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URL:  http://boards.fool.com/yes-i-fully-realize-that-not-all-workers-have-24427093.aspx

Subject:  Re: Don't worry about boomers killing the market Date:  8/4/2006  10:54 AM
Author:  2old4bs Number:  52938 of 75626

Yes, I fully realize that not ALL workers have the kind of income that lets them put huge sums aside, but neither did all of us have that much either, relatively, many years ago, but we did it, anyway.

Or those who didn't are paying the price now by having to play 'catch-up'. ;-) At least there are more 'easy' options available for doing so now.

I think the real problem as to do with so many people who actually earn a good living but who also very foolishly somehow think they can live way beyond their means, let alone even at their means, and borrow even more than they earn, just to buy expensive extra homes, cars, boats, trips and whatever.

My personal acquaintances run the gamut from living within their means and having 'enough' saved for retirement to living way beyond their means and saving almost nothing. Which proves I guess that people are 'all over the block' on these issues.

2 years back a married friend in her early forties with 4 kids told me that she and hubby had just re-financed their house and spent the equity received on another new car, plus some Rolex watches and many other 'juicy' tidbits on Ebay, while admitting that although his company matches 401k contributions dollar-for-dollar, they were only contributing 3%--I ALMOST CRIED. She then admitted that his entire forthcoming bonus check would have to go to pay taxes, because on a monthly basis they had to lower withholding in order to pay their bills.

Although I normally don't offer advice or interfere in any way with the financial decisions of others, I couldn't contain myself and felt I had to say something. So I put on my "Be as nice as you can be and whatever you do, don't sound judgemental" hat and while commiserating with her situation (on the bonus check) explained how they were throwing away 'free' money by not contributing more to the 401K. A year later she told me that they had raised the contribution to 7%. Both you and I know that's not enough, but it's better than 3%, so I expressed my happiness with their decision.

People sure are strange...

2old




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