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Rich Retirees Are Hoarding Cash Out of Fear

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Re: Rich Retirees Are Hoarding Cash Out of Fear

#231

Post by scorpioxy »

Gustomaximus wrote: post #139

I feel this is another down-stream effect of weak social support. If a country offers reasonable basic pension and healthcare, retirees will spend because they know if they run out of cash they have their basics covered. Without this support of course they will hoard money. I saw this living in Norway where people in general tend to save less aggressively because they know if things go bad they are covered. And it wo…

I hear you... Like disappearing bulk billing GPs, specialists only agreeing to see you if you have private insurance and waiting times for public services exceeding the 1 year mark!

Re: Rich Retirees Are Hoarding Cash Out of Fear

#232

Post by ChuckMcM »

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.

Agreed, I've had a couple of fun discussions with friends over what might be the "best" post apocalyptic future currency. Cigarettes were a popular suggestion, as was whisky, I thought perhaps medical supplies might make the cut, or bolts of canvas. What would you consider to be the 'best' barter currency, assuming cash had no specific value?

Re: Rich Retirees Are Hoarding Cash Out of Fear

#233

Post by toomuchtodo »

gozur88 wrote: post #205
curun1r wrote: post #148

Earlier quoted context omitted.

You can go to developing countries. The health care I received in Southeast Asia was quite good and the full cost was significantly less than just the co-pays on my plan in the US. Thailand has a retirement visa that allows for 6-month stays and you can live quite comfortably there for under $20k/yr.

I'm sure care is adequate in many developing countries if you get the clap or get injured in a car accident. But I'm skeptical you're likely to get as good cardiac or oncology care.

Cardiac and oncology care is top notch in Thai and Indian facilities where Westerners would patron, based on my medical tourism research.

Dat arbitrage!

Re: Rich Retirees Are Hoarding Cash Out of Fear

#234

Post by Spooky23 »

inetknght wrote: post #120
neolefty wrote: post #105

Earlier quoted context omitted.

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?

No. Businesses that generate cash export it overseas to avoid taxation.

The Fed basically makes banks maintain huge capital reserves, and allows them to borrow money for nothing. The banks don't pay for your money because the Fed is printing it for them.

Because they need to maintain these massive capital reserves, we get the benefit of printing money without circulating it.

Re: Rich Retirees Are Hoarding Cash Out of Fear

#235

Post by justin66 »

stupidhn wrote: post #104
Artlav wrote: post #97

Earlier quoted context omitted.

Why are buildings built with 3 times the structural integrity than they need? Why are wires several times thicker than they need to carry the power the house needs? Why are hammers much harder than nails? It's called redundancy - you can never predict exactly what the needs would be, so you leave a healthy safety margin.

Overdoing any of each of your examples is a waste of resources, just like dying with a pile of cash.

Cash doesn't evaporate into the air when you die.

Re: Rich Retirees Are Hoarding Cash Out of Fear

#236

Post by 1001101 »

1001101 wrote: post #15

FTA, 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…

Just read more about the article. The estate value is everything, not just liquid assets. The median liquid assets were around 10k, median estate is around 50k.

Re: Rich Retirees Are Hoarding Cash Out of Fear

#237

Post by Spooky23 »

refurb wrote: post #182
drblast wrote: post #85

This is a really good argument for subsidized medical care. This fear of not having enough for medical expenses is perfectly reasonable, and I wouldn't fault sometime for hoarding cash for a second. Solve the inherited inequality problem with inheritance taxes or guarantee medical care. Otherwise of course people will save for medical expenses. And they should, it's prudent.

This is a really good argument for subsidized medical care. You mean like Medicare? The US already has that for retires. You mean retires that have no money? The US already has that, it's called Medicaid.

The US option is full coverage for the indigent and partial coverage for the old.

If you need nursing care, you lose everything. Typically that means that when husbands get sick, the wife is left near indigent unless he dies quickly or the couple did estate planning with trusts.

Re: Rich Retirees Are Hoarding Cash Out of Fear

#239

Post by ingenuous2 »

ChuckMcM wrote: post #232
tnecniv wrote: post #170

Earlier quoted context omitted.

> 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.

Agreed, I've had a couple of fun discussions with friends over what might be the "best" post apocalyptic future currency. Cigarettes were a popular suggestion, as was whisky, I thought perhaps medical supplies might make the cut, or bolts of canvas. What would you consider to be the 'best' barter currency, assuming cash had no specific value?

Guns, ammo, and whiskey. I don't expect humanity to stay civilized or play by the same rules.

The whiskey gives you something to trade. Guns & ammo make sure the trade isn't a robbery.

Re: Rich Retirees Are Hoarding Cash Out of Fear

#240

Post by DashRattlesnake »

_dztf wrote: post #229
DashRattlesnake wrote: post #210

Earlier quoted context omitted.

> In hammocks from Brazil you sleep diagonal to the "axis" of the hammock and your body is almost rod-straight. Can you find a pic demonstrating what you mean?

http://www.treklightgear.com/treklife/hammock-angle/ ... skip to where it talks about the angle.

That's some website, forcing me to enable javascript so I can use their "totally necessary" custom scrollbar

Anyway, that's interesting. Thanks!

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