Who SAVES and who SPENDS?! Financial Strategy Thread.

[TJSwoboda]

"I don't like to save, it's more fun to spend; if you like metal, you're my friend."--Manowar :banana:
As of right now, I'm 32 years old with too much debt and #@$!-all in savings. I'm about to start putting in some serious overtime at work to rectify this.

Personal debt is what will collapse our nation's economy.

No, public debt is what will collapse our nation's economy. Everyone, look at the federal income tax deduction on your pay stub. That doesn't pay for poor kids' school lunches, it doesn't go to Isreal, it doesn't buy stop signs in Alaska or farm subsidies... It pays the interest on the existing debt. We make our minimum payments on the public debt and borrow more, and more, and more... Oh, and there's a $70 trillion entitlement shortfall over the next, oh, I think 20 years (feel free to correct me here).

We can be horrifically spendthrift as individuals and it won't wreck the economy; there will be a correction and banks will suddenly be far less generous. And when I get my savings up to a point in the four digit range I'm going to start converting it into assets with intrinsic value. We'll be using Benjamins as toilet paper in a few short years.

--T.J.

 

[01cobravortech]

"I don't like to save, it's more fun to spend; if you like metal, you're my friend."--Manowar :banana:
As of right now, I'm 32 years old with too much debt and #@$!-all in savings. I'm about to start putting in some serious overtime at work to rectify this.


No, public debt is what will collapse our nation's economy. Everyone, look at the federal income tax deduction on your pay stub. That doesn't pay for poor kids' school lunches, it doesn't go to Isreal, it doesn't buy stop signs in Alaska or farm subsidies... It pays the interest on the existing debt. We make our minimum payments on the public debt and borrow more, and more, and more... Oh, and there's a $70 trillion entitlement shortfall over the next, oh, I think 20 years (feel free to correct me here).

We can be horrifically spendthrift as individuals and it won't wreck the economy; there will be a correction and banks will suddenly be far less generous. And when I get my savings up to a point in the four digit range I'm going to start converting it into assets with intrinsic value. We'll be using Benjamins as toilet paper in a few short years.

--T.J.

The federal debt or public debt means nothing because you could wipe out a monumental chunk simply by raising taxes substantially overnight. Within months you'd put a massive dent in the federal debt. Try doing that to the personal debt of 20 - 50 million people overnight. Besides, this country has been paying interest on every dollar since it dumped the gold standard nearly 8 decades ago. This country can only print what is extended to it via the credit provided by the Board of the Governors of the Federal Reserve. And the Board of Governors are all foreign banks. I'm sure you know some of the family names, Rothschilds, Wahrberg, Rockefellers, etc.

Even better, have the federal government allow 20 - 50 million people to declare for bankruptcy to wipe out their debt. Then you tell me what shape the US dollar will be in. Your post is very flawed for precisely this reason.

 

[TJSwoboda]

The federal debt or public debt means nothing because you could wipe out a monumental chunk simply by raising taxes substantially overnight. Within months you'd put a massive dent in the federal debt.

That extra tax money would just disappear down a black hole. When Social Security taxes (premiums) go to pay for everything but Social Security payouts, I see no reason to believe that a "temporary" tax to pay off our debt would be used for its advertised purpose. As Ron Paul said in his most recent piece, we didn't tax our way into prosperity. I see what you're saying about how a lot of people spending themselves into bankruptcy would cause economic troubles, but that's NOTHING compared to the crisis we've got ahead of us.

But, if we're going to talk about this we should probably start another thread.

--T.J.

 

[out99sider]

99cobradave. how are you wroth 7 figures? I don't care who you are but anyone with 7 figures would own something much better than a 99 cobra. and i'm not talking about ferraris or lambos, i'm talking about lexus, mercedes, range, etc. etc.

alot of those people driving the above mentioned cars and not worth much because they are so busy putting on that image. driving one of those cars does nothing for your bank account but drain it.

 

[ford_racer]

YOu sound like you'll be one of these 40 year old alcoholics, working as a painter, no medical or auto insurance, along with one or more DWIs under your belt. At 19 I had more sense than you. Worked construction and as a personal trainer in school. I wasn't giving my money to trash. :nonono:

I'm going to lose a lot of sleep over what you said Rob.:rollseyes

Do you know anything about the stock options and 401k my work gives, and my involvement with them? Doubt it.

Think before you speak.

 

[KingJay]

Credit cards are evil.

 

[saleenkid01]

Im 28 and am in a union that pays $3.25/hr for every hour I work that goes into an interest earning annuity account for my retirement. I also get a pension that as of right now pays me $90/year for every year that i work that i get as my monthly payment(ex: if i worked for 40 yrs. and retired now, id get $3600 a month) plus social security. When I retire, they say that number should be between $125-$150/yr. I know when i go to retire there probably wont be social security. But guys now with 40 yrs. have annuities of $750000+ plus their pension. SO my retirement looks good. I do spend alot and dont have much in savings. I owe $12000 on my car and about $9000 in cc debt. I do pay more than my minimums on my credit cards(they will be paid off within 6 months) and I plan on buying a house within the year.

 

[dtheo]

Im 28 and am in a union that pays $3.25/hr for every hour I work that goes into an interest earning annuity account for my retirement. I also get a pension that as of right now pays me $90/year for every year that i work that i get as my monthly payment(ex: if i worked for 40 yrs. and retired now, id get $3600 a month) plus social security. When I retire, they say that number should be between $125-$150/yr. I know when i go to retire there probably wont be social security. But guys now with 40 yrs. have annuities of $750000+ plus their pension. SO my retirement looks good. I do spend alot and dont have much in savings. I owe $12000 on my car and about $9000 in cc debt. I do pay more than my minimums on my credit cards(they will be paid off within 6 months) and I plan on buying a house within the year.

I would not count on any pension. You know that companies that have these plans can go bankrupt and the pension is not saved for you and other union members. I'd diversify and put money into Roth IRA's, IRA, mutual funds, etc.

 

[canibus]

alot of those people driving the above mentioned cars and not worth much because they are so busy putting on that image. driving one of those cars does nothing for your bank account but drain it.

right, but c'mon 7 figures. you telling me you're going to just own an ordinary cobra, when you could afford anything else. myself in that position would own a viper or a gt500. those cars wouldn't drown your bank account. you'd be spending less than 100k, and still have a great looking car. JMHO

 

[Spartacus]

Credit cards are evil.

Credit cards are my best friend! :thumbsup:

 

[01cobravortech]

I'm going to lose a lot of sleep over what you said Rob.:rollseyes

Do you know anything about the stock options and 401k my work gives, and my involvement with them? Doubt it.

Think before you speak.

Watch the stock market and cling to your false hopes. Let me share some personal information. I'm a gov't employee in NJ. After the 9/11 attacks our 401K was decimated after the stock market took a beating. Our Public Employees Retirement Fund was invested over the past 20 years in exactly 3 so called 'conservative type mutual funds.' Our fund was wiped out to the point where our state legislature had to pass a law requiring non police or Fire personnel to contribute 5% of their income to the retirement fund to make up for the monstrous losses. We used to contribute 3% prior to 9/11. We have approximately 40,000 employees tied to this fund.

The point is simple. 401K plans are not immune to stock market collapses. WE nearly doubled our contribution because are 401K went into the tank. Does your employer invest your 'retirement' in (3) different mutual funds??? Some companies only do one. Talk about thye rool of the dice. The stock market is anything but a secure investment. History tells the story of the 1929 crash and those lessons have not been learned by today's generation of Americans. About 4 months ago, Wall Street 'quietly' announced that they had taken out a second hedge fund loan.

FordRacer...when you understand what hedge funds are and what frightening significance a 2nd hedge fund loan has...then you'll be qualified to discuss this matter further. Unlike you, I pay attention to economic trends and the recklessness of so many Americans who have no idea what they are doing in many respects to the way they invest on Wall Street! CDs are a safer investment!

 

[Quadcammer]

I put 6% in my 401k (full match by employer). I also put anywhere from $1200 to $2k into an Emigrantdirect account each month, and have a CD with high five figures in it at 5.65%.

I also have a fairly small trading account at ameritrade.

I guess you could say that Im a pretty serious saver.

 

[ford_racer]

All that is fine and dandy, but is that what you were referring to when you originally implied I had no sense, or were you assuming I was spending all of my money and not saving any at all?

 

[YesterdayAgain]

All that is fine and dandy, but is that what you were referring to when you originally implied I had no sense, or were you assuming I was spending all of my money and not saving any at all?

While 01Cobra is being a lot more critical than I, I think as a young dude, you should position yourself in a job that at the very least has a great deal of upward mobility. The optimal scenario would be to go to college or learn a trade, but if you're not going to do any of that, at least work for a company that you can move up quickly and eventually make some money.

Example: I used to work for Wal*Mart before I landed the job that would become my career. While I was only making $8.38 an hour, when I was still serious about the job, I was about to move up to department manager. That would have been $10-12 something an hour. Wal*Mart prefers to promote from within, so they have a lot of 6 figure making executives who started out as cashier or stockers. I'm not saying go get a job at Wal*Mart, but don't be ignorant and decide to think about the future tomorrow.

Food for thought, not being critical.

And with that, I'm off to drink copious amounts of pumpkin ale! :beer:

 

[dtheo]

Watch the stock market and cling to your false hopes. Let me share some personal information. I'm a gov't employee in NJ. After the 9/11 attacks our 401K was decimated after the stock market took a beating. Our Public Employees Retirement Fund was invested over the past 20 years in exactly 3 so called 'conservative type mutual funds.' Our fund was wiped out to the point where our state legislature had to pass a law requiring non police or Fire personnel to contribute 5% of their income to the retirement fund to make up for the monstrous losses. We used to contribute 3% prior to 9/11. We have approximately 40,000 employees tied to this fund.

The point is simple. 401K plans are not immune to stock market collapses. WE nearly doubled our contribution because are 401K went into the tank. Does your employer invest your 'retirement' in (3) different mutual funds??? Some companies only do one. Talk about thye rool of the dice. The stock market is anything but a secure investment. History tells the story of the 1929 crash and those lessons have not been learned by today's generation of Americans. About 4 months ago, Wall Street 'quietly' announced that they had taken out a second hedge fund loan.

FordRacer...when you understand what hedge funds are and what frightening significance a 2nd hedge fund loan has...then you'll be qualified to discuss this matter further. Unlike you, I pay attention to economic trends and the recklessness of so many Americans who have no idea what they are doing in many respects to the way they invest on Wall Street! CDs are a safer investment!

No offense:nono:, but a government employee giving recommendations about how to invest in the stockmarket is not what this young kid needs. The government is the most innefficient and non-productive workforce on the planet if you compare it to the private sector. Unless you are working for the Federal Reserve or worked for Greenspan, I'd just tell the kid to diversify and don't put all your eggs into one basket (CD's).:beer: If your doomsday scenerio happens with the stock market, then there will be bigger problems for all of us, even the ones who only own bonds and CD's. :idea:

 

[01cobravortech]

No offense:nono:, but a government employee giving recommendations about how to invest in the stockmarket is not what this young kid needs. The government is the most innefficient and non-productive workforce on the planet if you compare it to the private sector. Unless you are working for the Federal Reserve or worked for Greenspan, I'd just tell the kid to diversify and don't put all your eggs into one basket (CD's).:beer: If your doomsday scenerio happens with the stock market, then there will be bigger problems for all of us, even the ones who only own bonds and CD's. :idea:

Your missing the bigger picture. Our state 401K plan wasn't the only one that took a serious hit after 9/11. Practically every single company's 401K did! Thats whats important to understand here. No mutual fund is immune from a panic or scare. NONE WHATSOEVER! And I'm not trying to brag, but I can assure my 401K plan is more lucrative than most people have with their private sector companies. So I can only imagine what kind of a hit others took.

 

[dtheo]

Ok then, inform us how your 401k is more lucrative than the most of us.

 

[01cobravortech]

Ok then, inform us how your 401k is more lucrative than the most of us.

What I'm referring to is the amount of money I will receive at retirement per month in comparison to others. Its pretty crazy. I won't quote numbers because thats tacky. But I have a brother and sister that work in the private sector as a biologist and accountant and my 401k is a beast in comparison to theirs.

My figures aren't the issue here. An economic panic's effect on 401Ks is the issue.

 

[ponyboyx04]

i always seem to be behind, im not well off by any means, but my wife and i make well over what our monthly bills are and i cant seem to ever keep caught up with bills...i guess that would make me a spender...

 

[onemean460]

I dont have to save my wife is really rich, best thing about it is that I ware the pants too! it worked out pretty well.