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Exactly what is the "safety net" for childless adults and why do I see so many homeless?
There isn't and shouldn't be much of a safety net for able bodied adults. They can, and should, work as much as they need to in order to support themselves.
You see so many homeless because of mental illness and substance abuse.
... The concept of average people of necessity becoming investors, is recent; it might only be say 40 years old. The concept of overall frugality has been operative since the Neolithic revolution, but the need for becoming an investor for funding one's retirement, is a novelty.
So what's the point? The point is that persons who've had steady lifetime employment and who have recently retired at full retirement age (so, not early-retirees) have largely had the good fortune of not being dependent on individual investments for covering the bulk of their costs in retirement. For them, there is no crisis. For younger people, there is no "crisis" either, in the sense of dire urgency. But there is a slow decline in certainty and concomitant slow uptick in risk.
A crisis would eventually mount – say, in 30 years – if it remains imperative to become a successful private investor for funding a decent retirement.
... But if you have a 401K, all of these factors obtrude. Got a 7-figure retirement portfolio? Congratulations! Now consider the fact, that one single day's fluctuation in the market, could be larger than one entire year of your expenses! Comforting, isn't it?
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Originally Posted by Burger Fan
Yes, it is! the defined benefit pension was one of the draws of going into state employment.
But to be fair, if you're diversified enough none of these things should really matter all that much to your 401K in the long run. In the short run yes, absolutely- this year was a bad year for a lot of funds, they're either negative or just breaking even due to the market going nowhere and oil being a bust. But if you're close to retirement your investment should be almost entirely in bonds and other "safe" investments to prevent market meltdowns from wiping you out in the first place.
Oh but it does matter... now! I retired and took SS at 62. It's not enough to live on (didn't expect it to be). So the money I managed to accumulate in my 401K, and how often the value of it goes down is very important, especially since I am not contributing anymore (no dollar cost averaging). You say the 401k should be in safe investments? That goes back to ohio-peasant's point about us all having to become successful private investors. It was much easier when an FDIC-insured CD paid more than inflation -- THAT is what I call a safe investment. What I have now in various mutual funds is gambling. What I have in emergency cash is losing to inflation.
Very few people are min wage workers for their entire life.
I'm not sure that's true anymore. Many of the "burger flippers" are trying to support families these days. These are not just after-school jobs anymore.
I'm not sure that's true anymore. Many of the "burger flippers" are trying to support families these days. These are not just after-school jobs anymore.
Actually the majority are single and have never been married.
There isn't and shouldn't be much of a safety net for able bodied adults. They can, and should, work as much as they need to in order to support themselves.
You see so many homeless because of mental illness and substance abuse.
Other than get off the drugs and booze, what should they do?
Some cities have net inmigration with an objective housing shortage, what's the fix?
Did anyone seriously took jobs that meant for teenagers for life???[
Meant by whom? Employers hire the best applicant for a job, burger flipper jobs are not reserved for teenagers. Similarly, applicants take the best jobs they can get. Should adults reject fast food jobs as "meant for teenagers" or somehow beneath them?
Other than get off the drugs and booze, what should they do?
Some cities have net inmigration with an objective housing shortage, what's the fix?
Why are you asking anonymous posters in a forum how to fix your life? It is your life to have and to hold and to live broken or under repair. You went to college and studied law so you are smart enough to problem solve how to improve your future. The folks people feel sorry for and want to help are those who are physically and mentally disabled and you are neither are you?
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