... or wrong depending on how you view the paradox of thrift.http://www.cbsnews.com/8301-505144_162-57471083/4-money-smar...Financial experts are constantly bemoaning all the things Americans do wrong when it comes to their money, from not saving enough to failing to plan for long-term care. But over the past five miserable years, the nation's consumers have started doing many things right. It's time to give a little credit where credit is due.PF
I have to take some issue with some of the points in this article:>> If you put off buying a $25,000 car, that means you've saved roughly $550 a month in car payments (assuming you'd pay off the loan in four years); and probably another $50 a month on insurance. That's $600 in monthly savings for 24 months. You've just made yourself $14,000 richer and far better able to afford that new car when you do decide to buy. <<Largely true but it ignores other factors. What if the new car is more fuel efficient? And an "old clunker" is likely to require significantly higher maintenance costs. Sure, these don't come close to offsetting all of a $600 monthly savings, but does take some of it.>>Talk to any group of working seniors and you're likely to find that a good portion of the group is simply too vibrant to consider joining the rocking chair set. <<This to me is just offensive and it perpetuates the old stereotypes that being retired has to mean sitting on your butt and doing nothing all day, and that only WORK can avoid that and keep you physically, socially and mentally stimulated.>>The latest data shows that Americans are attending college in record numbers, with nearly 40 percent of the population of 18- to 24-year-olds opting for higher education .... Meanwhile, getting that college degree is likely to boost your lifetime earnings by some $650,000, according to research by the Pew Research Center. <<But the more we send folks to college, the less that advantage becomes... AND the more it costs. I don't think we can count on this being the golden ticket it was considered in the past; just ask someone $100,000 in student loan debt and waiting tables at Denny's because there have been no jobs for years.#29
I'm never sure who the "we" is anyway but face it, she could have put this article together in 5 minutes - it's the regular regurgitated finance article stuff. Kind of like the article posted on LBYM about 75K making people happy - the original study and other articles were a couple of years old.
>> I'm never sure who the "we" is anyway but face it, she could have put this article together in 5 minutes - it's the regular regurgitated finance article stuff. Kind of like the article posted on LBYM about 75K making people happy - the original study and other articles were a couple of years old. <<Yeah, and the "retirement means letting your mind and body rot" meme is the most regurgitated of all.#29
Yeah, and the "retirement means letting your mind and body rot" meme is the most regurgitated of all.Biking VT-> Quebec beginning next Sunday myself but I did just go through something like this. A friend(a couple of years older than me) was recently visiting me in Steamboat. When I bought this place a couple of years ago and was planning to move here fulltime(which as it turns out hasn't happened yet), she asked me what I planned to do here. I said ski and bike. She asked about when I got older(like 80 I guess). I said I'd still be skiing - the bus picks up next the building and will take me to the mountain and the gondola will take me up part the way. As long as I can point the skis down, I expect to continue to ski. There are definitely people much older than me still passing me on bikes so I expect to continue to be doing that, too.I would say to be careful where you live and who you are around. People here just keep on keeping on and that's the example I like.I read "Younger Next Year" right around when I turned 50 and that's when I learned to row.I do work about 25% time as a consultant and will until it's not fun anymore. I will say there are people who believe that stuff and spend their time talking about ailments and medical costs starting even before SS retirement age so, yeah, you can have a self-fulfilling prophecy to be in a rocking chair and long term care.
The new car decision has a lot of factors to consider. The car you keep will continue to depreciate, which is part of why the insurance gets cheaper. The price of a new car will go up, although right now manufacturers aren't able to raise prices as much as they would like. The old car starts to need maintenance - tires and mechanical things. If you are only keeping it a couple years you can pay out a sizeable sum to keep it safe and reliable. If you're keeping it several years the maintenance is likely to pay off for you. I wrestle with this every four years because being a car guy from the 50's I love getting a new car when the old one gets around 50K miles. Yeah, it's emotional but I get that itch every 4 years. I pay cash so no finance charges and in today's markets keeping the money in savings doesn't make me anything. Still, if my investments aren't doing better by late 2013 I may end up holding onto the old beast a couple more years. I may be vehiclely emotional but I have a fiscally prudent side too. Never sure which side will win until I negotiate with my friendly auto dealer.
My husband biked the Teton pass (6 miles, 10% grade) for his 55th birthday:-). And he's not at all unusual for around here.For someone truly amazing, I first heard about this woman on The Daily Show: http://ramanan50.wordpress.com/2012/04/02/incredible-gymnast.... Kathleen
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