Save and a Beauty

I hate to be the bearer of bad news, but you're not going to retire at 65. I'm not saying that there aren't exceptions to the rule. If you work on Wall Street, your firm may be coming off a record year in profitability in an industry that has proven it's Teflon even in the worst of times.

To those fortunate and successful enough to own their own businesses for a number of years, I say congratulations. Your company may be passed on to another generation, or sold outside the family at a sizable profit. But for the majority of us who still find ourselves immersed in the quicksand of corporate America, I'd recommend learning the rudiments of a cash register because you're headed for a retail job at the end of your career.

We've been brainwashed by the financial planners and by the many analysts on CNBC who like to toss around fancy terms like "dollar cost average", "diversification" and "compound growth." The problem with the suggestions of never timing the market, not putting all your eggs in one basket, and reinvesting profits is that they were all based on antiquated models. The world has changed, and the stock market has quickly followed.

The old mantras were based on a long term rolling averages of stock performance since the Great Depression. Unfortunately, that was well before airline passengers were placing bombs in their underwear and people were sold mortgages on property they couldn't afford. As a result, we're now all too familiar with what can happen to our portfolios when the bottom drops out.

So what can we do?

Save. We're a society of shoppers wanting the latest in technology, or hoarding up on clothes and shoes upon hearing about the next sale. We are surrounded by a sea of strip malls outside, and by retail websites when we're inside. You just break out the plastic, and you're off to the races.

Financial planners now tell us that we need at least 6 months of expenses sitting in cash in the event that you find yourself without a job. How many of us truly have that much on the sidelines.? Maybe it's time that our national pastime convert from shopping to something more constructive, like saving.

Then, maybe, just maybe our retirement years won't include asking about paper or plastic.