The money is being used productively in their various retirement investments. It's not like this is just cash under the bed.
Rich Retirees Are Hoarding Cash Out of Fear
21–30 of 316 posts
Re: Rich Retirees Are Hoarding Cash Out of Fear
#22Excuse me while I align my values with the needs of the US economy.
Re: Rich Retirees Are Hoarding Cash Out of Fear
#23FTA, the value of the average retiree's estate is ~300k in the 60s, 70s, and 80s. Using the 4% rule (make your money last 30 years), that's 12,000 a year, and that's probably skewed upward by the compounding of the super wealthy (20 richest people worth more than bottom 50%, 150 million people). The median is probably much, much lower (I'd wager 50k). That's living off of cat food in both cases, and if you're worried…
That's how much they had left when they died - not what they had when they retired. So that's after the 20-30 years of living off those savings...
Re: Rich Retirees Are Hoarding Cash Out of Fear
#24“We have to get people comfortable with enjoying their retirement and spending their money,” Fellowes said. Implying that the only way to enjoy retirement involves spending money
I'd be comfortable 'spending my money' in a future retirement if the retirement could generate decent passive income. As it stands, though, it's looking like many folks like me will have to work until we die and/or save enough to burn with just living and healthcare costs.
Do you foresee medicare failing?
Also, what's stopping you from setting up your retirement such that you do have passive income?
Re: Rich Retirees Are Hoarding Cash Out of Fear
#25> "As a result, millions of Americans are living too frugally" WTF, really? Reminds me of Edward Bernays [1], the "father of public relations", who set out to help Americans become materialistic (and succeeded!). If someone is enjoying their life without blowing all their money, that person is BETTER off. It's just corporations that want to suck the money away from them that need to "train them to spend." [1] https:/…
Optionality has value but it decays over time. If you forgo consumption in favor of savings up until the very end then you haven't been better off, you've been worse off. The dead can't benefit from spending money.
I am absolutely worse off if I run out of money before I die, whereas its only a minor inconvenience if I don't happen to spend down my estate to zero before death (in my case, it will flow to my wife and/or daughter).
EDIT: I will live frugally and drastically below my means forever (and I'm only 34!) while putting aside substantial savings; the fear of running out of funds in the last part of my life is terrifying. Seniors have every right to be fearful and hoard their cash.
Source/experience: Support my disabled mother who has zero assets and substantial medical expenses. If you're not afraid of saving enough for retirement and unexpected medical expenses, you should be.
Re: Rich Retirees Are Hoarding Cash Out of Fear
#26[deleted]
Re: Rich Retirees Are Hoarding Cash Out of Fear
#27> "As a result, millions of Americans are living too frugally" WTF, really? Reminds me of Edward Bernays [1], the "father of public relations", who set out to help Americans become materialistic (and succeeded!). If someone is enjoying their life without blowing all their money, that person is BETTER off. It's just corporations that want to suck the money away from them that need to "train them to spend." [1] https:/…
> Edward Bernays
Sigmund Freud's nephew, who used psychoanalysis to sell products. Freud hated Edward and Anna for going that route. They are the reason more women smoke and why Americas eat bacon for breakfast.
If you want to know more, watch The Century of the Self by Adam Curtis.
Re: Rich Retirees Are Hoarding Cash Out of Fear
#28Fuck. I'm 30, and I just went through this. I quit a bad job to try to do my own thing; after a few months without a paycheck - despite having plenty of saving six ways from Sunday - I clammed up almost completely, not wanting to spend a dime. I was miserable. It's the same feeling as item hoarding in CRPGs. Seems like I either need to never retire, or set up a trust for myself so I have a guaranteed allowance. (Or d…
I've thought before that CRPGs are decent training for how to handle money (emotionally speaking).
Re: Rich Retirees Are Hoarding Cash Out of Fear
#29Maybe there is need for a startup that can pool the retirement money from retirees and assure them of a comfortable life style till the time they die. I think this will allow the retirees to enjoy their life much more rather than worrying about "what might happen...".
Re: Rich Retirees Are Hoarding Cash Out of Fear
#30Unexpected healthcare costs keep seniors nervous. Although Medicare and Medigap insurance plans offer good coverage, long term care and home health care is dauntingly expensive. Many rely on a mix of family + caregivers. Even then, the hourly/weekly/monthly costs are quite high.