what are some of the craziest things that youv'e seen people do to remain in there SB homes

[RV_]

Thanks for the correction Alie or Jim

[justRich]

Our parents who experienced the Great Depression learned lessons on frugality and passed them on to us.

Knowing this, we understand those who did not learn or were not gifted in such a way.

[Kirk W]

Our parents who experienced the Great Depression learned lessons on frugality and passed them on to us.

Knowing this, we understand those who did not learn or were not gifted in such a way.

While there is a great deal of truth to this, I really don't think that you can make a direct comparison between current debt issues and those of 1929. No question that consumer credit is very high today, but that was not nearly so much of the problem back then as credit cards didn't yet exist and the average consumer didn't have much credit. There have been many studies done on what caused the "Great Depression" and experts even today are not all in agreement about the cause. Most do agree that a major contributor to the US stock market crash was the buying of stocks on credit (very limited today) and that the market crash was the trigger of the economic crash that followed, but it goes far deeper than just a matter of too much credit. If you are really interested, there are quite a number of explanations out there and here are a few that I have read.

The Five Top Causes of the Great Depression

What Caused the Wall Street Crash of 1929?

The Great Depression

 

My parents never stopped predicting another crash and I must say that I too really wonder at times where we go from here, but it is a very complex subject.

[Trucken]

Kirk:

I believe you are incorrect in your assumption buying stock on credit. I purchased on credit from 2000 to 06. It's called a margin account and I paid interest on borrowed money.

 

IRA/Roth and not eligible for a margin account to the best of my knowledge.

 

Trucken

[Kirk W]

I believe you are incorrect in your assumption buying stock on credit. I purchased on credit from 2000 to 06. It's called a margin account and I paid interest on borrowed money.

 

IRA/Roth and not eligible for a margin account to the best of my knowledge.

Margin accounts do still exist, but they are as I stated they are very regulated and there are clear limits to the amount that they can be used. Those rules are the result of the regulations coming out of the depression. If you use a margin account and are not familiar with the regulations of them, I strongly suggest that you visit this page of the SEC website and do some reading. You might also read one or two of the links that I posted to confirm what analysts blame the event upon. Nowhere did I say you can't buy stocks on credit, only that doing so is regulated and in particular, using the stocks as collateral for a loan to pay for them is.

 

I'm wondering how an IRA could buy on credit, since you have to put the money into the IRA before the account invests it. The same is true for a 401k account. But those also have a long list of regulations that must be adhered to.

[Trucken]

Kirk please. Tell me if-----

 

1. Have you Purchased your own stocks in a account.

 

2. Have you ever DT.

 

3. Have you ever shorted a stock?

 

4. Have you ever taken a position with a put, or call.

 

5 Have you ever paid short term capital gains?

 

Please re read my post. I SAID you can't

Be on margin in IRA. OR ROTH account.

 

PLEASE read your links.

 

I CAN and do trade in my self directed IRA, but only long positions..(YOU know what that means right.) It's what you broker does for you, but makes money off the trades. It can be called churning.

 

My straight off the shelf (non Ira) stock account that I DIRECT has a margin balance of six figures. Some one here that has NON IRA account can explained it to you and has the same opportunity. Maybe in your links. EVERYONE I know that has (non Ira) account with Amertrade has access to an margin capability.

 

Also in this account I can borrow money, take short position (you know what a short position is, right) or get,options (same questions).

Have you ever taken one of the above position. I have---four of them.

 

Yes,I payed interest on borrowed money. Is it regulated, of course it is.

 

Highly regulated, bout same as your house. Quit paying on your house and see if the bank will take it back from you.

 

Kirk, I believe you are a Cracker Jack electrician ,I don't believe you have ANY FIRST on hand experience with the stock market except what you have read or been told by broker, friend, or the net.

 

One person said this is what you should do.

The other said THIS IS WHAT I HAVE DONE.

Who do you follow?

 

No disrespect Trucken

 

In retrospect I wonder how many people here have self directed IRA's. If you do my hat is off to you, we have learned and survived.

[justRich]

. . . I really don't think that you can make a direct comparison between current debt issues and those of 1929.

That was not my intention.

What I mean is that the Great Depression instilled a frugality in many people that persists through generations.

 

The "Protestant work ethic" also plays a part as a cultural hand-me-down. Between those two cultural mores, many of us choose a more conservative monetary ethic.

Other do not.

This is a great cultural divide - in financial terms.

[Kirk W]

This is a great cultural divide - in financial terms.

Very well stated. I had missed that point but it is clearly valid. The people who lived through the difficult years of the depression worked very hard to instill frugality into their children. My parents were married in 1935 in Kansas at the height of the dust-bowl years. Dad used to have some pictures of what it was like that he regularly showed to us kids when we were growing up in the 50's to make the point about how careful we needed to be. In their later years they were afraid to spend much of the savings that they had accrued because of the memory of those difficult years. We were less cautious than they, but we still retained some of that distaste for borrowing money. Our children have only stories told by their grandparents about that time and it isn't very real to them. Our grandchildren just see credit as easy money.

[Jack Mayer]

Our grandchildren just see credit as easy money.

Not just the grandchildren. Many, MANY baby boomers operate the same way. Which is why the baby boomer generation has very little in the way of retirement savings....on average.

[bigjim]

Just out of curiosity I wonder would be considered a lot say up to $1 million. (no I don't have a million) Once upon a time I thought a milllion was a lot but not so much anymore due to the costs today.

[justRich]

$5 million is the number that I've read. (Assuming that is net worth)

$5 million is the amount that Bill Gates has designated for each of his kids to inherit.

One would not have to work but one could not buy a $6 million dollar house either.

[RV_]

Buffet is giving the bulk of his wealth, $44.7 Billion, to the Bill and Melinda Gates foundation but each of his kids have $2.1 billion plus pledged to each. http://www.nbcnews.com/business/personal-finance/warren-buffett-his-birthday-gives-kids-600m-f972645

 

Gates is estimated to be giving each of his kids $10 Million, and the bulk to his and Melinda's foundation. http://www.bankrate.com/financing/wealth/what-will-gates-children-inherit/

 

I had a unique opportunity to do a review on Peter Buffet's Album that was really quite good. I still have the CD I reviewed for Boomers International. Very nice guy and musician. Here is that review. I had not been there in years. The webmaster emailed me yesterday out of the blue to tell me my name and pic came up in two conversations and she wanted to know how we are doing. Here's that review of Peter Buffet's album, "Imaginary Kingdom." Review: http://boomersint.org/articles/PeterBuffettReview.htm

 

https://www.youtube.com/watch?v=IlAu8atoRng

 

Peter Buffet Interview on You Tube " What I did With $1 Billion:"

https://www.youtube.com/watch?v=CJ70L9-4wko

 

He's really a nice talented guy, who is well grounded.

[Jack Mayer]

Derek,

 

.....now wouldn't a problem like "what to do with a billion dollars" be a good one to solve? I have a pretty good idea of what I'd do.....but you never know until you get it.

[DuffMan]

Great tax dodge - Set up a foundation, name yourself as head, give your assets to the foundation, you retain control of your assets and all your gifts are tax deductible! Worked well for Clintons also!

[richfaa]

Any one can do it...it is legal.

[bigjim]

Isn't that what some RV'rs ( and plenty more) doing with the LLC? If literally everyone did it how quick do you think our folks in Washington would come up with a way to collect needed taxes ( & un-needed) to run the country.

 

true story. That giant lotto a few months back I coincidently bought 5 powerball #s at the same store in Tn as a couple that won 1/3 of it. I just didn't buy the right #s. They seem to be nice everyday folks that liked where they lived and the folks in their town. They were optimistic that could more or less stay the same and especially keep the same friends and church etc. Well it has already caused them major problems. One of the early problems was getting sued by a prisoner that claimed he had given their daughter $20. to buy him into a pool with them. I just talked with somewone who said they have now had to put their home up and buy another more secure, had to change from their lawyer friend and bunch of other issues. They aren't near as old as me with better health. Maybe this will work out for them I surely hope. I am kind of glad I didn't win that much just not to have to deal with all the issues at my current age and health. I think it could even cause issues in my family I wouldn't want to see. I think I would be happy say in the $5million or less range just at a guess.

[DuffMan]

true story. That giant lotto a few months back ...

 

I'm surprised they didn't form a blind LLC with their lawyer as a front and claim the ticket under the LLC's name. They could hide their true identity that way and still have access to all the money.

[RV_]

Jack,

I hear ya!

[RV_]

Duff,

Have you ever checked out what their foundation does with their money?

[DuffMan]

Duff,

Have you ever checked out what their foundation does with their money?

 

Not the point. Great way to avoid 60% death taxes and retain control of the funds. There are only minimal spending requirements (spent on philanthropic causes) to comply with the 501C3 requirements. The rest of the money you continue to control.

 

Do you really think the Clintons had purely altruistic motives when they set up the Clinton Foundation and had everyone pay the foundation hundreds of millions. (Tax deductible to boot) Rather nice when Bill, Hillary and Chelsea are the directors with 100% control over the bank accounts, can pay themselves any salary they want, pay all their traveling expenses paid with foundation untaxed "contribution" dollars and still have total control over the bank accounts. Sounds like a win-win to me.

[RV_]

It certainly is the point. Your issues with the Clinton's foundation was not the one I talked about, the Bill and Melinda Gates foundation. I asked if you knew what their foundation did with the money. Clinton was never mentioned save by you.. We were talking about Buffet and he does not retain control of the 45 million he gave of his wealth to the Gates' foundation. He threw in with them because in his words, they know how to use it effectively against world issues.

 

Excerpt:

 

"Since the turn of the century, partly thanks to the work of the foundation, four countries have eradicated malaria. Mortality from the disease has dropped 42% in that time. Bill said in 2014 that malaria could be eliminated within a generation.

 

In 2014, after a massive coordinated effort between the Indian government, the Gates Foundation and Rotary International, India announced it was officially polio-free. The programme employed 2m vaccinators who spread out across the country. Just five years before, India had more than half the world’s polio cases. It was “the greatest global health achievement I have ever witnessed”, said Bill. The foundation now aims to eradicate polio worldwide by 2018.

 

The foundation has also funded the Guardian’s award-winning Global Development website since 2010.

 

As well as his work on health through the foundation, Bill has made climate change and clean energy a personal mission. The foundation’s annual letter for 2015 says their achievements could be undone by the advancing climate crisis.

 

“It is fair to ask whether the progress we’re predicting will be stifled by climate change. The most dramatic problems caused by climate change are more than 15 years away, but the long-term threat is so serious that the world needs to move much more aggressively – right now – to develop energy sources that are cheaper, can deliver on demand, and emit zero carbon dioxide. Bill is investing time in this work personally (not through our foundation) and will continue to speak out about it.”

 

The rest of that article is here: http://www.theguardian.com/environment/2015/mar/16/what-is-the-bill-and-melinda-gates-foundation

[Kirk W]

Header:

What are some of the craziest things that youv'e seen people do to remain in there SB homes?

I rather doubt that the Gates', Buffet's, or most others who contribute great wealth have much problem managing to life in their houses..... There are not many of us contributing to these forums who share the concerns that they have and I doubt that any of them are reading this to get financial advice anyway.

[RV_]

You are right surprisingly! In this case you and several others were teaching about finances from your remark on page one: http://www.rvnetwork.com/index.php?showtopic=121958&p=828092 the topic went away on page one when the topic changed to kids credit cards and the lack od self discipline in the kids today and how yours went through it. Just sayin'. You didn't object then nor any others.

 

Put another way I have not read a post yet where a member of the forums asked what he or she should do because their spouse went out and maxed out their credit cards specifically to force him or her to stay in their S&B!

 

Now that is on topic. Something I've never seen done to stay in the S&B specifically. Usually they were in that boat years or decades before.