Monday, October 18, 2004

a BIG problem

Although I hope that Bush wins this next election, there is going to be a very large problem facing the nation. FINACIAL EDUCATION!!!
With Bush's plan to let people invest their social security dollars and to have a Health Savings Account people will be much better suited to retire later in life IF:

1. People understand the value of saving and investing
2. People understand how to save and invest
3. People will save and invest

Most Americans live life day to day without thinking about their own future. Social Security was supposed to be a problem solver and let people save for their future without having to think about it. The solution became a bigger problem. In the 70's people were able to start saving for their retirement using tax differed savings like IRA's and 401K plans. People were not "required" to start saving in these accounts and therefore most did not participate in them. Today people have the opportunity to save in a myriad of accounts that are either tax differed or tax free; however, most people do not take advantage of these programs.

The problem somewhat solved. MORE EDUCATION!!! Just what GW wants to do; however, the government must focus on financial education for children early so that they are not afraid of money. People need to know that having money is not a bad thing, and investing money properly can help a person earning only $40,000 a year retire a millionaire.

The government also must help low income families realize there is a way out. Financial education and support for families making less than $30,000 a year is important to breaking the cycle of poverty and welfare.

Make a government certification for financial planners. I can tell you how to invest in the stock market. Take your hard earned dollars and buy a stock. Diversify your money by buying mutual funds. There is your financial planning.

Many people believe that, and they are suckered into a market that will bankrupt them faster than they can blink. We need to be able to trust our financial planners, but more importantly, we need financial planners that do not have hidden agendas. Government can and should be able to help with this problem.

A penny saved is a penny earned, but people need to know how to make that penny earn them enough to retire on!


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