RE: Study Results

[Michael Jones <powderfinger99@yahoo.com>]

J.P.

Great study.

<<<
But only an infinitesimal
percentage of people who start off poor end up rich these days in
America. The overwhelming majority of people that start off rich,
however, end up rich.
>>>

There is ample evidence that this is just not true. I recommend
that you read the book, 'The Millionaire Next Door'. Their studies
show that only 20% of wealthy people inherited wealth. The
other 80% accumulated their wealth over their own lifetime.

Please don't confuse wealthy people with people who have high
consumption living and high incomes. People who buy expense 
cars/homes/possessions are not necessarily wealthy. Most wealthy 
people are quite average people who save/invest, live below 
their means, and work hard. This is the lesson of TMND.

I'm not wealthy, yet. I want to see the day when every
person has the same access to tools to build wealth as I do.
This is really what it's all about. Enabling people to become
wealthy through the fruits of their own work.

<<<
Plus,
it's funny that you say [being successful] "does not have to be
realized on the backs of people who have already made it."
>>>

Specifically, what I meant was that the key to improving the
standard of living and financial security of workers is to enable
them to have access to the same tools as wealthy people use.
In other words, enable people to become wealthy, not confiscate
the wealth of people who are already successful.

It might be helpful to note that I did not come from a well-off
family. Both my parents were laborers and they each did not 
attend college.

Even though my parents had it tough, they did manage to have some
investments. They came later on in life, but nevertheless it
demonstrated to me that investing works. My parents investments
weathered the '97,'98 market downturns, the '87 market crash, the
'91 recession, etc. My parents are not savvy investors at all.
Basically they bought quality companys and never sold. That's
the secret.

<<<
So, what,
all I have to do is put money I don't have in the bank or a mutual
fund, and in 30 years I'll have enough money to retire on?
>>>

You do have enough money. 12.4% of your lifetime income is saved
especially for you in the Trust Fund. Don't you want the best
retirement from this investment?

It's easy to determine what you would have in 30 years. Here's
a calculator to help. Punch in some numbers and find out!

http://www.calcbuilder.com/cgi-bin/calcs/SAV2.cgi/FinanCenter

<<<
we all lived in a magical fairy land where banks and mutual funds
weren't constantly engaged in speculating with my money and, thus,
there were no major market crashes or bank failures in the next 30
years
>>>

Now, who is acting child-like, anti-social, Hmmm?

The fact remains that you could invest in 100% treasury bonds
in your own investment account (all private accounts offer these
types of investments) if you did not want to participate in 
the stock market.

It's called choice. Why do you want to chain me to mediocrity
and prevent me and many others from making choices in my own
retirement? Especially considering that there are options
for everyone to chose to their own liking?

I encourage you to learn about investing. Understand why market
downturns occur and why over the long run the market still
goes up. Here's a good starting point: http://www.fool.com

~~~

Michael