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He may very well be right about teacher in prestigious New England communities, but government employment is often the most highly sought after and best employment in communities where the private sector is depressed.
Where I am, the minimum salary for any K-12 teacher wet behind the ears coming out of college in $41,000 annually. I have a good friend who was making $34k as a software developer with an MS in CS and three years experience in 2013. I was making $21k on the help desk with a bachelor's in economics and around six IT certifications at the time.
Even in poor areas like here in Tennessee, public sector jobs have minimum salary floors. Private sector jobs go as low as the market will bear.
I'm honestly surprised how short shrift this type of situation gets and the lack of understanding on this board, but given the fact that most people here are from prestigious areas and affluent, I guess I shouldn't be surprised at the general lack of understanding of the life that poor people like me in the middle of nowhere live.
Then why not go where the jobs are? Knoxville/Oak Ridge is not far and there are jobs here. There are jobs in Nashville. I know you just moved back to Tennessee, but you moved to an area without a lot of economic advantages.
Even adjusted for inflation over the past 30 years, my nephews and nieces are making roughly TWICE what my wife and I were making in 1982 after we graduated from university.
And every one of those nephews and nieces came from parents who did NOT have a 4-year college education and graduated with under $10k in college debt. Of course, they worked and their parents saved up money in advance.
That is the reality of people in their 20's and early 30's arguing about how good Boomers have it and their generation doesn't. We have kids their age and know their misery is often just that theirs and not everyone their age.
...I am a borderline GenX/Millennial and actually am not one of the people I described. I own a home, save a lot, and have a good job. But many of the generation of kids after me are in terrible shape.
First, congratulations. From a financial perspective, it seems you're on the right path.
You are right that lots of Millennials are in bad shape. The effects of the Great Recession are manifest: delays in entering the workforce, delays in household formation, delays in having children, delays in saving for retirement, etc.
Second, if indeed it turns out you are right and that by their 60s most of your age-group peers do not have the financial resources to retire, you may discover they will vote themselves increased governmental benefits.
"For lots of reasons -- the Great Recession, lifestyle choices, poor financial management, lower-than-average investment returns, etc -- we have not accumulated financial security for retirement. So, The Government needs to take care of us. Uncle Sam must increase transfer payments from Those Who Have to Those Of Us Who Do Not."
Then why not go where the jobs are? Knoxville/Oak Ridge is not far and there are jobs here. There are jobs in Nashville. I know you just moved back to Tennessee, but you moved to an area without a lot of economic advantages.
I am one of the few people i know around here with a pretty decent job. If something does happens to my current job, I'd probably be back to $15/hr and would be having to drive to Knoxville to get something decent.
I am one of the few people i know around here with a pretty decent job. If something does happens to my current job, I'd probably be back to $15/hr and would be having to drive to Knoxville to get something decent.
First, congratulations. From a financial perspective, it seems you're on the right path.
You are right that lots of Millennials are in bad shape. The effects of the Great Recession are manifest: delays in entering the workforce, delays in household formation, delays in having children, delays in saving for retirement, etc.
Second, if indeed it turns out you are right and that by their 60s most of your age-group peers do not have the financial resources to retire, you may discover they will vote themselves increased governmental benefits.
"For lots of reasons -- the Great Recession, lifestyle choices, poor financial management, lower-than-average investment returns, etc -- we have not accumulated financial security for retirement. So, The Government needs to take care of us. Uncle Sam must increase transfer payments from Those Who Have to Those Of Us Who Do Not."
How do we vote for increased governmental benefits? I'm sure the people in congress will have the resources to retire and really that is all they care about.
OP, I have been thinking a lot about this exact same topic after reading the Wall Street Journal article the other day that you referenced. The conventional wisdom of retirement savings (start early and with historic returns you too will retire a millionaire!) has changed due to years of very low interest rates. I also am astonished that no one is realizing the catastrophe that will come when these generations retire with no pensions, low or non-existent 401k's, and uncertainty with Medicare and Social Security. I love how Boomers and Silents will tear down the younger generations, saying things like "we worked hard and saved and didn't need Ipads and Cell Phones!" like those are relevant considering the exponential rise in cost of housing, education and healthcare that they never had. The poster who mentioned mailman and teacher retiring filthy rich was not far off. I know of retired couples who had those jobs and now collect massive defined benefit pensions FOR LIFE, pensions that have no risk like those of a 401k. Aunt and uncle were both teachers in Southern California. Back in the 1970's they bought a modest house for $65k. They recently retired and between the two of them collect $165k a year in pensions (this is listed on a public website) for life. They both have Medicare and a cadillac supplemental that gives them the best healthcare. Oh, and that $55k house is now $750k. There is no way a couple starting out now could replicate their life by getting a similar education and job and by just "working hard". Retirees now think they are well off because of their own efforts but they don't realize the benefits they had growing up and raising their families in the times they did.
I guess my retired mailman dad didn't get the memo about retiring filthy rich.
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