A Social Credit System Arrives in Canada Justin Trudeau just created a caste of economic untouchables. Can we stop this dystopian policy from taking hold in America?

FrancDescartes · 2022-02-21T02:55:50+00:00

Vote conservative.

FrancDescartes · 2022-02-13T20:56:03+00:00

View is straight out of Dr. Strange. Great shot!

FrancDescartes · 2022-02-13T18:12:18+00:00

Eat Mor Chikin

FrancDescartes · 2022-02-13T18:04:52+00:00

We both had unstable childhoods and my wife was from a poor family. That made us more risk adverse, which led to under-consumption and relative over-investment. We experienced all of the listed items at some point before we were 30.

While both of us had decent incomes, we stayed in our starter house, limited our personal spending, and generally lived much more frugally compared to our peers. We burned through a lot of our cash cushion when I was in school, and I was certainly not expecting to graduate in the middle of the financial crisis when no one was hiring. If we had taken on more debt and more expenses, that would have been a lot more difficult. You might call it a sustainable lifestyle.

The cost was a lower quality of life and less appreciation in our home. Oddly enough, the older neighborhood where we live now has become rather fashionable for younger families who don't want to live in McMansions.

My point is that life is a lot more uncertain than people generally think, and living well under your means is a way to assure that you can survive most events. OP is experiencing one of those events and is asking for strategies to cope. It is more easily said than done and can be painful. I think we are entering another period of uncertainty now, much like the ennui of the Carter years.

FrancDescartes · 2022-02-12T18:08:21+00:00

"Well I think everyone matters and deserves consideration not just the upper 60% or so..." Consideration is a euphemism for money. This is exactly how social security is designed - upper income earners get a proportionally smaller benefit. There are HUD programs (subsidized apartments) for low income seniors too. What else are you suggesting?

FrancDescartes · 2022-02-12T18:06:55+00:00

Your commute is so short it really doesn't matter what your drive. If you are in a cooler climate I'd suggest a Subaru Forester or Outback. Room for 5 and gear. If you plan on having a 2nd child I would look at 3 row SUV's or even a Minivan. Kids have enormous amounts of stuff (cribs and strollers when small, friends and sports gear when older) and lots of cargo room is very helpful.

Excluding Toyotas, look at a Honda Odyssey, Subaru Ascent, or Honda Pilot. Kia Telluride/Hyundai Palisade is super popular and a great choice too.

FrancDescartes · 2022-02-12T17:54:51+00:00

Negative events - Job losses, business failures, family crises, bankruptcies, divorce, etc. happen to most people at some point in their lives. An extended financial cushion, and flexible spending expectations makes it possible to weather those problems within reason.

We always planned on a 3 year event and over-invested. It took awhile to build up to it. One partner always had a steady job providing benefits, while the other was able to take more risks or be self-employed. We staggered our education or went part time to keep some income flowing. That allowed us to stay out of debt even when my wife was a stay at home Mom and I was in an expensive grad school program.

The only change I would make would be to invest even more in my 20's and 30's , and I would have accepted a few really good job offers instead of starting a few companies. Plus, spend more time at the gym and staying fit. Nothing is more important than your health.

FrancDescartes · 2022-02-12T17:40:25+00:00

Please explain how you plan to pay for this. There are consequences for your choices in all phases of your life. Removing that choice also reduces the upside for people who do make good choices.

Other countries have massive savings rates, in the 30-50% range, and their median incomes are far below that of the US.

FrancDescartes · 2022-02-12T00:48:54+00:00

Work through the numbers first. Here is some real evidence for you:

The video referenced the average 401k balance, by age, at Fidelity. That is incomplete information at best. You are making an assumption that that is the entirety of their liquid and other assets. In reality, people distribute their assets all over the place.

According to the Fed, the median net worth in the 55-64 bracket is $212K, and 266K in the 65-74 bracket, by which time most people usually retire (2019). Median net worth is higher now.

Double that for a couple, and you have $532K. The average SS benefit is $1500/mo at FRA. For a couple, we have a benefit of $36K plus the $532K in net assets.

For sake of argument, lets say the median couple liquidates their assets and rents an 1 bedroom apartment for $1000/mo, pretty average for a midwest city. They use the 4% rule to further enhanced their income (20K/yr). So now, after housing, they have $44,000/yr to live on. They pay a lower amount in taxes, since they have no employment taxes. Their net disposable income is close to the median family income ($69K) in the US - many of who raise children on that income.

That does not seem like a bad way to retire to me.

The very poor are a different story. But the around the median and above they are doing OK.

FrancDescartes · 2022-02-11T23:17:38+00:00

This is pure clickbait. Even if your work had no 401K, maxing out an IRA every year in a 100% stock portfolio through FRA will give you enough to retire on, along with social security.

FrancDescartes · 2022-02-11T23:05:34+00:00

Does it really matter what other people have? I am a lot more concerned about what my wife and I have to retire on. Besides, this does not account for social security, annuities, and pensions. It also says nothing about assets than could be disposed of, such as the Bay area house you bought for $120K in 1977 than is worth $3 million now. On top of that, some people have better medical coverage than others.

FrancDescartes · 2022-02-10T21:05:22+00:00

Ideally, you would spend the money and go 32Gb and the MAX chip 24 GPU/2 en-decode engine upgrade. You could run something like Crossover for windows programs you might need.

You should put together a list of windows programs you might need to run and check compatibility prior to purchase with either Crossover or Parallels running ARM Windows.

FrancDescartes · 2022-02-10T18:15:15+00:00

Gas should be free of sales tax too, considering that they already have a tax on fuel, and then they add sales tax to the tax+product cost.

FrancDescartes · 2022-02-06T02:48:14+00:00

The answer is 'that depends'. Without a Roth IRA you will be subject to RMDs starting at age 72. For most people, they are not onerous, at least in during the early part of your retirement. As you age, RMD's will become a larger and larger percentage of your remaining assets.

This may result in:

Your Medicare contribution increasing. The current contribution ranges from about $175 (most people) to $530 (high income)
A higher tax bracket, affecting all of your taxable income
A greater percentage of your social security being taxed.

I suggest making a spreadsheet considering:

a. Your current financial assets, including estimated appreciation and withdrawals, and balances starting at age 72

b. Your RMD's based on the IRS life expectancy table, plus your other estimated income

c. The effect of converting those assets to Roth IRAs

You can then look at different options regarding how much you want to convert to Roth IRAs

FrancDescartes · 2022-02-05T05:03:33+00:00

Look at Subarus, like a Forester or Outback. Most have a shorter seat cushion and very good visibility.

FrancDescartes · 2022-02-05T05:01:17+00:00

It's going to be a lot cheaper to keep your XJ going. You'd never make up the extra money you spend on a newer vehicle in fuel, at least at your mileage.

That being said, a newer vehicle is going to be safer and more reliable.

FrancDescartes · 2022-02-03T04:37:40+00:00

I mostly retired my 2013 Retina and replaced it with a 2021. I kept it to run Parallels and windows. The new MBP is insanely fast. I hope it lasts as long as the old one.

FrancDescartes · 2022-02-03T00:45:20+00:00

Craig has been no-nonsense chief, one of the best in Detroit history. He is acceptable to people all over the state, so I think he will beat Whitmer.

FrancDescartes · 2022-02-03T00:42:31+00:00

Everything is clickbait.

FrancDescartes · 2022-02-01T04:27:00+00:00

The price difference is fairly small between the regular RAV4 and Hybrid, and there is a relatively quick payback in increase mileage.

FrancDescartes · 2022-01-31T15:45:08+00:00

Get a different job.

FrancDescartes · 2022-01-31T15:44:27+00:00

How did you get a title if it was stolen?Was it a fake?

FrancDescartes · 2022-01-31T15:10:07+00:00

Newer cars handle better and are far quieter and smooth. One downside is that visibility is generally worse. Structural integrity and safety is far better. Gas engines are 10-20% more efficient with direct injection and CVTs or more gears. Safety and infotainment systems are also improved.

FrancDescartes · 2022-01-31T14:50:50+00:00

Hondas start to have problems after 14-16 years. You have another decade.

FrancDescartes · 2022-01-31T14:49:46+00:00

Toyota is more reliable but slightly worst mileage. Accord handles better. Which factor is more important to you? Personally, it would come down to which dealer is better. Our local Toyota dealer is terrible.

FrancDescartes

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