No Trust in Big Brother – A Lesson in Irony

02 Sep 2014

As I listen to our younger generation, I often wonder how they will do in retirement. The statistics are not good. According to a recent column in the Sunday Review (4/12/12), only 43% of eligible workers under 25 and 62% between 25 and 34 participate in 401k plans. This is low compared to the 70% or more of those over 45. Additionally, those under 25 contribute only 4.3% of their income to 401ks compared to 8.7% of those between 50 and 55. Much of the evidence is showing that members of Gen Y, those born after 1980, are poorer than their parents were at similar ages.

When I listen to their distrust of “the system” and their lack of faith in Social Security and underfunded pensions, I often ask them a simple question, “So with all of this distrust, how much have you set aside for retirement?” More often than not, their response is, “Not much” or “I can’t.” The irony in all of this is that they are heading towards a retirement scenario in which they will be almost completely dependent of the system they distrust.

So, if you are a Gen Y’er and you are distrustful of “Big Brother”, then open yourself an IRA or enroll in your 401k. Don’t fall into the trap and end up 100% dependent on the system that you lack faith in.

 

Good Luck!

Jeffrey A. Johnston, ChFC
Investment Advisor Representative

 

Securities offered through Registered Representatives of Cambridge Investment Research, Inc., a Broker/Dealer, Member FINRA/SIPC. Advisory services offered through Cambridge Investment Research Advisors, Inc., a Registered Investment Advisor. Cambridge and Premier Investments of Iowa, Inc. are not affiliated.

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Jeffrey Johnston

Jeffrey is originally from Solon, Iowa. He currently resides in Swisher, Iowa with his wife, Prudence, and his three children, Seth, Ian, and Roman. He graduated from the University of Northern Iowa in 1989, where he majored in Finance and Investments. He has 24 years of experience in the investment and estate planning business. He is currently the President of “Premier Investments of Iowa, Inc.” Jeffrey’s main focus is Estate and Investment Planning for Senior Citizens and Pre Retirees. Jeffrey became a Chartered Financial Consultant (ChFC) in 2001. He is the author of many articles on industry related topics and he is a frequent seminar presenter. He is a Board Member TRIAD Linn County Seniors Against Crime, and he is also a past Board Member of the Heritage Area Agency on Aging Task Force. He is a member of CEO Roundtable in Cedar Rapids, a Daybreak Rotary Member, and a member of the Cedar Rapids Estate Planning Council. In March of 2009, Jeffrey became the host of the Premier Investments of Iowa Financial Hour which airs every Tuesday Evening from 6PM -7PM, on WMT 600 AM Radio. In his free time he enjoys golf, fishing, scuba diving, traveling, and coaching son’s basketball teams.