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Boom to Bust - Financial Planning a Must
Work Views
Boom to Bust - Financial Planning a Must
For every news story, thereÂ’s a workforce-management angle. Discuss them here, or read Work Views for more opinions.
The population of the United States is having trouble investing for many
reasons. I agree with Mr. Longnecker that employees can benefit from
investment education, but it is more than investment ig
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Forums » Topic Forums » Work Views » Boom to Bust - Financial Planning a Must
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Boom to Bust - Financial Planning a Must
posted at 2/7/2001 11:55 AM EST
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Posts: 1
First: 2/7/2001 Last: 2/7/2001 |
The population of the United States is having trouble investing for many
reasons. I agree with Mr. Longnecker that employees can benefit from investment education, but it is more than investment ignorance that prevents people from investing. The overall economic picture needs to be lookedat more clearly to decipher the reasons why people are not investing and how they can be encouraged to invest. Some of the reasons may be lack of a decent living wage, high student loan debt, and increased housing and automobile costs. Using unemployment percentages to represent the "Boom" is a bit misleading. While 96% of the population may be employed, 96% of the population is not earning a living wage that allows them to invest. Many farm and service industry employees are living hand to mouth. Investment education would do little to help them. We have a highly educated workforce, with more people holding college degrees than ever before. This also means that a large portion of the population is stradling high student loan debt. Higher expenses, mean less money for investment. Housing costs and automobile costs are a larger percentage of a person's annual salary than ever before. In San Francisco and New York, it is not uncommon for a person to spend 2/3 of their income on housing. The cost of the average car is very close to the average annual salary of a US employee. Costly expenses leave little money left over to invest. These are just a few of the possible economic factors that may contribute to people investing poorly. Education can help people understand the importance of investing, but it won't give them the extra dollars to invest. |
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Boom to Bust - Financial Planning a Must
posted at 2/12/2001 9:01 AM EST
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Posts: 1
First: 2/12/2001 Last: 2/12/2001 |
In my opinion and from my own observations, many employees aren't investing simply because they are so "me-oriented;" they live from paycheck to paycheck not because they don't earn a decent living (I continue to be amazed at the high salaries relatively inexperienced new hires are racking in), but rather they have no desire to think past their immediate wants and needs, meaning going out to eat and drink, buying the latest music and gadgets. It's your typical impatient internet mentality: I want it now and I have no patience for anything else. If the government allowed them to invest their own money instead of paying social security, most of these people would blow that money too. It's a generalization, of course, but I know a lot of people that fall into this category. |
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Boom to Bust - Financial Planning a Must
posted at 2/13/2001 1:18 AM EST
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Posts: 4
First: 1/3/2001 Last: 1/9/2002 |
Couldn't agree more, except plenty of middle-earners don't have investment dollars either. Why? As you mentioned, housing costs and new car costs are extreme. But in just the past year, costs to employees for average health care plans have risen 30-percent or more. Gasoline costs are up 50-percent or more. Home heating costs are up 60-percent and more. Not only have the nice-to-haves been put on hold, but so has the investment plan.
One question: with so many monopolies raising prices, what's going to happen one day when we wake up and find the price of a loaf of bread is double, clothing prices are double, diaper prices are double, etc.? |
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Boom to Bust - Financial Planning a Must
posted at 2/14/2001 5:35 AM EST
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Posts: 1
First: 2/14/2001 Last: 2/14/2001 |
I agree with the comments that there is very little money left over for the "average" worker to invest. I have two sons in their mid-twenties who are both in retail service jobs. In order to pay his rent (one son is sharing a house with 4 other young men), buy and insure a "very" used car, pay for ever increasing utility bills, and buy some groceries - there is hardly money left for an occassional movie or dinner out - (hard on the dating front) - and there is certainly no money to put into investing. If it weren't for the overtime that each son is offered (and for a time, each had a second job), they would both be back home with "Mom". Does this sound like a prosperous economy or generation of young people who can even consider investing? I think not..... |
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