Your financial condition

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply

How is your financial condition?

 
Total votes: 0

Topic Author
ccbwc
Posts: 116
Joined: Fri Feb 23, 2007 1:01 pm
Location: Evanston, IL

Your financial condition

Post by ccbwc »

I have been reading a lot lately about the deteriorating financial condition of American households. Do you sense this? Are you feeling it personally?

You can define "financial condition" any way you want. I don't think you need a calculator to do it. You can feel it in your gut and how you sleep at night.

How has your financial condition changed over the last year?
Chip Plumb
User avatar
bob90245
Posts: 6511
Joined: Mon Feb 19, 2007 8:51 pm

Post by bob90245 »

I have always lived below my means, put 10% or more away into savings and investments and have a more than adequate reserve put away in an emergency account. So my financial condition has been improving over the years. I'm probably typical of many Bogleheads. But I suspect that this is the minority among the typical American household.
User avatar
zhiwiller
Posts: 1256
Joined: Tue Feb 20, 2007 3:47 pm
Location: Central Florida
Contact:

Post by zhiwiller »

Doom-and-gloom media.
mptfan
Posts: 6258
Joined: Mon Mar 05, 2007 9:58 am

Post by mptfan »

I think the media is accurately reporting that the average American household is getting deeper in debt and further behind financially. However, as we all know, this forum does not represent the average American household.
gkaplan
Posts: 7034
Joined: Sat Mar 03, 2007 8:34 pm
Location: Portland, Oregon

Post by gkaplan »

I guess it's deteriorated, since I got laid off last year and subsequently accepted a job at a twenty-six percent pay cut. I am maximizing my 401 (k) contributions, but my take-home pay is something like $270 bi-weekly. On the plus side I really like the job.
Gordon
Topic Author
ccbwc
Posts: 116
Joined: Fri Feb 23, 2007 1:01 pm
Location: Evanston, IL

A follow-up question

Post by ccbwc »

My guess is that most Bogleheads are working hard to improve their financial condition. Thus, I posted a separate follow-up poll asking your general sense of what has been going on over the last year with your friends, neighbors and relatives.

Thanks for your responses. This will be very helpful.

Regards,
Chip Plumb
User avatar
paulob
Posts: 1408
Joined: Tue Feb 20, 2007 7:54 am

Post by paulob »

Hi Chip,
I maxed out the 401-k's and IRA contributions, that helped.

Oh, I almost forgot. I got the 8-year tax evaluation notice, so on paper our finanical condition improved. Unfortunately the higher taxes will now be due, so cash flow will suck.
Paul
User avatar
frose2
Posts: 628
Joined: Thu Mar 01, 2007 2:10 am

Financial condition?

Post by frose2 »

This is the most ambiguous poll I've seen.

Financial condition for me is a mixture of (a) net worth, (b) expected inflation, (c) expected future tax, (d) expected future returns on investment, (e) job stability and tolerability. I would imagine this is true of most people not yet retired, except that some lucky people also need to consider (f) stability of future retirement benefits.

(a) Net worth is up in dollars, euros, and the currency of my country of origin. Very good.

(b) Expected inflation is more or less the same. Health care, the predominant element, is still going up at least 10% over CPI in the US.

(c) Expected future tax went up significantly with the Democrats taking over both House and Senate and seeming to have a lock on the White House in 2008.

(d) Expected future investment returns have gone down somewhat given that the stock markets had a good year and the left is doing better in many parts of the world, in part because they can attack their opponents for being in Bush's lap.

(e) Job stability and tolerability has not been so great. I dislike my job and long for retirement, whereas it would be much better if I loved my job and intended to give it up only when they pry it from my cold dead fingers.
Topic Author
ccbwc
Posts: 116
Joined: Fri Feb 23, 2007 1:01 pm
Location: Evanston, IL

Hi frose2

Post by ccbwc »

Yes.

The poll is intentionally ambiguous. As you point out, there are many factors that figure into one's "financial condition." Still, I think most people have a general feeling if theirs is getting better or worse.

Given the media attention on the fact that it is generally worsening, I wondered how this corresponded with the current feelings of the Bogleheads.

I find it interesting that very few Bogleheads think either their, or their friends', relatives' or neighbors' financial condition has deteriorated over the past year. It may indicate that the media is painting a more doom-and-gloom economy than is actually the case.

Regards,
Chip Plumb
Post Reply