Speaking of stupid things. I stumbled onto an article this morning suggesting young people should not save for retirement, but should focus on spending to increase their standard of living. Here is a clip from it: "young workers who are automatically enrolled into their 401(k) might consider when they’re in their early 30s taking the money out of their retirement plan, paying whatever penalty and taxes they might incur, and use the money to improve their standard of living". "It’s optimal for them to take the money and use it to improve their spending,” I started not to even post the clip because it was one of the most ignorant things I have ever seen. Obviously I did, but to prove a point. This is the kind of crap that is out there in the investing world. Sure, most of us see this and simply shake our head at the morons out there. I'm not even sure someone new and trying to find their way would fall for such a stupid suggestion, but we are in odd times.
"young workers who are automatically enrolled into their 401(k) might consider when they’re in their early 30s taking the money out of their retirement plan, paying whatever penalty and taxes they might incur, and use the money to improve their standard of living". "It’s optimal for them to take the money and use it to improve their spending,” Agree.....that has got to be one of the most IDIOTIC things I have seen in a long time. BUT.....I see lots of equally IDIOTIC things in the media now EVERY DAY. People are free to believe and do what they want. The problem happens when you get to the....tipping point.....where enough people believe this sort of stuff that it starts to impact society. FORTUNATELY.....self interest and personal survival.....tend win out over STUPIDITY. In the OLD DAYS......there used to be an old fable/story that was taught to kids......."The Grasshopper And The Ant". Another one was......"The Little Red Hen". Basic life lessons.....that are often IGNORED in the world today.
Taking money out of a retirement account before retirement age makes no sense. It appears the majority of Americans don't have their 401ks properly funded to begin with. The only 401k related question that has popped in my head is how is my retirement income going to look compared to my pre-retirement income and what tax bracket that is going to put me in. If you can afford to put the full $20500 in there that seems to be the thing to do. Also the HSA is a great way to save for future medical. I put in $3600 per year and the company gives $400 and that account is invested in the S&P500 so 30 years from now there will be a sizable amount for medical expenses tax free in and tax free out. I can also use that money any time in between as well as take it with me if I change employeer. What I am seeing in my field is large companies are 'retiring' employees in there 50's and for some early 60's leaving a gap at the end of their career to what the government considers retirement age. I am looking to my post tax investment account as my defense against this.
Those books you listed, I had almost forgot about. Those are not the books being pushed on kids today I guarantee it. I know a few folks in the education field and you wouldn't believe some of the things that have been pulled from school libraries and what is being added.
This line from the article WXYZ posted a page or two back....It rings so much truth in todays time. I get a kick out of it every time I read it. But it is so true. We are surrounded by imbeciles. Social media has enabled the village idiots of every town and region to discover each other and band together in the millions. Society is actually regressing intellectually for the first time since the Dark Ages.
FIRST.....a shout out to JWalker. Good to see you post again. That is a shame about not getting the house. Times that happened to us over the years.....once it was all over and we were able to buy another house.....we ended up glad that we did not get the first one. You will have a good chance over the coming months.....if housing prices drop.
NOW....the markets. I looked a hour or so before the close and the markets were green. Now I see they closed slightly in the RED. As I was watching the markets this morning I was thinking that they might go green by the close. it did not seem like OIL was enough to sustain a loss all day today. In the end I dont know it you can call me.....RED......or.....GREEN. My Schwab account says I was at 0.00% today. BUT....the dollar amount shows me losing less than $20 today.......so......I guess I am RED for the day. I did end up beating the SP500 today by 0.20%. Pretty much a big VICTORY after the dismal open that we had today. So I guess I am...two WINS and one ZERO.....for the week so far. I am curious to see how it all works out over the next couple of days.
HERE is the story of the day.....and.....some might say the reason that we are now struggling with inflation. US national debt now tops $31 trillion for the first time ever — here's who the country owes https://finance.yahoo.com/news/us-national-debt-now-tops-210000112.html (BOLD is my opinion OR what I consider important content) "The gross national debt in America has hit new heights, surpassing $31 trillion, according to a U.S. treasury report released this week. If you find that hard to wrap your head around, it basically boils down to more than $93,000 of debt for every person in the country, according to the Peter G. Peterson Foundation. And with the dramatic rise in interest rates over the past few months — the Fed funds rate is currently between 3% and 3.35% — the national debt will be growing at a rate that makes it even harder to ignore. The last couple of years have been expensive A deficit is what happens when the government spends more money than it brings in through taxes — and the last couple of years have been expensive. Several large bills with hefty price tags have been approved since the start of the pandemic, including the American Rescue Plan Act, which cost $1.9 trillion, and $750 billion for student debt relief, all adding to the deficit, which then adds to the debt. And though the Inflation Reduction Act, which was passed in August, is expected to reduce the deficit by $240 billion, policies and programs brought in by the Biden Administration are expected to add trillions more over the next decade. The Committee for a Responsible Federal Budget estimates that $4.8 trillion will be added to the deficit by 2031. “Excessive borrowing will lead to continued inflationary pressures, drive the national debt to a new record as soon as 2030, and triple federal interest payments over the next decade — or even sooner if interest rates go up faster or by more than expected,” says the CRFB. Much of the borrowing in the past couple of years happened while interest rates were historically low, but now that they’re not, with inflation rising at the fastest pace in decades, the cost of this debt is likely to be amplified. Currently, more than $965 million is spent every day just in interest on the national debt. The Peterson Foundation estimates that will triple over the next decade, making it the fastest-growing item in the federal budget. So who owns America’s national debt? There are different kinds of national debt. Think about it like having a credit card, a mortgage and a car payment — all debt, but different. The U.S. Department of the Treasury manages the national debt, which is split between what one government agency owes to another and debts that are held by the public. Intragovernmental debt accounts for about $6.5 trillion of the debt. The much bigger piece of the debt is held by the public. Right now, that’s about $24 trillion. Foreign governments as well as banks and private investors, state and local governments and the Federal Reserve own most of this debt, and it’s held in Treasury securities, bills and bonds. Foreign governments and private investors are one of the biggest holders of the public debt, owning around $7.7 trillion. Domestically, the Federal Reserve holds the largest share of the public debt, at about 40%. Warning sign Ultimately, rising interest rates will only exacerbate the national debt, making it harder for the government to respond to a slowing economy. “For too long, policymakers have assumed perpetually low interest rates, and we are now seeing in real time how dangerous that assumption is,” said Michael A. Peterson, CEO of the Peter G. Peterson Foundation in a statement. “As our debt crosses $31 trillion, it’s past time for action.”" MY COMMENT WELL....if we can just snap our finger and get rid of student loan debt.....why dont we just do the same thing with the national debt. We are addicted to spending money. Whatever the issue or problem...throw money at it. AND......we wonder why we now have inflation. The real question is why is inflation not massively more than it is.
I am off to the front yard. I have to put up the Halloween decor for the neighborhood kids. Later in the month we will make a trip to the store to buy candy. Favorites in past years have been DOTS, STARBURST, BABY RUTH, HERSHEY BARS, etc, etc. Every year we buy at least 5-6 different types of candy including something that is peanut free. We usually go through about 80-100 candy boxes or bars. We are a big hit with the neighborhood kids since we give out....FULL SIZE CANDY BARS and BOXES. I dont now if the parents think that is so great. LOL....we dont care. it is amazing how many kids remember us from year to year because of the BIG candy bars. The left over candy.....we give to a cop....who takes it to the local station where it quickly disappears..
All hat and no cattle??? ‘Ghost Cattle’ Rancher Who Scammed Tyson of $233 Million Gets 11 Years (Bloomberg) -- A rancher who got Tyson Foods Inc. to pay him $233 million to raise nonexistent cattle was ordered to spend 11 years in a federal prison. Cody Allen Easterday of Mesa, Washington, was sentenced on Tuesday. He pleaded guilty last year to running a fraudulent scheme from 2016 to 2020 in which he submitted false invoices to Tyson and another unnamed company for costs relating to 265,000 head of “ghost cattle.” The other company paid him $11 million. “Mr. Easterday amassed significant personal wealth, yet he wanted more, so he defrauded his victims of nearly a quarter billion dollars by charging for cattle that never existed,” said Vanessa Waldref, the top federal prosecutor in Spokane, Washington. The case is one of the largest fraud schemes ever prosecuted in eastern Washington, Waldref said. Easterday, 51, used the $244 million for personal and company expenses, as well as to cover about $200 million in commodities trading losses. He was also charged with defrauding CME Group Inc., which operates the world’s largest futures market, by submitting false paperwork that got his company, Easterday Ranches Inc., exempted from position limits on live cattle contracts. His contract with Tyson and the other company called for him to repay them with interest once the cattle were slaughtered and sold at market, retaining the difference as profit. As part of his guilty plea, Easterday agreed to pay $244 million in restitution. The case is US v. Easterday, 21-cr-6012, US District Court, Eastern District of Washington.
I just now realized that this article was written by Downtown Josh Brown. I subscribe to his podcasts (the compound) and find him very entertaining and insightful. very informative piece and thanks for sharing
I've been keeping a strong majority of $ in eqt with the balance in de and voo. I'm 4% ahead of s&p 500 ytd. Staying in eqt and de. Might dump voo for the other 2. Voo down 9% from buy price, de down about 2 or 3%, eqt 1% in the green.
VOO will make a comeback if your not in a hurry. Mid terms are near, those that hated "orange man" are regretting their mistake that has nearly bankrupted our fine Country. Obviously a senile old man and a hooker can't seem to keep us from oblivion.
I don't know...depending on what your plan/goals are. VOO is a good core holding to have in a portfolio for long term benefit.
VOO is a great fund... Vanguard 500 Index Fund ETF. Over the long term I bet not many other funds can beat it! Also Vanguard have extremely low fees.
