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Savings

 
 
rhymer
 
Reply Tue 11 Nov, 2008 06:23 pm
Why do politicians regard a persons savings as money they do not need.
No consideration is given or advice offered to define the level of savings a person should strive for, based on their family commitments, their age, their health, the security of their job, or the level of day to day luxury the person seems to desire!
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roger
 
  2  
Reply Tue 11 Nov, 2008 06:33 pm
@rhymer,
Quote:
Why do politicians regard a persons savings as money they do not need.


Why do you believe this.
rhymer
 
  1  
Reply Tue 11 Nov, 2008 06:59 pm
@roger,
In the UK at least, there is no 'tax free' level of savings. All savings are taxed on their interest, even for non-tax-paying paying people.
Also, most benefits are limited by the levels of savings a person may have.

A person or family living frugally to save for hard times is thereby penalised financially by politicians, whereas a person or family who spends all their money is eligible for all benefits because they have no savings!

In the current climate of debt-ridden economics, those going into debt are being refinanced by those who chose to save. Those who chose to save, now have to cope with reduced income from savings because interest rates have collapsed solely because of unsecured debt.

(There obviously needs to be some protection for those who earn so little that they cannot afford to save anything).

So, spend all your money to in order to obtain maximum benefit from other people!!!!
Accept personal insolvency when it arrives and congratulate yourself that you have consumed as much as possible at the expense of savers.
roger
 
  1  
Reply Tue 11 Nov, 2008 07:14 pm
@rhymer,
I see. There are definately some disincentives over there, then. We have some penalties for assets as well, but most of the focus is on income. We have a couple of tax advantaged plans in the U.S. Contributions to IRA accounts and 401k plans are deducted from income, with tax being paid at the time of withdrawal.

I didn't realize the background to the question. If I had, I wouldn't have posted my first answer exactly as I did.
rhymer
 
  1  
Reply Wed 12 Nov, 2008 03:24 pm
@roger,
Your post was simply a question Roger - and well worth asking!

I haven't given a full story anyway.
We do have tax incentive savings, but their rate of return only makes them equivalent to available higher interest rates with some tax taken back before you get it!

Take care.
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