The DOW is at an all time high of over 22,000. That is great news for people who are investing...
The question is, what percent of the population is in the market and reaping the benefits?
Not everyone buys individual stocks or trade on daily basis. Some are indirectly invested based on their 401K or 403B accounts.
Apparently, based on latest numbers, 66% of the people are invested in some form of pension savings accounts, and the majority of them are invested in the stock market one way or another. Either with targeted mutual funds or index funds...
This rally is bringing wealth to most Americans. This should be a boost to our economy if not a boost to our savings...either way, we have to thank Trump...His economic policies and business friendly posture and reduced regulations have brought about this change of attitude.
I hope very few people would trade on a daily basis, most who do lose money....
I expect the number is limited given the limited percentage of people who are in a position to save at all. In a great many cases people are wise to choose to address debt first, and student debt is often a substantial burden.
However everyone should certainly look into whether there are benefits they are leaving on the table like employer matching in 401ks which is essentially free money, and whether there are things they can do without now in order to save for retirement or in case of an unexpected expense of loss of income.
I agree with you. The best thing a person can do is to put some of their income in 401k plans especially the companies match up to a certain percent.
My point in asking this question is that most people don't realize how many are affected by the stock market.
Even if one does not trade in stocks, he or she may own mutual funds through their retirement accounts.
Therefore, when the market do well, those people will benefit.
For those who have choices in investments, you need to look closely at what funds your 401k are in.
The returns can vary drastically. In most cases, a simple index fund or ETF has a better return than some of the more expensive managed funds.
The millionaires and billionaires are making millions and billions of dollars in the stock market, but the middle class is making little more than peanuts. The poor, once again, are the losers. Who is helping the poor? Answer: Nobody !!! The only "economy" it's helping is for the wealthy.
If you are talking about the 12% below the poverty level, then of course they have little to gain. But then again, according to some estimates, they are getting in benefits the equivalent of a 40k a year salary.
The people in the lower middle class, from 12% up to about 50%, are getting some benefit from their company pension if they are working...
The higher up you go, the more money they will get just because they have more assets invested. If someone has 100k in savings, a 10 percent return will get him 10k. That is significant.
There is one class of people who are losing...in this economy and that is those retired and living off a fixed income. Because the inflation rate is low and the interest rate is even lower, they are not getting anything in terms of investment income, unless they are in the stock market.
My point in all this is that more people are getting a benefit when the current market is up, directly or indirectly. All good...
It's nickels and dimes for the middle class . . . and millions for the rich (maybe billions.) The really poor get nothing -- and, with inflation, they get less than nothing -- and nobody cares.
Absolutely, jackclee lm. There's nothing wrong with being rich, but no one person should ever be able to accumulate billions of dollars. Do you have any concept of how much money one billion dollars really is? The system is broken. The wealthy use that obscene amount of money to buy politicians and create laws that favor them and keep millions of hard working Americans living under harsh conditions. There's enough money in our country to allow every one of the 322,762,018 Americans to live very comfortably. The people who actually work the hardest in America are paid the least. The wealthy sit back and collect millions merely on their so-called "investments" (that are outlandishly rewarded merely because the rich control the rules of the game. Don't be fooled.)
So what do you think is a reasonable tax rate for the rich? Is it 50% or more? The big question is at what point do you kill the golden goose?
There is no Golden Goose. The solution is not as simple as raising the tax rate. The real problem begins with the laws of incorporation that require management to put its stockholders above everything else. The whole system is broken.
by HarshitG4 years ago
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by SPomposello5 years ago
Let's say your employer doesn't match anything with your 401k, and you have no issues with saving money, you don't have a million expenses... is there any point in having a 401k, iRA, or anything of that sort then?I've...
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