I see plenty of goods that a lot of people cannot afford because of inflation...Food..insurance...Mortgage...Rent...energy and taxes just to name a few...and the cost of transportation too..
South Florida, a senior enclave, sees more people ‘unretiring’ due to living costs
- Thread starter Dave Hess
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You can say that, but I would suggest it is more complex than that. SS was implemented as a safety net for seniors who were struggling financially to survive. Many workers lived week to week, so after their work days ended they were in deep yogurt. Via SS they got benefits from the current working class.
You don't get your money back. Now, the 1983 laws gave tax payers lower rates at the expense of some SS recipients. Short term thinking, IMO. The original SS purpose was a safety net, not an income tax benefit.
Everything changes. I know I sound like a broken record, but IMO the only solution is education. We need to teach personal finance starting at an early age. There are no easy answers.
This is why I think investing aggressively and early is far more important than paying off debts aggressively and early. Like paying off the house early is awesome, but you cannot eat a house. You’re losing ~10% growth to save ~3% in interest…Yes I know there is risk with debt. But life is risky.
I was looking around SC and like a few places I visited.
I don’t want to live anywhere near the ocean.
That's that darn arithmetic that @Astro14 keeps trying to teach me. 10 > 3 or some other such nonsense. By the way there is no 3% money out there, so that's moot.
I call that accounting, but I call finance the management and planning to achieve goals. Arithmetic is part, but there is so much more.
I am talking long term goals, like 20 years or more.
According to Investopedia, “Personal finance defines all financial decisions and activities of an individual or household, including budgeting, insurance, mortgage planning, savings and retirement planning.” Understanding these terms can help you better control your funds and prepare for future financial success.
Having a place to live was my #1 priority. Minimizing recurring costs is another because it allows for getting through both good times and bad times, not to mention $$ for other things.
You speak of risk... I like tech stocks, but certainly not "all in"; that's like putting it all on red. Having said that, show me someone who has built a $10M portfolio and I will show you someone holding tech OVER TIME. Now show me $25M and now we are talking. Now $50M and you are off the freakin' charts. Or you shoot hoops like Steph...
The point is diversification and time in the market because that darn arithmetic changes over time.
The most important investment is in yourself. And education never ends; it is never done. Everything changes; so should I.
Just my 2 cents, which is more than you paid for it! Ha!
Best of luck in your investing.
Parents around here tell me, even with education, their kids will never be able to buy a home here.
It's nice to see the incredible equity we have in our homes, until it isn't.
Double edged sword, as they say.
Every working adult pays into the system even the ones who work week to week. Not sure if I am understanding your post. You do get your money back and more if you live long enough, if you dont, you and your family are out of luck.
Its why I say, if you can afford it, start taking it right away at age 62, you can even bank it for 5 years until 67 and that will be 5 years in an investment account that you can leave to your family should you expire at 67 to 80 years old. 5 years of SS income invested they would never have seen.
I think the "industry" tries to make it sound complex for their own benefit.
"Don't get your money back" refers to the way SSI works. Your payments are distributed to current recipients; when you receive benefits they come from current payments. You don't bank your own payments.
I am basically with you on not waiting to take benefits. I feel it's like seeing $20 on the ground and leaving it because there might be $30 further on up the road. Lotta variables; lotta uncertainties. Present value, value of funds received later, etc.
The biggest sham is less real estate as you can control that easily in USA however prescriptions costs to elderly.
I came into some money a few years ago. Could have either paid off my mortgage or invested it. At the time, I was on the downside of amortization so most of the monthly payments would have gone to principal. I paid it off. I'm more risk averse and value security over maximum ROI.
I've come to learn about Dave Ramsey and his eliminate debt then invest mantra. I agree with a lot of his principles.
I cannot stand him. His principals do work. However he isn’t the only successful person on the planet. There is more than one path to wealth. If you listen to him talk though he sure acts like his way is the only way. Too sanctimonious for my liking.
This could be a whole topic on its own. No doubt kids cost money, but I'm under the impression that many parents spend money on things they shouldn't and don't have to when it comes to kid expenses.
Yes, if you wait until 70 to retire you might not have many good years left. I retired at 66 and am working part time and still buying stocks. I figure if I invested some of the SSI money at 66 I would be the same financially from SSI benefits than I would have been if I continued working and being stressed out, low on vacations, and working Mon-Fri. 70 years is too long to wait for most people working a job with some stress and 40 hours per week. Too much work and not enough play in my opinion.
Ramsey is OK for people who get themselves into financial trouble. I just find him waaaaay to simple; it is easy to shoot holes in his programs.
I would have done a little of both...
Yeah, his program is fine. It does work. Especially for those in dire circumstances with no way out. But it isn’t the only way.
There are many people in more financial trouble than they realize.
I am not sure how you quantify that, but I imagine it is true. Education needs to include personal finance.
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People plan based upon what they know.
Most people don't retire with a lot of contingency money.
Unanticipated large increases to the cost of living may be critical for these folks.
They thought they'd done the math and all of a sudden a large and unexpected increase in property taxes, insurance costs, condo fees or rents set their carefully figured plan on its head.
There are many here with plenty of cushion, but there are many not so well situated.
At retirement age, there isn't anything to help with that. What people should have done twenty years ago doesn't help them now.
Most people don't retire with a lot of contingency money.
Unanticipated large increases to the cost of living may be critical for these folks.
They thought they'd done the math and all of a sudden a large and unexpected increase in property taxes, insurance costs, condo fees or rents set their carefully figured plan on its head.
There are many here with plenty of cushion, but there are many not so well situated.
At retirement age, there isn't anything to help with that. What people should have done twenty years ago doesn't help them now.
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