Financial advice, bankrupt of content

I recently came across this article on Yahoo Finance.  Was somewhat upset to see this make the front page of lifehacker.  Reading through this article, does it actually say anything?

For example:

Scottrade recently polled 226 registered investment advisers on the topic and found that 71% don’t believe $1 million is enough for the average American family. Most said families need to save double, or more than triple, the amount.

Why would a person need $3,000,000 to retire?  Does that take into account inflation? Does it assume very low interest rates in the long-term future, even though it might make such a figure even more difficult to accumulate?

It seems like a firm just polled investment advisors, who said that we ought to consume a large quantity of their financial products.  I’m sure they would say that all Americans should all have $1.5MM in disability insurance too (the product that Ameriprise got in trouble for pushing).

They belittle the retirement calculators, but without actually running the numbers, how would a person plan? The approach suggested by this– use a one-size, ballpark figure–seems to be the opposite of the smart approach.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s