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How many "Joe Sixpacks" have 20k to lose?


blzrul

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Sure. Sous chef circa same period. Chose to live a musician's lifestyle because the job sucked, then busted my ass to go back to school to become an infectious disease scientist. It's all about student loans. What others here are saying is that I should have just stayed a sous chef instead of going back to school, continued to rent and take public transportation, and pump everything into savings so I could retire at 65. Not only is that unrealistic, it's stupid, and it's incredibly stupid (and probably a lie) to suggest that many would remain on that same dead-end path.

 

Dude I was a sous-chef/ chef until I was 40 when I made the career change. How much in retirment at 40 on a glorified cook's salary and a wife who was a legal secretary? Over $300k. Once again, you won't win this arguement with me. :thumbsup:

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Dude I was a sous-chef/ chef until I was 40 when I made the career change. How much in retirment at 40 on a glorified cook's salary and a wife who was a legal secretary? Over $300k. Once again, you won't win this arguement with me. :thumbsup:

 

 

I knew I liked you!

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There are people who are truly is dire straights, I understand that. But most people that don't have enough put aside have made bad choices when it comes to money. Most people don't know how to balance their checkbook let alone how to properly budget themselves. Sometimes it only takes $100 a month to start. Believe it or not $100 per month from the age of 25-65 grows to $300,000. Most people blow at least $100 a month on something they truly don't need.

Bad choices like eating or paying for heat?

 

Sure, the math supports you idea that putting aside $100 a month will return 300k in 40 years. But the reality is life isn't like that. People get sick. People have accidents. People get laid off. People end up with unforeseen burdens. It's unrealistic to think that the average person jamming 100 bucks into a mattress is going to see that 300k after 40 years.

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Bad choices like eating or paying for heat?

 

Sure, the math supports you idea that putting aside $100 a month will return 300k in 40 years. But the reality is life isn't like that. People get sick. People have accidents. People get laid off. People end up with unforeseen burdens. It's unrealistic to think that the average person jamming 100 bucks into a mattress is going to see that 300k after 40 years.

 

Yeah and people grow up and increase that $100 to $500 or even $1,000. :thumbsup:

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Dude I was a sous-chef/ chef until I was 40 when I made the career change. How much in retirment at 40 on a glorified cook's salary and a wife who was a legal secretary? Over $300k. Once again, you won't win this arguement with me. :thumbsup:

This isn't a pissing match between you and I. You and I will be fine. However, it doesn't eliminate the fact that a vast number of American families will never have $230k in savings, and it doesn't eliminate the fact that the Palin family isn't anything like the average American family, and not even remotely like the average Alaskan family.

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This isn't a pissing match between you and I. You and I will be fine. However, it doesn't eliminate the fact that a vast number of American families will never have $230k in savings, and it doesn't eliminate the fact that the Palin family isn't anything like the average American family, and not even remotely like the average Alaskan family.

 

How dare you bring this discussion back around the the oringal topic of the thread.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oh and by the way of course she's not like the average American. She's saved for her retirement. :thumbsup:

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Yeah and people grow up and increase that $100 to $500 or even $1,000. :thumbsup:

How? Are you suggesting they get better jobs with an increase in income? And how does the average person in America do that? They go to college, which is increasingly out of reach for a large number of people. So, should they squander that money on an education, or should they just accept their lot in life and hope they don't die in an industrial accident so they can get to 65?

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How? Are you suggesting they get better jobs with an increase in income? And how does the average person in America do that? They go to college, which is increasingly out of reach for a large number of people. So, should they squander that money on an education, or should they just accept their lot in life and hope they don't die in an industrial accident so they can get to 65?

 

Well I really hope that by the time you've reached 40 your making just a bit more money than when you were 25. If you're not social security will do just fine.

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Bad choices like eating or paying for heat?

 

Sure, the math supports you idea that putting aside $100 a month will return 300k in 40 years. But the reality is life isn't like that. People get sick. People have accidents. People get laid off. People end up with unforeseen burdens. It's unrealistic to think that the average person jamming 100 bucks into a mattress is going to see that 300k after 40 years.

I started when I was making $12K a year. I simply did without...

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This isn't a pissing match between you and I. You and I will be fine. However, it doesn't eliminate the fact that a vast number of American families will never have $230k in savings, and it doesn't eliminate the fact that the Palin family isn't anything like the average American family, and not even remotely like the average Alaskan family.

 

 

She certainly does not sound "rich" to me. She sounds like her and her husband are doing what they can to get by...just like many of the rest of us.

 

http://news.yahoo.com/s/ap/20081001/ap_on_...palins_finances

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Bad choices like eating or paying for heat?

 

You have this illusion that Americans are living in the dust bowl, families walking around barefoot, scraping together to buy a $500 car so that they can get to and from work, shivering by a home-made fire... I get the feeling that it's an important narrative for you, that the average american is eating tuna and stale bread, unable to afford the fast food restuarants that are the domain of the rich.

 

There are some people in thoise dire straights, but not the middle class. And that's what we are talking about, isn't it? The middle class, who chooses a gym membership at $40 a month. HDTV for another $50. Taking the spouse out for dinner on Saturdays, $120 a month. Buying CD's or a DVD or two a month, $20. And let's not forget the occasional foray into BestBuy for that HD bigscreen TV (4k), season tickets (1K) or an annual vacation for two (2k). These people can save if they want to. And many choose to.

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You have this illusion that Americans are living in the dust bowl, families walking around barefoot, scraping together to buy a $500 car so that they can get to and from work, shivering by a home-made fire... I get the feeling that it's an important narrative for you, that the average american is eating tuna and stale bread, unable to afford the fast food restuarants that are the domain of the rich.

 

There are some people in thoise dire straights, but not the middle class. And that's what we are talking about, isn't it? The middle class, who chooses a gym membership at $40 a month. HDTV for another $50. Taking the spouse out for dinner on Saturdays, $120 a month. Buying CD's or a DVD or two a month, $20. And let's not forget the occasional foray into BestBuy for that HD bigscreen TV (4k), season tickets (1K) or an annual vacation for two (2k). These people can save if they want to. And many choose to.

You realize there are about 100 million Americans in various stages between those two parameters/scenarios you laid out, don't you?

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There are always cut backs someone can make in their life. There are various cars of all price ranges someone can buy, the same with houses. People in general need to do a better job of prioritizing needs and wants.

 

Saving money has to be more of a priority that many people make it. It needs to be right up there with providing a roof over your head and food on your table.

 

Save the money first. Pay bills second. If you find you can't afford your bills when you have already subtracted your savings, then you need to prioritize your bills into what you have to pay, and what you're paying that could be cut out or cut down.

 

If you're living paycheck to paycheck, saving nothing for the future, you are living above your means.

 

Is there a savings account out there that keeps up with inflation?

 

Fiscal policy in America hasn't exactly encouraged savings as such.

 

You can invest in stocks but hell if I know what a P to E means anymore.....

 

I have funds myself, but I have heard about 5 people tell me this week that they are postponing retirement because all their money were in equities.

 

I don't mean to be an ass parsing words but "savings" in terms of traditional deposits is a risk in itself if it isn't keeping up with inflation.

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Is there a savings account out there that keeps up with inflation?

 

Fiscal policy in America hasn't exactly encouraged savings as such.

 

You can invest in stocks but hell if I know what a P to E means anymore.....

 

I have funds myself, but I have heard about 5 people tell me this week that they are postponing retirement because all their money were in equities.

 

I don't mean to be an ass parsing words but "savings" in terms of traditional deposits is a risk in itself if it isn't keeping up with inflation.

 

A savings account...no. But a really safe bond..yes.

 

TIPS

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Find the post where I'm asking for your money. I used myself as an example that not everyone who has a job and is in their 40s has a massive 401k. It's not reality. A handful of TSW blog posts four years ago relating some stories from twenty years ago, and you've got me pegged as a shiftless punk on the dole? Tell me, how much of the government's assistance do you get from being in the military?

 

The issue was that Palin thinks she's some blue-collar representative of the working class, fighting the system tooth and nail to become VP. She's not.

 

I too partied hard as a teen. In fact I turned my habits into capital along the lines of Chef's example. My venture involved selling weed regularly, financing keggers and selling whatever else I could get my hands on during my teen years. I was well connected and could get some top shelf stuff. I don't come from a privledged background and experienced some tough times as a kid growing up. I also knew that I didn't have the discipline to get through college so I joined the military and specifically the Marines because I needed a kick in the arse.

 

I liked it and I stayed. I didn't exactly earn a kings wages in the Corps. Also I was blessed enough to meet a good woman who worked and we planned our time together. We decided to have kids four years after we were married. We didn't start investing seriously until we were in our late 20's. But guess what- we made sacrifices and saved between 10-20% of our annual income. My point is that we all make choices. We are who we are because of those choices. I live on a street where many people were taking out 2nd's on their homes to but RV's and other toys while the housing prices were on the rise. In 2005 I tried to convince my wife to sell our house because I knew the whole housing situation was a house of cards.

 

Most people eventually grow up at some point in their lives and we all make decisions that impact our future. Sometimes bad things happen to good people. But so many of the things that people gripe about are of their own doing. I can point to many decisions that I've made that could've improved my lot in life (although I'm not griping), but I would offer that I've sacrificed plenty to get to where I am. I blame no one for me being where I am, the decisions were and always are mine, so forgive me if I don't buy into your thought process.

 

To contrast, my younger brother lived with my mother until he was 32. She merely made him pay the electric bill over the years. He worked but still does not have any college degree. He is a union steelworker who lives in B-lo and guess what- he's a hard core Dem and blames everyone else for his lot in life. He is my brother and I love him but I have regular debates with him about why he is where he is today. Why in 14 years of basically living rent free couldn't he find the time to go to college? He had a real good time, make no mistake about it. He's now 39 and married with a daughter. He owns a house but struggles to save. My point is we all make choices with our life. I refuse to allow that not everyone can save...it bunk, but that's just my POV.

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I started when I was making $12K a year. I simply did without...

Me too :thumbsup:

 

Seriously $11.5K in the mail room at GW. I got tuition benefits for working full-time, 8 year plan from start to finish, but only 6.5 years in school. Took some time off before and worked as a bicycle courier. I have a GW 401K, a Roth IRA and a Fed Pension coming when I turn 56 and if I can get 6 more years in Fed and retire at that point, I can get Health Insurance. Thinking about the P.O. part-time while I work on improving my photo business. I had $130K in equity in my house, but doubt that will be any good for a while.

 

But I have a young wife, so life is good and heck, I will probably quit working the day before I die. If I can keep making money in the process great!

 

I still think if we can bail out these COs and yes I know it is a cash flow issue, then why doesn't it make sense to provides some assistance to folks that have a record of paying on their mortgage but may have hit some tough times and wouldn't this be away to put cash... liquidity back into the system or would it be too expensive. I still don't have a handle on the extent of the problem and I don't trust the talking heads or any of the wall street types being able to give a straight answer. I notice non of the bank reps are talking right now????

 

P.S. I always hedge 10% in bonds in all my IRA, equity funds and 401Ks

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