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Robert Rodriguez: "There Is No God Given Right To An Easy Retirement."
Bob Rodriguez of First Pacific Advisors provides a very gloomy outlook of what awaits the misguided American middle class.
"There is no god given right to an easy retirement. It was a fool's paradise. My parents and grandparents did not have an easy retirement. The world is unsafe and unstable. In this country, we had a perverse view of what reality was, and now that veil is being lifted, and i'm sorry but it's going to take a long time, and that long retirement of vacations may not be there."
hat tip Richard
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He's absolutely right. There is no god given right to an easy retirement.
There is only a god given right to create ad after ad promising that your financial services will promise an easy retirement.
Lets review...baseball(Cubs), hot dog(GE,CITI,AIG), Chevrolet (GM,FORD,Chrysler) are bankrupt...and now apple pie(golden retirement) is bankrupt too??? America, game over.
Imagine an asset manager blurting out THEIR anger...after convincing working stiffs to part with their money year after year, pie chart after pie chart, lie after lie. Gotta love these guys; when they lose it all, not theirs, their investors...well it's the stupid investor's fault. These people are absolute scum, don't know jack about the market and have lied themselves into a corner.
A-fucking-men
Near the end of the interview, he says it could take 8 to 10 years for the market to get back to where it was in '07. Everyone assumes that if you have plenty of time before you retire, the market will rebound to its previous levels. Isn't it possible that the S&P will grind all the way down to the 200 range and just linger sideways for a few decades?
~500
Given enough of a move toward socialism, it's not only possible but likely. Staying on the current policy trajectory is the road to serfdom - lifetime serfdom.
There is no god given right for anything in this country anymore. The motto of wall street is "Your Money is Ours now". Pirates who plunder and distribute the loot. It has been my belief and now it has been reinforced more that employee funded 401Ks are a tease and a conduit of liquidity for wall street. It is a 50:50 gamble that you will have more money than you put into this retirement casino.
absolutely agree - 401k funds are the fuel for the Wall Street engine
The massive bull market in U.S. stocks began in 1981. 401k came into existence in 1981. Coincidence?
in 1981 total US debt was $5 trillion. in 2008 it was $55 trillion. may also have something to do with it.
Correlation does not equal causation.
Many many other things happened in the early 80's, including deregulation and government generally getting out of people's lives a bit more so that they could breathe and make a couple of decisions without begging for permission from Big Brother.
Anymore? When has anything but liberty been a God given right? Now, liberty has been confiscated by the state (more and more each day) and the right to demand others pay for one's health care has taken its place. Just that nobody has figured out how to make that happen without Gulags. I'm sure those are coming.
Anyone who trusts their money to anyone else is a FOOL and an IDIOT, and over time, will be fleeced of it all. Oldest rule there is. The second you have money you have to learn how to keep it. No "trust" allowed in that equation whether you're a King or a commoner.
"You fucked up. You trusted us." - Bluto (John Belushi), "Animal House"
True dat...what can you expect from an industry(mutual funds) that goes around claiming they did an awesome job in 2008 becuse they only lost 25% of their customer's money (Hey, we crushed the S&P!)? They've sold the public that they should pay high fees on an annual basis for relative performance, when all that matters is absolute performance. A ten year old kid with a piggy bank has beaten practically every highly paid equity mutual fund manger out there.
So who is just figuring this out? It's been obvious from around 3000 B.C.
Trust? I don't even trust that the faces on Mt Rushmore will be there tomorrow.
Just because you've retired does not mean that your costs of living go down, but your income is almost certain to, and as you age your expenses are likely to increase as your health deteriorates.
Most average retirees i've known, including my own parents, were poor when compared to their working days. For many, if not most, the supposed "golden years" aren't so golden.
Great interview, definitely worth watching the whole thing.
So CAPTCHA asked me what 7x4 = ? And i have to respond with a single digit. Im a chalk that up to not suffeiciently determined.
There is also no God given right to make a profit in speculation, to make money on money, to make other people work for you and live off them and there is no right to inherit a fortune.
Amen to this.
Wow, so much hostility towards money managers. Not all of us are scum, by the way. There are a lot of us who don't charge exorbitant fees, work our asses off for our clients, and suffer right alongside them if the market goes down. I would caution against painting with too broad a brush.
Thank you. Well said. A number of us actually have the majority of our wealth invested in our funds and had our best year ever last year and our investors love us, thank you very much.
But, I wonder about people so critical of money managers in general....if you can do a much better job with your own money, why don't you? If your money manager lost 25% last year, what makes you think you wouldn't have been down even more if you managed your own money?
And what makes you think that it's all the money manager's fault? The SEC was screwing around with rules so much last year that most of us spent more time trying to figure out how to escape our investors being stomped to death by them than figuring out the best trades. Before you criticize the Mutual Fund industry, just remember that it's so heavily regulated that these managers often can't hedge effectively, so you're always long and thus short volatility. Of course, some managers are genuinely stupid. Happens in every industry. Maybe you're the dumbass in yours.
Yes, no reason to blame an entire profession because of a few-hundred-thousand bad apples.
no they're all scum. blame the entire profession
In collegium, they taught us this rational expectations hypothesis economie. they concluded: dont invest in housing- well they were right because housing went bust. they concluded: dont invest in stocks- well the stock market burst with goldman, bear,lemans, aig,citi all broke. so, didnt everyone learn these same conclusion when they went to the collegium?
He seems to be a truly good man and has his priorities in the right place. And i totally agree with his vison.
My god, I think that should be mandatory viewing for every investment advisor in the world.
Dont want to sound like a sap, but I love the comments you guys write.
I love Bob Rodriquez. I had the privilege of meeting him once a few years ago at an industry shindig out west. He wouldn't remember me, but I sure remember him. I personally own FPA Capital in a retirement account (along with Hussman). He's had the fund closed now for like five years. .
I have it on reliable authority that he's put almost all of his personal money into gold and moved it out of the country. This sabattical he's taking (this is hearsay) in 2010 is not in the US. Personally, I think he lied about what he thinks of the timing of the next crisis. I think he expects something very bad to happen within the next 18 months. That's just me speculating, so don't take my word for it.
Doesn't Hari Seldon usually show up at times like these?
Why don't people manage their own money?..because they don't manage money for a living dirt bag. Why don't teachers, doctors, ditch diggers plow through 4 years of accounting..or finance..or, in the case of "money managers" a 2yr program at a "money management" firm in which they get a series 7, 3, maybe 63 and 65..and some insurance licenses so they can "sell" these "products" to people that are not expert.
Its all about the trust. Most of these dirt bags know nothing about the markets, have never TRADED anything. They are salespeople that live off the fear and ignorance of others.
Go to ustreasury.org and buy U.S. bills, notes, bonds for free..and roll them over every time they mature for free.