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imacomputertoo | 1 year ago
I'm also tired of people saying the American dream is about becoming a billionaire. It's not. It never has been. It's always been about having the opportunity to improve your wealth and living standards. Sometimes that means just leaving something better for your children, much like the Italian and Irish immigrants did That American dream is very much still alive.
On a related note, I'm tired of hearing people say they can't afford to buy a home. Buying a house is a very expensive and slow way to build wealth. These people would do better to put some money into a low cost index fund, or max out their 401k if they have one.
Obviously, the very poor do not have money to invest with, but they can give their children a better life. it's certainly not easy, but it's possible. The working class, however (not the most poor), routinely chooses to put their money into flat screen tvs, Iphones, expensive vehicles and clothing, and other depreciable assets. We've failed to teach people how to take advantage of the abundant opportunities in America, and we have a culture of frivolous spending.
pjc50|1 year ago
Buying a second house may be questionable, but the first house has so many tax and leverage advantages as well as "hedging" against the volatile rental market. Especially when Americans can get 30 year fixed mortgages!
> but they can give their children a better life. it's certainly not easy, but it's possible. The working class, however (not the most poor), routinely chooses to put their money into flat screen tvs
What if they want to give themselves a better life, rather than just their children?
> flat screen tvs
All TVs are flatscreen now. This is a "tell" that somebody is mentally copy-pasting a rant from the early 2000s.
imacomputertoo|1 year ago
I hear this so the time from people who have never owned a home. It's partly true, but not as good if a deal as you think. True that you don't have to pay capital gains taxes when you sell, but that's true of 401ks when taking distributions.
As for HELOC loans, well that's more debit in to of your mortgage. You could get that from an SBLOC from your brokerage account, and under some circumstances, from a 401k. Again this is all more debit, and you don't want that unless you are desperate.
Finally, owning a home does not protect you from increasing housing costs. Increasing property values will increase your taxes and insurance every year, just like a rent increase. Maintenance costs will hit you like a hammer. In the end you pa thousands to maintain your home every year. The only reason to buy a house is to capture a small percentage of the over all cost in equity. But it takes about a decade before that saves money over renting.
All these people complaining about not being able to afford a home don't even have savings. First, get a few months of savings, then max out your 401k or open a brokerage account, then consider buying a house if you think you'll live there for a year.
>What is they want to give themselves a better life
That's not always possible. If you immigrate at the age of 50 and you're very poor, it might be too late. Still, many people will simply benefit from living in a more stable nation.
>All tvs are flat screen now
It was true in 2000 and it's true now. maybe I should have said 4k tvs? it makes no difference.
coldtea|1 year ago
Doesn't make it less true.
>I'm also tired of people saying the American dream is about becoming a billionaire. It's not. It never has been. It's always been about having the opportunity to improve your wealth and living standards.
True, but that's what is argued that has regressed (and the numbers back this up).
>On a related note, I'm tired of hearing people say they can't afford to buy a home. Buying a house is a very expensive and slow way to build wealth.
Which is irrelevant. People want to buy a home to have a shelter and not be subject to raising rent, evictions, and insecurity. Not necessarily to "build wealth". And, in past decades, they used to be able to buy a house, without huge mortgage costs, and pay it off quite early too.
j7ake|1 year ago