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Old 08-29-2019, 04:16 PM
 
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I'm not really buying it, unless these people getting assistance from their family buying their first home comes with the contingency that the home will remain in the parents' name.

You'll see a steep rise in retirees' net worth when there are less pensions (making steady income possible with $0 net worth, or less) and replaced with retirement assets actually held by the retiree.
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Old Yesterday, 01:26 AM
 
Location: Australia
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This is apparently a world wide trend. Here the highest median household worth is among 65-74 year olds, $US870,000. Most of that is in the value of residential housing, which is not that easy to redistribute, even if you want to. Much debate about that issue but the fact is that most people we know are not downsizing and generally not retiring to the country as frequently as previous generations. The age group older than that have a bit less partly as they did not have as much opportunity to contribute to superannuation and are more dependent on the government Aged pension.
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Old Yesterday, 06:31 AM
 
Location: Loudon, TN
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It completely makes sense that someone who has worked, and saved, and invested for 40 years would have more money accumulated through their savings and compounding of the earnings than someone who only just started out in their career and is not yet earning enough to even start saving. Sort of a big "no-brainer" to me.
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Old Yesterday, 06:43 AM
 
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I've never drunk a four dollar cup of coffee so there's that.
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Old Yesterday, 06:44 AM
 
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Quote:
Originally Posted by TheShadow View Post
It completely makes sense that someone who has worked, and saved, and invested for 40 years would have more money accumulated through their savings and compounding of the earnings than someone who only just started out in their career and is not yet earning enough to even start saving. Sort of a big "no-brainer" to me.
Totally agree. Just as it should be IMO.
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Old Yesterday, 07:52 AM
 
14,433 posts, read 7,712,528 times
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Quote:
Originally Posted by MarisaMay View Post
This is apparently a world wide trend. Here the highest median household worth is among 65-74 year olds, $US870,000. Most of that is in the value of residential housing, which is not that easy to redistribute, even if you want to. Much debate about that issue but the fact is that most people we know are not downsizing and generally not retiring to the country as frequently as previous generations. The age group older than that have a bit less partly as they did not have as much opportunity to contribute to superannuation and are more dependent on the government Aged pension.

That's because so much of Australia lives in housing bubble places like Sydney. If you only looked at the high cost of living regions in the US (California, Northeast Corridor), you'd have similar numbers. Most of it is home equity.
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Old Yesterday, 07:54 AM
 
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
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Originally Posted by Preston3124 View Post
Totally agree. Just as it should be IMO.

Yup, ... and they are not... Taking-it-with-them.... so, it will flow to the economy through inheritance or Contributions, or spending. (Medical and taxes)$$$
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Old Yesterday, 08:23 AM
 
Location: Florida -
8,851 posts, read 10,998,621 times
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Quote:
Originally Posted by TheShadow View Post
It completely makes sense that someone who has worked, and saved, and invested for 40 years would have more money accumulated through their savings and compounding of the earnings than someone who only just started out in their career and is not yet earning enough to even start saving. Sort of a big "no-brainer" to me.
This is totally obvious to those who have worked, earned and saved for retirement, struggled to raise and educate their families and learned the lessons of life. But, among many younger people, there is a pervasive sense of 'self-gratification entitlement' that precludes waiting or working for anything.

While this attitude has perhaps, always been present, today's line between "wanting to have it all" and "expecting to be given everything immediately" has blurred. IMO, this is a continuation of an affluent society in which children are expose to and given more than they can possibly consume, even before they ask. They have little or no appreciation or respect for the value or cost of anything --- and the gap between receiving and growing bored with new things grows shorter and shorter.

Likewise, the concept of working and waiting for things is undermined by a 'participation trophy mindset' that insists they must be sheltered from reality as long as possible.

OTOH, this many not be as much a product of today's generations, as a historic truth:

"They [Young People] have exalted notions, because they have not been humbled by life or learned its necessary limitations; moreover, their hopeful disposition makes them think themselves equal to great things -- and that means having exalted notions. They would always rather do noble deeds than useful ones: Their lives are regulated more by moral feeling than by reasoning -- all their mistakes are in the direction of doing things excessively and vehemently. They overdo everything -- they love too much, hate too much, and the same with everything else."
(Aristotle)
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Old Yesterday, 08:30 AM
 
Location: East of Seattle since 1992, originally from SF Bay Area
30,314 posts, read 55,254,445 times
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Quote:
Originally Posted by TheShadow View Post
It completely makes sense that someone who has worked, and saved, and invested for 40 years would have more money accumulated through their savings and compounding of the earnings than someone who only just started out in their career and is not yet earning enough to even start saving. Sort of a big "no-brainer" to me.
Very true, and yes, we do spend some of it, which contributes to the local economy. In the last 2-3 years we have bought a new truck, travel trailer, all new windows on the house, and a new roof. All together that's about $100,000 and without borrowing on the house, so our equity is still intact for when we retire and sell in 2-3 years. I don't know what will eventually be left as inheritance but our kids (millennials) are doing just fine on their own. Oh, and yes, we do buy $4 coffee drinks.
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Old Yesterday, 08:42 AM
 
1,567 posts, read 1,384,108 times
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Default And the answer is ....

Quote:
Originally Posted by RationalExpectations View Post
According to the Federal Reserveís Survey of Consumer Finances, wealth continues to shift to the nationís seniors. Between 2013 and 2016, U.S. familiesí wealth and incomes grew across the board as the economic recovery picked up steamówith most of these gains going to those aged 75+. This news comes atop 30 years of rapid wealth growth among older Americans, with the result that their net worth now towers over that of younger families. Itís a new reality thatís turning seniors into pillars of financial support for their children and grandchildren as well as changing public perceptions of old age.

The Fed numbers reflect broad-based gains that cut across the economic spectrum. In 2016, the median net worth of American households was $97,300, up 16% from 2013 after adjusting for inflation. Mean net worth also rose nearly 26% to $692,100. But the fruits of the recovery have been spread unevenly across different age groups. Faring the best were those 75+ ó an age bracket largely occupied by the Silent Generation (born 1925 to 1942). This group experienced a 32% increase in median household net worth and a 60% increase in mean net worth. Today, the net worth of a typical retiree is $264,750. This amount shrinks moving down the age ladder: The Silent hold roughly 1.3 times the amount of wealth as Boomers, more than twice that of Xers, and 23 times that of Millennials.



... My daughter and her husband constantly go on vacations usually out of the country and many trips within the US. Savings they don't do. So if xers and millennials are like that, no wonder they have no investments.
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