Stocks, Boats, and Dying at 62

I was going to launch into a long explanation today of why you should not panic about the breathtaking single-day losses in the stock market last week.  But then this week happened…huge gains in the stock indexes.  So if you’ve been following the stock market via the balance in your retirement account, maybe there’s no need to remind you:  The economy is sound; your balance will bounce back over time.  Only if you are very close to retirement (say, less than three years) do I think that the recent events should cause you to take any serious action with your money or deviate from your strategy.

Stocks might be overvalued and they might drop some more in the near future.  But not every “correction” (a drop of at least 10% from a recent high point in a stock index, like the Dow Jones Industrials Average) signals a slide into a recession.  And if you think you need to get out of the stock market because it’s not “safe”, I defy you to come up with a better long-term strategy to grow your savings into a viable retirement nest egg. 

So enough said about that.  Allow me to riff on some other items in the news this week.

Dream turns into nightmare

Did you read about the boyfriend-girlfriend couple, ages 26 and 24, who tired of working and having to spend so much of that hard-earned money just to get by, and decided to quit their jobs and pursue a dream?  Their dream was to buy a boat and sail the world.  So they sold all their furniture and their SUV and purchased a 49-year-old boat to live on and to carry them over the seas.  They lived on their boat for a few months as they stocked up supplies for the trip.  Then two days after embarking, their boat capsized in a channel of water—in Florida, I believe.  They were left with practically nothing, including jobs.  They had no boat insurance.  And the girlfriend confessed to the newspaper interviewer that they were “kind of new to sailing”. 

Do you think they might have planned a little better?

“Money isn’t everything”, they were quoted as saying.  I agree.  But you do usually need it to live.  Nevertheless, they haven’t given up on their grand plan.  I don’t think they’ve gone back to work, but they did start a GoFundMe online campaign begging people to contribute to help them revive their dream.

Oh man, I’m sorry!  I’ve been spending all my money just getting by, so I’m afraid I can’t help you.  But don’t worry, money isn’t everything.

Retire and drop dead

About one-third of Americans claim Social Security benefits at age 62.  Ten percent of men retire in the month they turn 62.  Two researchers, when analyzing U.S. mortality rates, drew a connection between that and unexpectedly higher death rates among men who retire at age 62.

They offer some possible reasons:

• After leaving the workplace, men disengage socially. (See my earlier post about why that's bad for your health. )
• They might lose their health care insurance; and not qualifying yet for Medicare they skimp on meeting their medical needs.
• Not being on the job means they might be out just driving around more, and that increases the likelihood of an accident.
• If they were smokers before, they usually increase the amount they smoke.
• Almost all men become more sedentary in their 60’s.

And you thought your job was killing you.

Until next time,

Roger

 

“Suppose one of you wants to build a tower.  Won’t you first sit down and estimate the cost to see if you have enough money to complete it?  For if you lay the foundation and are not able to finish it, everyone who sees it will ridicule you.” Luke 14:28, 29  NIV®*

*Scripture quotations taken from the Holy Bible, New International Version® NIV®

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