The Best Investment Of Your Lifetime That You Can Make Today (Dirk Leach)

| About: SPDR S&P (SPY)

Summary

Retirement will look very different in the future as most people will be self-funded.

Social security alone is not enough.

Simple steps investors can make today.

Low-risk, high-return investment that can secure your retirement.

Dirk Leach Click to enlarge

Dirk Leach has been a consistent, avid, and successful investor for more than 30 years. His style is conservative and he primarily focuses on income oriented equities, bonds, preferred stocks and mutual funds.

In this interview, we have a follow-up conversation to an article Dirk wrote recently by the same title.

I appreciated his article and was glad for the chance to discuss it more and share that with you here.

A quick preview:

  • 50% of people 18-29 have retirement savings of $0.
  • 23% of people 45-59 have retirement savings of $0.
  • Retirement will look very different in the future as most people will be self-funded.
  • Social security alone is not enough.
  • Simple steps investors can make today.
  • Some key funds that can be strong, long-term investments.
  • Low-risk, high-return investment that can secure your retirement.

Companies and funds mentioned: S&P 500 (NYSEARCA:SPY), Vanguard Dividend Growth Fund Inv (NYSE: VDIGX), Vanguard Health Care Fund Inv (NYSE: VGHCX), Vanguard Energy Fund Inv (NYSE: VGENX), Vanguard Windsor II Fund Inv (NYSE: VWNFX), Vanguard Global Equity Fund Inv (NYSE: VHGEX)

I hope you enjoy the interview.

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Final Thought

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I hope you enjoy the interview as much as I did. I look forward to your thoughts and comments below.

- Brian

Interview Preview

Brian:

Well hey, Dirk. Welcome to the show.

Dirk:

Thank you. I enjoy the invitation.

Brian:

Well I appreciate you giving us a little bit of your time this afternoon because I know your time is valuable. You wrote an article recently called The Best Investment of Your Lifetime That You Can Make Today. First of all, as someone who creates a lot of content, I want to applaud you for a great content title. I think it got a lot of attention for that. It definitely got my attention as well. I would love if ... Do you mind sharing with our listeners the thesis behind that article and the big point you're looking to make there?

Dirk:

Sure. It's really pretty simple. I spend a lot of time ... I mentioned earlier that I'm retired, and so I spend a lot of time what I call self-educating. I had run across an article quite recently that expressed the lack of retirement savings by various age groups. In particular, the 18 to 29 group, roughly 50% of them have no, and that's zero, retirement savings. Frankly that's amazing and a little bit scary. It's particularly scary given the demise of the defined benefit plan that used to be in vogue. Roughly 30 years ago companies started trimming that and today-

Brian:

By defined benefit, you mean like a pension, for example.

Dirk:

Like a regular pension, exactly. Like a company provided pension plan. It used to be that most companies offered that as one of the benefits. Today, roughly 30 years later from when they started trimming back that benefit, almost, I think it's down to roughly 10% of private companies offer a defined benefit retirement plan. The responsibility for your, or our, retirement savings has clearly been shifted from the employer to the employee, but people have not really responded appropriately to that shift. As I said, roughly 50% of 18 to 29 year olds have zero retirement savings. Even people in their 45 to 59 year old range, only 23% of them have ... Excuse me, 23% of them have no retirement savings. That kind of got me interested in why folks are effectively not responding to that shift in responsibility for retirement planning, and I wrote this article.

Click to enlarge

Disclosure: This article is for information purposes only. Comments made by my guests do not necessarily represent the views of Brian or Investor in the Family. There are risks involved with investing including loss of principal. Brian and Investor in the Family make no explicit or implicit guarantee with respect to performance or the outcome of any investment or projections made. There is no guarantee that the goals of the strategies discussed by Brian and Investor in the Family will be met.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.