Media Myths Monday

Today's edition: a shortage of workers is coming.

I started noticing this myth starting to percolate around 2002. This was at the tail end of the mini-recession we have following the implosion of the .coms. It was a nice way to tell the millions of laid off "knowledge" workers that all would be well. If not now, then eventually. Just hold on and keep hope alive.

Fast forward 5 years and the myth is still out there. All these boomers will start retiring soon. They will be out playing golf every day, sailing around the world, writing novels. Basically doing what all those Fidelity commercials say they will be doing. Only one problem with this scenario: boomers haven't got two nickels to rub together.

The average 401k balance for those 60 an over is $112,000 according to Fidelity. Sorry folks, but $112K is not going to afford your the lifestyle you are dreaming of. That has to last for 20-30 years. And all those golf tee times, cruises and art lessons don't come cheap. $112K over 20 years is $450 a month.

On top of the measly $112K, the average boomer has $15K to $20K in credit card debt. And of course millions boomers went HELOC crazy over the past decade. Millions owe more on their house than what it's worth....a house that is losing value as I type.

Given all that, do you really think there will be a shortage of workers? Or is it more likely that millions of these boomers will be working well into their 70s to earn the money they squandered away in their 40s and 50s? Put yourself in their position. You have $100K in the bank. You owe $15K to Visa. You have a house that you are barely breaking even on. You have a $5K a year property tax bill on your house. Are you going to quit your job and book that 'round the world cruise? I didn't think so.