No. of Recommendations: 2
I would agree we are heading for a time, unless the "Social Contract" is dramatically reinstituted, when the most of the elderly in this country, like pensioners in Russia after the collapse of Communism, are going to live near or below the poverty line, just as before Social Security was created. The best chance the middle class will have, even what is officially the lower upper middle class ($60,000-$100,000 in today's dollars), will be to keep parenting to a minimum and to be vigilant in keeping expenses in check, so as to put away substantially higher proportions of income than most people think is sufficient (often on advice from financial planners, human or forms, that use historical returns as the default).

For a different point of view,right or wrong...look at the brighter side. Think about it, in your previous posts you have projected what is known today into the future drawing a very dark picture. Yet we all know from previous experience we are always wrong. In fact something like the opposite usually occurs which should be very encouraging. Any way I hope you didn't post these thoughts with the idea that the young should use them in making their financial decisions. To do so would be a mistake for that would not be investing, it would be gambling on one of millions different possible futures. But your right it is best to over save, but be alert to what form those saving take. I think asset allocation is something one should never consider. One should not risk savings in hope of a price increase for this is gambling and the odds are usually against you. It is best to invest your money where you get a real return without or with little risk. Price increase will occur from these forms of investment automatically depending on the economic cycle. Be patient, opportunity always come. Every generation has had them but they have always come in a different form.
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