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Thats how compounding and dividends works. Age goes a long way.
Lets not make excuses for people who didn't invest appropriately. As I've said (now 3rd time I think). Is this a function of the environment or the generation themselves/itself? I know a lot of people my age who invested in "travel" and "experiences" or went straight from undergrad to masters (for no reason), postponing earning potential, trying to "find the right job".
Oh wow, I never thought of compounding and dividends. Gee willikers, mr. Thanks.
Care to explain the 5x wealth appreciation at the same age in 1989? Your anecdotes are real great, but I’ll stick with the federal reserves analysis of actual data.
Gas prices, house prices, car prices, and other such things -
have one thing in common.
They've been unreasonably high for all of about a year, maybe two.
Main thing millennials have is a lack of patience and perspective. Come back in 10 years, and we'll talk again.
Right now, it looks like the Fed is going to have raise interest rates so painfully high to wring out the inflation that a recession will end up being caused.
I think it'll be milder than the COVID shutdown recession or the Great Recession, but we're in uncharted waters with all the other contributory factors.
The greatest bull run in equities ever would benefit those who are older who hold more assets, no? Ie the boomers as the wealthiest generation ever. According to the federal reserve, millennials own 2% of equities. Boomers are over 55%.
People graduating into a historic recession with lower job opportunities, and skyrocketing healthcare, education, and housing costs, don’t exactly have money to pour into equities.
Also, we’d need pretty high returns to cope with the loss of pensions that kicked off income that could take a million or more of 401k.
And by the way, despite being the largest generation, millennials hold 4.6% of the wealth according to the federal reserve. Of course this will change as time rolls on, but by pretty much any federal reserve data, the generation lags heavily. The baby boomers controlled 21% of the wealth in 1989. In other words, at the exact same age, they controlled almost FIVE times more.
I was just making a couple of points.
I understand that older millennials in particular have had a run of relative poor economic luck. However, it's not like they were all born on a street in Dhaka.
You might keep in mind tho. that many boomers are old enough to have lived through 22 and 23% poverty rates in the late '50s, about 58,000 boomers were lucky enough too be KIA during the Vietnam war in Vietnam, Thailand, Laos even 10 (IIRC) in China - not to mentioned untold thousands more than that seriously wounded. The Cold War was a ball etc. Point being boomers faced tough times as well.
Location: Formerly Pleasanton Ca, now in Marietta Ga
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Quote:
Originally Posted by roodd279
Gas prices, house prices, car prices, and other such things -
have one thing in common.
They've been unreasonably high for all of about a year, maybe two.
Main thing millennials have is a lack of patience and perspective. Come back in 10 years, and we'll talk again.
Good points. I think many were spoiled by their parents and have extremely high expectations and how life should be. The overconfidence many have may hold them back. I’ve seen millennials blame and disrespect older people aka boomers. On the surface it seems justified. But I’ve also seen millennials that associate with successful boomers and have used their advice to become very successful themselves.
While some things no longer exist, the ability to learn new things is easier and cheaper than ever. Things I learned and paid thousands for and had to travel to learn can now be obtained cheap or free. The things I’ve learned and saved money on by watching YouTube and forums is amazing.
The cost of housing and the cost of education relative to wages are the things screwing over young people pretty badly.
Everything else is a rearrangement of problems every generation goes through. The Millennials did have a setback graduating into the recession but if they'e anything like me they caught up. I do envy Zs a bit though with the plethora of $20 an hour jobs out there. When I was young I remember the competition for ANY job being fierce.
But education is legitimately overpriced and it's still a requirement for many many jobs even though it's really not that relevant in most cases.
Housing is also absurdly expensive in most metros with decent jobs. Its at crisis level in places like Miami.
I understand that older millennials in particular have had a run of relative poor economic luck. However, it's not like they were all born on a street in Dhaka.
You might keep in mind tho. that many boomers are old enough to have lived through 22 and 23% poverty rates in the late '50s, about 58,000 boomers were lucky enough too be KIA during the Vietnam war in Vietnam, Thailand, Laos even 10 (IIRC) in China - not to mentioned untold thousands more than that seriously wounded. The Cold War was a ball etc. Point being boomers faced tough times as well.
I’d like to reiterate my second post in this thread. I pointed out the context of all of history and how well we still have it compared to many around the world in regards to your Dhaka comment.
I know American history well. I know what boomers lived through. My point was correcting the person that said it’s “historically false” that millennials have had a tough time. For every Cold War (today, we still live under nuclear threat from Russia)there was living under the threat of 911 and domestic/foreign terrorist/rise of school shooting for every Vietnam there was Afghanistan and Iraq. But there’s also been 2 historic financial crisis’ (marked by their severity and duration in one case, and the rapid nature of the other-both required historic rescue packages) and a pandemic raging that killed nearly 1 million Americans in just two years. And of course, boomers have lived through these as well, it’s just not as financially damaging to their wealth accumulation stage. We see things from the federal reserve about younger workers in the service industry being heavily effected by the pandemic for the first few years, while the market soared largely.
Last edited by Thatsright19; 05-03-2022 at 05:06 AM..
There are many good-paying jobs available that remain unfilled. The problem is that many young people do not wish to do them. Machinists, masons, electricians, surveyors, heavy equipment operators, welders, etc., are all jobs that do not require a college degree and pay well. Many currently in those fields are retiring in large numbers and there are few looking to replace them. Many young people blindly being steered toward Tier 3 and Tier 4 schools would be better served pursuing specialize training and/or an apprentice program in fields such as those listed above. Not only would they start earning a good salary sooner, but they would also acquire the knowledge and skills needed at a significantly lower cost.
My 23 year old son began working at 18 in a bank. He has taken advantage of in-house training opportunities and has been working his way up. Some of his friends that graduated from college last year (Tier 3 and 4 schools) have struggled to find jobs that pay anymore than what he made 3 years ago. Not all degrees are equal. There is no doubt that a degree in engineering, science, accounting, finance, etc., from a top-tier college or university can open a lot of doors to a high-paying job. However, a general degree from a lower tier school, absent of some documented work experience in a known business or organization, is not likely to float one's resume to the top of the pile.
Seems to me this thread would be better in the P&OC forum, where the OP spends most of his time.
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