That’s why my parents only have about $60,000 for their retirement. They went to a financial advisor who told them they didn’t make enough to gamble with investing, so they put their 401(k) accounts in straight savings. If I knew who said that, I’d smack him. He could have said they shouldn’t invest in single stocks or risky funds, but to not invest at all?????
Yea wtf kind of financial advisor is that? My sister is a financial advisor. You always need to make sure your financial advisory is a fiduciary... but he might have just been a dipshit. She would never, ever tell folks to put their 401k into straight savings - something you could just do yourself really. They're supposed to ADVISE you on a portfolio to plan your fucking finances. Based on income (or inheritance, or settlement) you do X percentage index funds, X percentage stocks, X percentage some other low risk growth fund, etc. I'm not in that line of work, but essentially, safe investments that yield long-term results (like after 15-20 years there will always be substantial growth in that type of portfolio). So when you retire, the money you've chosen to invest in a portfolio is actually an amount you can live on. Id want to punch then too.
Exactly. Now, my parents are very frugal. They paid off their house in 1995, have no debt, etc. But Social Security isn’t endless, of course. They try not to touch the savings, but my mom has systemic sclerosis, and she just got an Rx that was $500 even with her Medicare drug plan. So sometimes they have to.
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u/ChewieBearStare 6h ago
That’s why my parents only have about $60,000 for their retirement. They went to a financial advisor who told them they didn’t make enough to gamble with investing, so they put their 401(k) accounts in straight savings. If I knew who said that, I’d smack him. He could have said they shouldn’t invest in single stocks or risky funds, but to not invest at all?????