Where is the American Dream kive and well?

   / Where is the American Dream kive and well? #61  

Do you realize we had a major DEPRESSION that started in 1929 and a little thing called WWII that started about 1939 that forced those numbers down? And by 1950 they were back up to about 200,000 PER YEAR?

Yet you stated in your post:
Quote Originally Posted by houstonscott
Did you know there was no immigration to the United States from 1924 to 1965. Maybe we another period like that for people to become vested Americans. HS

You make a blanket statement and expect us all to believe it.

I worked with several "refugees" from the Hungarian Revolution (1956) and like the other stories in this thread they worked their butts off, studied hard and did well. If there had been NO IMMIGRATION they wouldn't have been here.
 
   / Where is the American Dream kive and well? #62  
Do you realize we had a major DEPRESSION that started in 1929 and a little thing called WWII that started about 1939 that forced those numbers down? And by 1950 they were back up to about 200,000 PER YEAR?

Yet you stated in your post:

You make a blanket statement and expect us all to believe it.

I worked with several "refugees" from the Hungarian Revolution (1956) and like the other stories in this thread they worked their butts off, studied hard and did well. If there had been NO IMMIGRATION they wouldn't have been here.

When I was growing up a cousin of my father's had a small house next door where other cousins from Hungary would live. They'd sponsor the cousins, help them get a job, help them with the legalities of immigration, and then get them situated in their own homes. I think 4-5 families came through that house in about 10 years. All of them moved to the Kenosha, WI area and are successful business people today with successful children, too. This was throughout the 50's and 60's.
 
   / Where is the American Dream kive and well? #63  
BE an OWNER.

Through mutual funds everyone can be a fractional owner of companies generating 75% of US GDP. Diversified mutual funds are almost no brainers.

Before I am asked, LONG TERM is twenty years.

Equities is something I know little about... no one in my family has dabbled and that is for both sides going back the crash of 1929...

If you look at the 20 year return, 1929 - 1949, the compound return, including dividends, was almost 7% per year, due to the boom starting in 1941 and continuing after the war. Time is your friend.

(I do not know how ~7% relates to inflation, 1929 - 1949. I would expect ~7% return, adjusted for WWII inflation, would be less.)
 
   / Where is the American Dream kive and well? #64  
If you look at the 20 year return, 1929 - 1949, the compound return, including dividends, was almost 7% per year, due to the boom starting in 1941 and continuing after the war. Time is your friend.

(I do not know how ~7% relates to inflation, 1929 - 1949. I would expect ~7% return, adjusted for WWII inflation, would be less.)

What data/sources are you using?

I used S&P 500 Return Calculator - Don't Quit Your Day Job... to compute the annualized S&P 500 returns (nominal and real) from September 1929 (just before the Crash) through September 1949. Without dividend investment, the nominal and real returns are -3.5% and -5.0%, respectively. With dividend investment, the nominal and real returns are 2.0% and 0.4%, respectively.

Steve
 
   / Where is the American Dream kive and well? #66  

That calculator doesn't allow the user to specify the starting and ending months, so I used Jan. 1, 1929 through Dec. 31, 1948 and came up with the following annualized S&P 500 returns:

-2.4% nominal without dividend reinvestment
-4.0% real without dividend reinvestment
3.1% nominal with dividend reinvestment
1.3% real with dividend reinvestment

Steve
 
   / Where is the American Dream kive and well? #67  
Several of my coworkers have 20 something kids with STEM degrees and were all actively recruited to places like Google, Genentech, Facebook, Apple, etc... kind of crazy to have a 27 year old son that makes more than his old man who is a MD in private practice for 30 years... but this is what I am seeing.

The downside is housing prices close in have as much as doubled in the last three years and in better areas a typical suburban home on a city lot can be a million dollars which staggers the mind.

Taxes are also high here in that California has jsut about every tax known to man... and even then, I met a guy from New Jersey and says California Property Tax is a bargain... guess it is all relative.

New hire Registered Nurses and New Hire Police officers in the SF Bay area easily make over 100k in wages and benefits and both professions are hiring...

As you say, the cost of living there is every bit as high as the wages (which makes sense...there's no free lunch). I'm curious how the quality of life compares with a place like, for example the deep south where wages are low, but so is cost of living.
Crime, traffic, commute times, etc. also play a role.
 
   / Where is the American Dream kive and well? #69  
I think that my wife and I are an example of the "American Dream." We come from comfortable, middle-class backgrounds.

My father got an associate's degree and over the course of his life he worked as a draftsman, a shop foreman, and eventually retired from a job as a salesman who spent four nights a week on the road. My mother was a nurse for a few years and then stopped working to raise their six children. Eventually, she went back to work teaching the developmentally disabled. She basically worked that job just to put the six of us through college. They were quite frugal, but we never wanted for much either. They scrimped and saved and now my mother can maintain that simple lifestyle on her tiny teacher's pension and their retirement savings.

My wife's parents married right out of high-school. Her father works construction. Through consistent hard work he's worked his way into upper management for the small commercial construction company he works for. Her mother has had a couple of jobs but neither for very long. She's basically always stayed home.

My wife got a bachelor's degree in Chemistry (with a bunch of loans), went to work as a laboratory technician, and steadily climbed the corporate ladder. She manages a group of engineers and quality specialists now. Nothing was handed to her. She has a reputation for doing good work and always delivering what she says that she will.

I got both a bachelor's and a PhD. My career started later and the job market was tough at the time, so I still started as a temporary employee. Instead of saying it was beneath my qualifications (which it was), I took a job as a "Technician I" in a quality control laboratory. I worked that job for a couple years to get some experience and then went into R&D at a small pharmaceutical company. I did well there for five years and was then rehired at the first company as a "Senior Research Scientist." I've worked very hard here and have been promoted to "Principal Research Scientist," which is a high-level technical position. I'm also doing leadership development work because they've identified me as having management potential.

We live in west Michigan, which if you look at the links above you'll see has a very reasonable cost of living. The Grand Rapids area is wonderful if you can stand the weather, with basically none of the traffic, crime, or blight that you see in eastern MI. We're expecting our first children now (twins!) and I'm very glad that I didn't pursue some opportunities we've had over the years to move to the west coast, because this will be a great place to raise our children in their earlier years.

So yes, I think that the "American Dream," whatever that is, is alive and well. But you can't just dream about it. You have to be deliberate. Make a plan, work very hard and consistently perform, and always play the long game. You can't just roll over when you have setbacks (believe me we've had a few). Everybody gets unlucky sometimes. Keep your head up and make the best of every situation you're in.
 
   / Where is the American Dream kive and well? #70  
"Hard work fixes a whole lot of stupid" It is an expression my boys an I use. Not trying to offend anybody. My one boy totaled his car, so rather than just replace the car, we bought two one with blown engine and the other with bad transmission and used the part from the totaled car. He then sold the one and is driving the other. Actually came out ahead. "hard work fixed a whole lot of stupid" American dream is is like that? The original OP is has or having droughts about Connecticut, which having grown up in the Northeast i understand, after high school my dad told me to leave. My point is once you understand the issue, which is the first step, it takes hard work to get to the American Dream, which seems to still be the common about all the above stories. Wish you the best of luck.
 

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