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Old 05-16-2017, 10:08 AM   #21
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Beginning this year we are increasing our spending by proxy in that we will start giving our 2 kids (in their mid to late 30's) the max we can each year without it needing to be reported. ($14k per person, so $28k each).

There are no grandchildren and none expected so we decided we'd rather begin giving the kids their inheritance slowly over time rather than a big lump sum in possibly another 30 years time when we die.
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Old 05-16-2017, 10:09 AM   #22
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Originally Posted by Nightcap View Post
Is it just me, or is anyone else troubled by FinancialSamurai's insistence on the mean rather than the median? Sure, the average American my age is upper-middle-class. But the median is far less rosy. It's like "Bill Gates walked into a bar and suddenly everyone had an average net worth of a billion dollars."


+1
The age 55-64 age avg vs median is 843k vs 248k. I also wonder if data is for household or individual.
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Old 05-16-2017, 10:17 AM   #23
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So, I think this is yet another article that tries to bunch folks (or data) into tiny (actually, rather large) boxes that is probably not useful to people.

?


As the author points out, at one level this is a real societal issue, which is potentially meaningless as you point out at any one individual level.

Still, a fundamental question, continually debated by economists, is the balance between societal spending and societal savings rate. Generally, the rap against the US economy is that our savings rate is too low (unless you are Ben Bernanke blaming too high a savings rate for your reckless reason for implementing your theories on QE).
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Old 05-16-2017, 10:23 AM   #24
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I just bought another pair of First Class airplane rides.
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Old 05-16-2017, 10:52 AM   #25
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Related to another current thread: A lot of us worry about future LTC costs, and are squirelling away a big chunk of change to help cover them. If the government wants us to spend this money now, maybe they will come up with a public/private approach that makes LTCi of some type a product that we can depend on. Something that starts paying after a year or two, is guaranteed to cover costs and not escalate in price. Really guaranteed.

When people again had faith in the banks and that they would be able to get their money under any conditions (due to govt guarantees), they started saving and this helped everyone.

BTW--the money that is not being spent is still being put to productive use. Increased availability of capital helps businesses and makes workers more productive. This emphasis on pumping up demand often has an unhappy ending.
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Old 05-16-2017, 10:56 AM   #26
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I've gotten interested in sustainable living in retirement so I don't see the point of buying more stuff I don't need. We're having a hard enough time trying to declutter as it is.
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Old 05-16-2017, 12:22 PM   #27
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think I'll pass on the upgrade to fyre
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Old 05-16-2017, 12:26 PM   #28
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And here I thought for sure you were going to say, "I'm spending my assets....... on wine, women and song... and the rest I'm wasting."
Oh! And that, French & Chilean Wine, Russian Women & Polish Dance Tunes.
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Old 05-16-2017, 12:29 PM   #29
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I need a bunch of small-to-medium work done around my house, and have found a contractor who I adore and who does great work and who I trust without question (and I trust his workers, too). But he comes at a premium. I decided, this is exactly the kind of thing I want to splurge on. It's not an insanely excessive amount, but at the same time, how many times have I said, "Man, I would pay good money to have someone I can really count on." And so I am going to. Peace of mind, and keeping me in a house that is extraordinarily valuable, is one way I'll keep Bloomberg happy.
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Old 05-16-2017, 12:39 PM   #30
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Peace of mind, and keeping me in a house that is extraordinarily valuable, is one way I'll keep Bloomberg happy.
And--reward a business that does good work, encouraging their growth at the expense of lesser competitors. A social good!
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Old 05-16-2017, 12:45 PM   #31
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And--reward a business that does good work, encouraging their growth at the expense of lesser competitors. A social good!
And it also trickles down some of my stash!
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Old 05-16-2017, 01:27 PM   #32
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Browning’s suggestion is that financial planners urge their thriftiest clients to make big purchases–like a second home or a fancy car–before they retire, out of their pot of savings. The idea, he said, is “training people to spend.”


-Agenda? Yup. Spend, spend spend! Because I make money when you spend.


Ridiculous.


But FPs make $ based on your financial assets, so FP LOSE money if their clients spend.
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Old 05-16-2017, 01:46 PM   #33
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I need a bunch of small-to-medium work done around my house, and have found a contractor who I adore and who does great work and who I trust without question (and I trust his workers, too). But he comes at a premium. I decided, this is exactly the kind of thing I want to splurge on. It's not an insanely excessive amount, but at the same time, how many times have I said, "Man, I would pay good money to have someone I can really count on." And so I am going to. Peace of mind, and keeping me in a house that is extraordinarily valuable, is one way I'll keep Bloomberg happy.


Agree 100%. Have a contractor that does excellent work and is reliable, but I pay a premium. And you know what... money very, very well spent.
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Old 05-16-2017, 02:03 PM   #34
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Spending purely for the sake of spending is detrimental for an economy because it creates deceptive demand, often rewarding products and services of no real benefit. For example, I could pay crew A to dig a hole, then crew B to fill it back in. I will have spent but have not gained anything worthwhile. That type of spending is the first to cease during the next recesssion.
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Old 05-16-2017, 02:13 PM   #35
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I just bought another pair of First Class airplane rides.
No! No! NO!!!!

You are supposed to spend hours on your computer tracking down the absolutely cheapest seat you can find. Then spend the next weeks or months until you depart, complaining about all the extra charges you have to pay for reserved seats, carry on luggage, food etc. Upon your return home you then spend weeks complaining about the lack of leg and foot space, crowded shoulder-to-shoulder conditions on the plane, lack of storage, etc. etc. etc....

It's a great way travel. Right?

Can you get a refund on the 1st class seats and now do it right??
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Old 05-16-2017, 02:17 PM   #36
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If you're planning to travel a lot, you may want to budget for shipping your computer by FedEx to/from your destinations.
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Old 05-16-2017, 02:52 PM   #37
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And--reward a business that does good work, encouraging their growth at the expense of lesser competitors. A social good!
Yes, that's a luxury of mine, too. My only clothing purchases this year were 2 pair of Birkenstock sandals (made in Germany) and a backpack made in the USA. You can find a lot of products made in the USA just by searching on "--- made in USA". I doubt I spend much more over the long run since cheap products made in developing countries typically don't last as long. Less worn-out junk in the landfills, too.
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Old 05-16-2017, 03:28 PM   #38
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A website which I read but shall not name, castigates all Baby Boomers because according to them we are greedy and spending all our supposedly immense (and supposedly easily earned) wealth on ourselves instead of just giving it away to younger people, the sooner the better.

Yeah, uh huh.

To me the lesson to be learned, is that stereotypes don't often hold, and greediness isn't limited to any one generation of people.
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Old 05-16-2017, 04:16 PM   #39
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I did my part, I retired.

Now some recently graduated engineer has his new start in life.

He can work for his dough like I did -
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Old 05-16-2017, 05:16 PM   #40
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Beginning this year we are increasing our spending by proxy in that we will start giving our 2 kids (in their mid to late 30's) the max we can each year without it needing to be reported. ($14k per person, so $28k each).

There are no grandchildren and none expected so we decided we'd rather begin giving the kids their inheritance slowly over time rather than a big lump sum in possibly another 30 years time when we die.
+1 We started this last year. With the WA estate tax and no portability of exemption to spouse, its either gift it to them or 20% or more later to the state. Still, 28K to each daughter, and 28K to each son in law is not making a dent due to investment returns far out pacing those gifts.

Time to buy the Bentley coup! But I just not old enough for that ride
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