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When a lot of boomers bought houses, mortgage rates were at 10-20%. As interest rates fall, borrowers start borrowing more money (Because they look at mortgage debt as a per-month cost), assets (homes) get more expensive. And during their working years interest rates just kept going down, until the financial crisis, when they hit rock bottom. All this cash flooding the economy drove the stock market up, and it drove housing prices up.
If we ever see 20% interest rates again in our lifetimes, that long, slow trip back up would be painful for housing.
If we ever see 20% interest rates again, housing prices won't be our biggest problem. Inflation would have to be out of control, as it was back then.
this is why the left is so interested in the "death tax" - they would never want this wealth (which has already been taxed) to be passed down to heirs with their LARGE piece of the pie.
pretty much. They've positioned themselves well off the labor of their children and grandchildren.
Wow, to hear you talk you'd think not a single BBer ever paid taxes or made Social Security deposits during the course of their 30 plus working years.
My husband and I have paid over $60k PER YEAR in federal income taxes for at least the last six or so years. Prior to that (that's when we opened our small business) we paid at least $30k a year in federal taxes. Can't remember the last time we got a tax refund...that was probably twenty five years ago, and it wasn't anything close to a "full refund" on our taxes we'd already paid in, let alone MORE than the taxes we'd paid in, which is what I see with a lot of current tax "refunds."
Not only that but we've also saved for retirement - and had to rebuild those savings after the market crash in 2008 - 2009. Yeah, just 10-15 years before we planned to retire - that was a serious blow. But we've rebuilt it and are continuing to contribute significantly to our retirement funds - that's easier now that our fifth and final "child" finally graduated from college and is off the dole.
So yeah - tell me again how we're going to live off the labor of our kids and grandkids? You mean those people who are going to inherit from us one day?
By 2030, BBers will comprise over 17 percent of the total US population.
But by 2030, GenXers will own 31 percent of the wealth and shortly after 2030 they will surpass BBers. Imagine this, just like BBers surpassed the Silent Generation. Amazing how that works, isn't it?
As one of the youngest BBers, I want to give my perspective. At the height of my career earnings (in my forties), the market crashed. Guess what - my house lost value too. That housing market thing? It hit everyone, including Boomers. And it hit our retirement funds hard as well. And we're a lot closer to retirement than the generations behind us, so that was a huge concern.
Right as we're looking down the road at retirement in a few years - BAM - the bottom fell out. Anyone remember that? It wasn't that long ago - and I was in my mid forties, still working my butt off and still trying to sock money away for retirement so my Millennial kids don't have to take care of me financially.
Oh, and still paying for Millennials to go to college too, I might add. Don't leave that part out!
Accumulated wealth is continuing to grow in the US, and GenXers - the smallest generation - are going to inherit a chunk one day from those under appreciated Silent Generation and BBers. Meanwhile, they will be building their careers, saving for retirement themselves.
Listen, when I was in my twenties, I didn't have a dime saved for retirement. For that matter, I don't think I had more than about $10k saved in my thirties. I am pretty typical of Boomers my age (mid fifties) and we were busy raising our Millennials in our thirties and forties, and paying for college, cars, etc. Saving for retirement was difficult, but we managed to save a little, then a little more, then as kids graduated, a bit more...and then our parents began dying and leaving us some assets (thank goodness), just like their parents left THEM and just like we will leave our kids!
Surely Millennials and GenXers don't expect to be as wealthy as their parents and grandparents at this stage in their lives?
Oh, that's right - I forgot. My first car (which I shared with my mom) was a 1969 Galaxy 500 Ford (in 1980) with over 400,000 miles on it. The vinyl seats were held together with shower decals! Most Millennials I've been around wouldn't dream of driving something like that.
We've done our time. You do yours.
I'm in your exact shoes. Younger boomer - still some years to go before I reach retirement age and putting my millennial son through college. An out of state college (for us) in Chicago where rent is $$$$$$$$$$$$$$.
I have worked since I was 15 years old and certainly was never rich.
My father left me some money when he died and I plan to leave my son the same.
My first job out of college barely paid the rent in for a second-story apartment over someone's garage.
Where is this fantasy that we had it made the minute we got out of college???
I'm in your exact shoes. Younger boomer - still some years to go before I reach retirement age and putting my millennial son through college. An out of state college (for us) in Chicago where rent is $$$$$$$$$$$$$$.
I have worked since I was 15 years old and certainly was never rich.
My father left me some money when he died and I plan to leave my son the same.
My first job out of college barely paid the rent in for a second-story apartment over someone's garage.
Where is this fantasy that we had it made the minute we got out of college???
For that matter, where is this fantasy land where people who are in college don't actually work very much, if at all, and take six years to complete a four year degree? Oh, that's right - it's right here, right now. Certainly wasn't the case when I was working 35 hours a week and paying for half my college.
My parents are boomers and I remember us struggling when I was younger. My dad was laid off a lot and my mom had to work extra shifts at the hospital. It wasn't until my dad struck off on his own and started his own business that he started really making money. The whole time we were frugal. My parents made over a million and are the typical millionaires next door types (well, my mom because my dad got cancer and died). My point is they worked hard for it all, nothing was given to them. I learned that lesson from them and am working hard myself and slowly growing wealth. It takes a lifetime to do and today's millennials are where our parents were and will be where our parents are now. It takes patience, work, sacrifice, and saving to get there. Don't envy boomers, learn from them.
THey took it for everything it's worth, lived incredibly unsustainably, and tossed us the bill.
They paid for their own college instead of going in debt for Women's Studies degrees and International Human Rights majors.
They lived within their means and didn't stop by Starbucks twice a day.
They didn't have the technology available to waste their money on to have the latest iPhone the minute it came out.
They didn't have the unnecessary money sucks like cable and Wi-Fi to pay for, so they could put their money away.
They didn't buy new cars every three years for loans that go on for 8 years and are worthless when they own the car. They didn't lease cars.
They didn't apply for and run up every single charge card available and then just keep transferring their debt between cards every time they hit the credit limit.
They paid for things BEFORE they owned them. They did lay-a-way or 30-60-90 programs to purchase items like furniture.
They cooked and ate at home.
Their vacations were to visit family, not family cruises or annual family trips to Disney.
Baby-Boomers were the grandkids of the depression era folks, so they were raised with an understanding of what deprivation and delayed gratification meant and the value of money!
Don't blame the baby boomers! We are the ones you keep wishing would die off, so the people that got you to where you are now can take over!
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