Popular podcaster and blogger Deacon Hayes from The Well Kept Wallet joins us on the podcast today to talk pensions, holding individual stocks and credit unions that offer incentives that look like the lottery (interesting approach, huh?). Joe and OG discuss headlines about single parents saving for college instead of retirement and the S&P 500 that continues to roll while investors ignore stocks.
But the biggest part of today’s show comes from one of your letters. Anita asks us if it really makes sense for someone to pay 1% to an advisor if they’re doing all the things you really should be doing as an investor (buy and hold, maxing out your 401k, etc….). Our answer may surprise you.
SHOW NOTES
<> Open
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<> Headlines:
S&P 500 Beating World By Most Since 1969 But Doesn’t Spark Inflows
Education Trumps Retirement Savings For Single Parents
<> My Dad’s Shortwave
Our special guest is Deacon Hayes from The Well Kept Wallet.
Also on the call:
Paula Pant (AffordAnything)
Greg McFarlane (Control Your Cash & Investopedia)
The stuff we discuss:
Are pensions a ponzi scheme? – Fudiciary.com
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The creepy scene OG references:
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Do you have a link to the article talk about pensions? I know military pensions come under fire every year, and I’m curious how this will apply to them. If they ever go away, it would blow up retention for the military.
I’m forced into a pension like Deacon’s wife. Have two different contribution options. I choose the lower one and then use the rest of my pay myself first money to fund a Roth IRA. It stinks being forced into something, but I make so much more money every year because of the union in my area. Even if it’s not there when I retire, the difference in salary is still worth it. If it is there, the payout is amazing.
I think you made the right choice going with the smaller option. With so much left up in the air, who wants to be the one holding the empty bag?
Exactly. And opting out of the 401k as there’s no match and I truly expect my tax rate to be higher in retirement. It can’t get lower than it is now. But the pay difference, accounting for the potentially lost pension money is still 25% more than other areas that are not unionized. So I don’t really have too much to complain about.