Author Topic: Americans are living too frugally  (Read 6627 times)

merlin7676

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Americans are living too frugally
« on: May 16, 2017, 09:48:57 AM »
This article makes me laugh.
"American retirees are living too frugally and we need to get them to spend their money"

https://finance.yahoo.com/news/rich-retirees-hoarding-cash-fear-080013533.html

Just Joe

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Re: Americans are living too frugally
« Reply #1 on: May 16, 2017, 09:54:25 AM »
Yep - we owe it to these companies to buy their widgets... Yahoo has had some real zingers lately.

partgypsy

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Re: Americans are living too frugally
« Reply #2 on: May 16, 2017, 10:28:20 AM »
"...found that the wealthiest fifth of U.S. retirees were spending 53 percent less than they could have."  Could it be, all their needs are met and more so, and they don't actually need to spend all their money? Gasp!

Mustache ride

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Re: Americans are living too frugally
« Reply #3 on: May 16, 2017, 10:58:00 AM »
The problem is people who live like most on this forum need others to spend. "Need" might not be the best word, but it is tremendously helpful as most of us make our money through the stock market. When spending/disposable income soars, so do stock prices. When the economy is at its best, the companies and its shareholders reap the rewards. The issue is we want people to spend, we just don't want to spend ourselves. This is what could potentially cause a problem if too many people shift to our philosophy.

Morning Glory

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Re: Americans are living too frugally
« Reply #4 on: May 16, 2017, 11:03:32 AM »
"Training people to spend". Funny. I wonder what the fees are like on those annuities?

dude

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Re: Americans are living too frugally
« Reply #5 on: May 16, 2017, 11:12:02 AM »
The problem is people who live like most on this forum need others to spend. "Need" might not be the best word, but it is tremendously helpful as most of us make our money through the stock market. When spending/disposable income soars, so do stock prices. When the economy is at its best, the companies and its shareholders reap the rewards. The issue is we want people to spend, we just don't want to spend ourselves. This is what could potentially cause a problem if too many people shift to our philosophy.

Spending, in and of itself, is not bad.  It's spending on useless shit, disposable shit, and shit that unnecessarily wastes our finite natural resources and/or poisons our environment that is bad, and will likely be our undoing as a species.

Syonyk

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Re: Americans are living too frugally
« Reply #6 on: May 16, 2017, 11:52:51 AM »
Spending, in and of itself, is not bad.  It's spending on useless shit, disposable shit, and shit that unnecessarily wastes our finite natural resources and/or poisons our environment that is bad, and will likely be our undoing as a species.

Consumerism!  Yay!

I mean, can you imagine the horrors of a world in which people buy only what they need, buy it well built so it lasts, and it lasts?  Why, you'd have radicals doing things like buying 75 year old tractors and repairing it themselves instead of spending the money on leasing a new garden tractor!

Having just done exactly that, the difference in design philosophy between the late 30s and now is insane.  This tractor is literally designed to be rebuilt and repaired, endlessly.  Sleeved cylinders, an engine that makes basically no power (20-25hp on 2L) but is designed to start in the spring and shut down in the fall - and apparently a lot of farmers did pretty much just that with them.

jjandjab

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Re: Americans are living too frugally
« Reply #7 on: May 16, 2017, 12:29:24 PM »
"" The big motivator turned out to be some version of fear they would run out of cash too early.

“We found that even in a worst-case scenario, they could have spent more,” said Texas Tech University Professor Christopher Browning, one of the study’s authors.""

Hehe. Made me chuckle. So when the retirees do run out of money they can, and apparently should, just keep spending? Maybe some high interest credit cards? Big car loans? 

My kids will not be going for a personal financial planning degree at Texas Tech...

jim555

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Re: Americans are living too frugally
« Reply #8 on: May 16, 2017, 12:31:54 PM »
I think this is for the $3,000,000 crowd who wonders if they can retire.  Hoarding can be a psychological problem.

Greystache

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Re: Americans are living too frugally
« Reply #9 on: May 16, 2017, 12:38:24 PM »
Maybe I would be more comfortable spending money if I knew what my healthcare premiums would be next year.

rantk81

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Re: Americans are living too frugally
« Reply #10 on: May 16, 2017, 12:48:00 PM »
Maybe I would be more comfortable spending money if I knew what my healthcare premiums would be next year.

+1

Until I can get some firm guarantees as to what caps I will be able to put in place on the costs of my medical care (for the next 30 years of my life until I'm eligible for Medicare), I will not be spending much at all on non-essentials.


HipGnosis

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Re: Americans are living too frugally
« Reply #11 on: May 16, 2017, 04:07:14 PM »
Yahoo has had some real zingers lately.
'Yahoo news' is like 'jumbo shrimp'

fredbear

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Re: Americans are living too frugally
« Reply #12 on: May 16, 2017, 08:46:04 PM »
....
Having just done exactly that, the difference in design philosophy between the late 30s and now is insane.  This tractor is literally designed to be rebuilt and repaired, endlessly.  Sleeved cylinders, an engine that makes basically no power (20-25hp on 2L) but is designed to start in the spring and shut down in the fall - and apparently a lot of farmers did pretty much just that with them.

Ol' Bob - reckon you know him - told me about how you defended against wildfire on the plains.  "Easy.  You see it coming, hear it, head on out to the barn, and go through the whole boneyard till you find a tractor that starts.  Hook up a plow, and plow a circle around the buildings.  Got time, you get back to the start and plow around the circle again, a little wider.  Keep going, until the fire gets there."

"But the whole thing is, you got to have one tractor on the ranch that starts.  Just one.   You think, 'Shit.  One tractor that starts?  Hell.  My car starts every time.    What's the big deal with a tractor that starts?'  No big deal to you, but by god, on a standard Colorado ranch, you get a tractor starts every time, it's Special Providence from God Hisself."  That's why you read about so many of them ranches embered out.

So I checked out some ranch friends, and they do have one that starts.  It's a Deere, and so old it has a huge smooth green external flywheel that you haul on by hand to get it going (IF you know which direction to crank on it), and a petcock on the cylinder to bleed off the excess compression until that one-lunger starts thumping, when you can gradually close it off.  I believe that with some baling wire, duct tape, a slotted screwdriver, and a crescent wrench, you could rebuild it through an infinite series.  But - it's their fire protection, their mitigation, the thing that keeps them unburnt. 

partgypsy

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Re: Americans are living too frugally
« Reply #13 on: May 16, 2017, 10:00:47 PM »
The problem is people who live like most on this forum need others to spend. "Need" might not be the best word, but it is tremendously helpful as most of us make our money through the stock market. When spending/disposable income soars, so do stock prices. When the economy is at its best, the companies and its shareholders reap the rewards. The issue is we want people to spend, we just don't want to spend ourselves. This is what could potentially cause a problem if too many people shift to our philosophy.

Spending, in and of itself, is not bad.  It's spending on useless shit, disposable shit, and shit that unnecessarily wastes our finite natural resources and/or poisons our environment that is bad, and will likely be our undoing as a species.

amen

chaskavitch

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Re: Americans are living too frugally
« Reply #14 on: May 17, 2017, 06:52:20 AM »
I do find it encouraging that the first 10 or so comments that load on that article are along these lines:

"Hoarding cash ! A few years back, this concept was known as saving."

"This retiree doesn't need to spend money for the sake of spending money. That's not to say we don't spend but the rate we spend is not reducing our assets. And when we start RMDs it will simply be more money than we need to spend. Our kids will enjoy our sensibility when we're gone."

"'Rich retirees' (joke) aren't spending because they have realized that they are being used as the 'cash cow' of the American establishment. It is their way of fighting back."

 

Wow, a phone plan for fifteen bucks!