Have you watched television or listened to radio aimed at older viewers / listeners? If it isn't about the upcoming apocalypse and how you need all the gold in the world that you haven't spent on supplies for your armageddon shelter, it's about Fred Thompson selling you reverse mortgages. Nobody's easier to scare than people who feel their vitality slipping away from them day by day.
Rich Retirees Are Hoarding Cash Out of Fear
111–120 of 316 posts
Re: Rich Retirees Are Hoarding Cash Out of Fear
#112Fuck. 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…
This is tough, man. Some things I did when I was younger that helped me with this: 1) Go for a period of time (I did a month) living off of rice and beans (as far as I can find, the cheapest way to get close to a complete meal)[1] 2) Pare down everything in your life that isn't absolutely necessary. I put my bed in storage and lived in a hammock for a year. Cut out hot water for a period, stuff like that. Once you do…
Question... how did your back feel sleeping on a hammock for a year?
Re: Rich Retirees Are Hoarding Cash Out of Fear
#113> "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:/…
Shouldn't that also indicate there's a misalignment between how hard you're working to earn so much money, if you have no intention of ever utilizing it?
Not really. Most of the time, hard work does not correlate with making lots of money. A single mother of four may work incredibly hard juggling multiple jobs on top of her family obligations, but she probably won't make a lot of money. In contrast, most rich people's income comes from investments, rather than salary.
Re: Rich Retirees Are Hoarding Cash Out of Fear
#114Maybe the government should consider spend more on public healthcare, so there is less fear
I like that argument. It seems tangential at first, but it would make a lot of retirees much more comfortable and willing to spend their money.
That line of reasoning sounds similar to the establishment of the FDIC bank account guarantee that helped end the Great Depression by alleviating people's fear of failing banks.
Re: Rich Retirees Are Hoarding Cash Out of Fear
#115> "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.
You're completely missing the fact that consumption doesn't always increase pleasure or well being. It's a gaussian distribution.
Re: Rich Retirees Are Hoarding Cash Out of Fear
#116Surprising that cost of healthcare, especially for those who are 60+ is not factored in. If the same rich retiree lives in a country with same cost of living (but with super cheap/affordable healthcare), spending behavior would probably be very very different.
Re: Rich Retirees Are Hoarding Cash Out of Fear
#117Earlier quoted context omitted.
Consider, it's up to you but consider, that you might get more joy out of gifts while you are alive to watch the recipients benefit from them than you do out of imagining how much they'll benefit from bequests you intend to leave when you die.
That's how my grandpa lived: A life full of fleeting moments now in exchange for shellshock when 65 arrived. Given the reluctance of our culture to show care and concern for people in general, I'm not too psyched about getting to the end and needing a handout.
Would you rather have a handout or a heavy heart full of regrets?
Re: Rich Retirees Are Hoarding Cash Out of Fear
#118Earlier quoted context omitted.
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.
What about peace of mind & financial stability? Those don't decline over time... (Also: Estate tax as a way to fund basic income?)
Taxing property means that owner must have cash to pay for it or is forced to sell it (with all the consequences of forced selling probably).
It may sound interesting and promising but is most likely the most unjust way of taxing as it will force people are retired or about to retire out of their homes (that they are not paid for using funds from the basic income).
Re: Rich Retirees Are Hoarding Cash Out of Fear
#119Earlier quoted context omitted.
Whatever you save with your blood, sweat and tears (if you are lucky) will be blown on medical expenses. The trick is to convert to cash (literal), then give it to your wife, convert medical expenses to debt and die.
The trick is to move to a country with proper healthcare
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Re: Rich Retirees Are Hoarding Cash Out of Fear
#120Fear? Seems more that there are simply no safe investments with decent returns, interest rates are abysmal. I think folks are 'hoarding' simply to not run out by the time they die. Low interest rates are painted as great for the economy, but they amount to a war on savers and fixed incomes.
The rates are low precisely because there is an oversupply of saved money. In other words, capital is so easy to get that nobody has to pay much interest on it. It's a borrower's market and will continue to be as long as we have the concept of "saving for retirement".
It's a borrower's market because that saved money is in _businesses_ instead of _personal accounts_, no?