The Jeff Dixson Show "The Retirement Coach"
About This Show
THE JEFF DIXSON SHOW- is an hour long program that airs weekly on KEX News Talk 1190 and KXL 101.1 FM. Jeff Dixson, “The Retirement Coach”, is the President and Chief Financial Advisor at Northwest Financial & Tax Solutions and has educated thousands across the Portland metro area on how they can better preserve protect and grow their assets. Visit jeffdixsonshow.com to learn more about Jeff and Northwest Financial & Tax Solutions.
Most Recent Episode
Are You Invested Like It's the 1970's?
In my public financial workshop series, I address the idea of “retirement planning for the 21st century”. Would you agree that the world we live in today is different from the world we all grew up in? Why then, do we continue to save and invest our money in the way our parents and grandparents did? Most employer retirement plans in the 1970s and 1980s were what are called defined benefit plans.
A worker’s pension was usually tied to a retirement formula involving his length of service and final salary. This meant employers didn’t really know what a worker’s pension would be until the worker actually retired.
They guessed, but they often found themselves with underfunded pensions. To give themselves more predictability, businesses began to shift from traditional defined benefit pension plans to defined contribution plans. In a defined contribution plan, businesses do not promise a particular pension amount. They only promise to contribute a certain amount to each worker’s’ retirement account.
The Government moved quickly to authorize these new types of pensions, which are now generally known as 401k plans, after the paragraph in the tax code that gives them tax deferred status.
The switch from defined benefit to defined contribution plans happened quickly. 35 years ago 84% of people retired with a pension.
Today that number is under 20%.
Corporate pensions have gone by, and for the most part what is left is government pensions. Americans see it as their right to retire at 64, 65 or 67 years old… but with this new age of retirement, where the responsibility of your success falls directly on your shoulders, many people struggle to put together a long term plan that will sustain their lifestyle for the next 10, 20, 30 or even 40 years in retirement. People are living longer today than ever before. According to the Social Security Administration, one out of every four 65-year-olds today will live past the age of 90, while one in 10 will live past 95.
This is a drastic difference from the retirement of our parents or grandparents, when retirement lasted a much shorter period of time.
Rated 5 out of
Been listening to the show for a while and it always has great information. I appreciate their conservative guidance.
Date published: 2015-07-30