lostdog wrote: ↑Mon Nov 20, 2017 9:26 am
Please know that 7 out of 10 people in this country are leveraged to the max and live paycheck to paycheck. Bringing up the subject of personal finance to a group of friends while having a cold beer or get together is a no no. You'll get blank stares or someone will change the subject immediately. This is engrained in our culture. Dave is the big elephant in the room that has to be a bit forceful with these people so they get it. Bogleheads and frugal investors are the minority in this country. We are the minority!
He sounds arrogant because these people act like little kids with money and he is their parent. This is a fact. It really is this bad out there. 7 out 10!!!
I have friends (a married couple in their late 50s-early 60s) who remodel their home and buy new cars and trucks on regular and frequent schedules. They never pay cash for anything. Never bought cars with cash (they lease or finance depending on what looks like a “good deal”). Sometimes they pull from their 401ks for the house remodels (loans, I guess, but there was once talk about taking $$ out and paying tax and penalties). When I ask about the rationale, they say that the market is a shell game and they may as well spend it before it disappears. They also regularly purchase other expensive toys, appliances, etc.
They both work at pretty good jobs but I would not consider them especially high paying jobs and at the same company.
A few years ago, they went through a big scare when the company they worked for started layoffs and closed the location they were at. By some stroke of incredible luck, genius, or networking connections, they sold their home for the asking price, relocated to another state, and within 1.5 years, they had both secured equally good or better jobs (both at the the same company again!
Now, during this job transition, they were preaching about how the American Dream was a con game and were talking about living like hermits in the woods. I thought for sure they’d gotten religion and would learn not to get into this trap again. It’s been a couple of years since they got the new jobs now and they are remodeling the kitchen and 2 bathrooms in their relatively new home, bought a truck, car, camper and other toys for the home.
The funny thing is, I think they will be ok. We don’t talk about finances much especially since they moved and are long distance now. But I believe that they have some sort of pensions at the current job and also from the old one. With SS and whatever they didn’t spend from their 401ks, they’ll probably end up better than I do. So I’m not sure there’s a lesson in here.