Do you have Earning Assets?

[sealybobo]

Earning assets include stocks, bonds, income from rental property, certificates of deposit (CDs) and other interest or dividend earning accounts or instruments. They can provide a steady income, which makes particularly useful for long-term goals such as retirement planning.

The sad truth is that "building asset wealth is currently unattainable for the majority of Americans,” the report stated.

Wealth Income Gap Widens In U.S. Communities With Jackson Hole At The Top

More Americans need a "seat at the table" of the U.S. economy, urges troubling new report by the Economic Innovation Group.

www.huffpost.com

 

[deannalw]

My earning asset is me.

 

[MarathonMike]

Instead of blowing 5 bucks a day on a Starbucks, people could brew their own coffee and put the Starbucks money into a stock fund. It's not as hard to save and invest it just takes discipline.

 

[sealybobo]

My earning asset is me.

That doesn't count. That means you are a worker. Not someone who's money works for them.

Most people are going to reply that they have a 401K. I don't like counting that because that you don't get till you are retired. I have stocks I could cash out now no penalty and they are making money.

I also have an annuity outside my 401K but that too is money I can't touch till I'm at least 59.5 years old. I guess I could tap in but I'd pay huge penalties.

My stocks were a CD that matured every year. I was making 4%. Then they told me the new interest would be something like 1.5% I told them to go shove it.

My uncle moved down to Florida decades ago and purchased $150,000 in rental properties that today are worth over $1 million. Those are earning assets.

 

[sealybobo]

Instead of blowing 5 bucks a day on a Starbucks, people could brew their own coffee and put the Starbucks money into a stock fund. It's not as hard to save and invest it just takes discipline.

I really need to stop going to Tim Horton's once a day. $2.45 a day x 360 = $900 a year. That's $10K I won't have when I retire in 11 years.

Cigarette's? Let's say $30,000 in the next 11 years.

So there is $40,000 of my earnings I will kill on some bullshit.

To defend the coffee. How much do you think making coffee at home costs? 45 cents a day? So I'm really only blowing $720 a year on coffee. And I bet I'll drink more if I'm making a pot in the morning. Plus cream and sugar.

 

[MarathonMike]

sealybobo The point is saving and investing is within the grasp of most people. I started saving money when I was 12 delivering papers and shoveling driveways.

 

[percysunshine]

Earning assets include stocks, bonds, income from rental property, certificates of deposit (CDs) and other interest or dividend earning accounts or instruments. They can provide a steady income, which makes particularly useful for long-term goals such as retirement planning.

The sad truth is that "building asset wealth is currently unattainable for the majority of Americans,” the report stated.

Wealth Income Gap Widens In U.S. Communities With Jackson Hole At The Top

More Americans need a "seat at the table" of the U.S. economy, urges troubling new report by the Economic Innovation Group.

www.huffpost.com

Those are not earned income tax categories.

 

[sealybobo]

sealybobo The point is saving and investing is within the grasp of most people. I started saving money when I was 12 delivering papers and shoveling driveways.

How much were your bills?

 

[sealybobo]

sealybobo The point is saving and investing is within the grasp of most people. I started saving money when I was 12 delivering papers and shoveling driveways.

Is it?

Asset income per capita has nearly doubled since 1990 for the top 10 percent of counties (1.7 times higher), while it has hardly changed for the bottom 90 percent.

Not to bring up race, but check this out

Highlighting the racial wealth gap, the residents of Cleveland’s least diverse neighborhood earned a total of $262 million in dividends in the 2018 tax year, or $15,800 per a person, compared to a total of $27,000 that went to residents of its most diverse neighborhood, or around a dollar per a person.

Asset ownership gives individuals and families a seat at the table in our economic system beyond the wages they earn from their employer. Household financial stability—the freedom to not have to live paycheck to paycheck—is thus a cornerstone of inclusive prosperity. Yet only a minority of Americans own any assets beyond the main three: their homes, cars, and retirement accounts.

Asset poverty, defined as insufficient net worth to cover three months of living expenses absent any labor income, is much more pervasive in the United States than income poverty, with an estimated 77 percent of low- to moderate-income American households defined as asset poor.1

Non-labor income has increased from 23 percent of personal income in 1969 to 37 percent in 2019. In 2019, earnings represented 63 percent of income, compared to 17 percent for transfers and 20 percent for income from assets. This 50-year trend is in large part driven by increased income from assets for the wealthy and increased government transfers to the poor. One of the biggest differences between the period of economic growth in the 1990s versus the 2010s is that earnings saw more robust growth than asset income in the 1990s, whereas the reverse was true for most of the 2010s. From 2010 to 2019, assets grew by 73 percent, while earnings grew by just 45 percent.

Almost two-thirds of counties had asset income per capita below the average of all U.S. counties in 2019, compared to around half in 1969. In other words, the median American county has fallen behind the county average over time as more asset income concentrates in fewer places. The gap between the county with the lowest and highest asset income per capita doubled from 1969 to 1990 and then increased by a factor of six from 1990 to 2019.

https://inclusivewealth.eig.org/wp-content/uploads/2021/08/Geography-of-Asset-Income-Report.pdf

 

[sealybobo]

Those are not earned income tax categories.

Huh? One thing I think I got from the article is they don't count 401K. They are talking about things beyond the traditional ways most people obtain wealth which are buy a home, work and have a 401K.

 

[MarathonMike]

sealybobo I've read the statistics. What I see is low income people lining at the cigarette barn, the liquor store, the 7-11, Starbacks, the payday check cash places, etc. I'm saying saving and investing (or wasting) money is a mindset, not where you are at on the income ladder.

 

[deannalw]

That doesn't count. That means you are a worker. Not someone who's money works for them.

Most people are going to reply that they have a 401K. I don't like counting that because that you don't get till you are retired. I have stocks I could cash out now no penalty and they are making money.

I also have an annuity outside my 401K but that too is money I can't touch till I'm at least 59.5 years old. I guess I could tap in but I'd pay huge penalties.

My stocks were a CD that matured every year. I was making 4%. Then they told me the new interest would be something like 1.5% I told them to go shove it.

My uncle moved down to Florida decades ago and purchased $150,000 in rental properties that today are worth over $1 million. Those are earning assets.

It counts to me.

 

[MarathonMike]

sealybobo The two appreciating assets that performed the best for me were stock dividend reinvestment plans and real estate.

 

[sealybobo]

It counts to me.

Yea but I’m pointing out that besides 401k, most Americans have nothing. Hope nothing happens to social security. Do you have rental properties or any other moneys out there working for you or are all your eggs in one basket?

 

[deannalw]

Yea but I’m pointing out that besides 401k, most Americans have nothing. Hope nothing happens to social security. Do you have rental properties or any other moneys out there working for you or are all your eggs in one basket?

I generally don't talk finances... generally cause I ain't got none, HA!

We'll be ok regardless of whether or not there's SS in our future. Unless some unforeseen disaster hits the country- like if Biden were prez- HAHAHAH

Wait...

 

[sealybobo]

I generally don't talk finances... generally cause I ain't got none, HA!

We'll be ok regardless of whether or not there's SS in our future. Unless some unforeseen disaster hits the country- like if Biden were prez- HAHAHAH

Wait...

You would b ok retiring with $2000 less a month coming in? Wow! I’m kind of counting n that money. Otherwise I’ll eat up my life savings.

I believe this is the plan. The deep state globalists, credit card companies, rich, insurance giants, etc... they’d love to do away with social security and Medicare. Tha5 way they eat up your lif savings rather than you leave it to your kids.

I plan on keeping a lot of money in the risky stock market even when I’m retired. So I will have earning assets.

I also have an annuity. It will pay around $500 a month for life. Theoretically it will never run out of money.

 

[MarathonMike]

I plan on keeping a lot of money in the risky stock market even when I’m retired. So I will have earning assets.

I agree with most of what you've posted in this thread, but keeping most of your money in the market after you're retired would be stress city at a time in your life when you don't want that. Once my passive income streams were in place and I started drawing SS, I went very conservative on stocks, somewhere between 20-25% of liquid assets. I know retired people who have most of their money in the market and sure they are happy right now. But.........

 

[sealybobo]

I agree with most of what you've posted in this thread, but keeping most of your money in the market after you're retired would be stress city at a time in your life when you don't want that. Once my passive income streams were in place and I started drawing SS, I went very conservative on stocks, somewhere between 20-25% of liquid assets. I know retired people who have most of their money in the market and sure they are happy right now. But.........

My buddy said You just have to be able to survive for three to five years on your safe money that way you won’t sweat it when the market crashes. You have enough in the safe bucket.

 

[MarathonMike]

sealybobo As long as interest rates stay ultra low, it's probably reasonable to expect market downturns to be short. It would still stress me out to see my portfolio going negative, but that's me.

 

[sealybobo]

sealybobo As long as interest rates stay ultra low, it's probably reasonable to expect market downturns to be short. It would still stress me out to see my portfolio going negative, but that's me.

I miss the day when my dad and grandmother were getting 10% on their savings. So when I was a kid I imagined I would have a million dollars and get 10% a year to live on plus social security. Now what am I going to get 4%? That's $40,000 instead of $100,000. I feel like this was done on purpose to us sometime in the 2000's. Maybe that's why they had the Great Recession. Because things couldn't go on like they were forever. Things were too good for the masses.

You know what I heard yesterday? The 90's were the best decade for workers. I believe that. It was a great decade. So when Trump says his 4 years were the best economy ever, I'm not buying that.