I should qualify that last post by saying that the net worth number *might not* include the equity in one's house.
Even so, a very low number.
I read something in the Wall Street Journal that I thought was scary. I can't remember the exact number, but it listed the average net worth by age group.
Naturally, those in the age group immediately preceding retirement had the highest average net worth. What really threw me for a loop is how low that number is. It's something like $128,000!
$128,000 is so remarkably paltry for someone about to enter retirement. Since the majority of Americans own their own homes, this low number tells me the average American is over their heads in debt.
I should qualify that last post by saying that the net worth number *might not* include the equity in one's house.
Even so, a very low number.
Oh fer cryin' out loud, how in the heck can anyone retire on $138K??? [img]confused.gif[/img]
Agree with some of the stuff you say against mutual funds. The capital gains problem is one reason why most experts recommend owning them in a tax sheltered IRA or 401K, and owning individual stocks outside of that - you have more control over the gains or losses.
What is your moral objection to 5/3rd? [img]graemlins/rainbow.gif[/img] ?
Rates on CD's and Annuities are at a 5 year high right now. Home sales are at an all time high as well. If consumer confidence continues to grow, unemployment numbers will fall.
People feel confident in going out to spend money, creating business which in tuirn creates more job possabilities.
I've found that getting a good rate on an investment can give someone an extra feeling of security tword possibly shopping and spending.
If you are getting .7% or even .2% return on a saving account, why not go for 3% or 4% on a CD?
Or maybe even more in an anuuity.
I know it's sometimes tough to come up with the money to get into something like this, but many banks and institutions can get you in at as little as $500.
<font size="2" face="Verdana, Helvetica, sans-serif">You are correct.Originally posted by LanDroid:
Oh fer cryin' out loud, how in the heck can anyone retire on $138K??? [img]confused.gif[/img]
Agree with some of the stuff you say against mutual funds. The capital gains problem is one reason why most experts recommend owning them in a tax sheltered IRA or 401K, and owning individual stocks outside of that - you have more control over the gains or losses.
What is your moral objection to 5/3rd? [img]graemlins/rainbow.gif[/img] ?
That whole flip flopping on what should be a no brainer just really steams me.
The price of 5/3 stock affects my personal wealth. That 5/3 would stumble over an employment policy that would expand their pool of qualified employees makes no sense. Secondly, not employing a nondiscrimination policy for gays pretty much guarantees this very attractive demographic will not do business with that bank.
What kind of business willingly turns away millions of dollars of business over such a stupid reason?
5/3 does. As I mentioned, I find their actions in all of this morally reprehensible.
I switched everything I possibly could over to USBank, who appears at this point to not only be gay friendly, but has better customer service and fees that don't screw you over if you make one little mistake. Overdraft fees are a fraction of 5/3's, and because of my good credit rating, I got a nice line of credit attached to my checking account, right on the spot as I stood at Meijer opening my account.
I should also point out that pretty much all of 5/3's larger competitors have gay nondiscrimination clauses in the employment policies. Besides USBank, JPMorgan (Bank One), Citibank, National City (Provident), Wells Fargo, etc.
What do these more successful banks know that 5/3 doesn't?
<font color="#000002" size="1">[ July 08, 2004 09:10 AM: Message edited by: reason ]</font>
<font size="2" face="Verdana, Helvetica, sans-serif">Agreed. It's remarkable what poor savers Americans are.Originally posted by LanDroid:
[QB]Oh fer cryin' out loud, how in the heck can anyone retire on $138K??? [img]confused.gif[/img]
[QB]
Wish I saved that article.
<font size="2" face="Verdana, Helvetica, sans-serif">Rates on cds are still remarkably low.Originally posted by cincygreg:
Rates on CD's and Annuities are at a 5 year high right now. Home sales are at an all time high as well. If consumer confidence continues to grow, unemployment numbers will fall.
People feel confident in going out to spend money, creating business which in tuirn creates more job possabilities.
I've found that getting a good rate on an investment can give someone an extra feeling of security tword possibly shopping and spending.
If you are getting .7% or even .2% return on a saving account, why not go for 3% or 4% on a CD?
Or maybe even more in an anuuity.
I know it's sometimes tough to come up with the money to get into something like this, but many banks and institutions can get you in at as little as $500.
Consumer spending is what carried us through the recent downturn, primarily through home buying, which in turn spawned increased consumer spending for other household products.
Consumer debt is at an all time high. Higher interest rates will zap those with all that debt, both on credit cards, and those who latched into ultra low rates through ARMs and other teaser programs to get people to buy homes.
I'm telling you, we're in a catch 22 situation. If inflation gets out of hand, the Fed will have to raise rates. Raising rates will have enormous economic effects on those who who took on that debt. Growth of debt has been outpacing growth of income.
<font color="#000002" size="1">[ July 08, 2004 10:10 AM: Message edited by: reason ]</font>
That's what happens when we run a debt based economy.
<font size="2" face="Verdana, Helvetica, sans-serif">I confess that I eagerly latched on to the low interest rates. At one time I had significant 5 figure home improvement debt I rolled over from 0% credit card to 0% credit card.Originally posted by Jumper69:
That's what happens when we run a debt based economy.
Now that rates will rise - barring another terrorist attack or some other unfortunate event - I have been on an austerity program to have all debt eliminated (other than mortgage debt) by February or March. No car debt. No home improvement debt. All my interest charging credit cards are and will be paid off monthly.
Not to get on a tangent here, but one thing that really scares me - and people seem to ignore - is that it is widely accepted that we will have another terrorist attack. An attack along the lines of a dirty bomb is a very real possibility in a major American city. Many credible people say it's a matter of not if, but when. The same ominous predictions were made about terrorist attacks years before 9-11.
If something like this happens, I cannot imagine what would happen to the stock market. Just look what blowing up two buildings in New York City did.
I just see debt as a very very very bad thing to have at this point in time. Unless it can make me money, I will not add debt. And against sound economic advice of not paying off a low interest mortgage early(14yr, 4.875%), I plan on having no mortgage debt in 7 years.
I know this sounds reactionary, but these are uncertain times and we must adjust accordingly.
The accumulation of consumer debt in the United States will end up being a huge barrier to economic growth.
Still not sky high, but they are indeed the highest they have been in years.
If you have the dough rey me and are in a possition where you can handle putting some away where you cant touch it for a while, it makes absolutley no sense not to go for higher yields.
They may not be sky high, but 4% is higher than .5% no matter how you spin it.
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