Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

Rich Retirees Are Hoarding Cash Out of Fear

bloomberg.com

Post reply on HN
Print view View original

171–180 of 316 posts

Re: Rich Retirees Are Hoarding Cash Out of Fear

#171

Post by Agathos »

ams6110 wrote: post #138
dsmithatx wrote: post #61

My grandfather worked at Exxon Mobile for 60 years and retired around 1988 with a few million dollars in stock. I remember my dad saying he had about 3 Million in stock he purchased as his retirement plan. He built a house and bought a couple of nice cars living on about 100,000 a year. About 12 years ago he had a heart attack and stroke and was bed ridden. 12 years of doctor bills and hospice ate through almost ever…

> Maybe people 60 should not be so fast to go spend their cash. He was 72 when he got sick and 84 this year when he finally passed away. Also have a living will that specifies no heroic measures so you won't languish in a hospital bed for years while squandering all your life savings

Yeah, maybe he died thinking he got his money's worth out of those 3 million dollars. Maybe.

Re: Rich Retirees Are Hoarding Cash Out of Fear

#172

Post by bmelton »

neves wrote: post #163
incompatible wrote: post #134

Earlier quoted context omitted.

Most countries with decent healthcare are reluctant to accept retirees. They'll likely have to fund their own health insurance, at least. If you can gain citizenship of such a country, well in advance of retirement, it could be well worth it though.

Not true. Retirees with generous pensions are a great opportunity for any country. They will bring money to your country without the need to produce anything. They won't consume a lot of public resources (no need of school or of police repression). They will reform a house, eat in your good restaurants, and enjoy all the services you can offer. A lot of countries hunt for wealthy retirees, like Portugal and Australia…

Sure, they'll consume all the services you offer, and especially health care, as the parent suggests. But, yes, you need to have a generous pension, as well as meet another number of requirements that vary from place to place.

In order to emigrate and retire in New Zealand[1], for example, you need to

a) be healthy b) bring your own insurance c) bring ~$350k in savings and $40k annual income with you

The UK imposes an "independent means[2]" requirement, to prevent retirees from being a drain on the economy, as does Australia, Canada[3], etc.

[1] - http://www.investopedia.com/articles/personal-finance/072115...

[2] - http://www.dailymail.co.uk/news/article-1083052/Foreigners-6...

[3] - http://www.livingabroadincanada.com/getting-started/retireme...

Re: Rich Retirees Are Hoarding Cash Out of Fear

#173

Post by acover »

gutnor wrote: post #146
acover wrote: post #37

Earlier quoted context omitted.

Most money isn't just sitting around. It's in a bank or an investment. Other people are using this money.

That's not exactly true. Money in the bank is invested and is different than consumption money. One drive the offer, the second one drive the demand. The economy is basically the flow from one pot to the other. With interest rate at historical low, large business with trillion hoarded, money is already plentiful on the investment side. This article is just claiming that there is portion of that investment money could…

I never said they were the same. Further there is consumer debt.

Re: Rich Retirees Are Hoarding Cash Out of Fear

#174

Post by kovacs »

stupidhn wrote: post #53
gedy wrote: post #3

Fear? 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.

There are two sides to every transaction, and whether low interest rates are good or bad depends on which side of the transaction you are on. Nobody is entitled to high rates on their savings.

Are people entitled to have the fruits of their work stolen from them?

Re: Rich Retirees Are Hoarding Cash Out of Fear

#175

Post by mortehu »

wtbob wrote: post #167
neves wrote: post #163

Earlier quoted context omitted.

Not true. Retirees with generous pensions are a great opportunity for any country. They will bring money to your country without the need to produce anything. They won't consume a lot of public resources (no need of school or of police repression). They will reform a house, eat in your good restaurants, and enjoy all the services you can offer. A lot of countries hunt for wealthy retirees, like Portugal and Australia…

> They won't consume a lot of public resources (no need of school or of police repression). Either the host country's end-of-life medical care is not great by American standards (in which case what you write is true, but many Americans wouldn't care to move), or it is, and a retiree would consume considerable public resources. Unfortunately, there's no way to have it both ways.

There actually is a way: move to a country where the same level of care costs less even with no government subsidies. I think this would include most of Europe and the far East.

Re: Rich Retirees Are Hoarding Cash Out of Fear

#176

Post by aianus »

wtbob wrote: post #167
neves wrote: post #163

Earlier quoted context omitted.

Not true. Retirees with generous pensions are a great opportunity for any country. They will bring money to your country without the need to produce anything. They won't consume a lot of public resources (no need of school or of police repression). They will reform a house, eat in your good restaurants, and enjoy all the services you can offer. A lot of countries hunt for wealthy retirees, like Portugal and Australia…

> They won't consume a lot of public resources (no need of school or of police repression). Either the host country's end-of-life medical care is not great by American standards (in which case what you write is true, but many Americans wouldn't care to move), or it is, and a retiree would consume considerable public resources. Unfortunately, there's no way to have it both ways.

Or the doctors and hospital admins there only make a terrific salary instead of an obscene one.

Re: Rich Retirees Are Hoarding Cash Out of Fear

#178

Post by maxerickson »

djsumdog wrote: post #43
bamboozled wrote: post #33

Earlier quoted context omitted.

Assuming you're a US citizen? If so vote for politicians who support better welfare systems and free healthcare (if you don't already), it would help take the edge of this stress.

I agree, if America had real health care, people would be less apprehensive in taking time off and caring for their mental health. Unfortunately voting in America doesn't really do squat. We're first past the post and the corruption runs so deep no politician can stand against the health care industry. Elections here are a joke.

I realize lots of people find things like guaranteed issue and the essential health benefits milquetoast compared to a single payer system, but it isn't the healthcare industry fighting to remove them, it is tax cutters.

(EHBs are maligned as government interference, but I really have trouble believing that people want to buy health insurance that doesn't cover things like hospitalization and emergency care. You know, the sorts of rare, expensive events that one buys insurance for. There's probably a little bit of room to argue about what the national baseline should be, but standardization is a positive government intervention to make it easier to select a policy and to make sure that the policy will actually cover care)

Re: Rich Retirees Are Hoarding Cash Out of Fear

#179

Post by maxerickson »

zanny wrote: post #143
djsumdog wrote: post #43

Earlier quoted context omitted.

I agree, if America had real health care, people would be less apprehensive in taking time off and caring for their mental health. Unfortunately voting in America doesn't really do squat. We're first past the post and the corruption runs so deep no politician can stand against the health care industry. Elections here are a joke.

It isn't just first past the post, either. * It is gerrymandered districts, setup over decades to guarantee seats go to one or the other party. The number of actually competitive elections is at historic lows every cycle. * Representation per person is at historic lows. The population rises, but the seats in state and federal houses doesn't change. Even in the best case scenario, Wyoming still has over 250k people pe…

The broad population that each Senator represents provides a good check on gerrymandering.

Re: Rich Retirees Are Hoarding Cash Out of Fear

#180

Post by refurb »

incompatible wrote: post #137
msabalau wrote: post #54

Earlier quoted context omitted.

Oh, if we had high interest rates and inflation, people with fixed incomes and savers would be feeling horrible too. The idea that there would be safe investments with decent returns is inherently ridiculous. The closest one can come is oligarchs buying tax policy, or baby boomers making sure that housing stock is inadequate so the prioe of the their home goes up artificially at the expense of the young and poor.

To me it seems that getting a decent return was a lot easier prior to 2007. Banks would pay interest rates of 6% or so and inflation was low. The stock market only gradually became overvalued.

Interest rates and inflation are linked. It's not very helpful to get a 17% interest rate when inflation is 16% (1970's in the US). Your real return is still only 1%.
Post reply on HN