Why We Plan

Tyler Linsten Longshore, Personal Finance

To every smart investor, diversification means more than just an investment portfolio composed of varying asset classes. Diversification must also be present in potential sources of income. Consider this development for Teamsters union members in New York:


New York Teamsters relying solely on pension benefits and Social Security are in tough shape right now. Both are expected to be cut. To have the pension/Social Security rug pulled from under retirees, or those near retirement, is a major risk which should be accounted for in any financial plan.

Further: the plan in reference is a multi-employer pension plan, in an industry shaken by the threats of automation and declining union influence. I don’t have to explain the parallels to waterfront workers living in the wake of Hanjin’s bankruptcy.

The only thing to do: plan. Smart saving and investment decisions made well before retirement are quickly becoming the most important factors of a sustainable retirement.