{"id":83872,"date":"2024-07-06T01:00:33","date_gmt":"2024-07-06T08:00:33","guid":{"rendered":"https:\/\/lenpenzo.com\/blog\/?p=83872"},"modified":"2024-07-10T14:38:50","modified_gmt":"2024-07-10T21:38:50","slug":"black-coffee-6-july-2024","status":"publish","type":"post","link":"https:\/\/lenpenzo.com\/blog\/id83872-black-coffee-6-july-2024.html","title":{"rendered":"Black Coffee: Fix It Again Tony"},"content":{"rendered":"

\"\"It’s time to sit back, relax and enjoy a little joe …<\/em><\/p>\n

Welcome to another rousing edition of Black Coffee, your off-beat weekly round-up of what’s been going on in the world of money and personal finance.<\/p>\n

I’ve got another busy weekend ahead of me, so let’s get right to this week’s commentary …<\/p>\n

The mechanic that would perfect his work must first sharpen his tools.<\/em><\/p><\/blockquote>\n

– Confucius<\/strong><\/p>\n

In 1971, the US closed the ‘gold window,’ starting an unprecedented era of global fiat money. Never before had the world operated on the basis of no country anywhere having a currency tied to gold.<\/em><\/p><\/blockquote>\n

– Max Keiser<\/strong><\/p>\n

The worst car I’ve ever owned was a Fiat X19.<\/em><\/p><\/blockquote>\n

– Ant Anstead<\/strong><\/p>\n

Credits and Debits<\/strong><\/p>\n

Debit:<\/strong><\/span> Did you see this? Over the past year, Target management has complained on earnings calls about so-called ‘shrink\u2019 – that is: \u201ctheft\u201d – that has squeezed their profit margin. As a result, management is instituting a new policy this month that will permit employees to intervene and halt criminals from leaving the store with as little as $50 in stolen goods<\/a>; the previous threshold was $100. So thieves will soon have to make two<\/strong><\/em> trips to Target instead of one. Heh. I wish somebody would tell these thieves that, if they were truly<\/strong><\/em> creative, five-finger discounts wouldn’t be necessary …<\/p>\n

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Debit:<\/strong><\/span> In other news, a new study has determined that the cost of living in some American cities has skyrocketed so much that retirees who expect to live in them for 25 years now need more than $3 million<\/a> to be considered \u201cwealthy.\u201d Of course, it all depends on which city one chooses to retire; but suffice to say that among America\u2019s 50 largest cities, if you plan on retiring rich, you\u2019ll need $975,000 at the low end and $4.7 million at the high end. Especially if you enjoy restaurant dining. Just be careful what you order …<\/p>\n

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\"\"Credit:<\/strong><\/span> So … how does one go about retiring rich? More than 70% of wealthy investors between 21 and 43 no longer think it’s possible to achieve above-average returns<\/a> by investing exclusively in a traditional mix of stocks and bonds; in contrast, only 28% of Gen X and Baby Boomer investors share that view. As a result, younger investors are more likely to buy alternative assets. For example, 49% of millennial and Gen Z investors own cryptocurrencies, and 45% own physical gold, compared to less than 2% of all<\/strong><\/em> US investors whose portfolios include the yellow metal. Hey … you can scoff at those young investors, but their strategy certainly has a higher success rate than this<\/strong><\/em>:<\/p>\n

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Debit:<\/strong><\/span> In the meantime, 55-year-old Americans have a median retirement savings of less than $50,000. That\u2019s bleak news for Gen Xers<\/a> who are less than a decade away from retiring. It’s also a far cry from the target of having eight times your annual income saved by this age. (For you Gen Xers who earn $6250 annually, we apologize for lumping you in with those other Gen X deadbeats.) That being said, to be fair, every<\/strong><\/em> generation has its share of ants and grasshoppers. Different strokes for different folks, and all that jazz …<\/p>\n

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Debit:<\/strong><\/span> By the way, it\u2019s not just the future that looks grim for Gen X; they\u2019re just squeaking by<\/a> right now<\/strong><\/em>: A new survey has found that more than one-third of 55-year-olds admit that they don’t have $400 to cover an emergency expense. Contrast that with 19% of 65-year-olds, and 15% of 75-year-olds. On the bright side, we\u2019re sure they can discuss ways to improve their financial situation over a little lunch. Oh, wait …<\/p>\n

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Debit:<\/strong><\/span> Not surprisingly, regardless of which generation your from, it takes the typical American household $1069 more a month<\/a> just to purchase the same goods and services that it did three years ago. And if you think that\u2019s bad, you probably don\u2019t want to know how much more expensive life has become since the the US dollar\u2019s (USD) anchor to gold was broken back in 1971. Then again, if you\u2019re the curious type, just ask the Kremplers …<\/p>\n