Saturday, May 4, 2019

All Trump's Fault

5/3/19 Associated Press:
WASHINGTON (AP) — Hiring accelerated and pay rose at a solid pace in April, setting the stage for healthy U.S. economic growth to endure despite fears of a slowdown earlier this year.
Employers added 263,000 jobs, with the unemployment rate dropping to a five-decade low of 3.6% from 3.8%, though that drop partly reflected an increase in the number of Americans who stopped looking for work. Average hourly pay rose 3.2% from 12 months earlier, matching March’s year-over-year increase.
Friday’s jobs report from the government showed that economic growth remains brisk enough to encourage strong hiring nearly a decade into the economy’s recovery from the Great Recession. The economic expansion, which has fueled 103 straight months of hiring, is set to become the longest in history in July. [emphasis added]
Why would stop looking for work?  Because your 401k or IRA has grown so much you do not need a job, perhaps?  Bad Orange Man screwing over American people again!

2 comments:

James Gibson said...

I will try and explain the flaw in your logic Clayton. Okay Lets say I have an IRA that has grown from $335,000.00 in 2014 to $415,000.00 now. In short its gone up 33% roughly in five years. If the IRA continues to grow, in ten more years you might have $750,000 when you hit 65 and can start drawing Social Security. You can start taking money out of the IRA at 59.5, but there are limits without penalties.

The issue is what do you live off of until you hit those magic age numbers. I have a separate account of money that is in a market fund so it makes something. I would like to buy a house easily, but thanks to Dodd Frank I have to be working for two years to get a mortgage. Based on what I am now paying for rent I could easily handle a 15 year mortgage. But No, I must use what I have in the other account to buy a house directly and then live off the remainder until I hit the magic ages. The issue is thus not what the IRA gives me in 10 years, but how much I need to survive until then. I'll be able to buy quite a house by then, but too old to enjoy any off it.

Clayton Cramer said...

Of course, many people can retire at 59 1/2 because of their 401k or IRA. If the stroke had not taken me out when it did, I was already planning to retire at 59 1/2. Perhaps not quite as comfortably, but I was starting to plan the health insurance part.