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Debt, lower wages clip net worth growth

Discussion in 'Political Discussion' started by Patters, Feb 23, 2006.

  1. Patters

    Patters Moderator Staff Member PatsFans.com Supporter

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    http://money.cnn.com/2006/02/23/pf/consumer_fedsurvey/index.htm?cnn=yes

    NEW YORK (CNNMoney.com) – Americans' net worth grew between 2001 and 2004, but not nearly as strongly as it did between 1998 and 2001, according to the Federal Reserve's triennial Survey of Consumer Finances released Thursday.

    ...

    Net worth: Median net worth rose 1.5 percent, to $93,100, meaning half of all households had a higher net worth. By contrast, between 1998 and 2001, the median net worth increased 10.3 percent.

    ...

    Income: A decline in wages also helped account for the slow growth in net worth.... The growth in income was the slowest since the Fed's 1992 survey, when median income actually fell.6.7 percent, to $35,100, between 1989 and 1992.

    Savings: The percent of families who said they'd saved in the preceding year fell 3.1 percentage points, to 56.1 percent.
     
  2. pats-blue

    pats-blue Third String But Playing on Special Teams

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    Two words.....Dot Com
     
  3. BelichickFan

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    #24 Jersey

    Yeah, a lot of numbers that come out about the late nineties were fake. How is net worth calculated, anyway ? Is it all assets minues all debts ? If so the rise is house values would bring down the net worth as so many people have bigger loans, a debt, now, even though they're affordable due to low interest rates.
     
  4. BelichickFan

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    #24 Jersey

    This is worth pointing out :

    "The percentage of families investing in stocks, directly or indirectly through mutual funds, fell 3.3 percentage points, to 48.6 percent."

    I assume the drop is due to people being scared after the big drop after 9/11 but, regardless, just about 50% own stock in one way or the other. So when all the libs are whining about corporate profits and the stock market only helping the big boys, guess what . . . it helps half of the country.
     
  5. BelichickFan

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    #24 Jersey

    This is pathetic :

    "The percent of families who said they'd saved in the preceding year fell 3.1 percentage points, to 56.1 percent."

    I know some people can't, but come on. No wonder I'll have to support everyone on social security when they retire. Come on, people.
     
  6. Patters

    Patters Moderator Staff Member PatsFans.com Supporter

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    I think investment dropped more as a result of the dot.com phenomenon that Bush's economic policies didn't maintain (as we switched to an old industries mentality) than a result of 9/11.

    Also, liberals do not object to corporate profits, but do object to white collar abuse (such as Enron, Worldcom, Tyco, Andersen, Halliburton, Walmart, etc.).

    I think you might be mixing up liberals with communists, the same type of confusion as when liberals mix up Republicans with fascists. You can find some similarities, of course, in that liberals do favor economic policies that benefit working people, but the differences are far greater.
     
  7. BelichickFan

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    #24 Jersey

    It doesn't take much effort to find liberals complaining about corporate profits. Note all the references to "big oil" and their recent profits.
     
  8. Patters

    Patters Moderator Staff Member PatsFans.com Supporter

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    Ah, I see, you're defending the oil companies. I think the oil companies should have to help the families of deceased soldiers if they want Iraqi oil; I think the oil companies should explain why the so-called oil shortage led to not only increased prices for the consumer, but massive increases in profits for the oil companies. Unlike you, I'm against corruption. You're probably one of those who's more concerned with the Katrina victim using government aid to get a $450 tattoo than with an oil company exploiting our soldiers to get an extra billion dollars.
     
  9. BelichickFan

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    #24 Jersey

    Mike, neither was I but I'm doing what I can to get what savings I can. That means maxing out my 401K and bypassing niceties like new cars or a bigger house. Or going out drinking twice a week.
     
  10. BelichickFan

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    #24 Jersey

    That's a loser's mentality. I've never made "big bucks" but I put my $400 or so in a month. Put $400 a month (and I know not everyone can) in at 8% (which is reasonable historically) and you come out with $600K after 30 years. At $100 a month you end up with $150K. No, you can't retire on that but it's better than the $36K it would be if it just sat under your mattress. And most people could squeeze out $200 to $300 a month if they were honest with themselves.
     
  11. PatsWickedPissah

    PatsWickedPissah PatsFans.com Supporter PatsFans.com Supporter

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    Utter bilge.
    Just because one of life's losers like NEM cannot manage to invest successfully in the simplest of index mutual funds does not mean that stock ownership is for rocket scientists only.
     
  12. BelichickFan

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    #24 Jersey

    I don't believe that. If you replace "most" with "some", then OK. But almost every family, except the poorest of the poor, waste at least $100 a month from going out to the bar, smoking, buying a more expensive car or house than they need, etc.
     
  13. PatsWickedPissah

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    Come to Fox. Visit Zip's tailgate and I'll explain in detail.
     
  14. Chevy

    Chevy Third String But Playing on Special Teams

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    Here's a simple investment plan that the majority could follow:

    [​IMG]


    At age 60 there's $527 thousand waiting for you. If you take the 8% annual return on that, you've got $42,157.50. Less 30% for taxes, and you've got $29,510.25 per year to work with ($2459.19 per month).

    Beats Social Security and then some.
     
    Last edited: Feb 25, 2006
  15. BelichickFan

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    #24 Jersey

    Nice little plan. And it's amazingly moderate. Sure, there are a few people out there who can't afford that. But with those numbers the vast majority can even if they don't think they can.
     
  16. BlueTalon

    BlueTalon On the Game Day Roster

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    As long as liberals are preventing drilling in ANWAR, we have to get oil from somewhere else...
     
  17. PatsWickedPissah

    PatsWickedPissah PatsFans.com Supporter PatsFans.com Supporter

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    Of course it beats So Sec. But it does not leave you dependant on electing pandering pols to ensure your retirement.

    Your case is understated in that the effective tax rate after standard deductions is around 10%. You have a lot more $ at that hypothethized income level.

    People forget that the 7.5% that their company pays into 'their' soc security in effect comes out of what they could make were there no Soc Sec. If you could take that entire 15% SS pay cut, invest it as above at even 6% and over a lifetime you'd be golden. But numbers and facts do not matter to liberal ideologs.
     

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