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Old 11-10-2008, 09:38 AM
 
48,516 posts, read 83,943,432 times
Reputation: 18050

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I thnik you have to really look as I don't think MOST americans are in terrible financial shape but just like the houing crisis;enough are that it is a big problem.Look at the figures of homeowners in problems and you'll see the per centage is small. I know of no one that is in problems personally that I know.But unemployjent can mean alot more will be in problems as it rises.
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Old 11-10-2008, 09:45 AM
GLS
 
1,985 posts, read 4,847,602 times
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Quote:
Originally Posted by cdelena View Post
In 2008 SS taxes are paid up to $102,000 and in 2009 they are paid on $106,800. (the $97K max was last year).
True. Remember also that the small business owner/sole proprietor pays BOTH the employee and employer portions. Continuing to raise the cap won't address the problem that the number of recipients drawing from the system is increasing faster than those contributing to it.
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Old 11-10-2008, 01:33 PM
 
129 posts, read 401,014 times
Reputation: 76
"Did many of you never learn about planning for your future?"
Heard it everyday from my folks.

"Was there just not enough income to save for the future?"
Generally, NO. Fact is yes there was some spent on a good time that could have been saved. Good times were and are important.

"Was it not important to save for the future?"
When you're bullet proof what the heck does a future have to do with anything?

"Why is it that so many people facing retirement are so ill-prepared after 30-40years of working?"
It could be that the majority of people work for poor wages. Half of poor at retirement is called broke.
Another reason is the mobile society where we take jobs all over the US and wind up at 65 with a 30 fixed mortage. Medical issues are a load of fun too. In case no one noticed the entire financial system of the US is designed to drain every dime you saved anyway. Old folks in the Assisted living homes will be drained down to a maxinum of $2,200 cash very quickly before our Government helps.
45 year class reunions where lots of people walk around saying they're retired is code for "unemployed".
Besides, the closer I get to the magic day the things I have wanted to do or return to doing in my lifetime mount up extremely fast and expensive. Can't do them now even with a good job.
If nothing else get a good TV with a hyper extended warranty.
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Old 11-10-2008, 01:44 PM
 
Location: Forests of Maine
30,684 posts, read 49,455,573 times
Reputation: 19134
Quote:
Originally Posted by brightdoglover View Post
... I'd ask Warren Buffet why he pays less tax than his secretary, as he's said, and how to address this. ...
He owns corporations. His corporations have lawyers and accountants, each corporation files taxes for that corporation. He gets a small allowance from those corporations.

So his personal income is very low. Therefore he slides underneath the personal exemption amount.

His secretary earns a working income and has no investments, so she pays the full 'wage-slave' amount of income taxes.
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Old 11-10-2008, 07:16 PM
 
Location: DC Area, for now
3,517 posts, read 12,052,621 times
Reputation: 2141
Quote:
Originally Posted by forest beekeeper View Post
He owns corporations. His corporations have lawyers and accountants, each corporation files taxes for that corporation. He gets a small allowance from those corporations.

So his personal income is very low. Therefore he slides underneath the personal exemption amount.

His secretary earns a working income and has no investments, so she pays the full 'wage-slave' amount of income taxes.
That is not what Warren Buffet says. He says he does nothing to keep his taxes low. He has a healthy income and is the richest man on earth. The difference is the very low investment tax rates that he pays because of the type of income he has compared to the higher rates a salaried person pays.
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Old 11-10-2008, 07:46 PM
 
Location: Forests of Maine
30,684 posts, read 49,455,573 times
Reputation: 19134
Fine, I do not pay income taxes anyway.

So you decide how he does it.

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Old 11-10-2008, 08:31 PM
 
Location: NJ
2,111 posts, read 7,256,353 times
Reputation: 994
I'm in the minority with this thread, I'm approaching retirement and in good shape.

I believe we are in bad shape because the current generation wants it all yesterday. By using credit and not saving they are getting it all at a price. People are working harder today and living way above their means. It's better to be a little modest or frugal and have a good nest egg, especially in these difficult times.
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Old 11-11-2008, 07:54 PM
 
Location: Great State of Texas
86,093 posts, read 72,515,954 times
Reputation: 27566
Not only did people spend more (via debt) but wages didn't keep up with prices so they are also now spending more to keep at the same level.

Look at that "1lb" coffee can and you'll see it's only 13 oz now and yet costs more.
That's happening with lots of things you buy. Notice clothes don't feel as thick as they used to and don't last as long ? Stuff is actually made cheaper and doesn't last as long which mean replacement is more often.

I've got a washer/dryer that is 15 years old..nice solid metal compared to the plastic stuff they sell today.
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Old 11-12-2008, 09:41 AM
GLS
 
1,985 posts, read 4,847,602 times
Reputation: 2408
Quote:
Originally Posted by taurus430 View Post
I'm in the minority with this thread, I'm approaching retirement and in good shape.

I believe we are in bad shape because the current generation wants it all yesterday. By using credit and not saving they are getting it all at a price. People are working harder today and living way above their means. It's better to be a little modest or frugal and have a good nest egg, especially in these difficult times.
I'm very similar to you philosophically. I don't like debt, therefore I have paid off my mortgage, have no car loans, no credit card balance, etc. The stock market may have cracked my nest egg, but it isn't scrambled.

However, I think I have an explanation for one of your comments.

Maybe the current generation "wants it all yesterday" because it's beginning to look like "there won't be anything left tomorrow".
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Old 11-15-2008, 08:04 PM
 
Location: Some place very cold
5,500 posts, read 20,068,246 times
Reputation: 4220
Quote:
Originally Posted by forest beekeeper View Post
We found great encouragement while reading 'The Millionaire Nextdoor".

[if luck is defined as making a conscious desicion]
Forest,

How do you build equity in apartment buildings? You are paying a lot of money in interest and properties in Maine are not going up in value by much. So how does that work out for you?

If you did not put any money down on the property and housing values have not gone up, you have no equity in the building. In fact, if the values of the properties drop, which is likely, you could end up owing more than the building is worth.



Woofers
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