Minimum Wage Topic

Posted by moy23 on 6/14/2014 9:27:00 PM (view original):
or to this retirement question....

____________________________________________________
"Ok. Let's try this.

You're saving for retirement. If tomorrow you find out that the balance of your retirement account grew to $100 million, would you continue to put away the same amount every month or would you stop saving?"
____________________________________________________
Yes.... I'd continue to put the same amount if not more away. Do you think CEO's don't utilize 401k's just because they make millions every year?

I am currently contributing 10% of my income to my 401k and plan to get to 15% at some point and never again drop it back down. My thoughts are once its out of the paycheck I learn to live without it. I would love to drop the contribution down to 3% but I've seen what retiring on soc sec and medicare looks like and I'll be damned if thats me. As a side - I read an article that compared 3% 401k contributions to going to the gym for 6 minutes a day... pretty much pointless.

Oh, I want to live in the world where retirement accounts grow to 100m overnight.   Are the roads paved in gold?  Trees made of cotton candy?  Does everyone own a unicorn?   Do they ride said unicorn to work every day on a rainbow?

6/15/2014 7:57 AM
Posted by moy23 on 6/15/2014 5:04:00 AM (view original):
Posted by bad_luck on 6/14/2014 11:27:00 PM (view original):
Posted by moy23 on 6/14/2014 9:27:00 PM (view original):
or to this retirement question....

____________________________________________________
"Ok. Let's try this.

You're saving for retirement. If tomorrow you find out that the balance of your retirement account grew to $100 million, would you continue to put away the same amount every month or would you stop saving?"
____________________________________________________
Yes.... I'd continue to put the same amount if not more away. Do you think CEO's don't utilize 401k's just because they make millions every year?

I am currently contributing 10% of my income to my 401k and plan to get to 15% at some point and never again drop it back down. My thoughts are once its out of the paycheck I learn to live without it. I would love to drop the contribution down to 3% but I've seen what retiring on soc sec and medicare looks like and I'll be damned if thats me. As a side - I read an article that compared 3% 401k contributions to going to the gym for 6 minutes a day... pretty much pointless.
Bullshit. If you had $100 million in a retirement account that you couldn't touch before 65, there's no way you'd continue adding $10k a year to it. Talk about pointless. That money would be more valuable to you now.

The marginal utility of adding $10k a year to an account that contained $100 million would essentially be zero.

Don't be ridiculous.
You just don't like the answer.

First... This isn't sinking in..... Most wealthy people value SAVING more than spending. For example if you tax them more they'll reduce their spending because FIRST AND FOREMOST to them is putting money away. I personally believe you can never save enough money because eventually something will inevitably happen where you'll need it. So if I'm telling you my TOP PRIORITY is saving and I VALUE that more than anything... how can you tell me I would forego saving money to spend it now? Spending money now is not my top priority, nor is 59 1/2 a barrier. I dont need fancy cars and all the latest fashions. I know you don't value saving but you need to wrap your head around this point because others do.


Second... that's money I can either use on my own retirement or pass to my children and eventually grandchildren to benefit my family's future (which I also value). I'm assuming this retirement account is offshore because that's the only way an IRA gets to $100 million... So don't discount the tax and leverage benefits I would be enjoying.


Yes.... I'm still contributing.
You're still not getting it. There comes a point where more money doesn't make any difference to you. Obviously you aren't at that point. But that's the way diminished marginal utility works.

6/15/2014 10:00 AM
Also, I can tell you what I'd think you'd do because it doesn't make any sense to continue to contribute in that situation.

$100 million is generational money. It's unlikely that you'd ever need to access the principle in retirement. Saving $10k a year on top of that would be pointless because it would make zero impact. You could instead use that $10k to actually improve your current situation.
6/15/2014 10:04 AM
It's funny that you not only have the balls to tell people how they should think, but you go so far as to tell people how they do think.


6/15/2014 11:25 AM
I'm still trying to figure out how I magically have a $100 million IRA without also earning a huge income. I doubt Mitt Romney stopped contributing to his $100 million IRA since it showed up on his taxes.

But IF i stopped contributing to retirement I'd use that extra money to build businesses, employ people, and find other income streams. Bottom line is I invest it for future return. I can't do that with my first dollar which goes to pay the electric bill.

6/15/2014 11:41 AM (edited)
It's because you lived in a magical world with golden roads, cotton candy trees and unicorns on a rainbow.  

BL has the zip code.   Just ask him for it. 
6/15/2014 11:41 AM
Posted by moy23 on 6/15/2014 11:41:00 AM (view original):
I'm still trying to figure out how I magically have a $100 million IRA without also earning a huge income. I doubt Mitt Romney stopped contributing to his $100 million IRA since it showed up on his taxes.

But IF i stopped contributing to retirement I'd use that extra money to build businesses, employ people, and find other income streams. Bottom line is I invest it for future return. I can't do that with my first dollar which goes to pay the electric bill.

How you have it doesn't matter. Let's say it's magic. It's not relevant to the point. Anything diminishes in value as you accrue more, even money.

Someone with a billion isn't going to value an additional $1,000 the same way you or I would. That's why high roller tables exist in Vegas.
6/15/2014 2:31 PM
Posted by tecwrg on 6/15/2014 11:25:00 AM (view original):
It's funny that you not only have the balls to tell people how they should think, but you go so far as to tell people how they do think.


It's not just moy or me. It's you too. And literally every person on earth.
6/15/2014 2:33 PM
No, I don't think so.

You're special.
6/15/2014 6:50 PM

I love it when BL tells everyone everything they should do, everything they think.

In this case, I somewhat agree with him.   At some point, enough is enough.   But this is where the road forks.  I don't know how much is enough for moy, BL, tec or possibly even myself(not to mention anyone else).    Fortunately, for us, we have BL to set the number for everyone in the world.

6/15/2014 7:16 PM
Posted by tecwrg on 6/15/2014 6:50:00 PM (view original):
No, I don't think so.

You're special.
Nope. It's everyone.

If you were hungry and had one cheeseburger, that would be great. It would fill a need. If you had a second, it would probably also be great. But you probably aren't hungry after two, so a third doesn't do you as much good. A forth does even less. A fifth less than that and by the time you got to burger 6, you're probably in negative utility range.

Agree, yes or no?
6/15/2014 7:55 PM
Posted by MikeT23 on 6/15/2014 7:16:00 PM (view original):

I love it when BL tells everyone everything they should do, everything they think.

In this case, I somewhat agree with him.   At some point, enough is enough.   But this is where the road forks.  I don't know how much is enough for moy, BL, tec or possibly even myself(not to mention anyone else).    Fortunately, for us, we have BL to set the number for everyone in the world.

I'm not saying what the number is. I'm saying the number exists for everyone.
6/15/2014 7:59 PM
Posted by bad_luck on 6/15/2014 7:59:00 PM (view original):
Posted by MikeT23 on 6/15/2014 7:16:00 PM (view original):

I love it when BL tells everyone everything they should do, everything they think.

In this case, I somewhat agree with him.   At some point, enough is enough.   But this is where the road forks.  I don't know how much is enough for moy, BL, tec or possibly even myself(not to mention anyone else).    Fortunately, for us, we have BL to set the number for everyone in the world.

I'm not saying what the number is. I'm saying the number exists for everyone.
In your opinion.
6/15/2014 10:09 PM
I think he's picked a number at least a couple of times.  400k = enough to tax more because they'll miss it less.   100m for moy because that's enough savings.   I won't mention the others numbers but they exist in his silly scenarios.

Am I wrong?
6/15/2014 10:24 PM
Posted by MikeT23 on 6/15/2014 10:24:00 PM (view original):
I think he's picked a number at least a couple of times.  400k = enough to tax more because they'll miss it less.   100m for moy because that's enough savings.   I won't mention the others numbers but they exist in his silly scenarios.

Am I wrong?
They were just examples.
6/15/2014 10:53 PM
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