Odds of Being A Milionaire (taxes, business, average, house)
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The spending habits of the young and old are and have been amazingly similar across the generations.
If this is true, what is the savings rate for millennials compared to every generation before them when they were in the same age bracket? I'd love to see some reputable studies you're using for your source on that.
Well I am a baby boomer and for decades of my career we had no pensions , no 401k's yet ,etc. except for the little bits we could put in an Ira there were no effective saving vehicles.
Our time frame included the greatest bull market in history but great , who had any money to take advantage.
Even if you did whatever you accumulated hit some of the crappiest years with two back to back recessions the last. 15 years.
Despite how rosy you think it looked it was no better for accumulating assets.
I got dumped in to the Vietnam war , the oil shortage and unemployment that was worse than today. Then double digit inflation got us .
Well 40 years later all ended up okay anyway .
That is pretty much the pattern for every generation
No, they're not saying that 1 in 7 over 62 are millionaires.
They may or may not be saying it, but it's true.
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Millennials never had the opportunity to invest the way that the older set has.
Of course not, they're young. If you mean they never had the opportunity to invest at low prices, we baby boomers did in 1973-1982 but we didn't have any money. Now that we are old and have some money, we're paying the same high prices for stocks and bonds as everyone else.
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Also look at the fact that most of those professions you could get rich off of back in the day only pay $15 to $20 an hour starting out, with few opportunities for advance. Jobs like teacher, lawyer, computer programmer, etc are streamlined and only pay a fraction of what they used to 20 or 30 years ago. Other jobs, thanks to advances in automation, do not pay much either.
So a pilot making $25 or $30 an hour will not have the same wealth as older pilots now making $50 an hour or more. And those millenials children might get $12 an hour to do the same job 10 years from now, unless there are cost of living increases.
There is absolutely no evidence of this huge decline in compensation for skilled jobs. Unskilled jobs pay less than they used to, but teachers, lawyers, and airline pilots? Where are you getting your data? It just sounds like you know a lot of people toward the bottom of the wage distribution and are extrapolating from their experience.
Here are the Chicago Public School published salary and benefit schedules: http://cps.edu/About_CPS/At-a-glance...r_03312015.xls. Look under "Regular Teacher" (not special ed) and look for full time equivalents of 1.0 (that is, the worker is full time). Note that there is a wide range, depending on years of experience, amount of education, and what grade is being taught; most teachers don't stay on the job long, and long-service employees do very well.
I'd love to see some reputable studies you're using for your source on that.
If that were true, you'd have gone out and looked some of them up. But you didn't. Hmmm. Young people confront the same sorts of issues and challenges in every age and they quite understandably react to them in similar ways. Theories that one generation is materially inferior to another are bunches of abysmal bunk.
If that were true, you'd have gone out and looked some of them up. But you didn't. Hmmm. Young people confront the same sorts of issues and challenges in every age and they quite understandably react to them in similar ways. Theories that one generation is materially inferior to another are bunches of abysmal bunk.
What are YOU using as your source for your claim? You said the spending rates haven't changed for each generation. I'm assuming you have legit sources, and it's not just baseless rhetoric.
Young people confront the same sorts of issues and challenges in every age
This is demonstrably false. Someone who got drafted to go to Vietnam had to surmount much greater challenges than someone who avoided it by a few years. Similarly, someone who graduated in '06 ceteris paribus had far less challenges establishing themselves than someone who graduated in '08. Differences in timing of a few years at critical points in early adulthood (draft age when that was a thing, graduation from terminal education in the recent crisis, and so on) have a huge impact.
Stepping back to the thread's main question, if we're talking nominal dollars millennials have a far greater likelihood of becoming millionaires than prior generations did .
When we were at the age the millenials are now, we were told ALL this same stuff. There is NO WAY we'd have what our parents had, Social Security would be tapped out and dead, medicare would be gone, all doom and gloom, chest pounding and sturm und drang.
Well -- guess what? NOT.
Are there people who are going to struggle in retirement? Yes. Are there people who are ill prepared? Yes. Know how old the fable of the ant and the grasshopper is? About 2000 years old. This is a perennial problem that is shared through the ages and at this point shouldn't this mishegas be considered NOISE?
The old saws of live below your means, and pay yourself first works for the most of us.
And now -- all the people this DIDN'T work for will pile on and scream about what about me? Hey, life sometimes derails. Sickness, accidents --yes -- those things happen. But not to EVERYONE.
In my life, the several people that financially derailed their families -- ONE was a series of unfortunate accidents. AND -- they righted themselves and coped. Took a few years, but they are fine shape again. The rest are financial wrecks because they are caught in a spiral of spending that they refuse to see.
And -- the other thing -- while it sounds like I'm blaming, yeah, I am, BUT it's because I couldn't live that way. My sense of security was shattered at a young age when my father dropped dead and shot us into poverty. Quite a shock from a comfortable middle class life.
Most importantly -- the biggest reason they don't see the "error of their ways" is because to them this isn't wrong. This is just their way of life. This is how their parents lived. This is how their grandparents lived.
in the first place, you don't have to live in the US. in the second place, you can retire on MUCH less than a million $ in the US, if you know what to do with the money. My partner started with 20k and a VA home loan. 4 years later, he had 5 such weekly-apartment rentals and hired a property management firm to watch over his building managers. presto, a clear 40k per year without having to do much of anything. That's the same return you'd get on a million $, invested in tax free bonds. :-) However, HE is free to raise the rent 5% per year, to allow for the average annual inflation. When you buy those bonds, you are STUCK with what they pay, period. Also, at any time, if he needs an extra 40k per year, clear, he can go back to managing a couple of the buildings personally, and personally checking on the other 3 (live in) building managers.
Well I am a baby boomer and for decades of my career we had no pensions , no 401k's yet ,etc. except for the little bits we could put in an Ira there were no effective saving vehicles.
Our time frame included the greatest bull market in history but great , who had any money to take advantage.
Even if you did whatever you accumulated hit some of the crappiest years with two back to back recessions the last. 15 years.
Despite how rosy you think it looked it was no better for accumulating assets.
I got dumped in to the Vietnam war , the oil shortage and unemployment that was worse than today. Then double digit inflation got us .
Well 40 years later all ended up okay anyway .
That is pretty much the pattern for every generation
Memoories! LOL, we were starting out during double digit inflation. Sky high mortgage rates made buying a house unaffordable even with excellent credit. ah yes, sitting in looong lines to fill up my gas tank... fun, fun, fun, we haven't seen anything like that since thankfully. No money to take advantage of the bull market. Then there was Hillary Care (I worked in a hospital) and they layed off.
I'm tail end baby boomer and used to feel that by the time I got there the early boomers drove prices up. In hindsight I realize I was lucky, my time was mostly peace time, Desert Storm was my first real experience at seeing the U.S. at war. COL was high and financial times were hard but I didn't worry about my brothers having to go off to Vietnam and never coming back.
Yes memories, a lot of lost time but we made it somehow. Each generations has it's sh*t.
yep , but of course to the youngin's today we had a cake walk .
every generation pretty much got their butts kicked early on . my fathers was he was a child of the great depression and then world war 2 . some how i think that was far worse then i got a philosophy degree and can't find a job .
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