There's a classic scene in The Dark Knight where the Joker walks into a room full of gangsters and says: "Why so serious?"
That's pretty much how I feel every time a politician steps up to a podium — or onto the floor of Congress, or into an American State of the Union — and announces they're going to fix retirement for working people.
Trump did exactly that.
In his State of the Union address, the former and current president of the United States pitched the crowd on a new retirement plan. Details? Few. Promises? Plenty. Applause? Guaranteed.
And the cycle starts all over again.
What We Know (Almost Nothing, As Usual)
The announcement was vague enough for everyone to clap and nobody to actually understand what's going to happen. It's the classic recipe of economic policy: say something pretty, commit to nothing, and let the "experts" spend the next few weeks trying to decode it.
What's leaked so far suggests something related to tax-advantaged investment accounts — some kind of expansion or overhaul of the existing 401(k) and IRA structures. Nothing the financial industry hasn't seen in some shape or form before.
But the problem isn't the product. The problem is the narrative.
Politicians Promising Retirement Security Is Like Brokers Promising Returns
Nassim Taleb has a line that should be tattooed on the forehead of every analyst and politician who talks about other people's money: "Never take financial advice from someone who doesn't pay the price for their own mistakes."
Skin in the game. Shared risk. When was the last time a U.S. senator was left with nothing in retirement because the plan he voted for tanked? Never. Because they have their own plans — bulletproof, separate from the rest of us.
Trump — like every president before him, from either party — won't depend on the plan he's announcing. He won't wake up at 70 worried because the market dropped 30% and wiped out his nest egg. The white-haired woman who worked 35 years in a factory in Ohio? She will.
So when the circus pitches its tent and the head clown talks about "protecting the retirement of American workers," what I hear is: "We're going to create another financial product with a pretty name that will benefit Wall Street asset managers while workers think they're doing something smart."
Brazil Isn't Off the Hook Either
Before you flip the page thinking this is strictly an American problem: Brazil is an even more chaotic laboratory for these experiments.
The 2019 pension reform was sold as the salvation of the nation. Private retirement plans became trendy on investment platforms. Fees of 2% a year, funds that underperform basic benchmarks but charge like they've got Ray Dalio at the helm — this circus has its own popcorn smell.
And the average Brazilian worker still doesn't understand the difference between gross and net returns. Still falls for the bank manager who "just wants to help."
The problem isn't that retirement plans are bad. The problem is that they're sold by people whose interests are not aligned with yours.
What You Should Actually Be Doing (While the Circus Rolls On)
Warren Buffett, who has more decades of skin in the game than any politician has had terms in office, has always said something simple: understand what you're buying, keep fees low, and don't panic when the market falls.
Sounds obvious. It is obvious. And yet, millions of people ignore it every time something new shows up with a presidential seal of approval.
While Trump announces his plan, while the suit-wearing analysts debate on CNN and Fox panels, while asset managers prep their sales materials — you should be doing something far more boring and far more profitable: reviewing your fees, understanding where your money is actually allocated, and stop outsourcing your financial future to people who have nothing to lose if it all goes wrong.
Because at the end of the day, the most secure retirement plan in the world is still this: you understanding what you're doing with your own money.
Everything else is just State of the Union theater.
Do you already know where every dollar of your retirement is — or are you just hoping someone in a suit is taking care of it for you?
