Comments on: Ben Stein: 3 Biggest Retirement Mistakes

By: JD

JD — Fri, 13 Apr 2012 02:18:50 +0000

To know the truth about any proposed solution there should to be supporting evidence. Regardless of the persons making the proposition, the truth supports itself. I find it very interesting how many people regurgitate what others say without asking them to provide proof for their proposition. In general Ben made some good points but I cannot agree with some of the things that he said. First, I disagree with the definition for “Being Diversified.” Stock Market history tells us that the market is a very risky place. If the purpose of being diversified is to reduce risk then that is the benchmark, period. Is it possible that there are investments that are not subject to market risk? I know that there are. Unfortunately most of the people giving advice have something to gain from our participation in the movement of market whether it moves up or down so there is an inherent bias in their advice. Secondly, If the goal is to retire with reduced risk, the 401K or 403b “differed taxation” is certainly not the way to go; besides, have you looked at your statement lately? I believe It is important to know that taxes will be lower when my working days are over based on the decisions and choices I make today. A Roth IRA would be preferred retirement vehicle if you must participate in Market based investments.

By: Brian

Brian — Thu, 29 Nov 2007 19:59:33 +0000

I get pulled in two directions when I see stuff like this. Yes, his message is sound. However, his message is severely weakened by the poor role model he sets. I think that the majority of people who really need this advice will think, “Easy for him to say, he’s an old white guy who made a bunch of money by being famous.”

Which one of his eight houses did he fly from for this interview again?

By: Kirk

Kirk — Thu, 29 Nov 2007 16:13:51 +0000

These are the core tenets of building wealth:

1. Save: Unfortunately, our nation has a negative savings rate so we need to do a better job of this.

2. Diversify: Even folks who focus on diversification do a poor job of this. Most investors are loaded with US stocks and bonds. To be truly diversified, your portfolio needs several asset classes with low correlations to one another. Think of adding REITs, commodities, TIPS, international equity/bonds, etc. to your stock and bond portfolio.

3. Spending: Before I knew anything about saving or investing, my parents taught me to never spend more than you make. This is the backbone to a wealth building strategy.

I hope Ben can get his message across to the youth in this country who really need to learn these three tenets. Of course, he probably won’t be able to do it if he fails to rise above his character performance in Ferris Bueller’s.

By: Flexo

Flexo — Thu, 29 Nov 2007 15:28:07 +0000

Perhaps I’m putting words into Ben’s mouth, but according to the interview, he feels the risks of bonds other than Treasury bonds (particularly in an environment where terrorism and hyper-inflation are threats) don’t justify the low returns. So while bonds have their purpose, Ben believes they’re not ideal for reducing risk in one’s asset allocation.

By: Madison

Madison — Thu, 29 Nov 2007 15:17:05 +0000

He feels bonds are useless? Wow. That’s a pretty harsh statement. Bonds are a critical piece of setting up asset allocation, and are not the same as cash or money market funds.

By: Michael B. Rubin

Michael B. Rubin — Thu, 29 Nov 2007 14:24:56 +0000

National Retirement Planning Week gives the media a reminder (excuse) to once again pay attention to American’s abysmal saving habits. But most of the time telling people to save more is like telling alcoholics to drink less.

Good advice, but it’s going to take a bit more.

Too many folks fear they will need to begin living a “cheap” life in order to be able to save. The result is procrastination.

Instead, being fiscally responsible every once in a while will have a huge long-term impact to your savings (and retirement) without the huge impact to your current lifestyle. That’s achievable and a great way to start.

By: The Saving Freak

The Saving Freak — Thu, 29 Nov 2007 13:58:10 +0000

I would put get out of debt as number one. Getting out of debt (except for our house) has been the spring board to better financial living and retirement savings.