[DAVES]

Originally Posted by jdulej

I truly hope people don't lose any sleep over these fears. It simply isn't going to happen. At least, as long as you are not a crook.

Mind manipulation has always been so. Both hate and fear are powerful yet mindless emotions. Endless examples throughout history.

[rsmurano]

Not everybody should or can be in the stock market. There is a high rate of people that cannot afford a $500 expense let alone putting cash away each month for retirement.
Most people are wired that when they see they are losing money in the market, they sell which is the worst thing you can do over the long run. These same people wait until the market is all the way back before getting back in the market, which is known as buy high and sell low.
Invest early in life, (dollar cost averaging) get into good index funds (low fees, more stable over long term), don't look at your net worth on a daily basis, and don't sell during a dip (big or small), actually buy more if possible (average length of a recession is 18-24 months before the market comes back).

[Luggage]

A famous president once they asked are you better off today than yesterday. I would have to argue other than covid oh, most people are much better off today than yesterday. The stock market itself was up 300% compared to 20 years ago. Home prices her up anywhere from 20 to 100% in less than 2 years which is terrible for my one son who's still looking for a house last year he said he could have bought one house for half a million I'm of this year it's $1000000. Mortgage rates are at historic lows back in the 70s I was paying 12% and right now most people are paying between 2 and 3%. The only thing like you're totally tell you is that yes there are shortages in the supply chain but from what I'm reading it's not because most manufacturers can't make the product put that we as a nation are buying so much more than last year. Statistics tell me that retail is up about 15% overall oh, that's due to all the money that is pouring into the economy and you know the reason for that which I won't get into. Our economy is way overheated and I protect nothing but the stock market going up for the next two or three years

[MandoMan]

Originally Posted by Koapaka

Interesting read.....



The wealthiest 10% of Americans own a record 89% of all U.S. stocks

Yes, the wealthiest 10% may own 89% of all stocks, but I read in the NYTimes yesterday that 52% of Americans either own stock directly or through mutual funds. The rest could, too, and they should. For 34 years, until I retired last year, my employer and I each put a certain percentage of my salary into mutual funds through TIAA. My last few years, that meant that about $350 a month was automatically transferred from my paycheck. We sent all our kids to parochial schools and paid the tuition. We gave 10% to our church. Vacations were just to visit parents. We never owned a new car. We rarely went out to eat. But every month we invested. Between the fall of 2016 and today, those mutual funds have nearly doubled in value. They are up 17% this year during the pandemic, and nearly that much last year. Now I take out more every month from my mutual funds than I get in Social Security, but they still keep going up, even though I am definitely middle class.

These days I see lots of people who probably don’t have a penny in mutual funds driving brand new trucks and SUVs that cost over $50,000. They may be paying close to $1,000 a month in loans and insurance. If instead they drove a smaller car they bought used and put the difference into highly rated mutual funds, they too could be watching their investments grow and could be among those who prosper even during a pandemic. The article you linked to said that 89% of people with a post-graduate education own stocks or mutual funds. That includes me. That makes a gigantic difference when you retire. But you don’t have to have a college degree to invest. You just have to think long term. That’s the only way I was able to buy a home in The Villages when I retired.

[Bandb875]

Seems the lesson is that if you want to get rich do what the rich do. Work, live within your means, save, invest. Don't get that tattoo, invest instead.

[Ski Bum]

Most people don't realize that they do actually "own" stock. If you have an insurance policy, you own stock. Insurance companies do not stuff your premiums in a mattress, they invest it. If they didn't, your premiums would be higher. There are many other examples. If Ford couldn't access capital buy selling stock, you couldn't buy a car. Point is, everyone benefits by a strong stock market, whether directly invested or not.

[Lonnieme2]

Originally Posted by MandoMan

Yes, the wealthiest 10% may own 89% of all stocks, but I read in the NYTimes yesterday that 52% of Americans either own stock directly or through mutual funds. The rest could, too, and they should. For 34 years, until I retired last year, my employer and I each put a certain percentage of my salary into mutual funds through TIAA. My last few years, that meant that about $350 a month was automatically transferred from my paycheck. We sent all our kids to parochial schools and paid the tuition. We gave 10% to our church. Vacations were just to visit parents. We never owned a new car. We rarely went out to eat. But every month we invested. Between the fall of 2016 and today, those mutual funds have nearly doubled in value. They are up 17% this year during the pandemic, and nearly that much last year. Now I take out more every month from my mutual funds than I get in Social Security, but they still keep going up, even though I am definitely middle class.

These days I see lots of people who probably don’t have a penny in mutual funds driving brand new trucks and SUVs that cost over $50,000. They may be paying close to $1,000 a month in loans and insurance. If instead they drove a smaller car they bought used and put the difference into highly rated mutual funds, they too could be watching their investments grow and could be among those who prosper even during a pandemic. The article you linked to said that 89% of people with a post-graduate education own stocks or mutual funds. That includes me. That makes a gigantic difference when you retire. But you don’t have to have a college degree to invest. You just have to think long term. That’s the only way I was able to buy a home in The Villages when I retired.

I am 48 years old and have owned my home for 15 years. Bought it as a single woman after my divorce and although the loan company said that I could have double what I was borrowing, I went with a $145,000 modest home that is now worth $285,000. (We're talking GA folks, not New York or LA!) :-) My husband now lives in the home with me and within the last few years we saved up and paid cash for all new Hardy Plank siding, new architectural shingle roof, and new large deck on the back of the house. The house is almost paid off and we will be moving to The Villages in 4 years when I retire. I will be done working for good before my 53rd birthday. My Honda Civic is a 2012 and so is my husband's Toyota Prius. I will continue to drive my Honda until the wheels fall off or someone totals it, which is what happened to the previous one.
I agree with the comment above. Too many people are about the here and now. I have been planning for retirement for a very long time. I was a teenager visiting my grandparents near Daytona Beach and knew that it was the life that I wanted and have had the image of retirement set in my mind for a long time. Please know that your children and grandchildren are watching and learning from you!
I work hard and with all the overtime that I get being included in my retirement calculation (monthly pension) and the $300K+ that I have right now in my investment accounts, plus my husband's pension, etc. we will live well in The Villages... not in a million dollar home but in a $350 - $400k home and this is good enough for us.
It all comes down to sacrifices made when a person is younger instead of him / her living totally in the here and now and spending like there is no tomorrow. Also, a wonderful life in older age can be had without feeling deprived in earlier years. My husband and I went to New Orleans in June and have been on two vacations this year to Mexico. Will be going to Panama (the country) for two weeks next month. Will be in THE VILLAGES :-) in December for 8 days and back to Mexico in January for 11 days. It is a give and take with the most important part being that money goes to investments and savings before the paycheck ever reaches the bank. What is left over is what is used for play and enjoyment in the present.

[Lchughart@gmail.com]

Basically the people that worked hard and invested wisely deserve on in stocks the people that didn’t don’t.

[lkagele]

Originally Posted by Bandb875

Seems the lesson is that if you want to get rich do what the rich do. Work, live within your means, save, invest. Don't get that tattoo, invest instead.

But I like my tattoos......

I'd advise young adults to take advantage of employer matched retirement programs. I worked for 7 different companies. Every time I moved to a different company, I transferred the 401K to a self directed IRA. I lived in the Pacific NW and early investments in MSFT, SBUX and AMZN turned out to be home runs. Sometimes a little luck helps.

[taruffi57]

Conclusion: They are smart. In 40+ yrs. in the stock mkt., our investments have multipled remarkably - from just letting it ride.

[bilclif]

This headline is typical fake news. The article actually states that 89% of INDIVIDUALLY owned stocks are owned by the top 10%. The middle class owns their stocks in 401k's and mutual funds, this is not news. We all know this so is their any purpose to this article from CNBC other than to mislead the public.

[DAVES]

Originally Posted by Caymus

Some people would consider anybody able to afford a home in The Villages rich.

Rich is not a line. For most, the definition of rich is anyone who has more than I do.
From that comes the logic of tax him and give to me.

[DAVES]

Originally Posted by taruffi57

Conclusion: They are smart. In 40+ yrs. in the stock mkt., our investments have multipled remarkably - from just letting it ride.

The most complex issues are truly simple. I recall an old book, that said you should save 10% of your income. Simple to understand hard to do BUT
More truly simple stuff long term the stock market grows 7-8% the past 15 years have been better than that but at 8% it takes 9 years to double your money so if, you start at 20 and live till 70 it is 50 years so it will double 5.5x

10,000x2=20,000 (1) is 40,000 (2) is 80,000 (3) is 160,000 (4) is 320000 (5) is 640,000 (6) 1280000 compounding is a powerful force.

[tvbound]

Originally Posted by Michael G.

All this doesn't mean a hill of beans to me cuz once your government comes and takes
all your savings, CD's 401K's, and savings all this will be history.

With apologies to Rick Blaine, in one of the greatest movies ever - "we'll always have tinfoil."

[DAVES]

Originally Posted by lkagele

But I like my tattoos......

I'd advise young adults to take advantage of employer matched retirement programs. I worked for 7 different companies. Every time I moved to a different company, I transferred the 401K to a self directed IRA. I lived in the Pacific NW and early investments in MSFT, SBUX and AMZN turned out to be home runs. Sometimes a little luck helps.

As far as young adults. Some can learn from others some can't. People there are those that see a sign that says hot and they must touch it to be sure. Same with wet paint.

Another strange concept for many tomorrow i will be older than today.

Employer match, I try to never use the term stupid but not taking advantage of an employer match is stupid. It is tax free income till you withdraw the money. A 50% match is a guaranteed 50% return on your investment the first year. I'm not aware of anything else that does that legally with no risk.

As far as luck. Everyone gets luck both good and bad. Too many, in fact most do not see opportunity and step over or even on it.