Rich Retirees Are Hoarding Cash Out of Fear • Hacker News Board

Re: Rich Retirees Are Hoarding Cash Out of Fear

#211

Post by blhack » Wed, May 17, 2017, 2:11 AM UTC

meddlepal wrote: post #112

blhack wrote: post #55

Earlier quoted context omitted.

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?

Incredible. Every time I feel like my back is sore or hurts for some reason, I hang my hammock back up and sleep in it.

Re: Rich Retirees Are Hoarding Cash Out of Fear

#212

Post by DashRattlesnake » Wed, May 17, 2017, 2:12 AM UTC

tnecniv wrote: post #170

ChuckMcM wrote: post #49

As your parents age you get a chance to see how they handle retirement. You may also get to see their critical thinking facilities deteriorate which, I can tell you, is very sad. One of the things my parents get exposed to fairly heavily are stories that our entire financial system is teetering on the brink of massive depression. Often times it comes with an offer for a 'sure fire' investment that will ride out this…

> My great aunt, before she passed, had a suitcase in her closet with lots of cash in it to survive the coming collapse of society. This in itself is poor preparation because it assumes the currency will still be worth something should some financial calamity on the purported scale occurs.

>> My great aunt, before she passed, had a suitcase in her closet with lots of cash in it to survive the coming collapse of society.

> This in itself is poor preparation because it assumes the currency will still be worth something should some financial calamity on the purported scale occurs.

My guess it was preparation for a replay of the Great Depression, where money did keep its value.

Re: Rich Retirees Are Hoarding Cash Out of Fear

#213

Post by rtpg » Wed, May 17, 2017, 2:12 AM UTC

refurb wrote: post #180

incompatible wrote: post #137

Earlier quoted context omitted.

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%.

they're linked, but it's far from the only variable in the system. Recent fiscal policy and results shows gov'ts have a hard time influencing real inflation with interest policy.

Re: Rich Retirees Are Hoarding Cash Out of Fear

#214

Post by ilamont » Wed, May 17, 2017, 2:15 AM UTC

I know a couple in their 70s, moderately successful entrepreneurs, who not only hoarded millions in cash but also refused to put any in the stock market since the early 2000s. They have kept it in ultra-safe, ultra low yield bank and bond accounts, with a relatively small investment in a Florida condo.

Their fear, borne from experiencing repeated stock market and real estate bubbles over many decades, is that yet another crash will decimate their savings.

Re: Rich Retirees Are Hoarding Cash Out of Fear

#215

Post by basicplus2 » Wed, May 17, 2017, 2:18 AM UTC

imgabe wrote: post #168

reustle wrote: post #101

Earlier quoted context omitted.

The trick is to move to a country with proper healthcare

Or just die when you're old? Maybe that sounds harsh, but being bedridden for 12 years doesn't sound like any idea of a good life to me. The old die to make way and free up resources for the young. That's the way it's supposed to work.

Let me know how you feel about that when your old

Re: Rich Retirees Are Hoarding Cash Out of Fear

#216

Post by incompatible » Wed, May 17, 2017, 2:19 AM UTC

eatbitseveryday wrote: post #203

incompatible wrote: post #162

Earlier quoted context omitted.

That's an interesting visa, although the monthly income requirement of THB 65,000 would be beyond me.

65,000 THB = 1,885.17 USD That is 37,760 USD / year. Too much? edit: Whoops, should be 22,622.04 USD / year

Yeah, I make nowhere near that much as a retiree.

Re: Rich Retirees Are Hoarding Cash Out of Fear

#217

Post by ssambros » Wed, May 17, 2017, 2:21 AM UTC

reustle wrote: post #101

ransom1538 wrote: post #81

Earlier 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

> The trick is to move to a country with proper healthcare

The trick is to move to a country [where taxpayers are going to pay for your medical care]. Nice plan. Several people in this thread already noted that there are ways to make American taxpayer pay, without having to move.

Re: Rich Retirees Are Hoarding Cash Out of Fear

#218

Post by Merad » Wed, May 17, 2017, 2:21 AM UTC

Surprised no comments that I've seen have mentioned the Great Recession. There were many, many stories in 2009 such as [0] about retirees forced to return to work due to decimated 401k's and investments, or people on the verge of retirement who saw their hopes vanish. Considering that the economy is likely due for another recession at any time, it doesn't seem surprising that many people are terrified.

[0]: http://www.cbsnews.com/news/retirement-dreams-disappear-with...

Re: Rich Retirees Are Hoarding Cash Out of Fear

#219

Post by Spooky23 » Wed, May 17, 2017, 2:22 AM UTC

emodendroket wrote: post #190

imgabe wrote: post #168

Earlier quoted context omitted.

Or just die when you're old? Maybe that sounds harsh, but being bedridden for 12 years doesn't sound like any idea of a good life to me. The old die to make way and free up resources for the young. That's the way it's supposed to work.

Remember when this scenario was trotted out as an argument against reforms? Hell, why not establish death squads?

For people like this, it's always better for the free market to figure out how to deliver bad news to other people.

I had a coworker who was a hardcore Ayn Rand type who had a real harsh point of view like this, until his infant was born with a congenital heart defect that resulted in hospitalization for 3-4 months.

Frankly, my own experience gave me a similar perspective, although I was more "meh" on the issue. I had a serious back surgery at 25, and spent a lot of time in PT around people whose lives were falling apart due to expenses and lost wages. Meanwhile I had a great employer with generous benefits and leave. The trucker I was around was struggling to live with workers comp and disability coverage. He was selling most of his possessions to keep his house. It was chilling.

Re: Rich Retirees Are Hoarding Cash Out of Fear

#220

Post by incompatible » Wed, May 17, 2017, 2:23 AM UTC

Consultant32452 wrote: post #200

aianus wrote: post #176

Earlier quoted context omitted.

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

This is the result of central planning on the part of government. It allowed the AMA to do insane things like stopping new medical schools from opening for DECADES. It allows the AMA to continue to artificially limit the practitioners in all medical professions to keep wages high. As a specific anecdote of the problem of government in healthcare: in my city a new children's hospital opened up a few years ago. The oth…

Why does the government care what the other hospitals think? Would they stop a new burger bar opening too close to a McDonalds, if McDonalds petitioned them for long enough?