New Yorker Cartoon Considers 401(k)s

New Yorker cartoonThis New Yorker cartoon by Trevor Spaulding is cute, but – spoiler alert – it’s not quite right.

A company offering a 401(k) retirement savings plan to its workers is a good thing, but it’s no “favor,” noted my long-time editor Steve Sass, an economist with a hawk eye for inaccurate retirement information. Setting up and funding a 401(k) is a big expense for employers. But many think it is worthwhile, because 401(k)s – and, more so, employers’ matching contributions – help them attract and retain the sharpest, most productive, or most-skilled workers.

Another employer calculation is that the income tax deduction employees get for saving, which costs the employer nothing, is especially valuable for those on the payroll who earn the most money and, by definition, pay more taxes.  It’s a neat outcome that the tax deduction most helps those presumably doing the most for the bottom line, though the government does limit how much highly compensated employees can contribute based on how much the rank-and-file workers are contributing.

But, it’s no fun to criticize a cartoon!Learn More

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Baker’s Dozen: Popular Retirement Blogs

Appropriately, the most popular blogs over the past six months were about retirement, among both the young adults looking ahead to it and the later baby boomers heading toward it.

Based on page view counts, here were the most-read blogs on Squared Away during the last six months of 2017:

Retirement Calculators: 3 Good Options

Why Many Retirees Choose Medigap

Reverse Mortgage: Yes or No?

Why Most Elderly Pay No Federal Tax

The 411 on Roth vs Regular 401ks

Medicare Advantage Shopping: 10 RulesLearn More

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Happy Holidays

However you celebrate, we wish you a wonderful holiday season and coming new year – from the staff here at the Squared Away blog at Boston College.Learn More

Financial Videos’ Message: Please Deal

Reflecting a lofty ambition to educate Delaware residents about financial management, state government officials put together some terrific videos.

This is not high-level finance – the speakers tell stories about real people facing up to the dimensional challenges of money and retirement.  Viewers outside Delaware might find one of the 10 online Tedx talks valuable to them. Here are three:

Javier Torrijos, assistant director of construction, Delaware Department of Transportation:
His take on the immigrant experience in a nutshell: “The parents’ sacrifice equals the children’s future,” said Torrijos, who has two sons and whose own father left Columbia for a tough neighborhood in Brooklyn, New York, in 1964 so his children would have a shot at escaping poverty. Today’s immigrants are no different. But the pervasive ethos of family above all else, he argues, is responsible for some of the Latino immigrant community’s financial instability.

When required to make the impossible choice between going to college or straight to work to support family, family usually wins. “That mentality still exists” but needs to change if Latinos are to improve their lot, he said. …Learn More

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Thankful for Squared Away Readers

Thank you for continuing to read and support Squared Away!

Our goal is to provide reliable information that is not influenced by the desire to sell a product or service, which we hope is a valuable service to you. And as a blog based at the Center for Retirement Research, we are particularly interested in covering what the current research (ours and many others’) can tell us about retirement, personal finance and the economic challenges that people face.

What could be better than a big turkey in the oven and family and friends all around?  Happy Thanksgiving to all.

To stay current on our blog, please join our free email list. You’ll receive just one email each week – with links to the two new posts for that week – when you sign up here.Learn More

To be Old is to be Happy

age and happiness chartAround age 58, people start getting happier. That’s what the research shows, and this blogger can attest to it.

In the new video displayed below, Rocio Calvo, a Boston College professor of social work, offers up theories for the happiness phenomenon – financial security is one. She also has some particularly striking “happiness statistics” on Hispanics and immigrants.

All over Boston College, academics are studying aging issues, which complement the financial and economic research turned out by the Center for Retirement Research, which sponsors this blog.   Calvo’s video is part of a series of videos by the multidisciplinary Institute on Aging at Boston College.

It’s interesting viewing for older people and their families, with apologies for the regression table (the significance of which quickly becomes clear if you stick with it).

Learn More

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Portlandia Trashes “Instant Garbage”

Hilarious examples of “instant garbage” are offered up in this Portlandia clip by the show’s characters, Bryce Shivers and Lisa Eversman (played by Fred Armisen and Carrie Brownstein).

The price point for an unwanted consumer product that becomes instant garbage is $4.99.  “We found the exact point between price and hassle that guarantees you won’t bother returning” the product, Eversman explains in the video below.

Is the following theory a stretch? There seems to be a direct line between Americans’ relentless buying of stuff we do not need and our inadequate attempts at saving money.

Try walking into a craft superstore or browsing Target’s $1 shelf and suddenly imagining the stuff all piled up at its ultimate destination, the local landfill.

Then walk back out and save the money for retirement.


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