Raising social involvement, self awareness and self improvement topics, because our communities are the sum of our personal beliefs, behaviors, action or inaction. Only "we" can improve our family, work place, school, city, country, etc.
I am dreaming of selling off my 2002 suburban and getting a newer 3/4 ton crew cab pick up since we will be empty nesters soon. However finding a rust free winter truck for a good price is real hard right now.
Or my habits prevent me from spending lavishly on myself...
On the upside I do will have 2 girls in college and one getting married... So we are continuing to contribute to the US economy... :-)
No, I'm not kidding at all. We made regulatory changes that created preferences for 401ks instead of pensions and then reduced regulations and allowed companies and governments to fall behind on their funding responsibilities. It's a disaster for real people, great for corporations who have gotten off the hook.
Why in the world should an employer be responsible for paying for my retirement decades after I stopped working for them?
Do you have no desire to be independent and in control of your own future?
It is bad enough that the government collects ~15.5% of my compensation so that it can be given to other people who chose not to learn, work, save and invest.
Thankfully my wife and I learned, worked, saved and invested, and therefore have even more than the average 53 year old net worth. Of course my newest vehicle is a 2010...
However it amazes me how the spending habits of people can easily out pace their income...
No matter what that income is.
There is always a long drive through line as I drive by the EP Starbucks just off 212... Who in the world are these people sitting in their car waiting to get an expensive bad for them drink?
People do tend to spend up to their income. Housing is a big factor. Another issue is expenses related to kids. Private education bills can be huge. And of course taxes.
Often when I am talking about tax issues, I get asked "How much money do you have to have to be rich?" It's a standard, even cliched, conservative talking point. My answer is that you know someone is rich when their wealth and it's appreciation is large dependent on sources other than income. Wealthy people are that way because wealth allows them to arrange their affairs in order to avoid taxes. Our president, who seems to have gone at least a decade without paying any income taxes at all despite being a billionaire is a typical example of that. Believe me, he is much more the rule than the exception in terms of taxes he avoids paying.
"Why in the world should an employer be responsible for paying for my retirement decades after I stopped working for them?"
It's part of the contract of employment, presumably. If it isn't, and I do understand that's the trend, the employer isn't responsible for retirement costs.
Sean, Of course it is an issue, or so many would not have failed. Planning for decades in the future is challenging.
Again... Why do you not want to trust people to save for themselves?
Please remember that it is the US consumers who demanded lower cost high quality goods and services, no matter who loses their job. If they had refused to buy all that "foreign stuff", our unions would not have been decimated.
They are repeating this with the decimation of the "brick and mortar" retailers. Or do you want to blame government regulations and businesses for the death of Sears and Roebuck?
I would rather get my compensation today, not have someone else collect and have to rely on their capabilities and ethics.
Here is a an interesting comment that an acquaintance made decades ago about dining out.
The different prices one will pay are not about the food, they are about the experience. Because we can all buy and cook the food or go to a fast food restaurant for a lower cost.
We as humans pay more for the: - brand name - environment - entertainment - meeting with friends - other
I assume that is why people will sit in line waiting for a brand name coffee.
Net worth isn't as fixed a concept as one might think it is. Donald Trump thinks he is a billionaire because he thinks his name is worth a billion dollars. That dollar bill in your wallet? It has value only because people think it has value. Otherwise, it's just a piece of paper.
Now isn't this just so depressing... No wonder so many people are worried about Social Security and Medicare...
ReplyDelete"And here's the median net worth of U.S. families based on the age of the head of household:
Age 35 or younger: $11,100
Age 35-44: $59,800
Age 45-54: $124,200
Age 55-64: $187,300
Age 65-74: $224,100
Age 75 or older: $264,800"
The 401(k) is a massive policy failure.
ReplyDeleteRecommended Net Worth By Age
ReplyDeleteSean,
ReplyDeleteWhat would you have recommended instead?
I think IRA's and 401K's are excellent policy.
Unfortunately the American citizens really like to spend and take on debt...
Top 10 Wastes
ReplyDeleteI think I like this list better.
20. Credit card interest
19. Unclaimed tax refunds
18. Unclaimed property
17. Deal sites
16. Wasted food
15. Bad health habits
14. Speedy shipping
13. ATM fees
12. Designer clothing for babies or children
11. Gambling
10. Alcohol
9. Tobacco
8. Unused gift cards
7. Warranties that cost as much as the product
6. Unused gym memberships
5. Lottery tickets
4. Speeding and traffic tickets
3. Premium cable packages
2. Daily coffee trips
1. Wasted energy
Though I would add:
ReplyDelete- Newer or nicer car(s), boats, etc than needed...
(ie high depreciation and interest costs)
- Hiring home and yard work done...
- Getting divorced...
Of course one may not want to get like me...
ReplyDeleteI am dreaming of selling off my 2002 suburban and getting a newer 3/4 ton crew cab pick up since we will be empty nesters soon. However finding a rust free winter truck for a good price is real hard right now.
Or my habits prevent me from spending lavishly on myself...
On the upside I do will have 2 girls in college and one getting married... So we are continuing to contribute to the US economy... :-)
"What would you have recommended instead?"
ReplyDeleteThere was nothing wrong with the traditional pension plan.
You have got to be kidding
ReplyDeleteMore on Pension Failures
ReplyDeletePension History
No, I'm not kidding at all. We made regulatory changes that created preferences for 401ks instead of pensions and then reduced regulations and allowed companies and governments to fall behind on their funding responsibilities. It's a disaster for real people, great for corporations who have gotten off the hook.
ReplyDeleteWhy in the world should an employer be responsible for paying for my retirement decades after I stopped working for them?
ReplyDeleteDo you have no desire to be independent and in control of your own future?
It is bad enough that the government collects ~15.5% of my compensation so that it can be given to other people who chose not to learn, work, save and invest.
Thankfully my wife and I learned, worked, saved and invested, and therefore have even more than the average 53 year old net worth. Of course my newest vehicle is a 2010...
When rich people feel poor, it's usually because they have too much housing debt, and other housing related costs.
ReplyDelete--Hiram
Maybe....
ReplyDeleteHowever it amazes me how the spending habits of people can easily out pace their income...
No matter what that income is.
There is always a long drive through line as I drive by the EP Starbucks just off 212... Who in the world are these people sitting in their car waiting to get an expensive bad for them drink?
People do tend to spend up to their income. Housing is a big factor. Another issue is expenses related to kids. Private education bills can be huge. And of course taxes.
ReplyDeleteOften when I am talking about tax issues, I get asked "How much money do you have to have to be rich?" It's a standard, even cliched, conservative talking point. My answer is that you know someone is rich when their wealth and it's appreciation is large dependent on sources other than income. Wealthy people are that way because wealth allows them to arrange their affairs in order to avoid taxes. Our president, who seems to have gone at least a decade without paying any income taxes at all despite being a billionaire is a typical example of that. Believe me, he is much more the rule than the exception in terms of taxes he avoids paying.
==Hiram
"Why in the world should an employer be responsible for paying for my retirement decades after I stopped working for them?"
ReplyDeleteIf they're properly funded up front, this isn't an issue.
"Why in the world should an employer be responsible for paying for my retirement decades after I stopped working for them?"
ReplyDeleteIt's part of the contract of employment, presumably. If it isn't, and I do understand that's the trend, the employer isn't responsible for retirement costs.
--Hiram
Oddly enough, the reason why some people feel poor is that they contribute a lot of money to their retirement accounts.
ReplyDelete--Hiram
"Who in the world are these people sitting in their car waiting to get an expensive bad for them drink?"
ReplyDeleteWhy are you making assumptions about what kind of drink they're buying? Coffee isn't bad for you.
Moose
Sean,
ReplyDeleteOf course it is an issue, or so many would not have failed. Planning for decades in the future is challenging.
Again... Why do you not want to trust people to save for themselves?
Please remember that it is the US consumers who demanded lower cost high quality goods and services, no matter who loses their job. If they had refused to buy all that "foreign stuff", our unions would not have been decimated.
They are repeating this with the decimation of the "brick and mortar" retailers. Or do you want to blame government regulations and businesses for the death of Sears and Roebuck?
I would rather get my compensation today, not have someone else collect and have to rely on their capabilities and ethics.
Moose,
ReplyDeleteIf folks stuck to decaf coffee I may agree with you...
Starbucks Drinks
But why wouldn't one just make coffee at home?
Hiram,
ReplyDeleteBut here we are not talking about people feeling poor...
We are talking about actual Net Worth...
The value of what you own - what you owe...
And thankfully we own what is in our IRA / 401K...
Here is a an interesting comment that an acquaintance made decades ago about dining out.
ReplyDeleteThe different prices one will pay are not about the food, they are about the experience. Because we can all buy and cook the food or go to a fast food restaurant for a lower cost.
We as humans pay more for the:
- brand name
- environment
- entertainment
- meeting with friends
- other
I assume that is why people will sit in line waiting for a brand name coffee.
The power of marketing. :-)
Net worth isn't as fixed a concept as one might think it is. Donald Trump thinks he is a billionaire because he thinks his name is worth a billion dollars. That dollar bill in your wallet? It has value only because people think it has value. Otherwise, it's just a piece of paper.
ReplyDelete--Hiram