Posted on 03/19/2014 4:12:09 AM PDT by Red in Blue PA
Ticking time bomb. Social Security should have been privatized two decades ago and we would not have this looming disaster.
Union retirees will be the new rich. Work until 55 and then collect Defined Benefits until into their 90’s - talk about fuzzy math, it simply cannot be sustained.
Add to that the explosive growth in welfare programs funneling money from areas government was designed to address, roads and bridges. Roads and bridges are failing as all the money to maintain them has been diverted necessitating another giant tax looming on the horizon.
Add the socialist regulations and inflation will soon accelerate.
Things will get worse until serious conservative reforms are implemented and government is reduced by 25%.
GW Bush wanted to privatize one or two percent of the SS taken out of workers checks. So they could “own” it. He got the feces kicked out of him for suggesting it by the Republicans.
His response to the stomping? Medicare part D.
I hear you. My parents didn’t instill the importance of saving either. I’m not bad mouthing them. I have the utmost respect for them. But it’s a fact. My Mother is 86 and in assisted living but still finds a way to waste money.
I have control over her money and allow her $300 p/m spending cash. All other expenses are paid for thanks to my Father who passed but paid off the house beforehand. Mom doesn’t get it. By the 15th the money is gone. No awareness of value. I have 2 daughters who know the value of a dollar and do NOT have the mentality of “can’t wait til I’m 65 for my SS”.
As for me? I learned how to care for money the hard way. I’ve lost thousands in the past but at 55, I think I have a grip now.
I agree and will add..."Stay out the cities!"
FMCDH(BITS)
financially no- but i have an 11YO daughter so i’ve got the feeling i’ll be working for a while (which i don’t mind) ;)
THIS is something I am worried a lot more about than the lack of 401(k)s. I believe I will never live to see "retirement" before a massive economic collapse that makes the dollar worthless.
Tangibles are going to matter then, not hyperinflated dollars in 401(k)s.
And yes, I have a 401(k) and am contributing to it. But I am also seriously prepping for what's ahead.
I personally believe Alabama will survive the coming collapse, if you are away from Birmingham, Atlanta, Huntsville, and Mobile.
Nice. Jack Spirko would laugh at that.
“It’s not the amount of money I’m worried about; it’s what the government will be doing in those thirty plus years.”
That’s a different issue but in any scenario it is generally better to have more money than less.
Just a generation ago, a lot of people intensively prepared for their retirement. Two reasons.
The first was what we know today for sure, that government cannot be trusted to do squat for our benefit.
The second, now tragically, was that a generation ago, they *could* sock away money for their retirement, because the government wasn’t as actively trying to ruin the economy.
Those of us who grew up in poverty are very sensitive about returning to poverty. We are driven to plan, work, save, and sacrifice so as not ever be “poor” again.
Sometimes that means living beneath our true economic “level”. We don’t live an extravagant lifestyle but we live well. We balance our lifestyle to our resources (our money and skills) in order to maintain some “stability”. We keep “cash” money in our pockets for when an “opportunity” or “emergency” arises. We are “hands on”. If we can’t fix it, we learn “how to fix”, “make do without”, or “work around” it.
Finally, poverty is a great teacher. Learn to survive. And if you overcome, there is no greater feeling of satisfaction than knowing you (not the government) did it yourself.
While I am not good at expressing ideas and feelings in words, I think you get my drift.
BTW, my old truck runs great and is paid for. But, my wife won’t be seen riding in it. SO, I told her to start saving a little back for the new convertible.
I imagine 90% have a negative net worth(more debt than savings).
I don’t know. I’ve spent the last few years dealing with a bunch of elderly relatives. All were in nursing homes and I dealt with their finances. Out of the five, 2 had saved a lot. One saved enough. The other two lived great lives, but were broke.
I know it’s a small sample, but while working through the processes I heard similar stories from everyone.
I think there are more REALLY poor people coming into the system. And these are the ones raised with Social security.
I’m not laughing. You’re right on target.
The numbers are based on research the state of florida has done as part of hurricane preparedness.
The typical pantry is too small to hold 2 weeks of food for a family. Perhaps for a single person it would be enough.
I know because I’ve tested it. I took a fully packed pantry and fed the family from it. At the end of a week it was getting bare. At two weeks it was empty and we were hungry and the wife was yelling at me.
I know many people which rely on restaurants or take out for their meals.
At 27, time is on your side. Use it wisely!
You could easily save for a good retirement if you chose to do so. The choice is up to you.
Reminds me of this story......$180 to $7,000,000 by doing absolutely nothing. Time is your friend if you use it wisely.
Sometimes buy and hold REALLY does pay off
Oct 3, 2012, 11:27 am EST | By Nate Wooley, InvestorPlace Writer
In the town of Lake Forest, Mich., Grace Groner was known as a good woman. With no kids or family, she devoted her time to her friends and her alma mater, Lake Forest College.
What no one knew was that this sweet, elderly woman was a millionaire. When she died at more than 100 years of age, she left more than $7 million to Lake Forest College, reports celebritynetworth.com. The contribution stunned the college administration and the people who knew Groner.
Her fortune was the result of one of the best long-term investments ever. In 1935, Groner invested $180 with Abbot Laboratories (NYSE:ABT). That bought her three preferred shares at $60 each. In inflation-adjusted dollars, that’s about a $3,000 investment in the pharmaceutical company.
Over the 77 years that Groner held the stock, it increased in value 39,000 times. A similar investment in the S&P would be worth just over $27,000 today.
Groner also donated her home to the college. It will be used as a dorm for women.
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