"Diverse" Suburbs (Minnetonka: rent, houses, buying)

[uptown_urbanist]

I think that counts as "privileged class." I doubt the average local resident's combined home value and 401k upon death comes anywhere remotely near the million dollar mark.

My data may be out of date, but I believe less than 2% of Minnesotan estates pay estate taxes.

[Cruz Azul Guy]

401k accounts don't earn jack unless the company matches and unfortunately there are plenty of companies out there that aren't doing well enough to offer any kind of respectable match to its employee contributions.

[audadvnc]

Originally Posted by Slig

401k accounts don't earn jack unless the company matches and unfortunately there are plenty of companies out there that aren't doing well enough to offer any kind of respectable match to its employee contributions.

In my manager's teleconference last Friday, the regional director was crowing about how our company (and its major investors) were enjoying a 20% revenue increase and improved profitability over prior year. Somebody brought up pay raises and bringing back the 401K match? Um, well I guess we weren't really making enough money... next question?

[golfgal]

Originally Posted by rcsteiner

Wow, what world do you live in? Maybe I know a lot more folks who have been laid off than most, but I suspect at least half of the folks I know have had their retirement funds trashed at least once in the past 20 years.

Yes, there have been ups and downs in the economy but over the long hall most people do see positive returns on their investments. Time value of money...

In 20, 30, 40 years will a million mean much, probably not, but as it stands right now that is the breakpoint for estate taxes. No, most people don't pay estate taxes, not because they don't have money in that range but because they structured their plans properly to avoid most estate taxes.

A house in the $200,000 range today will appreciate to the $500,000 range in 30 or so year, same as a 401K plan or IRA if you don't have a 401K option, if you contribute to that fund at roughly 5% or so of your income-which is MINIMUM of what you should be doing. There is your million... Now, add in a potential spouses 401k or IRA or any other investments and you are paying 55% estate tax if you haven't planned properly (or more accurately your estate is paying that).

[FamousBlueRaincoat]

Wow - I grew up thinking I was relatively privileged because my parents could help me pay a fraction of my college education. I suppose I'll have to reconsider, now that I know that normal people are millionaires. LOL.

[Min-Chi-Cbus]

Originally Posted by audadvnc

OK, I'm flying fast and loose with the quoting, but they illustrate my point. The privileged class has always had the means to perpetuate its privilege. Which is not, by itself, a terrible thing. But when the folks on top are simultaneously extolling the virtues of the level playing field - and exempting themselves from that situation by jimmying the tax codes, they are guilty of hypocrisy.

I hope you don't think I am "on top", because I am not priveledged right now!!! Most of my family grew up flat broke. Do you really expect those who are on top to just give it away? Where on Earth does this happen? That's my only point.....that things won't change unless you make them change.

[Min-Chi-Cbus]

Originally Posted by audadvnc

In my manager's teleconference last Friday, the regional director was crowing about how our company (and its major investors) were enjoying a 20% revenue increase and improved profitability over prior year. Somebody brought up pay raises and bringing back the 401K match? Um, well I guess we weren't really making enough money... next question?

Public companies are stingy like that -- their primary concern are the shareholders, because the board of directors as well as upper management has a SERIOUS stake in the company's shares. Most of their bonuses are paid this way. Go private.....they treat their EE's better.

[audadvnc]

Originally Posted by Min-Chi-Cbus

Go private.....they treat their EE's better.

Yeah, they used to be private, but needed a big capital infusion to get to the big leagues. Now they are big time, but we employees are in the lurch ...

Do you really expect those who are on top to just give it away?

No, of course. The question could however be re-framed as a mutually beneficial trade - resigning some status and power in exchange for a better quality of life. After all, being the big fish in a tiny polluted tank may not be as pleasant as an almost-as-big fish in a big lively pond.

[golfgal]

Originally Posted by FamousBlueRaincoat

Wow - I grew up thinking I was relatively privileged because my parents could help me pay a fraction of my college education. I suppose I'll have to reconsider, now that I know that normal people are millionaires. LOL.

There is a HUGE difference between being a "millionaire" and having assets totaling over a million when you die.

If you aren't saving toward your retirement, that is your fault-not the IRS's.

[FamousBlueRaincoat]

Originally Posted by golfgal

There is a HUGE difference between being a "millionaire" and having assets totaling over a million when you die.

If you aren't saving toward your retirement, that is your fault-not the IRS's.

While it's certainly the truth, and I'm one of the largest proponents of people being more frugal than they are (I'm still young - but after my first full year of working out of college, I had saved so much money that I decided to quit my job and "chill out" for a while, which is still what I'm doing). But the fact remains that my father is a working professional at a medium sized company, my family has always been extremely frugal (for example, they didn't buy a home until they could afford to buy it outright, I was the last person in my class in school to own a computer, etc.), and since I was a very young child we have had very little economic stress, he's about 10-15 years away from retirement, has done everything exactly the right way, has absolutely no complaints about his lot in life, is a supporter of the free market, and has what many would consider a very comfortable retirement account plus a home, and it is nowhere near one million dollars.

People who are rich simply often misjudge what being rich is, because they are out of touch. There's no shame in it. They just don't know. I don't know what it's like to drink clam juice. But I'm not going around talking about clam juice either....