65 % of americans not preparing for retirement.

[Seasoned Oak]

I'm all for a flat tax. I think that makes a ton of sense.

Buffet is pretty far away from a free market proponent. He, like many others, has made a killing with exclusive buying rights (shady deals with Fanny Mae) to foreclosed homes. He made an absolute fortune off of people losing their homes.

Buffet, like him or not, is one of the few people publicly criticizing the tax system that unfairly allows him to pay a lower tax rate than his secretary. And he is absolutely right. If he were paying the top rate on wages and salaries instead of the super rich benefit rate of 15% on investments ,that would amount to billions more he would be paying the treasury instead of buying up foreclosures with.

 

[Jan Pijpelink]

And the handfull of people in the 1% who have amassed 99% of this countries wealth largely due to paying 15% tax rate are also among the group able to scoop up property at fire sale prices after the people who paid on them for 30 years are evicted. Its painfully obvious the system is skewed to the super rich. I more fair system would make a whole lot of millionaires and not just few billionaires.

And it is the same everywhere. I lived in 4 countries on 3 continents and it's all the same.

 

[sportbikerider78]

And the handfull of people in the 1% who have amassed 99% of this countries wealth largely due to paying 15% tax rate are also among the group able to scoop up property at fire sale prices after the people who paid on them for 30 years are evicted. Its painfully obvious the system is skewed to the super rich. I more fair system would make a whole lot of millionaires and not just few billionaires.

In this case the system is a wacked out, corrupt congress and banking system full of crooks.

The solution to fix this problem is not more tax or tax codes, it is less and that naturally levels the playing field w/less corruption.

 

[sportbikerider78]

Buffet, like him or not, is one of the few people publicly criticizing the tax system that unfairly allows him to pay a lower tax rate than his secretary. And he is absolutely right. If he were paying the top rate on wages and salaries instead of the super rich benefit rate of 15% on investments ,that would amount to billions more he would be paying the treasury instead of buying up foreclosures with.

And that statement just furthers his total hypocrisy. The IRS will take as many checks as he wants to write. No one is stopping him from giving it away. He should speak for himself and not imply others deserve to be taxed more. Based on what moral code?

Even then, that means nothing for peoples wages, that is just tax code. We can't merge these issues as if they are one and the same conversation.

Please don't think I am being argumentative. This is just how I talk all the time.

 

[Seasoned Oak]

This is just history repeating itself. Back in the 20s most of this countrys wealth was concentrated in the hands of painfully few people while much of the population lived like rats. An army of servants to the wealthy. Can point to lots of things that turned it around ,but now its headed right back where it began.

 

[peakbagger]

Warren Buffett has already committed to give away the majority of his fortune when he passes and is major supporter of the move to get ultra rich folks to donate a majority of their wealth when they pass

Folks get the government they deserve and the electorate has sadly fallen for PR tactics.

 

[begreen]

This is just history repeating itself. Back in the 20s most of this countrys wealth was concentrated in the hands of painfully few people while much of the population lived like rats. An army of servants to the wealthy. Can point to lots of things that turned it around ,but now its headed right back where it began.

Indeed, this also echoes the situation that led up to the great depression of the 1890s.

 

[greg13]

Unfortunately politicians are allowed to buy votes. mostly uneducated voters just love free handouts like Obama phones ( I knew a person that had one for each of her kids - all under 10 yrs old) . Around here in NY king Andrew comes into town and tells the people what we need and just passes out money, NY spent $10 mil on a film hub that sits empty (Syracuse will become the Hollywood of the east) . Wanted to spend millions on a Gondola system at the state fairgrounds to shuttle people to the parking lots (for a 10 day a year fair).

The majority of the young people are stupid enough to think the money for the freebies just magically appears from no where. These are the same people that get a $5000 REFUND on the $1500 they paid in taxes. I still don't under stand how that works, last I knew there was a difference between a refund and a grant.

 

[EatenByLimestone]

I'm hoping the corruption trial sucks him up.

 

[peakbagger]

One thing out there that has not been discussed is how accurate is the original contention that folks are not saving enough?. Who decides how much is enough and do they have financial interest in folks keeping large balances?. What retirement lifestyle are they attempting to fund?

When I look at many of the financial calculators they have inherent very conservative assumptions cooked in, its represented they are just looking out for the investor but the reality is the more money you save the more money some investment firm makes. Investment firms love retirement money. Its pretty predictable that it is going to be in the account for quite awhile and the costs to keep the money in that account are pretty minimal compared to the yearly fee they charge. They also know that human nature causes most folks to think they can beat the market long term even though numerous studies show that buy and hold index type mutual funds. The funds make far more money on the buy and sell investor as they get commissions going in and commissions going out plus typically higher yearly expense fees.

 

[EatenByLimestone]

If you have assets to distribute at the time of death, you saved enough. At least it seems like that would be an indicator.

 

[RobbieB]

If you are running calculators, at least you are on a path, you have started a plan. I ran every one I could find and they said I was good to go so I went.

Where it gets really interesting is when you want to retire really early, say 40's. Now you have a much longer time to consider and more things can happen (good or bad) to mess with your stash.

 

[Seasoned Oak]

I'm hoping the corruption trial sucks him up.

Dont you mean "THEM" Many of the 535 that have been spending us into extinction for 30 years. We keep sending the same people back in just to serve themselves.

 

[EatenByLimestone]

I was talking about the supreme buffoon in charge of NY.

 

[sportbikerider78]

This is just history repeating itself. Back in the 20s most of this countrys wealth was concentrated in the hands of painfully few people while much of the population lived like rats. An army of servants to the wealthy. Can point to lots of things that turned it around ,but now its headed right back where it began.

I don't feel like i'm a serf to any rich person. The wealthy take nothing from me. I really don't understand where that mentality comes from. I've lived in many states, held many manufacturing, engineering, sourcing...ect postions. Big corporations. Private corporations. Corporations that went out of business. If I had a bad position at a crappy company, I left. I will not complain about a situation when I have complete control over it. My employment and earning is that type of situation.

The IRS on the other hand..takes several pounds of flesh. Compound that will local town taxes.....and high school taxes..and high fees..and high car registration..and license fees..and anything I want to do anything fees....
Over 10 years in NYS on a modest home, I have paid almost $65,000 in taxes. If I stay here another 10, I'm looking at another $65-75k.

That is a HUGE part of why people can't save enough. The more you earn, the more you're taxed. I'm hovering on a tax bracket right now. Gives me very little incentive to work more.

 

[sportbikerider78]

Dont you mean "THEM" Many of the 535 that have been spending us into extinction for 30 years. We keep sending the same people back in just to serve themselves.

No doubt about that. Almost all dems and repubs agree we gotta spend spend spend spend. Lobbyists, payoffs, bad contracts...it happens all the time at the local level here. That is why we have to limit how much can be spent. Small government with small power can't spend us broke.

 

[Seasoned Oak]

The tax cuts should have been paired with corresponding spending cuts,but that never happens. Even a freeze in spending would eventually balance the budget ,but it seems the powers that be cant even agree on a cut in the RATE of growth. Technically "were screwed".

 

[peakbagger]

The US was actually closing in on zeroing out the deficit around the year 2000 under Bill Clinton. Economists were getting worried as the Feds control of the economy was by controlling the interest date on the debt. With far reduced government lending, they could potentially lose control of setting rates. It wasn't until the Bush came in and did another tax cut that the deficit started climbing.

Note the long term debt never got close to zero, only the deficit.

 

[Seasoned Oak]

Borrowing money to finance tax cuts is smoke an mirrors IMO. Bait and switch.
Its a Double edge sword Debt bomb. Even if they could possibly get the budget balanced (which they cant). What do you do about the 21Trillion. I cant see a scenario that dont include some type of default or "renegotiation of terms' AKA pennies on the dollar for your treasuries. If we had to live within our means today, we would be in the middle of a greatest depression in history. Double digit negative GDP numbers as far as the eye can see .Putting it off along with more deficit spending will only make it worse.

 

[begreen]

For those of us that benefited from more reasonable costs, congratulations. But there is a new generation that is saddled with over a trillion dollars of student debt. A crazy rise in housing costs, health insurance costs and god forbid they have a family or a mortgage. This is not the same playing field that we grew up on.

 

[Seasoned Oak]

Before entering college (or borrowing money for a degree) it should be a requirement to take a class(probably no class like this exists) to research the chances of making a living with said degree, let alone the ability to pay back the loan. The interest rate and likelyhood of approval should be based on those chances,just like an insurance company. No way should the taxpayers (struggling themselves) be on the hook for others poor financial and educational decisions.

 

[sportbikerider78]

Before entering college (or borrowing money for a degree) it should be a requirement to take a class(probably no class like this exists) to research the chances of making a living with said degree, let alone the ability to pay back the loan. The interest rate and likelyhood of approval should be based on those chances,just like an insurance company. No way should the taxpayers (struggling themselves) be on the hook for others poor financial and educational decisions.

I have a friend that is 24, has $65k in loans and makes $11.50 per hr with a 4 year degree from a private liberal arts school.

Quite frankly, if the kid isn't smart enough to pick a degree that makes a sustainable amount of money (aka where they want to be) then they aren't smart enough for college. All of this info is super available and at your fingertips. In 10 seconds you can figure out if your degree can be paid off and what you will make. Maybe some are just fine with being saddled with debt for 20 years. I was not one of those people.

Good community colleges are readily available. They have great prices and the credits are easy to transfer in. Just make sure you have a 4 year school picked out before you start taking classes so you know they will transfer in.
I graduated from a great private engineering school with almost no loans. I had ZERO need based scholarships. I went to a community college for full price and got my AS. Did well and got a 30% off merit based discount to my 4 year school. Then worked 6 month and did school 6 months (alternating) with their paid co-op program for the last 3 years. Worked out great. Had a job with GE 10 months before I graduated.

 

[Seasoned Oak]

These loans are TOO easy to get. FIX that before they start talking about loan forgiveness. How much of this money went to finance Spring Break??? They have no idea. The worst thing that can happen is the student has to pay it back. The average student loan is $25000, less than the price of a new car. IF you cant buy an economy car with that degree it wasnt worth it to begin with. Is why tuition is so high ,too much easy Govt subsidy money flying in,same as Health Care.

 

[greg13]

I have a friend that is 24, has $65k in loans and makes $11.50 per hr with a 4 year degree from a private liberal arts school.

Quite frankly, if the kid isn't smart enough to pick a degree that makes a sustainable amount of money (aka where they want to be) then they aren't smart enough for college. All of this info is super available and at your fingertips. In 10 seconds you can figure out if your degree can be paid off and what you will make. Maybe some are just fine with being saddled with debt for 20 years. I was not one of those people.

Good community colleges are readily available. They have great prices and the credits are easy to transfer in. Just make sure you have a 4 year school picked out before you start taking classes so you know they will transfer in.
I graduated from a great private engineering school with almost no loans. I had ZERO need based scholarships. I went to a community college for full price and got my AS. Did well and got a 30% off merit based discount to my 4 year school. Then worked 6 month and did school 6 months (alternating) with their paid co-op program for the last 3 years. Worked out great. Had a job with GE 10 months before I graduated.

Bottom line is that not every kid is cut out for collage so why waste the money on it? There are plenty of FREE and low cost options. I went to BOCES vocational the last three years of high school (1 yr sm engine, and 2 yrs auto mechanic.) The day after I graduated I was running a Goodyear shop. 6 months later I was hired as fleet mechanic for one of the largest tree companies on the east coast. Not bad gigs for a 19 yr. old, If I only knew then what I know now!!
My grandson is in BOCES now doing home electrical, I hope he sticks with it.

 

[sportbikerider78]

If I was a really rich guy and had a bunch of money to give away, I would start non profit trade schools. Kids really need a place where they can be creative, experiment and work with their hands. You can't work with your hands without working with your mind first.

In the past, these kids entered big programs that Ford, GM, GE, ect had to offer. They learned highly skilled trades like machining and toolmaking. Those programs don't exist much anymore.