As some people here know, I have three volunteer jobs. I am the treasurer of the tax district, the president of the investment club, and the head of the crossword blog. Although retired, I still have things I have to do and meetings I have to attend.
I have been thinking maybe I should retire completely when I am 80.
In order to understand stock prices, you have to look at the modern economy. In the 1980s, say, things were entirely different. The demographics, the distribution of income and wealth, the tax system. Stock prices made sense for the structure of the economy. The production of physical goods was important, and commodities were a large part of the economy. Most people relied on earned income to buy these physical goods. The money supply was controlled to prevent the price of physical goods from rising. Today, everything is entirely different. People earning money to buy physical goods is a backwater of the economy; this is something poor people do. The stock-buying class lives in a world of virtual reality and artificial intelligence. Their money and assets are synthetic too. There are trillions of dollars in M1 and M2 that are not needed for the physical economy. In this artificial reality, anything is possible. What is interesting is that you can still cash in your virtual wealth and buy stuff at the store.
The main problem would be picking out the millionaire next door, and distinguishing him from the guy who really is a couple hundred dollars away from being a homeless vagrant. Criminals don't even think this way; if they had money, they would flaunt it, so they are looking for people who are flaunting money.
In our group, our host is a centi-millionaire and serves a $65 cake every week. He is well aware that you can't take it with you. His coffee is pretty good, too. I am in charge of providing and making the tea.
You idea of the middle couple probably is the middle for people who read financial advice on the internet, but is not the actual middle. Most retirees, married or single, would be thrilled to have an income of $180K or $150K.
My Friday men's group: Gas: $25
Tolls: $15
Lunch: $25 So I'm spending nearly $3500 a year to meet every week with a bunch of old guys. Everybody else comes every week too, so I guess everyone likes it.
Given modern lifespans, it is likely that many of those receiving inheritances will already be retired, and have substantial assets of their own. Work ethic? Well, not applicable if you don't work any more.
The big issue in any luxury purchase is simple: can you afford it? There are wealthy retirees who can afford all the stuff that the retirement videos tell you not to buy. Yes, if you have $20 million, you can buy a new Corvette....if you wish to do so.
I would add another important factor: the Federal budget deficit, and the resultant vast increase in the money supply.
In the past 25 years, M1 and M2 have gone up sharply, and there is more money in circulation than the economy needs to run. With structural wealth inequality, this excess gravitates to the investing classes, who already have more money than they can spend. These people will use the money to buy stocks and bonds, driving up the prices of investment assets.
Of course, this can't go on for ever. But it can go on longer than you would expect.
Comments
As some people here know, I have three volunteer jobs. I am the treasurer of the tax district, the president of the investment club, and the head of the crossword blog. Although retired, I still have things I have to do and meetings I have to attend. I have been thinking maybe I should retire completely when I am 80.
Post: What I Retired To
Link to comment from July 29, 2026
In order to understand stock prices, you have to look at the modern economy. In the 1980s, say, things were entirely different. The demographics, the distribution of income and wealth, the tax system. Stock prices made sense for the structure of the economy. The production of physical goods was important, and commodities were a large part of the economy. Most people relied on earned income to buy these physical goods. The money supply was controlled to prevent the price of physical goods from rising. Today, everything is entirely different. People earning money to buy physical goods is a backwater of the economy; this is something poor people do. The stock-buying class lives in a world of virtual reality and artificial intelligence. Their money and assets are synthetic too. There are trillions of dollars in M1 and M2 that are not needed for the physical economy. In this artificial reality, anything is possible. What is interesting is that you can still cash in your virtual wealth and buy stuff at the store.
Post: Market Indicators
Link to comment from July 26, 2026
The main problem would be picking out the millionaire next door, and distinguishing him from the guy who really is a couple hundred dollars away from being a homeless vagrant. Criminals don't even think this way; if they had money, they would flaunt it, so they are looking for people who are flaunting money.
Post: Can we be completely safe?
Link to comment from July 25, 2026
Yes, but when you get to $300K or $400K, you start to pay considerable tax, particularly if you are single.
Post: Widow Tax
Link to comment from July 25, 2026
In our group, our host is a centi-millionaire and serves a $65 cake every week. He is well aware that you can't take it with you. His coffee is pretty good, too. I am in charge of providing and making the tea.
Post: One Person’s Luxury, Another’s Necessity
Link to comment from July 25, 2026
You idea of the middle couple probably is the middle for people who read financial advice on the internet, but is not the actual middle. Most retirees, married or single, would be thrilled to have an income of $180K or $150K.
Post: Widow Tax
Link to comment from July 25, 2026
My Friday men's group: Gas: $25 Tolls: $15 Lunch: $25 So I'm spending nearly $3500 a year to meet every week with a bunch of old guys. Everybody else comes every week too, so I guess everyone likes it.
Post: One Person’s Luxury, Another’s Necessity
Link to comment from July 23, 2026
Given modern lifespans, it is likely that many of those receiving inheritances will already be retired, and have substantial assets of their own. Work ethic? Well, not applicable if you don't work any more.
Post: K-shaped Economy
Link to comment from July 19, 2026
The big issue in any luxury purchase is simple: can you afford it? There are wealthy retirees who can afford all the stuff that the retirement videos tell you not to buy. Yes, if you have $20 million, you can buy a new Corvette....if you wish to do so.
Post: A Can of Worms
Link to comment from July 19, 2026
I would add another important factor: the Federal budget deficit, and the resultant vast increase in the money supply. In the past 25 years, M1 and M2 have gone up sharply, and there is more money in circulation than the economy needs to run. With structural wealth inequality, this excess gravitates to the investing classes, who already have more money than they can spend. These people will use the money to buy stocks and bonds, driving up the prices of investment assets. Of course, this can't go on for ever. But it can go on longer than you would expect.
Post: Open Questions
Link to comment from July 13, 2026