CNBC Task Force: Baby Boomers Aren't Saving Enough

Planning for retirement? Then forget the "margaritas by the pool" and start spending less, says Ivory Johnson, director of financial planning at The Scarborough Group. She joined CNBC's "Power Lunch" to discuss sound retirement strategy -- and took the opportunity to criticize Federal Reserve policy.

Johnson's further comments are below.

Clients and Concerns

We actively manage 401(k)s and IRAs for individuals. We take a holistic approach to financial planning. They're concerned about volatility in the markets.

Current Market Outlook

A substantial amount of disposable income is the direct result of home equity extractions and 10 percent of all jobs are related to the housing market. $680 billion in ARMs will reset next year, and there is already a glut of houses on the market. I'm bearish.

On the Fed

Lowering interest rates is the most irresponsible thing we could possibly have done.

Advice to Baby Boomers Not Saving Enough for Retirement

When I was a kid, we drove to our vacation spot and stayed with a relative. Nobody in my neighborhood had a luxury car. Americans used to work from 18 to 65, retire and die the next Tuesday. Now we want to work from 22 to 55, spend $4 on Starbucks coffee and live until we're 95 on a golf course sipping Margaritas by the pool.

Baby Boomers need to:

  • Spend less money today.
  • Plan to spend less money tomorrow.
  • Work longer.
  • Take more risk in an effort to obtain higher returns.

Everyone should:

  • Buy gold and commodities to protect against a weak U.S. dollar, slower consumer spending and experts who base everything on what has or hasn't happened in the past.


Saving For Retirement:

67% Have Not Saved Enough

30% Have Saved Enough

Source: CNBC Poll

Contact U.S. News


    Get the best of CNBC in your inbox

    To learn more about how we use your information,
    please read our Privacy Policy.
    › Learn More

Don't Miss

U.S. Video

  • This video is 90 seconds of cyber attacks happening around the globe, courtesy of Norse Norse is a technology company that bills itself as the "global leader in live attack intelligence." The company offers continuously "updated and unique Internet and darknet intel that helps organizations detect and block attacks that other systems miss."

  • Is this breakout story on your radar? Mad Money host Jim Cramer is about to put it there.

  • Paul Hickey, Bespoke Investment co-founder, discusses the huge divergence between the S&P 500 and the energy sector.