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Interview With Ben Stein
Aired November 17, 2003 - 15:14 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KYRA PHILLIPS, CNN ANCHOR: Well, who wants to end up old and poor? Anyone? Anyone? Apparently more Americans will if they keep this up.
Check it out. According to a survey published in "USA Today", only 42 percent of Americans routinely set aside money for retirement. That's the lowest since 1980.
Only 39 percent think that they'll have enough money to retire. And only 30 percent of Americans are counting on money from savings and investments when they retire.
So who can help us figure out how to end up with some cash on hand? How about this guy...
(BEGIN VIDEO CLIP, "FERRIS BUELLER'S DAY OFF")
BEN STEIN, "FERRIS BUELLER'S DAY OFF: Bueller? Bueller? Bueller?
(END VIDEO CLIP, "FERRIS BUELLER'S DAY OFF)
PHILLIPS: Yes, Ben Stein, the man who schooled Ferris Bueller, wants to teach you a thing or two about retiring rich and happy. talking about how to retire rich and happy. He joins us live from New York.
Hi Ben.
BEN STEIN, ECONOMIST, ACTOR: How are you?
PHILLIPS: Oh, good.
STEIN: I wish I were that thin.
PHILLIPS: You're pretty handsome in that role. It's a favorite for all of us.
STEIN: I was thin, handsome and young.
PHILLIPS: So are you going to retire rich and happy?
STEIN: Well, I think I'll retire a lot richer and happier than if I hadn't made provision for it. I mean, that's what this is all about, National Retirement Planning Week. People are not saving enough for retirement. The government isn't going to bail them out. Their pension plans aren't going to bail them out. There's not going to be some heavenly power that's going to bail them out. They have to be bailed out by their own personal responsibility.
They have to get into it. Personal responsibility is the key. Responsible behavior, prudent behavior.
Start saving. Make a plan. Make a plan that makes sense for your retirement lifestyle that you're envisioning.
Commit it to paper. See a financial professional. Stick to the plan. Diversification, all great plans.
Then, when you have enough money to retire, deploy it sensibly. That is, don't just put it in some kind of ridiculous thing like a pot of money where you draw it out each month and spend it on whatever. Have some in variable annuities, some in fixed annuities, some in bonds, some in real estate, some in stocks.
Diversification, adequacy, prudence. Don't think anybody else is going to do it for you. It's up to you.
PHILLIPS: All right. Ben, a lot of people are -- humor aside here, we all know you as Ferris Bueller's teacher, OK? But you -- OK, forget it. I can't take humor out of you at all.
But seriously, you've got an economics degree from Columbia. You have nine books about finance. You had your show "Win Ben Stein's Money." So that's the whole reason why you got involved in this.
Tell us about this Retire on Your Terms education program, how they recruited you, and why the heck you said yes, besides the fact that your pop saved a lot of money and was a good role model for you.
STEIN: Well, actually, that is why I did it. I mean, my father was a very famous economist and he always taught about prudence and about being prudent in terms of your financial behavior. And this has saved my behind on a great many occasions.
I mean, I work in Hollywood. There are ups and there are downs. In the down years, I have been able to live a comfortable life because I saved.
I'm going to retire someday. I won't be earning any money. I will be bailed out by the money I have saved.
PHILLIPS: It's not because you're a tight wad?
STEIN: I would like to provide a retirement example to my 77 million fellow baby boomers who are rushing towards retirement.
PHILLIPS: OK. And it's not because you're a tight wad, right?
STEIN: I'm not a tight wad at all. I'm wildly extravagant. I'm the most extravagant person you'll ever meet in your life. I happen to earn a great deal of money, but I also save a great deal of money. And that's what allows my wife to do needlepoint all day and not work. And it allows me to think that I'll have a comfortable retirement.
People have to take charge of their own financial reality. That is so important. Nobody's going to do it for you, and no magic bullet is going to do it for you. It's arithmetic.
You've got to save enough so you can live off it when you retire until you die. And you're liable to live a long time with medical science and the advances in it. Save, save, save. Save sensibly.
PHILLIPS: OK. Ben, you talk about arithmetic, all right? We went on this Web site. We're going to go ahead and bring it up now. All right?
STEIN: OK. Go ahead.
PHILLIPS: Because I'm -- let me tell you what, when it comes to math, I suck. All right. So here we go.
STEIN: Oh, I don't believe it.
PHILLIPS: I need a few classes from you. A retirement calculator is actually on this Web site. You can go on to retireonyourterms.org. All right. Now, I'm going to see if you (UNINTELLIGIBLE) money you make.
First of all, will you tell me your current age?
STEIN: Fifty-eight.
PHILLIPS: Fifty-eight. We're going to pop you in at 58. When do you hope to retire?
STEIN: I'd say 68.
PHILLIPS: All right. We'll put 68 in there. Current annual income?
STEIN: Do I have to say this?
PHILLIPS: OK. Make it up.
STEIN: I'll say $1 million.
PHILLIPS: Wow. I need a sugar daddy. All right. We're getting this in here.
STEIN: Well, send me your picture.
PHILLIPS: You're looking at me right now, chief.
STEIN: I know, but I'm only looking at you from the head up. PHILLIPS: Oh, man. But you know, with a million bucks, I can get plastic surgery. All right. Here we go. And then it says annual inflation rate.
STEIN: I would say three percent is a good guess.
PHILLIPS: OK. We've got it in there. Current retirement assets. What would you say?
STEIN: About $6 million.
PHILLIPS: Dang. OK. That could get me some cellulite lifts too.
All right. Here we go, $6 million. Additional annual contributions?
STEIN: I would say maybe $400,000.
PHILLIPS: OK. Yes, you're pretty good. You did learn a lot from your father.
My producer didn't have typing class, so she's slowly getting this in here. OK. Here we go. That's close. One more zero.
OK. Annual rate of return, eight percent?
STEIN: Well, I'm going to say six percent. I'll be very conservative.
PHILLIPS: Six percent, all right. We'll pop that in. Now, monthly Social Security income?
STEIN: Well, I think I'll get -- unless they cut it back for well to do people, I think my wife and I together will get about $2,500 a month.
PHILLIPS: All right, $2,500. Popping that in. And then so once you get the numbers in, boom.
STEIN: Well, wait, there's another one, pension income. Because I have a number of performing union pension plans. I would say I might get another $14,000 a month from them.
PHILLIPS: Oh, wow. That's a pretty good deal. All right. Now we push...
STEIN: Well, I've been prudent about it.
PHILLIPS: Yes, you have. And you've been very generous. OK.
So here we go. We calculate. Look how fast that comes up.
STEIN: I know, instantly.
PHILLIPS: Yes. So annual earnings -- holy smokes. Look at your value of retirement. You're going to be set.
STEIN: Well, but on the other hand, I'm a very unusual person. This just show how the planning system works.
I mean, most people should divide that by about 10 or about 20 to figure out their situation. The point isn't whether I'm well to do or not. And, by the way, by Hollywood standards, I'm very poor.
But the point is that this retirement calculator works for any amounts of money. And no matter how little you can put aside, it's a lot better than putting nothing aside. And it's very important to put some of it aside in annuities, because they keep paying you as long as you live. And so you transfer the risk of a long life to the insurance company and away from yourself.
PHILLIPS: All right. Retireonyourterms.org. So we have an idea for a new show. You know how you had "Win Ben Stein's Money" and it did so well and you won all those Emmys?
STEIN: Yes.
PHILLIPS: How about Win Ben Stein's Retirement? Does that sound like a good idea?
STEIN: Well, send me your picture and we'll talk about it.
PHILLIPS: OK. I'll send from it the head down. I'll be calling your wife in an hour.
Ben Stein, always a pleasure. We love you. Thank you.
STEIN: OK. Thank you.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
Aired November 17, 2003 - 15:14 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KYRA PHILLIPS, CNN ANCHOR: Well, who wants to end up old and poor? Anyone? Anyone? Apparently more Americans will if they keep this up.
Check it out. According to a survey published in "USA Today", only 42 percent of Americans routinely set aside money for retirement. That's the lowest since 1980.
Only 39 percent think that they'll have enough money to retire. And only 30 percent of Americans are counting on money from savings and investments when they retire.
So who can help us figure out how to end up with some cash on hand? How about this guy...
(BEGIN VIDEO CLIP, "FERRIS BUELLER'S DAY OFF")
BEN STEIN, "FERRIS BUELLER'S DAY OFF: Bueller? Bueller? Bueller?
(END VIDEO CLIP, "FERRIS BUELLER'S DAY OFF)
PHILLIPS: Yes, Ben Stein, the man who schooled Ferris Bueller, wants to teach you a thing or two about retiring rich and happy. talking about how to retire rich and happy. He joins us live from New York.
Hi Ben.
BEN STEIN, ECONOMIST, ACTOR: How are you?
PHILLIPS: Oh, good.
STEIN: I wish I were that thin.
PHILLIPS: You're pretty handsome in that role. It's a favorite for all of us.
STEIN: I was thin, handsome and young.
PHILLIPS: So are you going to retire rich and happy?
STEIN: Well, I think I'll retire a lot richer and happier than if I hadn't made provision for it. I mean, that's what this is all about, National Retirement Planning Week. People are not saving enough for retirement. The government isn't going to bail them out. Their pension plans aren't going to bail them out. There's not going to be some heavenly power that's going to bail them out. They have to be bailed out by their own personal responsibility.
They have to get into it. Personal responsibility is the key. Responsible behavior, prudent behavior.
Start saving. Make a plan. Make a plan that makes sense for your retirement lifestyle that you're envisioning.
Commit it to paper. See a financial professional. Stick to the plan. Diversification, all great plans.
Then, when you have enough money to retire, deploy it sensibly. That is, don't just put it in some kind of ridiculous thing like a pot of money where you draw it out each month and spend it on whatever. Have some in variable annuities, some in fixed annuities, some in bonds, some in real estate, some in stocks.
Diversification, adequacy, prudence. Don't think anybody else is going to do it for you. It's up to you.
PHILLIPS: All right. Ben, a lot of people are -- humor aside here, we all know you as Ferris Bueller's teacher, OK? But you -- OK, forget it. I can't take humor out of you at all.
But seriously, you've got an economics degree from Columbia. You have nine books about finance. You had your show "Win Ben Stein's Money." So that's the whole reason why you got involved in this.
Tell us about this Retire on Your Terms education program, how they recruited you, and why the heck you said yes, besides the fact that your pop saved a lot of money and was a good role model for you.
STEIN: Well, actually, that is why I did it. I mean, my father was a very famous economist and he always taught about prudence and about being prudent in terms of your financial behavior. And this has saved my behind on a great many occasions.
I mean, I work in Hollywood. There are ups and there are downs. In the down years, I have been able to live a comfortable life because I saved.
I'm going to retire someday. I won't be earning any money. I will be bailed out by the money I have saved.
PHILLIPS: It's not because you're a tight wad?
STEIN: I would like to provide a retirement example to my 77 million fellow baby boomers who are rushing towards retirement.
PHILLIPS: OK. And it's not because you're a tight wad, right?
STEIN: I'm not a tight wad at all. I'm wildly extravagant. I'm the most extravagant person you'll ever meet in your life. I happen to earn a great deal of money, but I also save a great deal of money. And that's what allows my wife to do needlepoint all day and not work. And it allows me to think that I'll have a comfortable retirement.
People have to take charge of their own financial reality. That is so important. Nobody's going to do it for you, and no magic bullet is going to do it for you. It's arithmetic.
You've got to save enough so you can live off it when you retire until you die. And you're liable to live a long time with medical science and the advances in it. Save, save, save. Save sensibly.
PHILLIPS: OK. Ben, you talk about arithmetic, all right? We went on this Web site. We're going to go ahead and bring it up now. All right?
STEIN: OK. Go ahead.
PHILLIPS: Because I'm -- let me tell you what, when it comes to math, I suck. All right. So here we go.
STEIN: Oh, I don't believe it.
PHILLIPS: I need a few classes from you. A retirement calculator is actually on this Web site. You can go on to retireonyourterms.org. All right. Now, I'm going to see if you (UNINTELLIGIBLE) money you make.
First of all, will you tell me your current age?
STEIN: Fifty-eight.
PHILLIPS: Fifty-eight. We're going to pop you in at 58. When do you hope to retire?
STEIN: I'd say 68.
PHILLIPS: All right. We'll put 68 in there. Current annual income?
STEIN: Do I have to say this?
PHILLIPS: OK. Make it up.
STEIN: I'll say $1 million.
PHILLIPS: Wow. I need a sugar daddy. All right. We're getting this in here.
STEIN: Well, send me your picture.
PHILLIPS: You're looking at me right now, chief.
STEIN: I know, but I'm only looking at you from the head up. PHILLIPS: Oh, man. But you know, with a million bucks, I can get plastic surgery. All right. Here we go. And then it says annual inflation rate.
STEIN: I would say three percent is a good guess.
PHILLIPS: OK. We've got it in there. Current retirement assets. What would you say?
STEIN: About $6 million.
PHILLIPS: Dang. OK. That could get me some cellulite lifts too.
All right. Here we go, $6 million. Additional annual contributions?
STEIN: I would say maybe $400,000.
PHILLIPS: OK. Yes, you're pretty good. You did learn a lot from your father.
My producer didn't have typing class, so she's slowly getting this in here. OK. Here we go. That's close. One more zero.
OK. Annual rate of return, eight percent?
STEIN: Well, I'm going to say six percent. I'll be very conservative.
PHILLIPS: Six percent, all right. We'll pop that in. Now, monthly Social Security income?
STEIN: Well, I think I'll get -- unless they cut it back for well to do people, I think my wife and I together will get about $2,500 a month.
PHILLIPS: All right, $2,500. Popping that in. And then so once you get the numbers in, boom.
STEIN: Well, wait, there's another one, pension income. Because I have a number of performing union pension plans. I would say I might get another $14,000 a month from them.
PHILLIPS: Oh, wow. That's a pretty good deal. All right. Now we push...
STEIN: Well, I've been prudent about it.
PHILLIPS: Yes, you have. And you've been very generous. OK.
So here we go. We calculate. Look how fast that comes up.
STEIN: I know, instantly.
PHILLIPS: Yes. So annual earnings -- holy smokes. Look at your value of retirement. You're going to be set.
STEIN: Well, but on the other hand, I'm a very unusual person. This just show how the planning system works.
I mean, most people should divide that by about 10 or about 20 to figure out their situation. The point isn't whether I'm well to do or not. And, by the way, by Hollywood standards, I'm very poor.
But the point is that this retirement calculator works for any amounts of money. And no matter how little you can put aside, it's a lot better than putting nothing aside. And it's very important to put some of it aside in annuities, because they keep paying you as long as you live. And so you transfer the risk of a long life to the insurance company and away from yourself.
PHILLIPS: All right. Retireonyourterms.org. So we have an idea for a new show. You know how you had "Win Ben Stein's Money" and it did so well and you won all those Emmys?
STEIN: Yes.
PHILLIPS: How about Win Ben Stein's Retirement? Does that sound like a good idea?
STEIN: Well, send me your picture and we'll talk about it.
PHILLIPS: OK. I'll send from it the head down. I'll be calling your wife in an hour.
Ben Stein, always a pleasure. We love you. Thank you.
STEIN: OK. Thank you.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
