JMT21

I'm guessing neither of you have business backgrounds.

I have no idea where you got the notion that more people investing money in the stock market will result in "a situation like you had in the 1929 crash." Two important things resulted from the 1929 crash: the creation of the FDIC and legislation requiring the separation of commercial banking activities from investment banking activities. We haven't seen anything even close to that since, nor will we.

Let me crunch some numbers for you:

If at age 25 you put away $100 a month for the next 40 years (until 65) at a 12% interest rate (that’s what the stock market has been averaging over the long term) you will retire with $1,176,477 in the bank.

Same situation but you put away $150/month; you end up with $1,764,715.

Or we can work it backwards. Let’s assume you retire at age 65 and want to have $200,000 per year for the next 30 years (until 95). Assuming a 12% interest rate you will need to put away about $2,100 per year.

Obviously inflation is going to hurt you, but all of the above should be do able for nearly everyone. There are too many folks like you looking for a hand out and when it doesn’t come blame it all on Mexico and India for stealing jobs. You work hard, live below your means, and save and I will guarantee you (and the rest of the middle class) will end up alright. I hope you aren’t expecting to become filthy rich flying for a living.

Pilotpip

Who in the hell are you to say I'm looking for a handout? I'm working my butt off to make things better for my kids than I had it for myself. And no, I never thought I was going to get rich. This looked like a neat way to make a living. Before you assume too much allow me to elaborate:

There are tons of people that are simply stuck where they are. It's very difficult to move up in the world and I'm finding out first hand. My mom has worked two jobs to make ends meet since I was very young. I know first hand what hard work is, and I know first hand that it can be tough to put away $100 a month when you have to pay the bills and provide a meal for your family. I'm in training right now and it's the first time I've had less than two jobs since I was a freshman in college 8 years ago. This entitlement thing you mention makes me sick. What makes me even more disgusted is when I'm automatically lumped into that group myself.

1Seat 1Engine

I think almost everything about this post is essentially wrong.

For the last year, unemployment has remained at a very modest 4.5-4.4 percent. Compare that to other countries.

Home sales haven't really decreased that much. The big problem is the number of houses being offered for sale. Considering the ridicluous rate that housing increased in the previous years, this might actually be healthly for the market.

There is nothing prohibiting you from investing in the stock market, regardless of your economic status.

JMT21

Your right, I did overstep, for that I apologize. There copious amounts of people looking for hands but you do not appear to be one.

Pilotpip

JMT, no problem. I get a little on the defensive side when I get thrown into that generalization. I agree with many people about my generation. In college I got sick of the apathetic approach. Too many people expect everything to be handed to them.

1Seat, I've read a number of articles about home sales. There are areas near me where the amount of new home permits have dropped by 70% in the last year. Builders are have dropped prices by upwards of $100,000 to unload them. As for unemployment, it's pretty static however in the St. Louis area it's on the rise primarily due to the fact that we've been hit hard by the Big 3 automakers closing plants. As for the stock market, it's very difficult for people to invest when they don't have the disposable income to do so.


http://money.cnn.com/2007/06/25/news...ales/index.htm

EngineOut

Unemployment is NOT up! It's nearly at the all-time lows of the late '90s!

sigtauenus

Your statement acurately reflects the mentality of our society to a T, but you make it out to be an unavoidable fact of life when it really doesn't have to be.

The key to saving is to pay yourself first and to avoid consumer debt. Real estate is the way to go, starting with your own house, so of course you're going to have a mortgage. Buy how much house do you really need? Do you really need 2 car payments, or just 2 cars? Just how much are those playtoys costing you that you can't afford to save for your own future? The fact is, middle class folks who aren't investing bring it on themselves with their spending habits, and it is 100% unrelated to their income. When it comes to spending what you make and saving what's left over, nobody makes enough money to save. Nobody. The people who accumulate wealth make a point to save first and then spend what's left over.

My parents gave me nothing more than an expectation to do well in school and a good work ethic. I put myself through college with scholarships and loans. 10 years later, I am still middle class, and I am still paying on my 4.8% college loans (almost done). My wife drives an SUV, I drive an F-150, both are over 10 years old and paid for. We have a 29' Class C RV (a nice playtoy), also 10 years old and paid for. I also have a 68 Mustang (even nicer playtoy) I'm restoring. Every vehicle we own we bought used. We have a 1600 square foot home and our monthly debt (including the mortgage) is roughly 18% of my income. Believe it or not, 1600 square feet is more than enough for a family of 4, a dog, a cat, and we still have a guest room, grass to mow, and a sandbox for the boys. We pay off our credit card each month. As of yesterday, I've got about $97,000 in the stock market, and I just turned 32. We give more than 10% to the church and roughly 20% to savings. That doesn't happen overnight, but it started when I was 22 with $50 a month into an IRA and my income was a wopping $25,000 a year. Using what I have and what I save, and a moderate 9%, I'm projected to have over 2.5 million by the time I'm 65, which is enough to give me 125,000 a year in retirement even if I live to 100, and assumes I get nothing from social security, nothing from my employer, and no money wasted on lottery tickets.

My savings and debt loading have me in a position where I can afford to leave my present position, suck up the first 2-3 years with the airlines until the pay catches up, and then the gameplan from there is to regain and maintain my current standard of living and more agressively invest, be it real estate, business, etc and retire sooner.

Please don't lump me in with the rest of the middle class who are destined to a sad poor life.

Pilotpip

You're very right with most middle class people. They need to lay off Wal-Mart and save a little money. However there are many out there that aren't living extravegant lives and are treading water. My mother is a prime example of this. She has a modest house payment, 7 year old car that's paid off, doesn't take vacations and doesn't have anything fancy. However with three kids and a father that didn't provide properly it's a little hard to pay the bills and do much more.

I'm just getting started in my career. If there is one good thing, I know I can make ends meet on less than first year FO pay. I have every intention of living lean for a few years until I get my head above water and some money in reserve. Retirement is only 35 or 40 years away depending on what congress does.

sigtauenus

LOL, in more ways than one!

Anyhow, I know from your posts above that the comment you made which I quoted earlier was directed at middle class in general, not your own family. In days where too many dad's decline responsibility for fatherhood, its commendable that your mom stuck it through.

mike734

Unemployment is up. Do you know how they calculate unemployment? Look it up. It is a BS way a calculating designed to make the politicians look better.

"Underemployment" is way up. What is underemployment? Look it up. Many more people than ever now work two jobs. The middle class is shrinking (as a percentage of the population) unless you change the way you define middle class.

Just stop listening to Faux News and open your eyes.

FLAME ON!