3 ms·

To be fair, buying coffees and lunch really does start to add up if the alternative is that it's sitting in an index fund. $20 every day for a year for ten year

To be fair, buying coffees and lunch really does start to add up if the alternative is that it's sitting in an index fund. $20 every day for a year for ten years is around 114k at 8% interest. That is a down payment on a house in most areas.

softawre 9y ago
Yes! This is the guys point. I am probably a millennial by some definitions, but I can't stand the complainer variety that just beg for something to bitch about. Yeah, it's not as easy as it was before for the most part. But you can still work hard and make it, assuming you're not completely under-privileged.
- ball_of_lint 9y ago
  Far too many people are now "completely under-privileged" and will end up poor despite their efforts. But even beyond that, humanity progresses. So many new technologies and increased efficiencies have come about in recent years. Why then, do we see the opposite effect on lay people? So many people today cannot find work or aren't being paid enough to live on even to the standards of 20 years ago. This isn't whining, this is recognising inequity.
Chathamization 9y ago
8% is pretty high. Look at the 10 year return rates for these portfolios[1]; the best is 6.96%, with the median being 4.89%. These involve a certain amount of risk; if you want something guaranteed, you're looking at about 2-2.3% return for CDs. Likewise, assuming that people spend $20 a day on avocado toast is a bit extreme. A sandwich with avocado in it shouldn't set you back more than $6-8 in most places. And it's not like you have the choice to not eat at all, so compared to a $2-3 dollar super-cheap lunch (either cheaply made and brought from home or a couple dollar menu items at McDonald's) you're only paying an additional $3-6 dollars. Let's be fairly generous with these numbers and say $10 a day, with a return of 5%. That's a return of $47,203 after 10 years. But after factoring in inflation, it's $39,104 (actually less when you factor in taxes). Use more realistic numbers ($6 a day, 4.89% return) and you get $23,323 (not figuring in taxes). [1] http://www.marketwatch.com/lazyportfolio http://www.marketwatch.com/lazyportfolio
m-i-l 9y ago
Yes: "look after the pennies and the pounds will look after themselves".

softawre 9y ago

Yes! This is the guys point. I am probably a millennial by some definitions, but I can't stand the complainer variety that just beg for something to bitch about. Yeah, it's not as easy as it was before for the most part. But you can still work hard and make it, assuming you're not completely under-privileged.

ball_of_lint 9y ago
Far too many people are now "completely under-privileged" and will end up poor despite their efforts. But even beyond that, humanity progresses. So many new technologies and increased efficiencies have come about in recent years. Why then, do we see the opposite effect on lay people? So many people today cannot find work or aren't being paid enough to live on even to the standards of 20 years ago. This isn't whining, this is recognising inequity.

Chathamization 9y ago

8% is pretty high. Look at the 10 year return rates for these portfolios[1]; the best is 6.96%, with the median being 4.89%. These involve a certain amount of risk; if you want something guaranteed, you're looking at about 2-2.3% return for CDs. Likewise, assuming that people spend $20 a day on avocado toast is a bit extreme. A sandwich with avocado in it shouldn't set you back more than $6-8 in most places. And it's not like you have the choice to not eat at all, so compared to a $2-3 dollar super-cheap lunch (either cheaply made and brought from home or a couple dollar menu items at McDonald's) you're only paying an additional $3-6 dollars. Let's be fairly generous with these numbers and say $10 a day, with a return of 5%. That's a return of $47,203 after 10 years. But after factoring in inflation, it's $39,104 (actually less when you factor in taxes). Use more realistic numbers ($6 a day, 4.89% return) and you get $23,323 (not figuring in taxes). [1] http://www.marketwatch.com/lazyportfolio http://www.marketwatch.com/lazyportfolio

m-i-l 9y ago

Yes: "look after the pennies and the pounds will look after themselves".