Jun 9, 2006, 06:48 AM
Local time: Jun 9, 2006, 10:48 PM
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#1 of 11
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I'm interested to see how the discussion is focused on the financial market namely stocks, bonds and the likes.
What about property, gold and currency? Perhaps you'll run a business or win the lottery? Money comes in many ways although the most important is our salary.
With the influx of money through all means during our lives, a superannuation contribution and personal savings, together with interest and other sources of income is generally the standard for accumulating for retirement.
A bigger proportion of money saved for retirement will not help much because there is inflation in the long run and it will put you into financial hardship for rent/mortgage, let alone general expenditures. Also, if many people do this, it will affect aggregate demand and consumer confidence collapse in a spiral, ratchet effect.
As long as we don't save too little and not more than half your income, you will in a good position in the long run given wise moves throughout life.
I think this relates to "Paradox of Thrift".
How ya doing, buddy?
Last edited by Innate; Jun 9, 2006 at 04:10 PM.
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Innate