Ric Edelman is one of the good guys in financial planning/investment management. He comes across a bit arrogant in some regards, but that doesn’t bother me so much given what he has done for average Americans in their financial planning.
However, Ric has drank the KoolAid of modern humanity and is proclaiming time and again that a traditional financial planning model based on living to say 90 is completely faulty.
He is saying actually we should be running plans assuming life expectancy to age of 120 or so. But I ask, what is this assumption based on? Now, remember, Ric carries a big MIC in the financial planning industry. When he speaks, his words get listened to. My concern, then, is that him saying prepare to live to 120 will encourage more and more people to throw up their hands and say “I”M NEVER GOING TO RETIRE!” And thus stay in their crappy, old jobs for decades as opposed to leaving for greener pastures.
This is bad. We want more people enjoying their lives, not becoming despondent. People thinking they need to work not 10-15 years but actually another 30-40 years in their jobs they despise will only help to create miserable people. We aren’t supposed to be miserable, my friends. We are put on earth to love one another. And to do that starts with a simple smile. Awful hard to smile at your fellow man when you’re miserable.
So take heart. RIc Edelman is WAY overly optimistic here. Don’t get a 50 year mortgage. Just keep moving the ball forward to find your own meaning of financial freedom, to be able to escape from the shackles of debt and your crappy, old job.