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Old 03-02-2008, 11:37 PM
b75
 
950 posts, read 3,182,558 times
Reputation: 329

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Many of them live with their parents b/c they don't make enough $ to move out. Eventually they are able to move out b/c they had the opportunity to actually save. But not everyone has that luxury, situation or even desire to live like a teenager when they are a working professional.

Quote:
Originally Posted by Bunky39 View Post
its not the oil prices. its the 38% of adults under 30 live with their parents.
"kidults" & permaparents. for many there is no finish line. fyi 31% of
seniors have a grandchild living with them. (aarp)
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Old 03-03-2008, 05:45 AM
 
Location: Home is where the heart is
15,400 posts, read 25,850,519 times
Reputation: 18992
Quote:
Originally Posted by Bunky39 View Post
its not the oil prices. its the 38% of adults under 30 live with their parents.
"kidults" & permaparents. for many there is no finish line.
Oh, they get that newfangled retirement plan. Retirement starts when you stop living with your parents and move in with your kids.

Hey, nothing wrong with the plan, really. That's the way it's worked through the ages...
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Old 03-03-2008, 05:46 AM
 
8 posts, read 31,442 times
Reputation: 35
Default Brokers are ruining retirement

One thing that is ruining retirement for people is the 'financial advice' industry: The brokers parading as 'financial advisors'.

They charge huge fees to get poor returns:

"the BCT study found that the raw returns of equally weighted mutual funds
(net of all expenses) for 1996 to 2002 were 6.626% for the investors working on their
own and were 2.924% for funds provided by advisors.
In other words, the public working on its own did more than 100% better than financial
advisors when it came to selecting equity mutual funds. After factoring in inflation and
taxes, clients of financial advisors lost money and lost purchasing power."

The 'BCT' study is "Assessing the Costs and Benefits of Brokers in the Mutual Fund Industry". You can find it online.

This chart shows what fees do to nest eggs:

The table below (used by NASD) assumes you invest $2,000 on January 1st of each year and earn a 10% rate of return before deducting fees.

The Balance after 5 Years 10 Years 20 Years 30 Years 40 Years

Mgmt. Fee @ 0.02% $13,423 $35,022 $125,696 $360,454 $968,249

Mgmt. Fee @ 0.25% $13,334 $34,556 $122,204 $344,402 $907,762

Mgmt. Fee @ 0.50% $13,238 $34,077 $118,528 $327,816 $846,479

Mgmt. Fee @ 1.00% $13,047 $33,121 $111,529 $297,150 $736,584

Mgmt. Fee @ 2.00% $12,672 $31,291 $98,846 $244,692 $559,562

Mgmt. Fee @ 3.00% $12,307 $29,567 $87,730 $202,146 $427,219

Think about the numbers on this table. It is common for people to be paying
2%, 3% and even 4% in combined mutual fund and advising costs. If your investments are costing 3.00%, your nestegg will be some $541,000 lower after 40 years than if you used low-fee investments and did your own investing. How many years of retirement is that? Shouldn't a Financial ADVISOR be showing his clients this chart? But they do not.

Look at the mess of (often hidden) fees in 401ks!!

Now think about what happens IN retirement. Consider that the safe withdrawal rate in retirement is considered to be 4%. (This is what you can safely withdraw from your investments and not run out of money before you die). It's typical for clients to pay 2 - 3% of their investments in wrap, commission and fund fees. What does that leave the retiree? Not much.

There may be a handful of honest, very low cost financial advosirs that take no commissions and only sell advice by the hour...but how is an ignorant client going to find one?
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Old 03-03-2008, 06:12 AM
 
Location: New Orleans Louisiana
156 posts, read 352,469 times
Reputation: 215
Quote:
Originally Posted by normie View Post
Oh, they get that newfangled retirement plan. Retirement starts when you stop living with your parents and move in with your kids.

Hey, nothing wrong with the plan, really. That's the way it's worked through the ages...

LOL Normie...I'm right where I should be in life then...I just sold my house and my son(23)...just bought his first house....I wonder if he has any idea what is in store for him lol....
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Old 03-03-2008, 06:47 AM
 
1,861 posts, read 3,026,962 times
Reputation: 559
Quote:
Originally Posted by b75 View Post
Well considering the cost of living has increased in a fashion that (since the 1970s) has become quite disproportionate to people's incomes; it is much less likely that people will have the same opportunity to retire as the previous generation. I don't understand why more people are outraged about that. Me? I'll probably work until I'm dead or I wish I am dead. And I actually don't have much in the way of debt - I tend to pay as I go which means I don't have that much left over of course.
Very well-stated. Since real wages have been stagnant for decades, but everything else has gone up, don't you think that things have changed just a LITTLE bit?

And, since the median household income in the U.S. is $45K (and half the households with income below that), doesn't that tell you that most people have a hard time saving? On $45K, depending on where you live, that is barely enough for housing, utilities, food, etc., especially if you have a few kids. Saving for retirement (especially if you want the kids to go to college) - forgeddaboudit.

I don't think that's so hard to figure out. But, some people insist that there's no problem, and that if there is, it's your own durned fault, totally.

(And, I'm not talking about ME (which I mentioned previously) - I do quite well for a single person compared to MANY, many people).
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Old 03-03-2008, 08:16 AM
 
Location: Colorado Springs
92 posts, read 196,305 times
Reputation: 52
When it became cheaper to outsource jobsmove factories offshore, hire workers (legal and illegal) at very low wages, cut benefits to workers by letting go of workers with seniority and hiring younger workers at entry-level wages, using part-time or temp workers with no benefits, using bankruptcy protection to cheat long-time workers of some benefits, and creating the myth that everyone has a chance to make a decent living and retirement if they just work hard, then we have what has resulted.
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Old 03-03-2008, 09:24 AM
 
Location: Oxygen Ln. AZ
9,321 posts, read 16,603,136 times
Reputation: 5692
Quote:
Originally Posted by normie View Post
Oh, they get that newfangled retirement plan. Retirement starts when you stop living with your parents and move in with your kids.

Hey, nothing wrong with the plan, really. That's the way it's worked through the ages...
Best laugh I have had in days.
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Old 03-03-2008, 09:29 AM
 
Location: Ocean Shores, WA
5,081 posts, read 12,992,331 times
Reputation: 10650
If people hadn't sold their souls to worship at the alter of consumption and acquisition, and had instead spent their lives learning how to live and appreciating what they had, they could retire anytime they wanted.
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Old 03-03-2008, 10:51 AM
 
Location: New Orleans Louisiana
156 posts, read 352,469 times
Reputation: 215
Default Boeing fiasco

You know sometimes it's really hard not to believe that our government doesn't want the jobs to go overseas. This Boeing thing really bothers me. Here you have a flagship U.S. company that builds the most widely used airliners for everyone in the world with a name and safety record synonomous with air transportation. Boeing has been building strategic aircraft for the U.S. military for 50 plus years. The Airbus contract would have to be 1000% better than Boeings before any thinking person would even consider them producing military aircraft overseas for the U.S. military. The contract(ultimately worth $100 billion) would keep tens of thousands of people working in the U.S.(in good jobs) for the next decade and beyond if awarded to Boeing. Boeing has been building this type of aircraft for 50 years for our military. They have the facilities to build this type of aircraft ready to go. Airbus has nothing but designs. What a dumb thing to do. You can always depend on us to help the world before we help our own. I mention it here because good jobs mean better retirement chances for everyone. Nice to know the government cares about our jobs going overseas...
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Old 03-03-2008, 11:34 AM
 
1,861 posts, read 3,026,962 times
Reputation: 559
Quote:
Originally Posted by GregoryS View Post
You know sometimes it's really hard not to believe that our government doesn't want the jobs to go overseas. This Boeing thing really bothers me. Here you have a flagship U.S. company that builds the most widely used airliners for everyone in the world with a name and safety record synonomous with air transportation. Boeing has been building strategic aircraft for the U.S. military for 50 plus years. The Airbus contract would have to be 1000% better than Boeings before any thinking person would even consider them producing military aircraft overseas for the U.S. military. The contract(ultimately worth $100 billion) would keep tens of thousands of people working in the U.S.(in good jobs) for the next decade and beyond if awarded to Boeing. Boeing has been building this type of aircraft for 50 years for our military. They have the facilities to build this type of aircraft ready to go. Airbus has nothing but designs. What a dumb thing to do. You can always depend on us to help the world before we help our own. I mention it here because good jobs mean better retirement chances for everyone. Nice to know the government cares about our jobs going overseas...
Yeah, our government doesn't give two hoots about the American citizens who, btw, pay their salaries, AND pay for everything they do.

The bottom line is GREED, money and GREED. All these idiots in government want is to line their own pockets, and the pockets of their cronies in corporations.
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