The Financial Crisis NO ONE Is Talking About

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THE FINANCIAL CRISIS NO ONE IS FIXING:

All of this starts with Retirement.
On the surface, there are 3 major issues that need to be addressed:

1. Poverty.
According to Census Bureau data, it's reported that “43% of 55-to-64-year-olds had no retirement savings at all and 30% of people over 65 are economically insecure, earning less than $27,000 for a single person.” On top of that, “the median retirement account for that age group is only $200,000 — meaning half of 65- to 74-year-olds have even less saved up” - and that’s not nearly enough.

2. A Savings Gap.
It was recently found that HALF of Americans have absolutely NOTHING saved for retirement, whatsoever and, for those between the ages of 50-54, only a THIRD have more than $100,000.

3. The Perfect Storm.
The fact is: People are living longer, health insurance costs are rising, there’s a lack of access to retirement plans, millennials are having fewer children - and, as a result - Retirees are forced to continue working later in life because what they’ve saved is insufficient to live on.

SOCIAL SECURITY RUNNING OUT: The Possible Solutions
One: Social Security Benefits will be reduced by the time all of us retire.
Two: They Increase The Retirement Age So That They Can Pay Out Less Money
Or, Three: The Government Increases Taxes To Pay For Higher Expenses.

The Social Security Board of Trustees says that we’d either need “an immediate reduction in benefits of about 13 percent, or an immediate increase in the combined payroll tax rate to 14.4 percent, or some combination of these changes, to allow full payment of the scheduled benefits for the next 75 years.”

THE BRIGHT SIDE FOR RETIREES:
Some outlets call Baby Boomers “the luckiest and wealthiest generation we have ever seen,” now sitting on roughly $78 TRILLION dollars. Since 1983, stocks have increased almost 8000%…home prices have appreciated 500%, and a 60/40 portfolio of stocks and bonds would have returned more than 14.5% per year.

We’ve also seen a history of incorrect calls for a “retirement crisis” dating all the way back to the 1960s when defined pension plans were cut from large corporations. After that, the 401k was introduced - but, once again - critics said this was an issue because the account lacked a guarantee. Then again, in the early 1990’s, it was published that “retirement as current retirees know it may be impossible for all but the most affluent."

From there, in 2008, ”experts were telling boomers they would have no choice but to delay retirement by five years, at least” - but since then, we’ve seen the strongest bull market - in history, with the Greatest Wealth Transfer - ever - just around the corner. All of THIS suggests that what we’re currently seeing is nothing out of the ordinary, it’s nothing to worry about, and it’s all overblown.

Although they do admit that a portion of the population won't be okay and the Retirement crisis is very real - but, that’s nothing new. Nearly a quarter of every generation has been without the means to retire. So these are my thoughts on how to make sure you don't end up in this category.

My ENTIRE Camera and Recording Equipment:

*Some of the links and other products that appear on this video are from companies which Graham Stephan will earn an affiliate commission or referral bonus. Graham Stephan is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available. This is not investment advice.

[nicolasbenson]

We Are in Unchartered Financial Waters! every day we encounter challenges that have become the new standard. Although we previously perceived it as a crisis, we now acknowledge it as the new normal and must adapt accordingly. Given the current economic difficulties that the country is experiencing in 2024, how can we enhance our earnings during this period of adjustment? I cannot let my $680, 000 savings vanish after putting in so much effort to accumulate them.

[AmithKaury]

Honestly, this concerns me and has left me uneasy. Especially this potential depression, no more a recession. I'm unsure about my $130K account strategy, considering the uncertainty of this whole recession mostly.

[mikey]

Rising prices are impacting my plans to retire at 62, work part-time, and build savings, raising concerns about a more challenging situation than those who weathered the 2008 financial crisis. The stock market's volatility and reduced income are causing anxiety about having enough for retirement.

[MarkLeonard-xnzs]

I recommend diversifying your investments by considering stocks alongside real estate. During a recession, there are potential buying opportunities in the stock market if approached cautiously. Additionally, market volatility can offer short-term buying and selling opportunities. However, please note that this is not financial advice. It's important to be proactive in investing as cash may not be the most advantageous option during these times.

[NicholasBall]

The system is failing as a result of both government and federal policy. In the next days, the banking crisis would have to be epic and gigantic for the FED to decide not to raise interest rates. This won't happen; an increase and a crash are coming. There will be more negative portfolios this 2nd half of 2024 with markets tumbling, soaring inflation, and banks going out of business. My concern is how can the rapid interest-rate hike be of favor to a value investor, or is it better avoiding stocks for a while?

[jakesmolik]

Graham Stephan you changed my life from a young age. I’m 21 years old, in the trades, house hacking a duplex, maxing out Roth IRA and 401k, and living like i’m broke. i never learned about money from my parents or school… so you ARE my parents and school that i’ve never had. Thank you

[AnonDexAI]

What he forgot to mention is that 40 years from now that 1.5M will hardly buy you a house.. then you will need 6M to retire as good as today with 1.5M.. Inflation is killing us all, there is no way around it.

[TFreitagRacing]

One of the major issues is that boomers were lead to believe that they didn't need to save because social security would take care or them when it was never meant to do that

[shatterpointgames]

Imagine trusting the government to do anything, let alone imagine trusting them to take care of you when you get old.

[backliteyes]

“If this sounds like a Ponzi scheme it’s because in a way it kind of is”. It sounds like it because in every way it totally is. 😂

[Johnny]

Here’s my grim reality, as a viewer in his 40s.

I was quite poor for the first 15-20 years of my adult life. Half or most of that time, I was below the poverty line.

Things improved, quite a bit, in my mid-to-late 30s, and I started saving the year I turned 40.

I’m probably not going to be able to retire, ever. The bar is just too high.

That doesn’t stop me from doing the things I’m supposed to do, maxing out my 401k and such…

But it means that for me, that money’s more likely to be income supplementation. Maybe I go on nicer trips for my PTO. Maybe I pay off my kids’ student loans. Maybe I opt for a little nicer vehicle.

But I’m just learning to make peace with the reality that I’m going to work until I die.

[abeelvago]

I just turned 40 this year, I can't thank my parents enough for making me grow in a non-luxury household, food and roof were always provided, but also a 'live below your means day-to-day', I learnt to saved money when I was 6. I look at my peers and how they 'lived the life they deserved' and just say to myself, thank god I never believed I deserved that life.
At current rate, I can stop working in about 4-5 years, my friends are gonna be working till over 65.

[TheCommentFactory]

The crazy thing is this was predicted back in the 90s and I remember hearing about it all throughout high school back in the early 2000s

[vancouversworstdrivers]

I know some people who say "I'm going to work until I die because I dont retirement money" yet they don't realize that you can't physically work when you're elderly.

[nezzee]

The "you could die tomorrow" argument is similar to the "somebody has to win" argument with playing the lottery. Chances are, you are not going to die tomorrow just like you aren't going to win the lottery, and very likely will live closer to average life expectancy. It's better you save a reasonable amount of money when you are younger and lower your expenses so that you have more options when you get older. Nothing eases burdens more than knowing you don't NEED to work to sustain your lifestyle, and that unforseen expenses won't leave you destitute.

[jeremybly]

Paying into SSI my whole life and looking at getting nothing back. Worst investment ever

[sandro.music]

Congress members are so greedy that they will keep on rising the retiring age higher and higher to benefit them, not the poor old people. Let that sink in.

[hardyfinancialcoaching]

Unfortunately, it's not shocking to hear this. Between lack of savings, increased spending, and inflation people in all age classes are finding struggles. I hope that the next generation can learn from videos like this and understand the importance of saving for retirement while they're young. I've been working on videos like this as well. Trying to get the word out to whoever will listen! Great video Graham.

[nicholastreinen]

Good book that breaks down the math 🧮 “start late finish rich”

[kristineswisher]

I can talk for hours and hours about this subject. As a Medicare and LTC insurance specialist, I talk to future retirees every day and they are all often shocked about HOW MUCH Medicare costs, what Medicare DOES NOT cover and the cost of caregivers in the home and/or Assisted living facilities. Scary! People need to plan and SAVE a LOT and stay HEALTHY because if you are unhealthy it will COST you your life savings (if you have any!).