Hey Everybody! Let's Invest in a Ponzi Scheme!
This sad posting from CNN today about retired bus drivers putting their "life's savings" of $200,000 into a Ponzi scheme and losing it all.
At this point I give up. Yes, put all your money in to one single investment. And yes, trust the first fast-talking smoothie who comes along. And yes, why not expect something-for-nothing? After all, everyone ELSE is on the gravy train, why not YOU!
But this sort of thing illustrates the one problem with the 401(k) and IRA generation - many people simply don't know how to handle money. And a legion of con artists and investment counselors will shortly relieve them of that burden.
In theory, the idea of being "empowered" with wealth is a swell idea. But we have to first wean an entire generation off the idea of living the cash-flow lifestyle.
We will see many, many more stories like this in the future - as more and more people retire with IRA and 401(k) savings and simply withdraw it all at age 59-1/2 (and not think about the tax consequences) and just buy a Porsche, or give it to some flim-flam man.
And then what do we do?