Retirement

[Fife]

Current yield on a 10 year treasury bond is 2.84%, that's an historically low yield, which means historically high demand

[Fife]

I don't believe there to be a "student loan bubble" like what happened with the housing crisis in 2008. If so, is there any proof you can provide that Banks/Gov. are recklessly handing out student loans, other than a somewhat large sector of students picking shitty majors to study and not getting good jobs?

/ahem

That which cannot be repaid according to the original terms of the contract, will not be repaid according to the original terms of the contract.

Basic economics helps us predict how Trump’s student loan plan would affect the greater economy and the financial welfare of individuals. At any given time, there exists a limited amount of funds available in capital markets. This capital can be directed toward any number of alternative uses (home loans, car loans, business loans, etc.). But government artificially boosts demand for student loans when it intervenes in the market by enabling student borrowers to repay less than the balance of their loan. When student loans are subsidized — as they are today — demand is greater (and thus, prices are higher) than they would have been otherwise. This artificial demand for student loans bids capital away from alternative uses, making it more difficult for families and businesses to receive loans for other important purposes.

Moreover, the cost of Trump’s plan to taxpayers would be steep. The federal government (and, by extension, current and future generations of taxpayers) would be responsible for paying the remaining balance of everyone’s student loan debt after their loans are forgiven. Colleges and universities would grow even richer, receiving billions of dollars as wealth is redistributed from America’s taxpayers to its institutions of higher learning.

In the face of increased demand for student loans, unless supply keeps pace with demand, prices will inevitably rise. Millions of students have become burdened with previously unimaginable levels of student loan debt needed to finance schooling that has been made artificially expensive by government intervention.

https://mises.org/wire/trumps-student-l ... ot-disease

https://mises.org/wire/six-graphs-revea ... auto-loans

[Fife]

Outstanding Student Loan debt right now is about $1.5 trillion with around 12% in default, about 5 million people. The number is expected to go to 40% default, unbankruptable. Forgiveness is the only answer.

I have a bad feeling that they're going to pick serfdom over forgiveness. We're already seeing companies advertise student loan payoff help as part of their compensation packages. How long will it be before that part grows larger and supplants salaries? Nondischargeable debt was the worst thing we allowed to happen to this generation.

FedEx and McDonald's making debt payment a part of compensation is the least of our worries.

In fact, that whole concept will be outlawed soon enough.

In short order, Americans will be given only one or two legal options for working off the "bailout:" Signing up for Operation Korean Cleanup or down at the Dept. of Post-hole Digging and Filling.

[jediuser598]

Speaking of retirement, found this online:

http://www.slate.com/articles/business/ ... stead.html

What you would have now if you invested that money you spent on your wedding, into the stock market instead.

[DBTrek]

Slate sounds like a good source for financial decision making.
I’d definitely turn to the new-Marxists at slate for investment advice.

[jediuser598]

Slate sounds like a good source for financial decision making.
I’d definitely turn to the new-Marxists at slate for investment advice.

It has the methodology in the link if you're doubting the calculations.

[Fife]

Slate sounds like a good source for financial decision making.
I’d definitely turn to the new-Marxists at slate for investment advice.

It has the methodology in the link if you're doubting the calculations.

Nobody doubts the calculations. Nobody doubts the methodology. Both are pedestrian.

Narcissistic Millennial shit-for-brains are ready to leap at the jingly keys declaring that private society is bad and that public society is all-that? Who knew?

[ooky]

Well my inquiry here is trying to make retirement simple. Retirement is just about money, yes? So you earn set amount, and that amount determines when/if you can retire. So the goal should be to earn that amount. Say your amount is $1 mil. Then your goal from 18 til 55 is to earn 1 million, yes? And you have 37 years to do so.

You don't have to save 1 MM to have 1 MM in 37 years, because hopefully you are putting your savings in some vehicle that will have growth. And that does a lot, especially with money that you let accumulate for years and years. On the other hand, inflation and rise of cost of living works in the opposite direction, meaning 1 MM in 37 years will likely not go nearly as far as it does today. There are lots of calculators that can help you figure out what you need to save now to have X monthly income in retirement. A best case scenario is having enough put away that what you take out every month after retirement is close to the amount the fund grows in interest each month, at least for the first years of retirement.

[jediuser598]

Slate sounds like a good source for financial decision making.
I’d definitely turn to the new-Marxists at slate for investment advice.

It has the methodology in the link if you're doubting the calculations.

Nobody doubts the calculations. Nobody doubts the methodology. Both are pedestrian.

Narcissistic Millennial shit-for-brains are ready to leap at the jingly keys declaring that private society is bad and that public society is all-that? Who knew?

Eh? You especially offended that someone is arguing couples should elope and invest the money they would have spent on a wedding?

[DBTrek]

Not angry, simply unimpressed by the hand-waving that accompanis this stating of obvious and pedestrian facts.

Here’s one for Slate: “Hey fatty, put down those fatty McFat burgers and $7 lattes and invest it in retirement, your long term finances will be better for it!”

Roll the presses.
Cue the adoring masses of nimrods to cite my article and hail my revolutionary insights.