Real Wealth & Retirement

http://danielamerman.com/ What happens when retirement planning assumptions about compounded paper wealth clash with the interests of the very real people creating the real wealth of the future? In this video, author and financial expert Daniel R. Amerman, CFA, explains some common sense, people based reasons why the limitless compounding of paper wealth never would have worked, helping to set the base for how we can all find new, practical solutions.

Category:

News & Politics

Tags:

• Retirement
• Economics
• Inflation
• Investments
• Contrarian
• Finance
• Financial
• Planning
• Daniel
• Amerman

[mattamiller]

What does all this mean to a 22 year old like me? What should I invest in silver and gold? What should I tell my dad to do he's 60.

[DanielAmerman]

@mattamiller I would say that this will be one of the most important aspects of your financial life over the next several decades. 77 million boomers are coming after you and everything you earn - but you have many means of defense against us. This back and forth will be central to both investing and politics, for all ages.

[mattamiller]

@DanielAmerman When you say my generation is going to create wealth where we get to keep as much of it as possible. Isn't that the same for every generation? How do you accomplish keeping as much of your wealth as possible when the government owns all of our money and decides how much we get back? I don't understand how it's possible to create wealth without the government knowing every dollar you made and taking whatever they want?

[DanielAmerman]

@mattamiller I actually wrote a book on that, titled "Contracts With Our Children". My fundamental point is that the implicit assumption is that your generation will be my generation's victims - and you won't be, you will win in the end. As you should.  Which will fundamentally shape investment returns, and means that investment strategies for both your and my generation should be quite different than past conventional strategies.

[thecomicsitedotcom]

Ok so what happens when the leveraged asset goes down in value? All of your examples assume that the asset goes up, that would depend on your timing wouldn't it?

[DanielAmerman]

@thecomicsitedotcom No, my examples assume that the value of assets fall simultaneously with the value of money. Inflation arbitrage is quite different from leverage strategies in the usual sense.

[storymethis]

But I did notice that squirrel had a 25% drop in acorns during filming. Go figure.

[DanielAmerman]

No squirrels were harmed in the filming of this video

[mmeijer]

Anyone see the squirrel in the background?  Over his left shoulder at 2:10