Being right above minimum wage

Being at minimum wage is one thing, but being slightly above may in some ways be more frustrating. The reason; minimum wage can increase at the stroke of a pen and would be enforceable by law. It’s a guaranteed wage. It hurts the person right above minimum wage the most. With federal minimum wage at $7.25/hr, someone at $8.50/hr isn’t too far ahead. A $0.75 increase of the minimum wage cuts this difference in more than half. That raise was guaranteed for the minimum wage worker, but must be negotiated for the worker slightly above minimum wage. If that raise isn’t possible, the minimum wage worker has a purchasing power closer to the other worker. This is one of bad side-effects of raising minimum wage, the increase in the price of consumer staples. Consumer staples follow supply and demand like any other good, but these are goods needed by all. Those of wealth won’t back down at a 15% or even a 25% rise in the price of these items, as it represents a relatively small portion of their expenses. With a higher minimum wage, the price of consumer staples increases, not changing the amount of goods to be purchased by the minimum wage worker, but lowering the amount purchased by the worker slightly above minimum wage. If the cost of production remains the same, the purchasing power that disappears will be transferred to the business owners producing the consumer staples.

The magic number for retirement

Its a common topic. The question: “What is that magic $$$ number needed in order to retire?” There are many models (we provided an example earlier) to figure this with each one being restrictive in its application, ours included. A retirement plan needs to provide a solution unique to each individual. This is the FPO concept.

First, there isn’t a magic age that one can or should retire. It could be anywhere from the mid 30’s to the mid 70’s. Also, is retirement defined by the point of where you completely quit the workforce or just go to part time? Is part time 20 hours or 30 hours a week? Due to this ambiguity, it is recommended not to think in the term retirement because it puts too much definition on goals. The principle of “work whenever, fish forever” is sufficient. It’s simply going from where you are to where you want to go.

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