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-- Posted Wednesday, 11 August 2010 | Digg This Article | | Source: GoldSeek.com
Rick’s Picks Wedneday, August 11, 2010 “Phenomenally accurate forecasts” Folded into this week’s lively discussion of inflation/deflation was the notion that although Americans seem to live better now than they did fifty or sixty years ago, our parents and grandparents would be appalled to see how deeply in hock we’ve gone to enjoy the supposed good life. And if the standard of living has risen so impressively, why is it that the single-income, middle-class household of the Fifties could afford things that are barely within the reach of households today that are supported by two incomes? Sure, your neighbor has a composite-frame trail bike that he bought for $4000, another a $30,000 movie room, and your good buddy and his wife went scuba diving on the Great Barrier reef last Christmas. But did they have to take out a home equity loan to put their kids through college? And will the kids be able to pay back their fair share out of the meager income they have begun to earn with their $150,000 degrees in business administration, journalism, advertising and English literature?
Some readers may recall the scene in the movie Back to the Future where a motorist pulled into a gas station and the attendant gave his car the kind of once-over that all filling stations routinely provided in the 1950s, checking the oil and fluid levels, and even putting air in his tires. Setting aside the fact that this mini-inspection, if so princely an amenity were even offered, would probably add 25 cents to the price of each and every gallon of gas sold today, consider that the lowly gas-station attendant himself was probably in better financial shape than most middle-class couples are nowadays. With his small monthly mortgage payments and easily manageable grocery and medical bills, he actually had enough left over each month — after taxes — to accumulate a nice retirement nest egg, put his 2.2 kids through college — and to be debt-free even though his wife did not enter the work force (as a part-timer) until the kids had finished college. Happy Hour at I-Hop Ah, for the good old days! In sharp contrast, many of today’s Baby Boomers have postponed their retirements indefinitely, since they’d now need at least $3 million in the bank to live comfortably on the interest that sum would return parked in Treasurys, corporate bonds or dividend-yielding stocks. And by “live comfortably,” we don’t mean cruises in the Greek Isles, winters in St. Bart’s, and golf weekends in Vegas or Maui. More like, a condo in Atlantic City and happy-hour dinners at I-Hop, since today’s “safe” investments are returning no more than 2%-3%. Would that we all had enough left over to help the kids with their first down payment. For millions who are about to retire, it’s challenging enough figuring out how to downsize our own homes — and lives.
*** Information and commentary contained herein comes from sources believed to be reliable, but this cannot be guaranteed. Past performance should not be construed as an indicator of future results, so let the buyer beware. There is a substantial risk of loss in futures and option trading, and even experts can, and sometimes do, lose their proverbial shirts. Rick's Picks does not provide investment advice to individuals, nor act as an investment advisor, nor individually advocate the purchase or sale of any security or investment. From time to time, its editor may hold positions in issues referred to in this service, and he may alter or augment them at any time. Investments recommended herein should be made only after consulting with your investment advisor, and only after reviewing the prospectus or financial statements of the company. Rick's Picks reserves the right to use e-mail endorsements and/or profit claims from its subscribers for marketing purposes. All names will be kept anonymous and only subscribers’ initials will be used unless express written permission has been granted to the contrary. All Contents © 2010, Rick Ackerman. All Rights Reserved. www.rickackerman.com
-- Posted Wednesday, 11 August 2010 | Digg This Article | Source: GoldSeek.com
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