TROUBL

A bachelor’s degree? You should have gotten a G.E.D. A master’s? You should’ve just graduated high school with a 2.0. A PhD? You should’ve gone to community college for two years—and dropped out. In today’s job market, “pieces of paper” are really just pieces of paper—no matter the particular letters posted next to a person’s name. Degrees aren’t equivalent to jobs. More degrees aren’t equivalent to jobs. Even more degrees aren’t equivalent to jobs (and anybody with any spec of color has even less of a chance: a) people of color don’t really go to college b) even if they do, Corporate America will choose no color over color). Some might say, “Well, you’re looking at it all wrong. Higher education is an investment. In the long run, it is worth it.” Is it, really?

An article in the Money Section of USA Today dated Tuesday, May 20, 2008, Bryan Short, a 30 year old mergers-and-acquisitions attorney, relinquishes one-third of his pay to debt. The majority of it is college debt. And he is married, which means more money—yet more debt. Although he is a part of GenerationX—typically those born between 1965-1980—Mr. Short is a microcosm of the pending crisis facing the generation succeeding him. When GenXers were teenagers, 62 percent of retirement was a traditional pension, according to Employee Benefit Research Institute (EBRI). By 2005, 63 percent of retirement was based on voluntary 401(k) plans. Basically, corporations said, “Look, this retirement plan is a choice with our company. In fact, we hope you don’t make it. One, we can’t pay. Two, you’re better off throwing money in stocks.” The Center for Retirement Research at Boston College calculated “48 percent of GenXers are at risk of being unable to maintain their standard of living in retirement.” A 2008 Charles Schwab’s study, which surveyed 2,000 GenXers, found 45 percent said they couldn’t save because of too much debt.

So, a college degree, like any other investment, may have lower return than initially forecasted. While knowledge is good for the soul, it doesn’t do shit for the stomach. For those who are spending “X amount” of money on a piece of paper, eat it when food is absent on the table. And digest it with the rest of the bullshit Life has been feeding you thus far. But, there might be a solution. To ignore this section of the article would be remiss. There are seven ways GenXers can help secure retirement: 1) Start saving—now 2) Save automatically—have money pulled from your check and placed in a 401(k) or IRA 3) Exploit company match—company contributions match that of the worker’s contributions regarding 401(k), i.e. worker gives 3 percent of money, company gives 3 percent 4) 401(k) bargains—try to avoid plans with numerous transaction fees 5) Rollover—if you leave a job and go to a new one, have money transferred to new job’s account. However, whatever you do, don’t withdraw early. Early withdrawal will be taxed by Federal and State governments, in addition to transaction penalties 6) Don’t fumble handoff—there is an option of having money extracted from checking account and sent via mail. Don’t do it. Have employer do it automatically. 7) Roth account. No taxes. Higher returns, though it cost more to open an account, $5,000 at the least.

Still, without an occupation and money, investment advice is irrelevant. The remainder of the glass just dowsed any flame of hope. It’s fine. Get accustomed to being broke, because it seems it doesn’t end. B.A., M.A., Ph.D paid all this money to work next to Paco, Tyrone, or Johnny at the nearest bodega, barber shop, or trailer trading lot. As my brother aptly says, “Such is Life.”