Posted on 02/25/2024 10:47:42 PM PST by RomanSoldier19
ave Ramsey has fervently preached financial advice to Americans for decades — but younger generations are now slamming the white-bearded radio host for offering counsel that doesn’t quite account for the current cost-of-living crisis.
One frothy example is Ramsey’s vociferous renunciation of the daily cuppa Joe. In a 2021 blog post, he claims your coffee habit could be costing you $766 a year, and suggests folks should put those funds toward paying their your student debt, their investments or even a plane ticket.
(Excerpt) Read more at msn.com ...
Costco whole bean coffees....depending on brand like Peets or Lavazza [! when they have it...] can be had for about $13 for 2lb when on sale...less if you buy Kirkland brand.
My coffee comes to about $.30 a mug...about 2 regular cups worth.
Its not just $6 for coffee but also the time and driving/waiting in line at the drive thru in your idling car all adding to the cost. And I see it daily as the lines at the local Starbucks wrap the building.
Young folks simply have not been taught anything about economics and do not understand very much when it comes to money. They have no savings ethos or spending restraints because...of their I deserve it now mentality. And they refuse to learn about economics because its too hard and requires some discipline and sacrifice.
I’ve never been good with money but I did learn to at least seek the advice of folks who are...so a 401K is better than nothing at all. The assumption is that yes you pay taxes on the withdrawal but presumably your income will be less so the taxes will be lower.
Whatever. Big Uncle Sugar will save them...surely. Just Mom and Dad used to ...
I do.
My SOP.
I live in very rural Hawaii.
Even Cops ask for directions.
2. Another advantage to a 401(k) account is that you can borrow from it if necessary. I funded my first business investment with a 401(k) loan that was a rare case of winning at least three ways: (A) I borrowed the money by cashing out a portion of my bond funds that were yielding low returns during a period of low interest rates; (B) I paid the loan back to myself; and (C) the interest was tax deductible because it was for a legitimate business purpose.
3. The one downside I see to a Roth IRA is that nothing prevents Congress from changing the law in the future and making your withdrawals taxable. This is why I’ve always said that a Roth IRA is OK, but I would never recommend doing a conversion from a traditional IRA to a Roth.
The subject of “economics” is a complete fraud whether touched on in HS or a prestigiuos college major. It is a philosophy of promotion the World Bank the World Trade Organization and the mission of the WEF. The “science” of economics is pure gibberish.
Get an journal from one of the big US schools like Harvard or MIT and you will laugh your ass off.
Ramsey is an old-school idiot and wind-bag who doesn’t understand the new economy, I was in debt for a LONG time to live a decent lifestyle until I made enough to pay it all off to continue my decent lifestyle. He would hvae had me suffering for nothing.
In terms of substance, I think some of his advice about mortgages is ludicrous. It’s OK to set a limit on your maximum mortgage payment (as a % of your income) that is lower than what lenders will allow, but two things he recommends are idiotic: (1) favoring 15-year mortgages over 30-year mortgages, and (2) his insistence on large down payments.
“The one downside I see to a Roth IRA is that nothing prevents Congress from changing the law in the future and making your withdrawals taxable.”
Well, they’d have to change the law and tax law to do that. Even if they did it would just elimate the ROTH, which, I believe, most politicians use themselves.
Then there’s the whole issue of Fed taxes already being paid on the money in a ROTH so it would not pass to tax them 2x. It would only apply going forward, basically eliminating ROTHs.
Yes, Congress can always ‘change the law’ which is why ROTHs are attractive. The Fed Tax is paid going in so the tax obligation is removed at that point.
But yes, a Greece-style raid is not out of the question considering the Marxists in the media and gov. Buy gold? But that can be outlawed and seized too.
Yes, Congress can always ‘change the law’ which is why ROTHs are attractive.
I’m thinking it’s the exact opposite. Congress can change the law in the future to make your Roth withdrawals taxable, but they really can’t go back and take away the tax deduction for a tax-deferred contribution to a traditional IRA you made years ago.
This is why I strongly advise against Roth conversions except in rare cases. You’re basically trading a “bird in the hand” (the tax break you already got) for “two in the bush” (a tax break you might get years from now).
cherry wrote: “if I knew then what I know now, I would advise young people to NOT donate to their retirement accts because they are never truly yours...the govt taxes you when you take it out and when you have to take some out to pay property tax or other bills you income goes up and then you don’t qualify for anything like stimulus, or property tax relief....”
And if that means forgoing employer matching....
Without some pleasure, and small indulgences, life can be grim. One has to look at the big picture in every individual situation.
Young person A, a college grad working in an entry level accounting job, spends $766 a year at Starbucks, while driving a beater used car. She is paying off her student loans, and is sharing an apartment in order to save money to fund her 401K and eventually buy a house or condo.
Young person B is a recent medical school grad, working as a cardiologist for a large hospital system. B has $300,000 in student loans and has not resumed payments since the Covid repayment moratorium. B drives a new Porsche, on a lease. B is paying 20% interest on $30,000 in credit card debt and complains the bank won’t lend him money at 7% for a $500,000 one bedroom condo in the “in” new building downtown.
Who is irresponsible — A or B?
“The inability to defer gratification is the sign of a fundamental immaturity.”
At one time it was such a sign. Nowadays, it’s a calculated bet that seems to be paying off.
Taxes always go up, you are taxed when you use your 401k.. Go Roth and you wont pay taxes on withdrawls or have it reported as income, not 401k or at least split it.
I rarely go to McD, though I'm on the road a lot. Last time I looked their small coffee was $2.
Water. I got enough metal, now I collect water.
How many out of the Starbucks crowd could’ve paid their rent during the COVID spell but took advantage of the moratorium on evictions anyway? I’ll bet they were still having their “iconic” coffees and leaving quarters in the penny dishes.
Friend of mine, a health nut with just one vice: Starbucks latte. I will never understand.
Sounds like they are following the Chinese example of the ‘lying down’ movement.
What is the ‘lying down’ movement?
According to the Wiki:
It is a Chinese slang neologism that describes a personal rejection of societal pressures to overwork and over-achieve, such as in the 996 working hour system, which is often regarded as a rat race with ever diminishing returns. Tang ping means choosing to “lie down flat and get over the beatings” via a low-desire, more indifferent attitude towards life.
Novelist Liao Zenghu described “lying flat” as a passive-aggressive resistance movement..
It has also been compared to the Great Resignation, a surge of resignations that began in the West at roughly the same time.
Unlike the hikikomori in Japan who are socially withdrawn, these young Chinese people who subscribe to “lying flat” are not necessarily socially isolated, but merely choose to lower their professional commitment and economic ambitions, simplify their goals, while still being fiscally productive for their own essential needs, and prioritize psychological health over economic materialism.
The phrase “quiet quitting”, meaning doing only what one’s job demands and nothing more, which became popular in the United States in 2022, was thought to be inspired by the tang ping movement. Another newer related phrase is bai lan (lit. ‘let it rot’), which means “to actively embrace a deteriorating situation, rather than trying to turn it around”. Basically, it refers to a voluntary retreat from pursuing certain goals because individuals realize they are simply too difficult to achieve.
Business magazine ABC Money claimed it resonated with a growing silent majority of youth disillusioned by the officially endorsed “Chinese Dream” that encourages a life of hard work and sacrifice with no actual life satisfaction to show for it, spawning the catchphrase “a chive lying flat is difficult to reap”
https://en.wikipedia.org/wiki/Tang_ping
They aren’t going to get married and have children or buy real estate. They just do the minimum to keep themselves going.
That's because the health department found out what was making it taste so good, and told McDonald's to cut it out.
A suggestion is to split the difference. Go to Starbucks maybe 2 times per week.
Even better: invest a few dollars in an immersion cooker and a vacuum-sealer. Frozen items last in vacuum-sealed bags for months and months, and can be perfectly reheated with the immersion cooker while you're busy doing something else.
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