My Thoughts on the History of Retirement, Part 2

If you missed last week's introduction to the History of Retirement, click here.

Now, let's continue the retirement saga:

The Big Payoff

The big payoff came in 1935 when a Californian, Francis Townsend, proposed the government pay all those who retired $200/month at a mandatory retirement age of 60. In response, FDR proposed The Social Security Act of 1935, which made workers pay for THEIR OWN retirement. 

The Great Migration

A great migration to the south began in the 20’s and the 30’s to places like Florida. Golf courses doubled and tripled during these times. Activities called leisure time had seniors and the elderly working at play.

Age Without Change

New organizations and magazines sprung up everywhere. Old-fashioned trailer parks were turned into "Retirement Communities." Del Webb started upscale communities to service all those chomping at the bit to get to work at leisure activities with their own kind. "The Villages" concept communities were born. Stepford-like cities sprang up, relying on golf carts as a major means of transportation. Golf courses were shortened, giving the residents the illusion of age without change!

As a follow up and conclusion to this piece, I will give you the one word answer I am giving to our current clients regarding retirement and how to figure out how to fund it in advance. Talk to you next week.

For more videos and insider secrets, go to our site at www.enspheremg.com or contact Chris directly.

Mike Giffin, Ensphere Marketing Group

My Thoughts on the History of Retirement, From Early Man to A.A.R.P.

This week, I want to share with you my synopsis of an article written in the New York Times by Mary-Lou Weisman over 15 years ago.

Let's take a look at the History of Retirement:

In the Beginning

There were no old people. Everyone was fully employed, and most died around age 20. Retirement planning was non-existent. 

Elder Hostile

Centuries passed, and the number of gray beards was reaching critical mass. Some, in an effort to get their hands on their inheritances, committed patricide. This was a rather messy but effective way to handle the problem, a bit like our current death panels proposed in today’s health-care solutions.

Bismarck Invents Retirement

In his infinite Marxist wisdom, Chancellor Otto Von Bismarck of Germany decided that anyone who lived to be 65 would thereafter be taken care of by the government. Sound familiar to anyone? Of course this was 1883, and as we know, hardly anyone lived to age 65. He did, however, set the benchmark we live by 132 years later.

If this is starting to make sense, I want you to remember, WE let them create the concept of retirement so the wizards of the Banking Industry and Wall Street could remain extremely wealthy!

Pasture-izing the Elderly

A world-renowned physician from Johns Hopkins, William Osler, suggested that between ages 25 and 40, workers were in their period of plenty. Between 40 and 60, we were simply uncreative and therefore tolerable, but after age 60, workers were "useless" and should be put out to pasture. Whoa!

Guess what? You will have to check in next week to hear more of the History of Retirement and as a bonus hear my very own best advice on Retirement Planning. Until then, try to keep the anxiety and worry to a minimum. Life is meant to be lived!

For more videos and insider secrets, go to our site at www.enspheremg.com or contact Chris directly.

Mike Giffin, Ensphere Marketing Group

Why your advisor puts your money in Mutual Funds

I came across an article last week where a friend of mine was discussing how advising companies like to put your money in mutual funds.

The Mutual Fund companies have a cost-sharing agreement with the broker/dealers where they will actually pay for space on the shelves of the investment company. This is similar to where Count Chocula appears on the shelf in the grocery store so your kids will ask their parents to by the sugar-laden cereal they can see at THEIR eye level.

If you pay close attention, the cereal with the most nutrition is usually on an upper shelf, where Post and Kellogg hope you don’t look. It's an age-old marketing strategy that has been employed for 50+ years. This same technique is used by today's mutual fund companies. Advisors and their B/D's use well known companies (American Funds), then share in the profits. The profits come from your returns.

Next week, I will further explain why the Mutual Fund companies don’t go to cash in a down market. It’s always the same advice: stay in the market for the long term and you will be fine. What if you need the money NOW!!! Also, does managed money outperform a basket of Mutual Funds? Tune in next week and find out.

For more videos and insider secrets, go to our site at www.enspheremg.com or contact Chris directly.

 

Mike Giffin, Ensphere Marketing Group

Do you know what this means?

This week I'm borrowing a 30-second video from Met Life.

Watch this video and tell me what it means to you in one paragraph or a maximum of 4 sentences. Our office professionals got it, but I’m not sure the public does?

Oh by the way, for those who get it correct, you will receive a free subscription to our insider secrets. Email me or leave a Facebook comment with your best answer. There is no embarrassment in not getting it.

One of the goals in our firm is to educate clients. The educated client understands why a well written strategy and mindset is far superior to owning products you don’t comprehend! 

For more videos and insider secrets, go to our site at www.enspheremg.com or contact Chris directly.

Mike Giffin, Ensphere Marketing Group