Simple, Funny.......And Not So Crazy

[FloridaPoke]

This was an article from the St. Petersburg Times Newspaper on Sunday. The Business Section asked readers for ideas on "How Would You Fix the Economy?" This was the winning idea.

Dear Mr President,

Patriotic Retirement:

There are about 40 million people over 50 in the work force; pay them $1 million severance each with stipulations as follows:

1) They leave their jobs. Forty million job openings - Unemployment fixed.

2) They buy NEW American cars. Forty million cars ordered - Auto Industry fixed.

3) They either buy a house or pay off their mortgage- Housing Crisis fixed.

All this and it's still cheaper than the "bailout".

[legelegel]

I'd sign up. Do you think a self-employed lawyer is in that 40 million figure? On the other hand, if my secretary/legal assistant qualifies for such a gift, my practice is in real trouble.

[CaliforniaCowboy]

It's funny... but if you're in your low 50's, $1 million won't get you much.

if you spend lets say 400,000 on a "retirement home", and a new car, then you'ed only have 600,000 at 6% return that only gives you 36,000/year... hardly enough for Season tickets after living expenses.

(700,000 at 10%) is still only $70,000/year before taxes... managable, but not that impressive.

[Ivan]

Fine 2 million, and it'd still be cheaper than the bail out =P

[BigBadBen]

It's funny... but if you're in your low 50's, $1 million won't get you much.

if you spend lets say 400,000 on a "retirement home", and a new car, then you'ed only have 600,000 at 6% return that only gives you 36,000/year... hardly enough for Season tickets after living expenses.

(700,000 at 10%) is still only $70,000/year before taxes... managable, but not that impressive.


Dont spend $400k on a house, and don't pay cash for the house....
Put the 400k in an interest bearing account. a 6% return with a 5% mortgage means you are making some money.

[FloridaPoke]

It's funny... but if you're in your low 50's, $1 million won't get you much.

if you spend lets say 400,000 on a "retirement home", and a new car, then you'ed only have 600,000 at 6% return that only gives you 36,000/year... hardly enough for Season tickets after living expenses.

(700,000 at 10%) is still only $70,000/year before taxes... managable, but not that impressive.

Of course, you are assuming your hypothetical person is starting with zero to work with.

[jakeman]

Of course, you are assuming your hypothetical person is starting with zero to work with.

True, those that are over 50, WITH A JOB, probably have something to start with.

What the scenario doesn't address is those over 50 without a job. Those dead beats that never had a job because they never wanted a job and basically have been suckling at the teat of the the government cow their entire lives. Can you imagine the shrieking, wailing, and gnashing of teeth that would occur if the government was doling out that kinda cash and they weren't getting any?? Good Lord, if I think about it really hard it hurts my ears even now.

Other than that, I like the plan. Is there a petition to sign?? :cool-smiley-027:

[CaliforniaCowboy]

Of course, you are assuming your hypothetical person is starting with zero to work with.

I guess you don't follow the news about the "nest eggs" of the boomers...

especially those in their low 50's...

[Poke John I]

The new definition of Luquidity:

You check the current value of you retirement accounts and you wet your pants.

[Vulgar Display of Orange]

No way i would retire at 50 for $1M.

[OSUchris]

Let's see that works out to:

40K a year living to age 75.
29K a year living to age 85.
22K a year living to age 95.

Would you retire for that?

[CaliforniaCowboy]

upon further review....

40 million people; at 1 million each is not 40 million dollars; that would be ONE dollar each.

40,000,000 * 1,000,000 = 40,000,000,000,000

isn't that 40 TRILLION?

and you want to double it to 80 trillion?

hmmmm.....


tril⋅lion 
1. a cardinal number represented in the U.S. by 1 followed by 12 zeros,

[wickerbill]

upon further review....

40 million people; at 1 million each is not 40 million dollars; that would be ONE dollar each.

40,000,000 * 1,000,000 = 40,000,000,000,000

isn't that 40 TRILLION?

and you want to double it to 80 trillion?

hmmmm.....


tril⋅lion 
1. a cardinal number represented in the U.S. by 1 followed by 12 zeros,

Exactly. The people that come up with these hair brained alternatives seem to be very deficient at math.