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Politics : View from the Center and Left -- Ignore unavailable to you. Want to Upgrade?

To: richardred who wrote (748)	6/15/2005 1:54:29 AM
From: Peter Dierks	Respond to of 541917

have seen it for myself. This also with a ten % penalty for early withdraws and the taxes due because the assets being pre-tax. Both my parent had to go through the depression with their parents. Thus the precautionary reason in the snip below. We have not had to go through a depression. Some say a credit crunch is coming again. I think many of americans spoil their kids, myself included. This does not make for a good example for saving. We are generally not known to be a nation of savers. Saving is not entirely a good thing either. Velocity of money is relevant to economic activity. Saving decreases velocity of money. Sometimes intergenerational money transfers are the left overs from parents that accumulated enough to die on, but kept enough reserves to make it through most potential problems. Some egalitarians plan for a nest egg. The sad thing is that the average inheritance is spent in 18 months. My father grew up in the depression (my mother caught part of it). The example they lived was an interesting lesson. We finally finished the cocoa my grandfather bought at the start of WW II in the late sixties. The tins they used kept it well. If you are interested in learning about saving in the US, Stanley and Danko have done some of the best research. Back to my point that started this winding discussion. We need to make significant structural changes to the retirement system in this country. Late Baby Boomers and Generation Xers will not have enough retirement assets to last them the quarter of a century that many of them will likely live.