Comments on: Are You Financially Average?

By: J. Money

J. Money — Thu, 28 Dec 2017 20:17:31 +0000

I actually wrote a blog post on that :)

https://eliteedgemoney.com/better-way-teach-financial-education-schools/

But I think it would only work if they make it *relatable* and *fun* for students! As no one cares about finances at that age, haha… (Call it “how to become a millionaire 101” though and there will be a line out the door to learn!)

By: Sean @ FrugalMoneyMan

Sean @ FrugalMoneyMan — Thu, 28 Dec 2017 19:54:57 +0000

In reply to J. Money. You're 100% correct! Only putting in up to the employer match will never get you to where you want/need to be. Why our school systems don't make it a requirement to teach 18 year olds entering the workforce/college about personal finance is way beyond me...

By: J. Money

J. Money — Thu, 28 Dec 2017 19:38:11 +0000

In reply to Sean @ FrugalMoneyMan.

I know – it’s scary, right? :( At least *some* employers automatically set up 401(k) contributions for their employees where they then have to go out of their way to un-check/tweak it (which study after study shows they don’t! Which is great!!). But even still – 3% + a match won’t do the trick if that’s all people ever do…

By: Sean @ FrugalMoneyMan

Sean @ FrugalMoneyMan — Thu, 28 Dec 2017 19:27:23 +0000

“The average American household with debt owes $132,529” COMBINED WITH “The average personal savings rate in the U.S. is 5.5%” absolutely terrifies me. I don’t think there has ever been a generation where personal finance is more critical to master than it is in today’s world. Aid in the form of pensions has all but dried up for the typical worker entering the workforce and social security could be next to nothing by the time some are allowed to draw from it.

Since 401(k)’s became famous for company retirement plans and pensions went out the back door, the onus was transferred to the employee having to be the major contributor to their retirement. Sure employees still had to contribute to pensions and still do for social security, but pensions guaranteed you a payout for the rest of your life. The payout now for the future retiree is whatever they put away in their retirement investment accounts!

Thanks for sharing!

By: J. Money

J. Money — Wed, 06 Dec 2017 20:11:18 +0000

In reply to JustADoc.

HAH! Then I totally blew those calculations and must have looked at the wrong #’s or something… We def. don’t earn over $1,000,000 and have all kinds of deductions due to my online biz haha… But it’s good to know that it can’t get any worse than I already thought I was at! ;)

By: J. Money

J. Money — Wed, 06 Dec 2017 20:09:26 +0000

In reply to WealthyDoc. Haha...

By: J. Money

J. Money — Wed, 06 Dec 2017 20:08:34 +0000

In reply to Adam from Fit Frugal Dude. Killin' it!

By: JustADoc

JustADoc — Sat, 02 Dec 2017 22:26:41 +0000

It is impossible for you to have had a 43% federal income tax. The top rate is 39.6% and even with the ACA tax it maxes at 44.3%. Of course the first 400,000+ is at a lower rate. So unless your income was well in excess of $1,000,000, you didn’t even come close to touching 43% overall.
I honestly question the 13% average as well. 47% of households are at 0% and if you’re under $200,000 as a married family than you are under 13% if you just take standard deduction and personal exemptions and nothing else.
Under $200,000 is around the 95% of families in the US. I guess the extremely high earned income families might pull it up but it takes a lot of 44.3s to bring up 47 0s to 13.

By: Jerry Brown

Jerry Brown — Wed, 29 Nov 2017 21:46:56 +0000

Wow, I am not doing as bad as I thought! I still have a ways to go though

By: Kristine

Kristine — Wed, 29 Nov 2017 19:22:41 +0000

I think I’m above average where it counts. To your point, savings rates are incredibly subjective. I do “after tax” and based only on my “salary” and actually don’t include my AirBnB side hustle income since I wouldn’t be making that money if I wasn’t living in an expensive house that cost me that much money… :)