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If younger people make this kind of mistake they presumably still have several decades to make it right. For a 60 year old woman to take on that kind of debt is colossally irresponsible.
Socially, it is irresponsible. But people don't act socially--they act for their own personal benefit. And think about it: why not just "live for today" and borrow and rack up debt (like our esteemed leaders in Washington)? You get years and years of a much higher quality of life, and only pay back a small amount each month. With interest perpetually locked at historic lows, you can live VERY well for a VERY long time, before compound interest and total debt makes your monthly credit bills too high to handle. And when you get to that point, just declare bankruptcy and wipe the debt off the books (and for non-forgiveable debt, like Big Government's confiscation, you get an easy payment plan that lowers the monthly payment).
That's how millions of Americans have done it, and it seems to have worked out very well for them. Why would they be scared of the only downside of bankruptcy--7 years without being able to get more credit? That just means 7 years living like they would have if they were fiscally responsible.
Compare that to the case of the "responsible" person, who lives very frugally all their life and has a small nest egg, plus some investments with an income stream in retirement (like annuities). That means the government assistance that you MIGHT have gotten will be minimized or denied altogether based on asset and income testing (and this will only get MUCH worse in the future, as Big Government desperately tries to hide the fact that they already SPENT all those tax revenues that were supposed to take care of the Baby Boom's retirement costs).
I was recently reading about a frugal elderly woman who had never made a lot of money. Realizing the complexity of SS, she called the Social Security office, but could do no more than answer simplistic questions (and they are likely to be WRONG anyway). So she went to a financial planner for retirement planning advice. The guy she went to gave her the Party Line of the benefits of delaying taking Social Security (a higher check if/when you start collecting), so she lived like a pauper and did not file for SS until age 70. We all know that one drawback to delaying SS benefits is that if you die before your new SS retirement age, you would get NOTHING back for the hundreds of thousands in Social Security taxes you pay over a lifetime of work.
But it turns out there was another HUGE downside to delaying SS benefits that nobody told her about: that the higher SS benefit made her totally ineligible for other government assistance programs that would have allowed her to live quite well (I can't find the article now; someone post the link if you find it). She was over the income limit by less than $5 a month, but there is absolutely no way she could arrange to get LESS of a Social Security check. She ended up living in poverty for not only her working years, but ALSO during her retirement years. Here's a link to some other pitfalls of Social Security retirement planning: 44 Social Security 'Secrets' All Baby Boomers and Millions of Current Recipients Need to Know - Revised! - Forbes
will significantly and negatively impact my future economic well-being, and that of my children. That is where I draw the line.
So you hate, and draw the line with, about 75 million people?
Or are you looking for someone to blame when your plans don't go as you think they should?
Hint - people can plan all they want. The results (life) are never guaranteed.
As for her age and getting loans and being in debt ... I'm pretty sure that under the Equal Credit Opportunity Act, it's illegal for a creditor to discriminate against any applicant because of age.
I can think of nothing to justify a 60 year old woman taking on $200k of debt for a job with median pay of $42k.
But the point is, most 60 year olds should be in a position to retire or semi retire so that they won't feel the need to take on said debt in the first place.
Generations after the boomers have become the entitlement generation ;Plain and simple. They do not earn their own way but rely on free stuff at young age. Even Obama admits they have not produced the replacement scientist and highly technical people needed and our education ranks lower and lower in the world.
That is generally true, but it is the Boomers who started this trend toward the entitlement mindset with coddling kids, giving them everything they want, being your kid's friend, etc. I understand not all Boomers embraced this mindset, but they were the first generation to do so, and it hasn't turned out well for them or their kids.
No, it was actually the boomers who embraced the 'greed is good-we deserve to live the good life NOW' philosophy that took off in the 1980s. That's when the country began to circle the drain.
Quote:
Originally Posted by mysticaltyger
That is generally true, but it is the Boomers who started this trend toward the entitlement mindset with coddling kids, giving them everything they want, being your kid's friend, etc. I understand not all Boomers embraced this mindset, but they were the first generation to do so, and it hasn't turned out well for them or their kids.
So you say there are people... who you claim HATE an entire generation because a bank gave one older lady loans to further her education?
How many besides you?
:::shaking head:::
02-24-2014, 10:21 PM
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n/a posts
Quote:
Originally Posted by stoutboy
No, it was actually the boomers who embraced the 'greed is good-we deserve to live the good life NOW' philosophy that took off in the 1980s. That's when the country began to circle the drain.
This. Greed is good and never, ever plan for the future or even make an attempt to pay for what you want today. Just run up the bill and let someone else pay it. More people need to wake up and realize that the attitude shift in the 1980s is what has led us to where we are today.
And now we find ourselves unable to fund higher education like we used to, unable to offer pensions at all (certainly not like we used to), unable to pay for basic public services.
And the people who squandered it all have the nerve to rant and rave about how the people they stuck with the bill "have become the entitlement generation" and "do not earn their own way but rely on free stuff."
I was going to respond seriously and thoughtfully to this thread, but after reading through a few pages, I decided, "Nyahhh, I'll just poke my eyes out with a knitting needle instead."
Honestly, the shortsightedness of some people is amazing. Get this - Karma is a really _itch. One day YOU will be middle aged and YOUR kids and grandkids and their peers will be vilifying and hating on you, and blaming you for their woes. It's one of human nature's basic defaults - can't you at least TRY to rise above it?
Meet Nancie Eichengreen, 60 years of age. In 2012, after getting laid off from her legal secretary job, she decided to 'reinvent' herself, and went back to school (Yeshiva, an expensive private university) to pursue a master's in social work. She got the degree, but is still jobless and now $200k in debt.
The median salary for a social worker is $42k. I can't even begin to conceive what this woman was thinking.
what an ignorantly broad statement. You could say the same thing about any generation.
The baby boomers have done a lot to hurt their legacy. No doubt.
But, if we are making broad statements, this current generation of college age people would be more likely to spend $200k on a masters in social work than just about any other generation.
It all comes down to personal responsibility and making good choices. Something that fewer and fewer people in this world are willing to take. No matter what age they are.
It's no wonder though. When our "leaders", which are sadly politicians, are constantly trying to encourage people to blame someone else for all of their problems, it's inevitable.
I was going to respond seriously and thoughtfully to this thread, but after reading through a few pages, I decided, "Nyahhh, I'll just poke my eyes out with a knitting needle instead."
Honestly, the shortsightedness of some people is amazing. Get this - Karma is a really _itch. One day YOU will be middle aged and YOUR kids and grandkids and their peers will be vilifying and hating on you, and blaming you for their woes. It's one of human nature's basic defaults - can't you at least TRY to rise above it?
Wouldn't let me rep you for this post and video but wanted to say it is PERFECT! So truthful...
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