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America is full of high-earning poor people

25 pointsby SimplyUselessover 9 years ago

4 comments

hwstarover 9 years ago
Root cause: Incessant advertising coupled with lack of financial education.<p>Public schools need to teach financial literacy in junior and high schools. Maybe there should be an entire semester devoted to it. If I were to design such a course, it would cover the following:<p>1. Saving and compound interest. 2. Credit. Personal loans, auto loans, mortgages, student loans. 3. Financial products to avoid. Title loans, payday loans, Bail bondsmen. 4. Why asset accumulation is good, and materialism is bad. 5. Investing in stocks, bonds, mutual funds and ETF&#x27;s. Investment fees. 6. Financial obligations during marriage and divorce. Filial support, child support, alimony. Wills and trusts. 7. Planning for retirement, IRA&#x27;s, 401K&#x27;s. Saving money for your kids education. 8. Health insurance. Employer plans, the ACA, Co-pays, co-insurance, maximum out of pocket expenses. Why it&#x27;s bad in some states to go on medicaid, and why you should get an ACA policy instead. 9. What you need to do to buy a house. 10. Starting your own business. Fictitious business names, incorporation. Protecting your personal assets if the business is sued. Employment law. Employment at-will, discrimination, whistle-blowing. Unemployment compensation, workers compensation, disability insurance. 11. Landlord and Tenant law. 12. What you need to do if you are arrested.<p>When people graduate from high school and turn 18, there&#x27;s a whole legion of shysters ready to prey on them.
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ChuckMcMover 9 years ago
Basically another run at the message &quot;Hey saving when you&#x27;re young is a <i>lot</i> easier than saving when you&#x27;re old and much more effective.&quot; Putting away $1,000 when you&#x27;re 20 can easily be $4,000 in the bank when you&#x27;re 50. Plan for that period of time when you&#x27;re tired of what you have been doing for the last 20 - 30 years, and want to spend time doing a new thing. You&#x27;ll need savings to cover the burn rate.
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Eridrusover 9 years ago
It seems very weird to ignore homes people own in this analysis since it is the largest store of wealth for most people and produces ~5% dividends tax free in the form of not having to pay rent.
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bishopknightover 9 years ago
Why invest in &quot;financial&quot; investments when the stock market is so volatile and we are indebted to China? To me, buying properties and renting them out are a safer investment than government backed paper. And no, I&#x27;m not investing in silver&#x2F;gold when that whole market is manipulated.
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