The Wall Street Journal reported defaulted student loans last quarter totaled $84 billion. Defaulting, especially on the scale of $84 billion, can also have repercussions for the entire economy. The Federal Reserve Bank of New York has researched how student debt has depressed home purchasing by young adults, and found that as much as 35% of the decline in home ownership of people in their late 20s can be attributed to student loans. Defaults make it harder to take out credit or even own a credit card, stifling additional economic activity. Even with a strong national economy and a low unemployment rate, loan defaults can weigh down the entire country. Permanently defaulted loans are ultimately the burden of taxpayers, and the federal budget will pay out if the loan program continues to lack revenue. A Big Question continues to grow in scope.

I didn’t suggest it. Ray Dalio spelled it out in his all weather portfolio back in 2014. You can google it. He’s had great success and is worth about $14Billion and manages about $150Billion. He suggests a balanced asset allocation which you can find if you google it. I’m not selling anything other than suggesting some might want to look at it. It’s worked pretty well for his clients with minimum assets of $100Million. He must know a few things about money management was all I have been saying about the man.

The Phd is totally 100% wrong if she is saying if everyone invests long the markets in say the SPY or VTSAX that it won’t work. Do what? VTSAX and SPY have never gone broke. If SPY goes broke we are all broke, back to the Stone Age. If everyone bought stocks and had zero debt the only people who would lose money are lenders who screw people who don’t have enough to pay cash. I think there are plenty of people who will always create debt by borrowing and financing to make the banks richer. So I’m dying to here from a PhD exactly how to many people buying stocks or proper balanced asset allocations is a bad thing. Buying VTSAX type instruments over long periods of time beats the majority of all actively managed funds btw. Most fund managers can’t beat the SPX over time. Low cost index funds like the VTSAX are pretty safe investments long term because our markets history since it’s birth has averaged 7 to 10%. 7% if you account for inflation but not included here is the power of dividends.

How does saving, investing wisely with the power of compounding over time, living without debt, and wanting our nation’s kids to become more educated as well as adults twisted around in a thousand different directions here in this forum? It’s an equation. To much debt on all levels+ not enough savings and investing properly+not enough education and planning and working the plan to fix a nation with too much debt=a catastrophic disaster if it’s not fixed with education then what? It’s pretty simple. Educate. That or we live through another Greater Great Depression. If we as a nation don’t fix what’s broke by more education then how do the PhDs here propose we try to fix it? Please don’t tell me just print more money from thin air to keep the markets propped up globally like all Central Banks have done. Not when our FED is starting its unwinding.

I am trying to convey that our countries ever increasing debt burden that now exceeds our GDP is not healthy. You are the PhD, tell me how a nation which has no control at all over its own sky rocketing spending and debt level is a healthy thing. Tell me from your professional education how personal debt levels once again are at all time highs and most people are drowning in debt, how is this healthy for our country? How is this form of money management a good thing? Please, just stay focused on the topic I brought here, money management. I’ve been saying all along our increasing debt burden in all sectors of our economy are growing way beyond our means. Most cities and states unfunded liabilities are in big trouble. Huge debt levels that exceed our GDP are not healthy. A FED that has created Trillions of dollars of debt to backstop our markets is not healthy but a temporary illusion with possible dire consequences. Personal debt and lack of savings for retirement in our nation is a very serious issue. How are these specific factual topics good for our nation? Can we educate our way out of an economic meltdown? You are the PhD in finance, you tell me how extreme levels of debt are good.

Thank you for suggesting Mike Rowe. He’s trying with his heart to fill a great void in our country. I love his work and his passion.

Honesty?I knew this was a forum for homeschoolers but I also thought there were many college professors, public school teachers and business owners as well. That was all I meant. I thought there was a larger spectrum of public and college level teachers. My mistake. I assumed this from a friend who told me about this forum. Why would you call me out for suggesting our entire country needs to educate our youth more in money management by looking at the facts, and how much debt in all sectors of society there is? How else should we reverse this terrible trend if not through much more education? As an educator, why would you lambast and insult me for suggesting that more education is needed regarding a dire situation in our country. You are not protective lady, you are rude and insulting. I make a few factual points aimed not at this boar, but at the terrible state of debt our country is in, and most of you that replied as if I was attacking you personally even though my statements clearly stated I was talking about our nation’s education system, not you the reader. What it looks like to me is not protecting your forum, but attacking new comers out of discrimination, prejudice, hatefulness, name calling and just pure rudeness. Learn some manners ladies please. I’ve never in all my life stirred up a hive like this by suggesting that more kids, not your kids, but more kids need to learn the power of compounding and many more money skills. Who would have thought suggesting a man worth $14 billion and using some of his systems for asset allocation not aimed here but in general as an education tool would be thrown back in my face like I was selling an out of date vacuum cleaner as a door to door salesman. I’m starting to think most of you like to fight instead of teach, but maybe it’s both, maybe you like to fight just to fight a guy who suggested that our nation has a huge debt problem and maybe more education might help. But then again, maybe not. Maybe we just keep racking up massive debt in our country and bashing a guy like me who asks what are we teaching our kids about money management and how are they going to fix what our generation has handed them. Blaming others and bashing people like me for asking questions about it is not going to make our country better.

An example of a nice reply. It’s all I was wanting, a little feedback. It was the first reply before older posters came back with attacking me. At that point of the riot it became instantly unpopular to be nice and extremely important to be part of the fight against a guy asking a simple question or sharing examples of success stories. I never said anyone should do this or that, I just gave examples of how some of this countries most successful managers do it but the story line was here was instantly twisted to me preaching. I think it was all crowd control, the oldest posters here took a stand and said how dare this man prick come here and ask such questions. People usually don’t against those well established in any crowd, this place is no different but for the few polite mothers, thank you for your kindness. I think some of you got off on the man bashing thing. Excellent show of support for the old posters here who set the tempo, bravo.

Thank you so much for your positive feedback. I understand fully.

You are correct, my question was answered. I’ve learned a lot from you all, especially about how to communicate better on my part. I apologize for the preaching, that’s 100% my fault. Humbled from mistakes here, I’ve learned a lot from all of you. Thank you again.

You are correct, my question was answered. I’ve learned a lot from you all, especially about how to communicate better on my part. I apologize for the preaching, that’s 100% my fault. Humbled from mistakes here, I’ve learned a lot from all of you. Thank you again.

Just one more example of insulting. What a rude bunch of people. Pitiful and petty

Where in all my posts did I say anything about get rich quick? I didn’t. I know for a fact by reading back through the responses here my original question was turned from one simple question into a non stop barrage of rudeness, insults, and ideas I never mentioned like pumping a get rich quick scheme. I also realize I should never have posed this type of questions to home school moms. It was a total mistake on my part. I thought I was posting to a board of public educators, college professors and possibly businesses leaders. It was a huge mistake to come here and waste all of your time with asking anything concerning money management skills. I was and have been totally out of line here by asking such a question concerning education. I truly am sorry for all the trouble I’ve been.

End of thread.

Am I understanding you properly? You are calling Ray Dalios historical unmatched performance over 30 straight years a methodology that others should not trust nor try to follow with asset allocation discipline? http://fortune.com/2017/09/13/ray-dalio-bridgewater-associates-book/ I was trying to point out Rays methodology and performance, not mine. So, if you were going to teach advanced money management skills are you saying you would not use Ray Dalios unmatched long term performance as a great example of proper asset allocation, one that he shared with the world in 2014? If not using a winning system or example of the all weather asset allocation plan like Rays do you have a more stable profitable growth plan you can share with Ray, myself and the likes of Tony Robbins?

In my opinion Ray Dalio has the closest thing to a long term stable approach to asset allocation.Ray is worth over $14Billion and runs a closed hedge fund worth over $150Billion. Please read the links below. His biggest draw down in 2008 using his conservative approach was approx -3.93%. It averages 9.72% per year since 1925 back tested. http://awealthofcommonsense.com/2014/11/back-testing-tony-robbins-weather-portfolio/ Duplicating The All-Weather Fund Using Low-Cost ETFs https://www.tonyrobbins.com/wealth-lifestyle/the-end-of-the-bull-market/"]https://www.tonyrobbins.com/wealth-lifestyle/the-end-of-the-bull-market/[/ur Other successful investors like Buffet dollar cost average into the stock market. The average stock market return since the 1920’s has been around 10%. The question was where can 8% returns be had? History proves if you dollar cost average and hold forever the trend is most likely your friend. It’s still the best game in town for growing your money. For less volatility an all weather Ray Dalio asset allocation is best. It’s worked for his very rich clients. Hope this helps. So the thread began with educating our youth concerning money management. I never meant to preach to anyone. I truly apologize to all if I offended or put anyone off. I know there are extremely intelligent people here. I hope we all can help those out there in the world who just don’t know. Helping others I think is always a great thing.

I never attacked the people here, nor said they weren’t teaching their kids. However I do find here people who make us things concerning my posts. I never attacked or berated anyone here. It’s been the opposite. I wasn’t preaching, I suggested our society needs more education concerning money management and I pointed out the dire fact of a country full of all kinds of people who find themselves in huge debt while they sip their $6 Starbucks and Tweeting away on their $1,000 iPhone while Christmas shopping charging more on their credit cards making Visa and Macy’s richer while striving to pay off their college loans and 84 month car loans on top of their 30 year house note making yet another bank richer. We have vast tools in our country we can use to get ahead, like supportive families who are now helping each other by living at home longer to cut down on the outrageous cost of living. We have many investing vehicles we can use to get ahead with our earnings. We live in a great country but the vast majority are totally uneducated in money management and the power of investing properly. What harm I thought would there be in suggesting we strive to teach our young children much more about this topic so their generation might be able to govern their own lives better or govern a city, state or our federal government in the future so they don’t repeat the mistakes of this generation when it comes to total failure of society in general to manage their finances better for retirement and or older age. What harm would it be to discuss this very important topic. Higher learning in finances, investing and a well rounded understanding of how money can grow in time if invested properly is key not only in making money with money but how to keep it once we have great wealth. How many great success stories are there where an undereducated person in money lost everything. That college degree and higher education can not stop a failed money management plan where one has no plan, nor education. All of the degrees and education in the world won’t save ones standard of living and wealth if one doesn’t lean how the game of money is played in the jungle of life. I say train and educate our kids for the jungle where everyone and all businesses are out to take ones money. I bet most people here have no clue as to the hundreds of thousands of dollars most mutual funds in the $7 Trillion mutual fund market soaks its participants in high hidden fees. Some are as high as 3.93% a year, which over twenty to thirty years can rob vast fortunes from the uneducated populous. It’s highway robbery that 99% of our clueless public that participates in company 401K plans are never educated in. They have no clue the DOL can be called in to audit a companies 401K mutual fund plan and if you own a business and are unaware of how your employees are being fleeced in high fees, guess what, you are liable and be fined by the federal government now. Education. So why are 100% of people who participate in the great American scam of mutual funds clueless about the fees that are robbing them blind? Because the administrators like Fidelity don’t want the public educated. They make money regardless of the markets performance because they rob the masses in high fees because the masses are not educated in money management tactics. So you all tell me how the game of money management is played in the jungle of life. They don’t teach this level of reality in high school nor in home school because entire industries count on the ignorance of the masses in the jungle to rob. Only now are most people waking up and moving their IRAs into low cost index funds and converting to ROTH accounts because taxes in the future will be higher not lower. I could go on and on about educating the masses in proper money management skills. I will say it again, our country lacks education greatly in this realm. The evidence is clear. The vast majority have zero savings, tons of debt and not enough money to invest. Why? There is no excuse for a country so rich with higher education. None. We can do much better as a nation. I don’t accept we can’t change the uneducated in this matter. I’m not preaching to the intellect here but rather for a nation struggling with the lack of money management skills from a personal level to a federal government that is over run with stupid insane out of control spending. We can do much better.

Great. A blue collar self made guy like me who hated Algebra because it wasted my time, I use an app created by someone really good at Algebra 2 while I was busy getting the power run to his lights and computers and making millions in the stock market because I’m self taught there too. The Monkey Chimp App was probably created by a person really great at Algebra for dummies like me. God Bless them. It takes a village full of us helping each other to build a better village. Some like dirt, some like Algebra 2. I still like dirt and the smell of building massive projects as the sun rises on a new day. I would die in a cubicle. No sun, no wind, no snow, no fun. Peace

Kinsa, I’ve been in the construction industry all my life beginning as a young boy. My grandparents and parents had their own businesses and I worked alongside them starting at age 4. Long before we were too scared as a society of lawyers and litigation, I worked earning money in the summers in chemical plants, and I was snuck into to many other projects throughout our state. I worked and had my own checking account and savings at ten years old. I’m semi retired now.

MerryatHope, The government has no power large enough I am afraid other than its utter and total collapse upon its self to live within its means. There is no physical nor political constraints large enough to stop the beast from unbridled spending. With its back against the wall on March 9, 2009 the FED had two options. Our markets could totally cease up causing a total global financial dead stop and a modern Stone Age or it had to create a back stop from thin air whereby printing money with nothing but faith to ignite the present almost nine year bull market. The FED prostponed a total catastrophe in March 2009, jump started the global economic engine and created $13 plus Trillion in debt and over $109Trillion in unfunded liabilities. So I totally agree with you, our government must live within its means but I’m afraid the only game in town is growth no matter the level of debt created to get us there, until it simply doesn’t. The great FED unwind hasn’t even really begun yet. But that’s a whole story not meant for this forum. I guess we shall see.

There is no sales pitch. I’m just an American dad. I thought I might bring up money management here as an area that our youth and others could use more education in. I brought the importance of saving and investing as young as possible because time is an important factor. I’m not selling anything other than established proven financial investing doctrine as it relates to dollar cost averaging, using the power of compounding to grow our wealth and getting started as soon as we can in life. I was also trying to point out that if a child doesn’t want to go to college there are of course as many of us know other alternatives but regardless my main point to this thread was just to say I don’t think the vast majority gets the whole idea of the power of compounding interest as it relates to investing as early as possible in life. If the vast majority practiced wise investing the vast majority would not be in debt. A poster here said it’s unrealistic to think the majority will ever change. I agree.

Creekland, Thank you for sharing. On average a college education in most sectors pay more, however there are trades that are very lucrative, in demand, and require less time and money than college. Higher education is important to some, but not all, or even most. There is a huge cost to many years of college, including soaring debt and lost years of earning and saving. I was just trying to point out that how one manages money over time is very important, regardless of college. With technological advances coming that will extend our lives, this is even more important. In the next twenty to thirty years, the average life expectancy may move up much higher than we expect, and with longer lives we will need to prepare ourselves to the related financial consequences, I don’t think most will be able to fully retire at 65 if average life expectancy moves up to say, 90, or 100 or more, with the coming medical advancements, making investing properly from a young age even more important. Thank you again for sharing and replying.