Women (and Those Who Love Them): Be WISER About Retirement

[One Sweet World]

Women (and Those Who Love Them): Be WISER About Retirement
Wednesday, July 18, 2007
Gail Buckner, CFP
http://www.foxnews.com/story/0,2933,289597,00.html

If you are a woman, then you should visit the following Web site: http://www.wiser.heinz.org/portal. If you are not a woman, but you love one, then do her a favor and send her the link.

On the home page for “WISER,” the Women’s Institute for a Secure Retirement, one can find “What Women Need to Know About Retirement,” a new publication that is only available as a free, downloadable e-book.

WISER is one of the non-profit organizations funded by the Heinz (as in “ketchup”) Family Philanthropies. It was founded in honor of the late Pennsylvania Sen. John Heinz, who died in a plane crash in 1991. As his widow, Teresa Heinz Kerry, writes in the forward:
"Today, as the start of the 21st century, when a woman decides to take her finances into her own hands, and to provide for a secure and comfortable and dignified retirement, she is confronted with having too many complicated choices and many difficult decisions …This book and its authors are here to tell all working women two important things: First: You Can Do It. Second: You Are Not Alone..."

[antigop]

1. Oh, the irony! Kerry voted for the Pension "Protection" Act

along with a bunch of other Dems.

http://www.govtrack.us/congress/vote.xpd?vote=s2006-230

This bill legalizes cash balance conversions, and will allow workers to get screwed on their pensions.

Maybe Teresa should ask Kerry why he voted for this awful bill.

[Yupster]

2. Pensions are about gone in the workplace

Aside from government workers, the vast majority of private workers get Defined Contribution Plans today. Defined Benefit Plans don't make much sense for businesses, though they're often better for workers.

[antigop]

3. That doesn't mean that workers should be screwed -- especially older ones n/'t

[antigop]

4. And I disagree with your statement about DB plans "don't make much sense for business" n/t

[Yupster]

5. A business like GM

might send out 500,000 checks to retirees every month. Out of that amount they might get 5,000 of them returned because the person moved, changed their name, got divorced, or died. S you have to have an entire department of people who do nothing but change addresses, change names and beneficiaries and work on estate claims.

Then when things aren't going so well you look for ways to cut overhead. You say "If we're in the business of making cars, then who are these people, and how do they help us make cars by sending checks to peploe we haven't seen in 30 years?"

The answer is a 401(k). When the employee leaves, you shake their hand and rollover their retirement into an IRA, and you're done with them.

To a company, there isn't any question which one makes more sense.

And that's not even getting into downsizing issues where a much smaller company still has to send out checks to the retirees of a formerly much larger company. It's just not economical.

[antigop]

6. Totally disagree -- but I don't want to hijack the thread n/t