggle. And with the current market crash, I fear dark times are ahead.
But don’t take my word for it. Here’s are some insightful articles every Baby Boomer with their future wrapped up in a 401k should read:
Most analysts outside of Wall Street are now wary of the stock market. They foresee a deep recession unfolding. It was coming sooner or later. The coronavirus crisis provided the perfect storm.
Investment advisors will caution, “This too will pass. Stay the course. Invest for the long term.” But what if you are sixty-five, retired or out of a job, and living off social security and your 401k? There isn’t time to make up your losses, especially going into a bear market. Nope, it’s time to circle the wagons and regroup with a plan B.
Strategic changes in the structure of retirement plans are a likely outcome of the current crisis. The stock market has never been the ideal vehicle to ensure financial security for the majority of Americans. And I expect we will see discussions over the next several years resulting in the emergence of new models based on the reality of the “man on the street,” not just those making high wages or the super wealthy.
Other than warning against listening to baised wall street pundits whose income depends on your continued investment, I have no wisdom for Baby Boomers at this moment. A lot depends on your age and the remaining number of earning years you have…if you still have a job, that is. Hopefully, your 401k is at least diversified to mitigate risk because it’s going to get ugly out there.
I do wish I had some sage advice to offer to my fellow Boomers. I don’t. I urge you to assess your current financial status and plan accordingly for difficult times. Salvage what you can and reassess your retirement plans.
As for the long-term economic outlook, there are people a lot smarter than me grappling with the issues of financial inequity in the United States. I’m optimistic that answers can be found. Other countries have figured out how all their citizens can enjoy a decent standard of living.
Most Boomers do sense that wealth distribution in American has been been tweaked to benefit those at the top at the expense of the rest of us. We are drifting into an oligarchy. And that cannot be allowed to happen.