k... i know this post was from exactly a month ago... but i happened to stumble across it and couldn't help saying something. the US is actually considered one of the worst of all the industrialized nations as far as quality of life goes. compared to countries like sweden that have things like national health care and higher welfare spending, the US is actually pretty shitty. i could go into great detail...but i won't. and please don't say "well if you hate the US so much, why don't you just leave, you dumb commie bitch." i'm just stating facts...

 

c unit - what does "higher welfare spending" mean? The entire USA welfare system is completely broken. I would have to guess that maybe 10% of the welfare people may actual use it properly as a crutch, then move on to become something. the other 90%+ sponge off the working folks for life.

i have ~10 section 8 tenants in rental houses. every single one of them works the system. Boyfriends live there rent free, somehow they all have big screen tv's, fancy fingernails, etc......

I would hate to have even HIGHER welfare spending.... that would just encourage more scamming of the system.

 

Scot,
I'd like to hear what you have to say about my thought...because of your "landlord" title.

I was thinking: If the gov't decides to give Suzy $XX.XX worth of welfare because she has one child, she will then get 2*$XX.XX for having another child.
(The above may be far off, but details are not important)

Now, why can't we just say, "You get $XX.XX no matter HOW many more kids you have. STOP HAVING KIDS NOW!" ?

My girlfriend is months away from a Master's Degree in Sociology, and she has given me reading material that may help to explain why certain people won't react to this type of "control mechanism". I haven't read this yet, but I can't see it changing my mind.

 

Just look at the interest rates on your debt as opposed to the gains on your 401k. If you're paying 18% on outstanding credit cards and can pull out money from your 401k (depends on the type) it's probably a good idea to do it.

Typically you make great returns for adding new money into a 401k tho. For instance your employer matches you dollar for dollar for the first 8% you put into your 401k. For every dollar you put in you get two out BEFORE any gains. If your running through a typical mutual find and makeing 6% gain a year your getting a return of 112%. One dollar in = 2.12 out. Hard to beat that.

It may sound contradictory, but pulling the 10k out of your 401k to pay off your debts (despite the possible 10% early withdrawal penalty) while continuing to pay the 8% of your salary in could likely be the best decision. It all just depends on the returns you are getting from your 401k and the interest rates on your lines of credit.

What ever you do, don't contribute less than 8% to your 401k.

 

Thanks for the advice! I am and will continue to place 15% into the 401K. I believe there is a hardship withdrawal opinion that has minium penalty ( 5-10%).

Thanks Again.

 

Not sure how fair that would be to the people with 5 kids if they are "only" getting the same amount as the person with 1 kid. I would be for it, but I am not the dumbass who let every deadbeat guy blow his load in me either.

Even though they get free stuff and get to sit on their porches all day every day it is a horrible life in my opinion.

I have offered $25.00 to any kid to get good grades, but that doesn't seem to motivate many. I think everyone is too wrapped up in finding out the latest "bling" and how to work the next scam instead of being productive.

I have also noticed that every tenant turns the heat up to 80F in the winter and often the kids will be shirtless..... I ask how they can afford it and they say they have assistence!!!! "I ain't gonna wear no sweatpants" was the reply i got from one girl.

Overall the Section 8 tenants are not much worse to my houses than regular working tenants, so that is why i still rent to Section 8. The gov't pays right on time every month which is better than any of my working tenants. I will continue with Section 8 although I wish they would motivate themselves to get a better life.

 

What I was getting at is...when the first "handout" is determined, they should lock the cashflow at $XX.XX. If you already have five kids, then you'll get 5*$XX.XX (one for every kid). It's just not going to increase as you have more children later.

I'm having trouble dictating my thoughts here.

 

i gotcha..... we will pay for your past mistakes, but not for any future mistakes.

I am not sure if other countries have welfare like we do? does Japan? China?

My tenants also drink good beer.... my neighbor was pissed when i took him down to one house.... You would think people on welfare / section 8 would be barely getting by......hell's no..... it is all a big game.

 

Welfare only exacerbates the problems of the poor. Instead of figuring out ways to improve their living situation, they'll work the system to get the most for nothing. Hence the max# of kids (I think it's capped at 4) and not holding a job(otherwise welfare subsidies drastically reduce).

It is completely absurd when people say the US has one of the "worst qualities of life in industrialized nations", then state universal healthcare. OrLY? Total BS. Take a look at who has one of, if not THE BEST medical establishments in the world. Bring in government control=stifle innovation. Also, take a gander at what the wait time for a simple appt. is in Canada for a checkup, compare that to the US.

 

Welfare spending in this sense is the government's spending on the entire population to improve quality of life. Typically programs like free education (Bahrain), healthcare, childcare, extended maternity leave etc. These programs are supposed to improve the welfare of the general populace.

All of this of course costs money. It basically underestimates the thinking power of the average adult to take care of themselves and puts that responsibility on the elected officials. You see less of your money in your paycheck as taxes creep into over 50% ttl income. No thanks. Give me more of the money I've worked hard to earn and let me decide how to spend it.