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Old 08-26-2019, 01:30 PM
 
20 posts, read 7,234 times
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Quote:
Originally Posted by mathjak107 View Post
One son is an attorney and had a load of student loan debt ..but paid it off from earnings ......they are In westchester ny.....the others are in New Jersey, and Howard beach queens in
Nyc .

I canít say what their debt situation is , none of our business
Their debt is none of your business, but their salary is?
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Old 08-26-2019, 01:45 PM
 
73,086 posts, read 72,913,868 times
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Quote:
Originally Posted by loser prole View Post
Their debt is none of your business, but their salary is?
I don’t know their salary anymore ...it was more than both my wife and I retired at pretty much within a short time after graduating school ......after that point there financial business is their business ..if they tell us fine but if not not our business .
Today one is an attorney and a partner in one of the largest labor law firms in the country , his wife is a cpa for a famous hedge fund manager and runs the tax dept ....another owns a car leasing business and his wife is an executive for the NBA . The third is a teacher and her husband is a foreman for a company that does data and phone wiring in sky scrappers in manhattan .

They all are leagues a head of what we earned...
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Old 08-26-2019, 01:49 PM
 
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
22,943 posts, read 40,461,192 times
Reputation: 24260
Quote:
Originally Posted by citidata18 View Post
How much debt do they have, and in what part of the country do they reside?
PNW: VHCOL areas. My 'millennial' kids starting wages were higher than my highest salary. (37 yrs of 'night shift factory' wage income, single income family for me)

Costs? Millennials have the 'advantage' hands down. (so far). Be sure to " Make hay while the sun is still shining!!!"

I was making $1.50 when I bought my first home.

Housing Seattle kids got hammered, but they are CFA's so have mitigated risks and reaped plentiful gains.
Food; date adjusted index shows raw food to be very inexpensive NOW

College; kids paid for their own. (Free instead of HS in WA State if you can pass a college entrance examine in 9th grade.)

Auto; they do as they were taught by example... drive economical beaters
Fuel; What's fuel expense? Home brew is free since 1976 for me and for them.
Insurance? Internet makes that very competitive (over age 26)
Financial management / wealth growth? They are far ahead of my equivalent savings / growth at their age. (They were smart enough NOT to buy a farm!)

Next recession? My kids are well aware that my (retiree / no more income) risk is far greater than theirs (one warned me of that yesterday)(again... yet another warning from them)
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Old 08-26-2019, 01:57 PM
 
2,564 posts, read 1,478,057 times
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Everyone gets hurt in a recession.

I said it in another post that much of the housing gains of the past are not sustainable so that is certainly true in the article. Housing was a huge boost to previous generations and likely will not be repeated. We could see another housing crisis if we have a deep enough recession, certainly possible but I don't think that is the base cases right now. Either way, those big gains are likely off the table for the younger generations and it is true that will significantly impact the amount of money they will have at the finish line.

We can't overlook the impact a recession would have on Boomers though. Many of them are about to start or just starting their draw down periods. Any serious recession would likely bring equities down 40% or more and if we enter a languished low growth era you might not see them come back over 5 or 10 years which everyone would expect. The S&P could look like the Nikkei. This would devastate most of the Boomers who already are light as a group on savings despite having many advantages.

Then you have the inevitable pension busts and best case resulting hair cuts on expected payments. You have a significant percentage of people that rely on these systems that are dubiously funded after years of very good market performance. What happens if we see 60 basis UST30Y and growth is 0% for a decade? Back in the day it was a no brainer, take the pension over a job that you paid into social security. Now, if you aren't working for the federal government and counting on a pension you have potential issues that you can do nothing about.

At least younger generations would build a solid base, dollar cost average the volatility at a relatively low basis and eventually you would see the market rise again. They have something the Boomers don't, time and time is the best leverage you have in investing.

Anyway, I agree with the article to a point but the reality is a deep recession would hurt nearly everyone.
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Old 08-26-2019, 02:02 PM
 
20 posts, read 7,234 times
Reputation: 152
Quote:
Originally Posted by mathjak107 View Post
I don’t know their salary anymore ...it was more than both my wife and I retired at pretty much within a short time after graduating school ......after that point there financial business is their business ..if they tell us fine but if not not our business .
Today one is an attorney and a partner in one of the largest labor law firms in the country , his wife is a cpa for a famous hedge fund manager and runs the tax dept ....another owns a car leasing business and his wife is an executive for the NBA . The third is a teacher and her husband is a foreman for a company that does data and phone wiring in sky scrappers in manhattan .

They all are leagues a head of what we earned...
Geez, the teacher and foreman must feel like real heels at Thanksgiving dinner.

Mod cut.

Last edited by PJSaturn; Today at 12:27 AM.. Reason: Rude; off-topic.
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Old 08-26-2019, 02:03 PM
 
Location: Camberville
12,165 posts, read 16,920,481 times
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I earn far more than my parents did at my age - even adjusted for inflation - but my standard of living is far lower due to the rapidly inflating cost of housing and childcare. My father bought a 3 bed/2 bath condo in my general region and supported a family of 4 on an inflation-adjusted salary that was significantly less than I make now. Meanwhile, I live in a 1 bedroom apartment an hour from work deep into the outer suburbs and can't imagine affording more than a 2 bed/1 bath condo equally far out. We went on vacations as a family twice a year, while my first vacation since graduating from college 9 years ago was this summer.



And I'm one of the lucky ones - I have no student loan debt thanks to a scholarship and tuition remission.


While I'm trying to insulate myself from a coming recession and actually hope it may give me a chance to break into the housing market, any recession will be devastating for most of my friends (almost all of whom have JDs, MDs, MBAs or other terminal degrees) who are carrying more significant debt loads.
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Old 08-26-2019, 02:20 PM
Status: "Astros fan watching great things happen." (set 7 days ago)
 
Location: Suburban Dallas
47,425 posts, read 37,448,270 times
Reputation: 28508
Quote:
Originally Posted by Serious Conversation View Post
https://www.theatlantic.com/ideas/ar...ession/596728/

After the devastating effects of the Great Recession, can Millennials get back on track toward economic success?
First of all, it's a bogus article from a bad source. There is no recession, and millennials have just as much opportunity for success in a growing economy as anyone else. They just have to seek after it.

We don't need to worry about any kind of a downturn any time soon.
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Old 08-26-2019, 03:23 PM
 
10,541 posts, read 12,491,777 times
Reputation: 14789
Played golf with a buddy this weekend, his 31 yr old son is working/owns a home/married.....so he has a good start but he never finished more than 1 yr of college, has a job that could evaporate in a recession and they are drowning in credit card debt. Kid acknowledges they are "in deep" but my buddy hopes it isn't more than 20-25K. The level of spending likely put them in double that guesstimate. No savings and the potential for an upcoming child puts this millenial squarely in the trouble zone.

IF they sold their home right now they might be able to erase the debt or atleast a good portion of it but then they have no cash to buy another home.
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Old 08-26-2019, 03:34 PM
 
Location: Limbo
6,477 posts, read 6,239,429 times
Reputation: 6254
I see any future recession as a buying opportunity and my close circle of friends do as well. I am more worried about my parents or others near retirement.

I can't speak for all millenials. My close group of friends are all professionals making a good living and that certainly isn't the case for many.
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Old 08-26-2019, 03:58 PM
 
Location: Florida and New England
1,261 posts, read 1,440,415 times
Reputation: 1710
Quote:
Originally Posted by emcee squared View Post
I see any future recession as a buying opportunity and my close circle of friends do as well. I am more worried about my parents or others near retirement.
This coming downturn will be my fourth recession since college. The first one in 1991 I was admittedly unprepared for, but I made so little money back then that it wasn't hard to find enough $$$ to make do. I did learn a lot about the value of a buck.

By the second recession (1999) I had saved about 100k and I saw it as a buying opportunity for stocks. The third one I bought my "career" house, which I am now selling. And for the fourth one I will buy my retirement house. Each time I have slowly moved to cash as the downturn approaches, and bought back in once capitulation took hold.

I think people who never save are the ones most affected by these waves in the economic cycle. And they can be from any generation. I do believe that the big millennial student loan debtors will get crushed.

My parents are Great Depression babies, so they have always been frugal, and they will be fine. However they, like I, worry about the political implications of masses of people with debts and zero work income (probably zero passive income, too).
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