How current workers envision their future retirement differs greatly from the reality being experienced by people who are now retired. However, this time the disconnect may be an indication of unusually realistic thinking. According to a new study from the Pew Research Center, a non-profit "fact tank," 77 percent of current workers expect to continue working at least part-time in retirement--way more than the 12 percent of current retirees who work and the 27 percent who ever worked for pay during their retirement.
Matt's View
Usually when we read about a gap between retirement expectations and reality, we hear about the high number of people who are saving far too little and yet are quite confident of a comfortable retirement. So, it's a refreshing sign of sensible thinking that most people are expecting to work in their later years. Many people may, in fact, need the money. And, even for those who don't, research has shown that continuing to work past the traditional retirement age tends to foster improved health, a better sense of connectedness, and even a better marriage.
What makes one person a saver and another a spender? Income? Education? Genes? What about where a person lives? A.G. Edwards has identified the communities where residents do the best at building wealth. As reported on Yahoo Finance recently, the company examined 12 financial factors--everything from retirement plan participation to credit card debt--among residents of all 50 states and more than 900 individual towns. New Jersey came out as the state with the highest proportion of super savers; Los Alamos, New Mexico was the top city. You can find out where your city and state rank by going here.
A.G. Edwards also produces a national Nest Egg Score, a multi-dimensional quarterly analysis of the saving proficiency of the United States as a whole. The third quarter score stands at 631, which the company deems "fair." To see how your individual score compares, go here.
Matt's View
The ranking of communities brings up a question about cause and effect. Do the areas that ranked highest tend to foster good saving habits among their residents or are the residents' behaviors independent of any such community influence? The authors of The Millionaire Next Door concluded that where one lives has a significant impact on their financial habits. Move into a neighborhood where people tend to earn more than you and you will likely soon find yourself spending more in an unintentional quest to keep up. So, perhaps those who aspire to save more should consider moving to a top nest egg building community. Keeping up with the Joneses in those towns would be a good thing.
During the last quarter of the year many charities dial up their fund-raising efforts. An article in the Chicago Sun-Times on 9/18 gave some good counsel for deciding which causes to support. It recommended seeing what Charity Navigator and GuideStar have to say about organizations you're considering. Both rate charities on a variety of measures, including what percentage of their funds goes to program expenses as opposed to administrative and fundraising costs.
Matt's View
I found the Charity Navigator site to be more user friendly, as GuideStar requires some user information before providing feedback on requested charities.
In a related story, a federal law passed this year will soon make giving a bit more complicated. Among other things, if you itemize deductions on your tax return, receipts will be needed for all cash donations, seemingly even for coins dropped in Salvation Army kettles. The law also requires that donated items worth less than $500 be in "good" condition or better. No more using Goodwill and the Salvation Army as depositories for broken bikes and tattered jeans. The new rules go into effect next year.
MONOPOLY purists may be dismayed by the just-released "Here & Now" edition of the popular board game. Virtually everything has changed. As reported by the New York Times, Boardwalk has been replaced by Times Square; the railroads have been replaced by airports; and the reward for passing "Go" has zoomed from $200 to $2 million. But the biggest change is the introduction of branded game pieces. The vintage racecar has been replaced by a Toyota Prius; the old shoe has been replaced by a New Balance running shoe. And there are three other branded pieces: an order of McDonald's French Fries, a Starbucks coffee cup, and a Motorola RAZR cell phone. A spokesperson for Hasbro, which makes MONOPOLY, says the brands did not buy their way into the game; they were chosen because they represent American culture. However, at least some of the brands have other business deals with Hasbro.
Matt's View
I'll leave the kicking and screaming to Commercial Alert, a non-profit organization dedicated to "protecting communities from commercialism." Jonathan Rowe, issues director for the group, suggested that Hasbro really should have called the new edition 'Huckster Haven.'
For my part, I prefer the peaceful protest of refusing to do business with companies that use what I consider aggressive marketing tactics aimed at children in the same vein that I try to avoid buying products made in China. Marketers would have us believe that our identity is based on what we buy. Wise money managers know that sometimes the most powerful way to express who we are is choosing what not to buy.
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