What's the best way to overcome this problem?
http://www.ibtimes.com/articles/20061029/retirement-expectations.htm
http://www.ibtimes.com/articles/20061029/retirement-expectations.htm
want to have some 1957 surgery?, limit yourself to 1957 drugs?, live in a 1957 house?, drive a 57 chevy (maybe)? etc. etc. our living standards are greatly improved over the last 50 years. what has become problematic, is that many have apparently misused some of the financial/debt instruments which were not then available. 50 years ago one had no choice but to live within their means ... today it's too easy not to do so.It's not as easy to live well now, as it was 50 years ago
bbuzzard said:.... when they are retired and eating dog food ....
d said:want to have some 1957 surgery?, limit yourself to 1957 drugs?, live in a 1957 house?, drive a 57 chevy (maybe)? etc. etc. our living standards are greatly improved over the last 50 years. what has become problematic, is that many have apparently misused some of the financial/debt instruments which were not then available. 50 years ago one had no choice but to live within their means ... today it's too easy not to do so.
Dog said:Back then, people didn't make a purchase unless they had the money in hand to pay for it. Today, we figure if we can afford the monthly payment, or defer payment for 6 months, then we can afford the purchase. Just think how often financing is used to sell a product today....you can drive this car off the lot for only $250 a month (oh yeah.....$250 a month for 60 months).
bbuzzard said:I figure the easiest way to solve this problem is to accept that when they are retired and eating dog food because they spent all their money on HDTVs and trips to Cancun when they were younger, the government will institute a wealth tax, because it obviously will not be fair that I have $2M and they have nothing.
I can't wait !
I remember hearing how stressful it was to sit down with a banker and ask for a mortgageI remember hearing how stressful it was to sit down with a banker and ask for a mortgage
dusk_to_dawn said:Yeah, it's already been discussed but not implemented. It's called means testing. If it's ever implemented, I guess it will work something like this......
Alan said:Wealth tax is payable by any 'household', resident of France, whose combined worldwide assets are valued at more than 732,000 euros on January 1, 2005. Your 'household' includes spouses and dependent children, and it should be noted that stable unmarried couples are also taxed together. Non-residents of France may also have a wealth tax liability, but only on their French property assets.
dusk_to_dawn said:I suppose this is a tax on all assets and that would include real estate. I don't live in an area with really high real estate prices like LA, San Francisco or New York, but I would imagine there are some high real estate areas in France, and 732,000 euros would be a threshold that many hit if they have held onto real estate for many years. Oh well, there is no escaping death and taxes.
However I can never see this happening in the US as we would never put up with the loss of privacy.
brewer12345 said:Um, any of you read "The Two Income Trap"? A somewhat flawed analysis, but very eye-opening and makes it pretty clear that the problem isn't SUVs and lattes.
Bikerdude said:OK, you gonna tell us what it is.....
Donzo said:A good example of spending - needing the biggest and best....
In 2001 I bought(brand new) a Kawasaki Prairie 400 ATV - it was the biggest and badest quad out there then. I bought the quad because where I live now has incredible places to ride to and enjoy.
I ride w/ a group of 5-7 at least 2x per month. I still have the same quad - runs perfect, looks good - - it is the oldest and smallest quad in the group now. All others are 650 - 800s - these guys buy new quads every time there is an increase in cc! I am the same age - or younger and the only one retired. It is almost like they can't enjoy the ride if they don't have the biggest, best machine and this attitude extends thru their lives.
They ask me when am I gonna get a new machine...I tell them when I can't keep up with them! Has'nt happened .... yet.
brewer12345 said:Its a whole book, but briefly they show that the basics (buying a home, family car, etc.) consume most of two incomes for most families, vs. much of one income back in the day.
bbuzzard said:I figure the easiest way to solve this problem is to accept that when they are retired and eating dog food because they spent all their money on HDTVs and trips to Cancun when they were younger, the government will institute a wealth tax, because it obviously will not be fair that I have $2M and they have nothing.
I can't wait !
brewer12345 said:Um, any of you read "The Two Income Trap"? A somewhat flawed analysis, but very eye-opening and makes it pretty clear that the problem isn't SUVs and lattes.
Bikerdude said:You can still make it on one income but you won't "look" successful.