16 • MARTIN H. RUBY
Let’s look at the structural risk that existed for Irwin. He could be your grandparent, parent, or uncle… anyone working and sav- ing in the 1950s, 60s, and 70s. Here’s what Irwin had: • He had an employer who was saving money for him every month — money that would be paid to him in re- tirement. • He had a pension that guaranteed him a hefty portion of his final salary for the rest of his life . . . no matter how long he lived. • He had the promise of Social Security to supplement his income in retirement. All in all, I would call that a pretty sweet deal, wouldn’t you? Today, these kinds of guarantees are only available to a small por- tion of workers: firefighters, teachers, and government employ- ees. If you don’t fall into one of those categories, I’ll show you what you face instead.
The Three-Legged Stool
Irwin’s savings approach — and the approach Americans have been relying on for much of the last cen- tury — is a three-legged stool. That means the money he relied on in re- tirement was supported by three “legs” of assets. Irwin’s saving was supported by his employer’s contributions, his own savings, and the government through Social Security. Take away any of those three legs, and the stool would wobble and fall over. Irwin
Made with FlippingBook - Online Brochure Maker