Posted by: coastcontact | May 3, 2013

You Can Be Richer Too!

Stupid articles and papers telling us the obvious wastes our time.  Businessweek featured such a totally wasteful piece discussing someone named Justin Wolfers, a University of Michigan professor, who wrote an article titled “Economists Nail It: You Can Never Be Too Rich.”  Do I need someone to tell me that it is better to be rich than poor?  Even the reporter, Peter Coy, who is a primary commentator/reporter for the magazine offered the obvious remark, That may seem to deserve a Homer Simpson “Duh!” award for most obvious research finding of the month.  So why even post this report?  The answer must be that he has space to fill.

This has been a great year to be just a little bit richer.  If you were already rich you might have become a lot richer.

In just the four months of this year the Dow Jones Average increased by 14.3% and the S&P 500 increased by 13.2%.  Understand that you did not have to be particularly smart to choose the right stocks to have earned that money.  You simply had to buy an S&P 500 index account and your $1,000 would now be worth $1,132 today.  If that investment had been $10,000 you could sell your gains now and have $1,320.  Enough to buy that new giant TV or pay down a burdensome credit card.

So what’s the problem.  “Your Money” reported that 55% of the people surveyed did not believe this has been a good time to invest.

So when is a good time?

You see article after article crying about the wealth gap between the rich and everyone else.

Sad to say it but the average man on the street is unwilling to take the chances that the rich take.  Perhaps that is one of the reasons you may never be rich.

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Responses

  1. I think that you left out the part that the ‘common’ man no longer has the money to invest. Since in the last year over 20% of the population saw a -4
    5 drop in pay and the top 2% saw unreal gains, the only ones with money to spend to make that ‘wealth’ off of investments are the ones that are already rich. There was a time in our history as a country, just a short 33 years ago, when it was a possibility for the ‘common’ man or the 98% to have the money to invest, but not so much anymore. Just my thoughts

  2. The problem with Americans is that they do not want to sacrifice today’s wants for tomorrow’s benefits. You do not need a new car. You can shop a JCP and Sears rather than Macy’s. Don’t eat lunch out – take a lunch from home. There is no need to subscribe to HBO.

    Still, I appreciate the cost of food, energy, health insurance, etc is high. I grew up in Los Angeles. It’s expensive in South Central.

    People need to be convinced that they should save at least 5% of their take home pay FIRST THEN PAY THE BILLS.

    Listen to Dave Ramsey or at a minimum try following his advice. The Seven Baby Steps. Begin your journey to financial peace. Your can Ignore his religious views and still follow his financial advice. http://www.daveramsey.com/new/baby-steps/


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