The Debt Bubble Threatens to Derail

Discussion in 'Money Management & Banking' started by Jane M, 8th Mar, 2006.

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  1. Jane M

    Jane M Well-Known Member

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    The Debt Bubble Threatens to Derail
    Many Baby Boomers' Retirement Plans

    Another WSJ article (I read every day). Saying that more retirees are in debt (maybe smart people understanding good debt) than used to be - "Even retirees are getting in on the act. Among households headed by someone age 75 or older, 40% had some sort of debt in 2004, up from 29% three years earlier."

    However, watch the advice in the close of the article- "You should get some help from Social Security, and you may also have a company pension. Still, if your prospective retirement income looks a little thin, you know what you need to do: Stop borrowing, pay down existing debts -- and start saving like crazy."

    So long as "experts" tell people to stop borrowing, pay down debt and start saving - without telling them about investing and good debt - the chosen/self-selected few who are into investing will be better off.
     
  2. Takestock

    Takestock Well-Known Member

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    The media is constantly feeding our society stories of fear, whether it be terrorism, natural disasters or even the fear of financial risk. This is the manner of mankind; always has been and always will be. Better not take on the risk of borrowing money - what if you lose your job, what if interest rates go up, what if the sun collapses and becomes a supernova? No, just take it safely, don't stick you neck out and drain the public purse as required with your pension. :mad:

    Cheers
     
  3. Jacque

    Jacque Jacque Parker Premium Member

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    The fear of debt itself, whether for appreciating assets or otherwise, is still very real amongst many Australians of the older generation. My parents are a perfect example of this mentality and, whilst they can see the benefits of investing in growth assets, they have always been loathe to take on any more debt after "paying the house off".
    It's a mindset that isn't easy to overcome.
     
  4. Nigel Ward

    Nigel Ward Well-Known Member

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    Ditto mine Jacque.
     
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