[DMCForum] Re: Paying for college

["ryanpwright" <yahoo1@xxxxxxxxxxxxxx>]

--- In DMCForum@xxxxxxxxxxxxxxx, "checksix3" <jetjock11@xxxx> wrote:
> 
> Uh Ryan, I'm not going to get into this with you because it's a 
> complex subject but your position is flawed in several ways. It's 
> always amazing to me how uneducated people are about accumulating 
> wealth over a lifetime. This is something that should be taught in 
> every public school. I'm not beating on you but your example is 
> oversimplified and inaccurate. It's nowhere near what even a semi-
> wise investor would do, nor does it take into account things like 
> inheritance, location of employement and residence, intelligent and 
> knowledgeable tax prep, the appreciation of real property, or the 
> avoidance of consumer debt. 

Agreed, but the accumulation of wealth wasn't my real point, so I
didn't see any reason to overly complicate it. My point was simply two
facts:

1. If you retired at 47, you weren't earning "near the poverty line"
for the previous 28 years. Doing so while saving enough to retire so
early is impossible unless you suddenly came into a bunch of money at
47.

2. If you retired at 47 and are now living "near the poverty line",
you have no one to blame but yourself (unless there was an event
outside your control that drained your savings after retirement,
such as a medical condition, or being the victim of theft/fraud, or
negligence in investing).

> Second, there are many people who own and maintain a Delorean on
far 
> less than the annual salary you mention. 

Not while making mortgage payments and putting away $14,600 a year
toward retirement they don't. If you know anyone at all who can do
this on "far less" than $35k-$40k a year, I'd love to see those
numbers. 

Yes, DeLoreans are relatively cheap in the grand scheme of things.
Figure $20k average for a well maintained, functional car, and a
little higher than normal maintenance costs simply due to the age of
the vehicle IF you do your own work.

However, to someone really living "near the poverty line", unless they
have free housing they're going to have a hard time owning anything
worth more than a few thousand dollars. Poverty line with 4 children
is $18,850. So if you're making about twenty grand a year, and you've
got four kids to support, how exactly are you going to afford a car
worth your annual salary?

I know people who live near the poverty line. They're dirt poor. They
drive old beaters and survive on food stamps and state health care.
That's why it's called "poverty". They don't own DeLoreans and houses
and save $14k a year and retire at 47 with a million dollars in the
bank. 

-Ryan

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