This is brilliant

T

transporter

Well-Known Member
The Universal Savings Account Act

The Universal Savings Account Act would empower Americans to save for all of life’s challenges and opportunities. USA Accounts offer tax-free earnings and distributions without the restrictions, confusion, and penalties associated with other tax-advantaged savings accounts.
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It isn’t easy for many working American to save and achieve economic prosperity and independence. Only 53% of adults could cover an emergency expense of $400 without selling an asset or borrowing. Most Americans lack the recommended savings level of three to six months of income. These issues are compounded by stagnant wages and a weak job market. Individuals need a more streamlined and flexible saving account option that will truly encourage savings.
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The issue of lack of savings isn't compounded by stagnant wages and a weak job market. We have a strong job market and low wages. People can't save what they don't make. More savings options will not overcome lack of income. Lack of income is the root cause for the majority of those who have low savings.

People can't save $5500 per year in an IRA, why does this idiot Congressman think people will be able to save $5500 in a different tax deferred/tax free vehicle?

Naturally what is missing here are the details and the crucial detail will be this: no income limits on contributions, anyone will be able to contribute...which means only those with the available income and have maxed out other tax deferred/tax free savings options will contribute...which is only the better off...not the 53% noted above.
 
PeoplesElbow

PeoplesElbow

Well-Known Member
You can save, if you want to. It is all about priorities.

My parents didn't start with much, my dad was abandoned when he was small, the only person that ever took care of him died when he was 15 and he was on his own then. Dad became an apprentice machinist my mom stayed at home as a housewife, they had a brand new house in a great community paid off in 11 years. Dad worked a lot of overtime, I went to college on student loans and his help, I started paying off my loans while I was in grad school.

Growing up dad's cars were always piles of ####, but they were paid for. I never had fancy clothes, my parents told me "you don't need that" instead of caving to my every whim as a child.

To this day I think about every purchase that I make and don't waste money. I will be able to retire in my 50's.
 
Yooper

Yooper

Up. Identified. Lase. Fire. On the way.
PeoplesElbow said:
You can save, if you want to. It is all about priorities.
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Absolutely. And, as your family history shows, making smart (if though, sometimes "painful") decisions (which, for me (and numerous others) was joining the Army). It's rare that where there's a will there's no way....

--- End of line (MCP)
 
LightRoasted

LightRoasted

If I may ...
If I may ...

transporter said:
This is brilliant
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Here, allow me to help you ...

Bbrilliant.jpg
 
BOP

BOP

Well-Known Member
transporter said:
The Universal Savings Account Act




The issue of lack of savings isn't compounded by stagnant wages and a weak job market. We have a strong job market and low wages. People can't save what they don't make. More savings options will not overcome lack of income. Lack of income is the root cause for the majority of those who have low savings.

People can't save $5500 per year in an IRA, why does this idiot Congressman think people will be able to save $5500 in a different tax deferred/tax free vehicle?

Naturally what is missing here are the details and the crucial detail will be this: no income limits on contributions, anyone will be able to contribute...which means only those with the available income and have maxed out other tax deferred/tax free savings options will contribute...which is only the better off...not the 53% noted above.
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So? Why do you care? Ever been so poor you had to sell blood in order to eat, put gas in the hoopty, pay the rent? I have. Ever been so poor that you ate oatmeal for at least 2 meals in a day, every day because that's all you could afford? I have.

Again, so what? F* the poor. People are poor and stay poor primarily because of the choices they make in life. Been there, done that, have the scars. I'm not going to be well off when I retire, and I'll be more dependent on social security, which, by the way, I paid into, but those were choices that I made (or didn't make).
 
Rommey

Rommey

Well-Known Member
transporter said:
The Universal Savings Account Act




The issue of lack of savings isn't compounded by stagnant wages and a weak job market. We have a strong job market and low wages. People can't save what they don't make. More savings options will not overcome lack of income. Lack of income is the root cause for the majority of those who have low savings.

People can't save $5500 per year in an IRA, why does this idiot Congressman think people will be able to save $5500 in a different tax deferred/tax free vehicle?

Naturally what is missing here are the details and the crucial detail will be this: no income limits on contributions, anyone will be able to contribute...which means only those with the available income and have maxed out other tax deferred/tax free savings options will contribute...which is only the better off...not the 53% noted above.
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You realize this bill was first introduced in 2015? And no action has happened since then? Then reintroduced in 2017 and no action taken since then?
H.R.4094 - Universal Savings Account Act introduced Nov 19, 2015
H.R. 937 - The Universal Savings Account Act introduced Feb 7, 2017

In any event, if this were to become law, its not like they are forcing people to participate like they did with Obamacare. It would only offer people that were so inclined to save a different avenue to do so.
 
Hijinx

Hijinx

Well-Known Member
Why save when the interest on your money is only less than 1%.
Pretty tough to save when you cannot afford health care.
Try to make the house payment, the car payment, the kid's college fund, Life insurance, fire insurance,homeowners insurance, Income taxes,sales taxes,real estate taxes, insurance for the kids,Food, clothes, The well goes bad, the health department condemns your septic an you have to put in a mound.Buying gas to get to work when it goes up and down like a yo-yo
 
Chris0nllyn

Chris0nllyn

Well-Known Member
Hijinx said:
Why save when the interest on your money is only less than 1%.
Pretty tough to save when you cannot afford health care.
Try to make the house payment, the car payment, the kid's college fund, Life insurance, fire insurance,homeowners insurance, Income taxes,sales taxes,real estate taxes, insurance for the kids,Food, clothes, The well goes bad, the health department condemns your septic an you have to put in a mound.Buying gas to get to work when it goes up and down like a yo-yo
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Americans can't save money for ####. I think the average American carriers $16k in credit card debt, 25% don't have any emergency savings, and 20% will retire broke. Those are largely bwecause of poor financial decisions and it'll probably only get worse given no requirements to take any sort of financial course in school.

You can find online savings accounts for around 2%, but banks aren't going to offer 10% APY on savings accounts while giving car loans at 3-4%. If you can go without cash, CDs are an option with 1 and 2-year CD rates between 2.5-3%.

Making those payments you mention should be the norm (they happen every month, yes?) and although things pop up (bad well, septic, etc.) that's what savings is for. Gas has always fluctuated but that's partly why I drive a car that gets 30+ mpg to work and not the SUV that gets 13 mpg.
 
Kyle

Kyle

ULTRA-F###ING-MAGA!
PREMO Member
Chris0nllyn said:
Americans can't save money for ####. I think the average American carriers $16k in credit card debt, 25% don't have any emergency savings, and 20% will retire broke. Those are largely bwecause of poor financial decisions and it'll probably only get worse given no requirements to take any sort of financial course in school.
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Considering the public school systems record on teaching basic mathematics, you believe they can be relied upon to produce success teaching the life skills which the parents should be responsible?
 
Hijinx

Hijinx

Well-Known Member
Chris0nllyn said:
Americans can't save money for ####. I think the average American carriers $16k in credit card debt, 25% don't have any emergency savings, and 20% will retire broke. Those are largely bwecause of poor financial decisions and it'll probably only get worse given no requirements to take any sort of financial course in school.

You can find online savings accounts for around 2%, but banks aren't going to offer 10% APY on savings accounts while giving car loans at 3-4%. If you can go without cash, CDs are an option with 1 and 2-year CD rates between 2.5-3%.

Making those payments you mention should be the norm (they happen every month, yes?) and although things pop up (bad well, septic, etc.) that's what savings is for. Gas has always fluctuated but that's partly why I drive a car that gets 30+ mpg to work and not the SUV that gets 13 mpg.
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Well I appreciate your reply, and I know that many people overextend themselves with credit cards.
The banking business has changed a lot over the years. One of the thing I think that has happened is that once the banks needed customers to stay in business.
To get these customers they took in money and kept it safe and made loans with what they took in.
They charged customer for these loans and used the charges to pay the interest to the customers who put in savings

Everything worked pretty well they made money they sold stock.

They made good interest on the loans and they paid fair interest on the savings.

Then a few years back the Government started selling them money cheaper than what they had to pay out in savings interest.
Now as good business people they took the cheaper route, They took the Government money and started paying less to their savings customers.

Eventually they didn't even want savings customers. Saving customers were just a pain in the ass, so they lowered the savings rates again.

Well to make a long story short we now have the mess we are in, Where government sets the rates and we are afraid to go back to where we can raise them for causing a major blow to the economy.

I don't know if this was Government or federal reserve, I am no genius in economics, but I believe basically that is what happened to banks.
Now someone else can tell me why people use credit cards which potentially they have to pay up to 26% for that loan they can get for 4%.
Convenience I suppose.
 
Chris0nllyn

Chris0nllyn

Well-Known Member
Kyle said:
Considering the public school systems record on teaching basic mathematics, you believe they can be relied upon to produce success teaching the life skills which the parents should be responsible?
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Parents should be responsible for teaching that, but speaking from personal experience, I wouldn't want my parents teaching me about anything financial.

Looking at Calvert County schools, however, they do require 1/2 credits in "Financial Literacy".
http://phsweb.calvertnet.k12.md.us/...ents/2017-2018 High School Planning Guide.pdf
 
Kyle

Kyle

ULTRA-F###ING-MAGA!
PREMO Member
LightRoasted

LightRoasted

If I may ...
If I may ...

Chris0nllyn said:
Americans can't save money for ####.
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And why pray tell do you think that is? Could it be that any advancement in wages is eaten up by inflation? That wages are stagnate and actually lower overall because of inflation over the years? Could it be increases in state taxes and fees are reducing what's left to save? How about the possibility that there might be nothing left after paying for health insurance and/or in addition to the deductibles, (if lucky enough to be able to afford in the first place)? Or maybe it could be because of the ever rising costs to put food on the table? If renters, the ever increasing rise in rents? So, after living expenses, (groceries, clothing & shoes, etc), rent or mortgage, insurance, (home, auto, health), prescription medication, utilities, (cable, cell, electricity, water, etc), car, daycare?, gas, property taxes, maintenance, (home, car, etc), car payment, (if having), exactly how much do you think the average, non-government worker, really has left to "save"?

You are completely ignorant when you pontificate, "Those are largely because of poor financial decisions". Look asshat so called libertarian, people just cannot keep up the the rising costs of everything, the confiscation of their wealth through all taxation and fees and charges, and the hidden tax, inflation (irresponsible expansion of the money supply), that constantly erodes the purchasing power of the little money they make everyday, every week, every year, over and over and over again non-stop. You are blind to things looking at you right in the face.
 
MiddleGround

MiddleGround

Well-Known Member
transporter said:
The Universal Savings Account Act




The issue of lack of savings isn't compounded by stagnant wages and a weak job market. We have a strong job market and low wages. People can't save what they don't make. More savings options will not overcome lack of income. Lack of income is the root cause for the majority of those who have low savings.

People can't save $5500 per year in an IRA, why does this idiot Congressman think people will be able to save $5500 in a different tax deferred/tax free vehicle?

Naturally what is missing here are the details and the crucial detail will be this: no income limits on contributions, anyone will be able to contribute...which means only those with the available income and have maxed out other tax deferred/tax free savings options will contribute...which is only the better off...not the 53% noted above.
Click to expand...

No... you are BRILLIANT!!!

Still no raise huh?
 
Chris0nllyn

Chris0nllyn

Well-Known Member
Kyle said:
So do you advocate schools be responsible for teaching other aspects of life as well?
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I advocate an option for it. They teach sex ed but if a parent doesn't want the schools teaching them that, they should be (and can) remove them from that course material.

I guess it all comes down to what you believe schools are for. What's their intent?

LightRoasted said:
If I may ...



And why pray tell do you think that is? Could it be that any advancement in wages is eaten up by inflation? That wages are stagnate and actually lower overall because of inflation over the years? Could it be increases in state taxes and fees are reducing what's left to save? How about the possibility that there might be nothing left after paying for health insurance and/or in addition to the deductibles, (if lucky enough to be able to afford in the first place)? Or maybe it could be because of the ever rising costs to put food on the table? If renters, the ever increasing rise in rents? So, after living expenses, (groceries, clothing & shoes, etc), rent or mortgage, insurance, (home, auto, health), prescription medication, utilities, (cable, cell, electricity, water, etc), car, daycare?, gas, property taxes, maintenance, (home, car, etc), car payment, (if having), exactly how much do you think the average, non-government worker, really has left to "save"?

You are completely ignorant when you pontificate, "Those are largely because of poor financial decisions". Look asshat so called libertarian, people just cannot keep up the the rising costs of everything, the confiscation of their wealth through all taxation and fees and charges, and the hidden tax, inflation (irresponsible expansion of the money supply), that constantly erodes the purchasing power of the little money they make everyday, every week, every year, over and over and over again non-stop. You are blind to things looking at you right in the face.
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I am able to save a ton of money each month after paying those things you mention but that's largely because of the financial decisons I've made. My wife and I didn't buy a home that we couldn't afford. We've paid off our 4 vehicles, we shoped around for the cheapest insurance, I have great insurance through the employer I chose to work for, basic cell plans, energy efficient home, on a well, pay cash for daycare, use fuel efficient cars for travel to work, etc. I put in 15% into both a traditional and Roth 401k, I'm a shareholder at my privately held company making dividends each quarter, and still save enough money to be able to renovate my kitchen by paying cash.

We can't help taxes, but we can stop electing people who want to raise taxes. We can stop electing people who impose fees, etc. These are easily-solved issues, but here we are...

I'm not blind, I'm living within my means with an understanding that some things are out of my control. Obviously things pop up in people's lives but inflation happens and you can't blame 3/4 of Americans being broke on inflation and less buying power alone. At some point, the decisons you make have an impact.
 
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