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#51
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Steven P. McNicoll wrote:
"Matt Whiting" wrote in message ... Well, they work for the folks in first ... just like SS. :-) Social Security IS a Ponzi scheme. Never said it wasn't. I just said that even Ponzi schemes work for some, just not for all ... and not for long. Matt |
#52
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"Matt Barrow" wrote in newsIuke.51$Kp2.6060
@news.uswest.net: Your 401 is HOW old? About 5 years. The company didn't offer one until it became a tax advantage to offer it. -- Regards, Stan "They that can give up essential liberty to obtain a little temporary safety deserve neither liberty nor safety." B. Franklin |
#53
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"Matt Whiting" wrote in message ... Never said it wasn't. I just said that even Ponzi schemes work for some, just not for all ... and not for long. So in other words, you said Ponzi schemes work just like a Ponzi scheme. |
#54
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In article , Stan Gosnell
wrote: I don't agree. I don't think it is at all possible to invest SS taxes and come out ahead I once did a calculation that showed I would have 4x the retirement income from my contribution than I would receive from SS (and the amount contributed into each plan was comparable). This was based on conservative returns of 2-3% real returns. -- Bob Noel no one likes an educated mule |
#55
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On Mon, 23 May 2005 23:55:17 -0400, Bob Noel
wrote: In article , Stan Gosnell wrote: I don't agree. I don't think it is at all possible to invest SS taxes and come out ahead I once did a calculation that showed I would have 4x the retirement income from my contribution than I would receive from SS (and the amount contributed into each plan was comparable). This was based on conservative returns of 2-3% real returns. Typically you can expect real returns to average about twice that with inflation taken into account. Historically the market has averaged 11% per year when the crashes are included in the average. Certainly some years it has been less, way less, or even negative, but long term a diversified account is the best plan you can find. One problem with the market that used to be common with small investors was the lemming like fleeing with any negative indicators. I think some of those same people are not managing some large retirement funds and making their panic self fulfilling. Another thing to remember: You usually have a choice of short term or long term gains. The two are *usually* mutually exclusive. IOW, you can have one or the other. There have been exceptions but they are long shots, sorta like winning the lottery. Very few people make money day trading in the long run. Again there are exceptions. With lots of study giving a through knowledge of the market, conditions, the stocks, outside influences, and a bit of luck some do make a lot of money, but it's about as sure a thing as the lottery for the small investor, or those not willing to spend the time studying and that is a lot of time. Had I had the option of putting half my SS into stock over the years I could have retired a multi-millionaire. Yes, there is risk associated with investing and one of the first steps is risk assessment and risk tolerance studies for both the investment and investor. Probably the most important point to make about investing: You need to know how to save before you can invest. There are a lot of meanings hidden in that statement. "Save now, spend later". Settle for a bit less to begin so you have more to invest. Don't purchase new cars regularly, they are the worst investment you can make. If you must purchase a new car, drive it till the wheels are ready to fall off. Don't over extend. Get rid of all but the necessary credit card and pay it off at the end of the month, every month. If in the hole now, make use of credit management as an aid to get out of debt. Learn to manage your circumstances instead of letting circumstances manage you. Most individuals can do far better financially than they are now doing by spending some time with a credit counselor. There are those due to health and other circumstances who will never be able to do much in the way of investing, but that is not true for the vast majority who decide to do something other than grouse about their circumstances. Like becoming a pilot, most of us have far more capability for saving and investing than we give ourselves credit. Like becoming a pilot the first step is deciding that we are going to commit ourselves to doing it. For all but a few the choice is ours. Roger Halstead (K8RI & ARRL life member) (N833R, S# CD-2 Worlds oldest Debonair) www.rogerhalstead.com |
#56
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Steven P. McNicoll wrote:
"Matt Whiting" wrote in message ... Never said it wasn't. I just said that even Ponzi schemes work for some, just not for all ... and not for long. So in other words, you said Ponzi schemes work just like a Ponzi scheme. That is right. They work for the orginators of the scheme, but not the suckers who come later. With SS, the baby boomers, and the post-baby boomers likely will be the suckers. The government has deep pockets so they can perpetuate the scheme much longer than other entities could. Matt |
#57
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Bob Noel wrote:
In article , Stan Gosnell wrote: I don't agree. I don't think it is at all possible to invest SS taxes and come out ahead I once did a calculation that showed I would have 4x the retirement income from my contribution than I would receive from SS (and the amount contributed into each plan was comparable). This was based on conservative returns of 2-3% real returns. I'd like to see that calculation. That certainly isn't what I've seen. Then again, it all depends on what age you plan to retire and how long you plan to live. Matt |
#58
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"Bob Noel" wrote in message ... In article , Stan Gosnell wrote: I don't agree. I don't think it is at all possible to invest SS taxes and come out ahead I once did a calculation that showed I would have 4x the retirement income from my contribution than I would receive from SS (and the amount contributed into each plan was comparable). This was based on conservative returns of 2-3% real returns. Consider, too, that SS funds go into consumption (it's a Ponzi scheme afterall) rather than investment like, well...like real investments. The basis of mercantilism was increasing consumption, not production. It's the increases in production that generates wealth and better standards of living. |
#59
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"Matt Whiting" wrote in message ... Steven P. McNicoll wrote: "Matt Whiting" wrote in message ... Never said it wasn't. I just said that even Ponzi schemes work for some, just not for all ... and not for long. So in other words, you said Ponzi schemes work just like a Ponzi scheme. That is right. They work for the orginators of the scheme, but not the suckers who come later. With SS, the baby boomers, and the post-baby boomers likely will be the suckers. The government has deep pockets so they can perpetuate the scheme much longer than other entities could. They also have guns and badges. |
#60
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"Matt Whiting" wrote in message ... Bob Noel wrote: In article , Stan Gosnell wrote: I don't agree. I don't think it is at all possible to invest SS taxes and come out ahead I once did a calculation that showed I would have 4x the retirement income from my contribution than I would receive from SS (and the amount contributed into each plan was comparable). This was based on conservative returns of 2-3% real returns. I'd like to see that calculation. That certainly isn't what I've seen. Check www.techcentralstation.com, someone did those calucations about two years ago. Then again, it all depends on what age you plan to retire and how long you plan to live. Pardon? |
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