#trust #retirement #saving
America has an issue with trust, and it’s getting worse.
So said a headline in the Feb. 14, 2016, edition of The Atlanta Journal-Constitution.
The headline was over an article by Gail MarksJarvis, personal finance columnist with The Chicago Tribune, and author of “Saving for Retirement Without Living Like a Pauper or Winning the Lottery.”
MarksJarvis wrote about Richard Edelman, president of the Edelmen public relations firm. He spoke to a group of CEOs about trust, and why fewer and fewer people are trusting big institutions, be they government, corporations or other large entities.
“Economists have been troubled throughout the recovery (from the 2008 economic collapse) that even though incomes were slowly rising and households should have more pocket money now that gas prices are low, spending hasn’t followed the expected trend. Consumers are increasing their saving and being careful about spending,” MarksJarvis writes.
Of course, the CEOS want to know about this because they want to sell more of their products and services. They want to know how to get people to part with more of their purses’ contents.
Remember, a few years before the collapse, we were told that people weren’t saving enough? After the collapse, for many, saving became even more difficult, so we still have a real problem with people not having nearly enough put away for retirement, or even enough for emergency expenses that are crucial to life.
Now that some of those folks are “recovering,” they are beginning to save more. This has to be good for most of us, albeit not so good for businesses.
Who would have thought that the big drop in gasoline prices would have Wall Street in a tailspin? Turns out that companies who went out looking for new sources of oil, natural gas etc., borrowed lots of money to do it. Now, as oil prices have sunk, these companies are having difficulty paying their debts back. That’s having an effect throughout the economy.
Through all this, it seems, Americans have become jaded and have no faith that the institutions of community are looking out for them. It’s certainly OK to be skeptical, but when skepticism turns to cynicism, everyone, eventually, gets hurt.
The lesson here is to look for people and institutions you feel you can trust, and work with them. Continue to spend carefully, and save aggressively. Also know that no matter how much money a corporation makes or saves, your job, if you have one, could still be in peril.
If you are scared, or angry, at what you see happening in the country or around the world, take a breath. Americans still have a great capacity for turning miserable circumstances into wonderful success. If you’d like to be part of that turnaround, and see yourself as success waiting to happen, visit www.bign.com/pbilodeau. You’ll find stories of people from all walks of life who have turned their difficult circumstances into powerful success.
As the title of MarksJarvis’ book suggests, you CAN save for retirement without impoverishing yourself or winning the lottery. It takes discipline and careful spending – things Americans seem to be doing.
Sometimes one has to look hard to find someone, or some institution, he or she can trust to look out for him or her. They are out there, but one has to keep looking and not get discouraged.
Peter
Tag Archives: CEOs
LEADERSHIP: KNOWING WHEN TO LEAVE
A person who reaches the pinnacle of leadership not only keeps leading, he is aiming to leave a legacy so that when he steps down, a high quality leader will follow him.
In John Maxwell’s “The 5 Levels of Leadership,” the leadership pinnacle is the fifth level. Leaders reach that level not only by developing other leaders, but by creating a situation that people follow him for who he is, and what he represents.
Maxwell says that a person reaches that level by continuing to develop leaders at all the other levels. By having a team of great leaders that the Level 5 leader has developed, he knows that he can step down, and the organization will still succeed like a well-oiled machine.
One of the main mistakes a leader can make at this level is hanging around too long. A Level 5 leader, Maxwell says, leaves before he has to. Most who get to this level have matured, probably had great financial success and may be ready to take on other challenges – or just retire and do something fun.
There’s a philosophy in any job to stay until they throw you out. But really great leaders don’t wait to be thrown out. Because they are so humble, they leave BEFORE they may want to.
So, perhaps you aren’t a CEO with a great nest egg. Are you hanging around a job waiting to see whether they throw you out? Do you see the day when they just might throw you out? Do you think that you are so great at what you do, they will NEVER throw you out?
In today’s working world, EVERY job is at risk. You, as an employee, are just one bad manager, or one reorganization, away from a potential end to a career. The job you are so good at perhaps can be done by someone who would earn less than you. Perhaps technology will advance quickly enough that a machine will replace you. Today’s worker cannot wait around expecting his employer to keep him until he can retire.
You have to keep your eyes and ears open for new opportunities. Those opportunities may lie in areas you may not logically gravitate to. Perhaps learning a new skill will increase your career options.
Chances are very good that someday, you’ll walk into work to a surprise – the company has reorganized and you’re being laid off. Never expect to be tipped off to this. It will come when you never expect it.
Or, that great boss you had has left the company, and his replacement is someone with whom you don’t hit it off. Perhaps this person sees you as a threat. Perhaps he just doesn’t like you. He can make your situation untenable.
Though the Level 5 leaders of which Maxwell speaks can usually control their own destinies, you may not have that luxury. But that doesn’t mean you can’t think the way they do. Perhaps you may not WANT to leave a job yet. But you may have to.
What to do to prepare for that? Have a Plan B in place to give you income if a career killer visits you. There are several good Plan Bs out there. To check out one of the best, visit www.bign.com/pbilodeau. You could be building a legacy of your own while you work. You could work your way up to a Level 5 leader, without interfering with your career. If the end of that career comes suddenly, you can leave with a smile.
Peter