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Personal Finances / Credit Cards and Consumer Debt
|Subject: Re: Get me off this crazy machine!!!||Date: 5/28/1998 2:32 PM|
|Author: PSUEngineerFool||Number: 1852 of 309000|
Usually I am sympathetic with fellow Fools, but I can't be this time. Yours is an example of why there is proposed changes in the bankrupcy system.
Here are the facts as I have read them.
34 years old, $250,000 in 401K, $60,000 in CC debt, desire to retire at 63 years, your calculations assume 8.5% return and 4.5% inflation
You say you got here through daily expenses. Well, you either ran up the cards over a long time or lived way above you means. You are an intelligent person (systems programmer). You should have realized what was happening a long time ago, say $30000 ago.
It appears through several of your posts that all you care about is retirement. You have built the current nest egg by ignoring your daily obligations. Then you say you are actually underfunding it and barely squeek by at 63. Why choose such a low average return of 8.5% ? You state you had great returns in the past, yet are pessimistic about the future. If you take the $250,000 and not anything else, when you are 63, it will be worth $1.0 million in todays money at 10% return and $1.8 million in todays money at 12% return assuming 4.5% inflation. I know quite a few Fools who could easily retire on that.
It also appears by reading between the lines that retirement is so important that after you declare bankrupcy, you will continue adding to the 401K because you think what you have in it is inadequete. By the numbers above, you already have enough. No one promised that retirement meant having a house at the beach and mountains and belonging to the local country club.
Many Fools like myself live within our means by sacrificing some of the luxuries in life. We carry our lunch to work, eat at home, go to garage sales, and skip alot of entertainment. When my second daughter was born, I reduced my retirement savings knowing full well that meant working a little longer.
You have nickel and dimes yourself to death with your CC's. You amassed a good sum for retirement along the way. You have consciously decided that retirement savings is more important than daily obligations. Now you want a get out of jail free card. Maybe it is time to pay your dues and spent some time in the credit card jail and rehabilitate yourself.
To my fellow Fools, I appologize now for being so hard on someone here. I know it is proper to attack the messege and not the messenger. But sometimes there is a need for tough love.
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