Time to Retire the Idea of Retirement

[missdpuck]

well that's the thing--a lot of the younger folks don't know this as they weren't even born yet.

But you think you know it all, dontcha ya little buggers

@MarchHare-- I was being a bit flip ya know. When you hear the numbers I guess you (or I) automatically think in today's terms.

A couple of months ago I was reading about the postal workers who went on strike in the 70s. I don't remember what the wage was then, but I still couldn't believe how low it seemed, even in light of it being so long ago.

[MarchHare]

Originally Posted by Dion

I wonder if today's generation will ever have to deal the housing market collapsing and boomers losing thier homes. Or the double digit interest borrowing rates boomers faced in the 80's.

See above. Twentysomethings today are in a much tougher position than the baby boomers were at the same age, even when you account for the higher interest rates of the early 80s (which, let's not forget, weren't all bad -- it had a positive benefit of making it easier to save a downpayment for one's first home). Anyone who thinks the boomers had it harder is being wilfully ignorant.

[The Fonz]

It's getting pretty pathetic the way people complain about "I can't advance in my career because the baby boomers are taking all of the good jobs".

Maybe you're just not good at what you do, and that's why you don't advance. Or maybe you've got a bitch attitude, and expect everything handed to you, and that's why you haven't advanced.

[MarchHare]

@MarchHare-- I was being a bit flip ya know. When you hear the numbers I guess you (or I) automatically think in today's terms.

A couple of months ago I was reading about the postal workers who went on strike in the 70s. I don't remember what the wage was then, but I still couldn't believe how low it seemed, even in light of it being so long ago.

I certainly don't. You can't make a direct apples-to-apples comparison of dollar values between different years because you have to factor in inflation.

[Dion]

Originally Posted by MarchHare

See above. Twentysomethings today are in a much tougher position than the baby boomers were at the same age, even when you account for the higher interest rates of the early 80s (which, let's not forget, weren't all bad -- it had a positive benefit of making it easier to save a downpayment for one's first home). Anyone who thinks the boomers had it harder is being wilfully ignorant.

The problem with housing prices skyrocketing is cheap money. People are spending beyond their means and racking up huge debts because of cheap interest rates. Interest rates won't stay this low forever and when it does go up, watch out, it won't be pretty!

Yes it made it easier to save for a downpayment but at the same time it created larger mortgage payments. That and people of time were keenly aware of the housing crash and made efforts to try and not to over extend themselves

There was also the long recession of the 80's into the 90's where people struggled to find jobs. I had friends who ended up selling their homes when they couldn't find steady employment and were afraid of the bank taking their home.

[missdpuck]

Originally Posted by MarchHare

I certainly don't. You can't make a direct apples-to-apples comparison of dollar values between different years because you have to factor in inflation.

Well I am just not as brilliant as you are.

Just kidding. I was talking about my emotional reaction.

In any case, I'm not sure whether you would compare billionaires now with millionaires then or whatever---I guess what I'm trying to ask is, are there more "wealthy" folks percntage-wise now, or were there more back then?
One of my relatives was in the forbes 500 in the 60s. That was when meat=packing was still one of the biggest money makers.
He wouldn't even make it to the forbes 5 million now.

So, adjusted for economic variables are there more with more now, or fewer with even more now . I've read that there are so many new millionaires made every year, but with inflation it's obviously not as thrilling as it once was.

Oh yeah- my big IBM job in the 80s paid 5.31 hr

[Phanuthier]

Originally Posted by Dion

The problem with housing prices skyrocketing is cheap money. People are spending beyond their means and racking up huge debts because of cheap interest rates. Interest rates won't stay this low forever and when it does go up, watch out, it won't be pretty!

Yes it made it easier to save for a downpayment but at the same time it created larger mortgage payments. That and people of time were keenly aware of the housing crash and made efforts to try and not to over extend themselves

There was also the long recession of the 80's into the 90's where people struggled to find jobs. I had friends who ended up selling their homes when they couldn't find steady employment and were afraid of the bank taking their home.

That also happened in 2008

[missdpuck]

So we got 2 reccesions for the price of one lifetime!

[Dion]

Originally Posted by missdpuck

If one of the Young Cannibals doesn't kill you off first.

Just kidding people!

I loathe rap music and I would beat the cannibals to him

[Dynamic]

Im only 27 and everyone I know thinks I'm out of my tree when I tell them I retiring at 55. I am half joking though, what I mean by retiring is basically not holding a full time job and collecting my pension. Maybe I would be doing contract work after 55 or a part time job that I enjoy but to me that is retirement.

If I pay off my house and possible downsize, keep contributing to my rrsps, and generally practice good financial sense I believe I can reach my retirement goal of 55. That being said I have not sat down with a financial advisor as of yet to see where I am and where I am headed so I could be totally out to lunch with my plan. Im just going with the flow for now doing the things that the previous generation have always preached to me about financial sense.

[Dion]

Originally Posted by missdpuck

So we got 2 reccesions for the price of one lifetime!

Here's an idea! We consolidate our retirement funds and move to the Bahamas and live on the beach and drink pina colads all day

[Dion]

Originally Posted by Phanuthier

That also happened in 2008

I hear the States suffered badly with the crash of the housing market and all. Just waiting for it to happen here in Alberta.

[missdpuck]

What sucks now too is you might find a cheaper house, but cheaper house often equals unsafe neighborhood.
I could've gotten a lot more house if I wanted to put bars on my windows haha

Okay Dion, as long as I can occasionally visit my favorite gator filled cypress swamp

[Phanuthier]

Originally Posted by Dion

I hear the States suffered badly with the crash of the housing market and all. Just waiting for it to happen here in Alberta.

Yeah, there are some really sad stories out there. Families who live in their car and how the kids felt embarassed that their dad went from white collar respected jobs to flipping advertisement signs on a street corner, or that they woke up that morning and had to brush their teeth in a gas station bathroom before going to school. Its not a Gen X vs Gen Y thing.... sometimes the economy stomps you even when you are reasonably with your expenses.

While there are unreasonably budgetted people out there, and I have seen it for all generations in large masses.... sometimes the social and infrustructure doesn't allow you to save that easy.

[V]

It's good to be Gen X, that's for sure. Bought my first house for $131,000, and also have one of those sweet elusive defined benefit pensions, so I'm all set for retirement if I stick with the company until I'm 57. And I've seen how terrible the previous generation is with money, so I can learn from their stupidity. Life is good!!

[Cheese]

I'd give my left nut to live long enough to see half of the gen Yers and Xers in the exact spot the Boomers are in...just because ALL of them have it figured out! Lol

[Dion]

Originally Posted by Phanuthier

Yeah, there are some really sad stories out there. Families who live in their car and how the kids felt embarassed that their dad went from white collar respected jobs to flipping advertisement signs on a street corner, or that they woke up that morning and had to brush their teeth in a gas station bathroom before going to school. Its not a Gen X vs Gen Y thing.... sometimes the economy stomps you even when you are reasonably with your expenses.

My brother found that out when he was unemployed for 2 years. No more bragging about how great the American health care system when he had to start making large monthly premiums due to his poor health. He figured he'd always find work due to the industry he worked in. In some ways he said it scared the younger generation into putting away a rainy day fund for such incidents.

[Dion]

Originally Posted by Cheese

I'd give my left nut to live long enough to see half of the gen Yers and Xers in the exact spot the Boomers are in...just because ALL of them have it figured out! Lol

I wish every generation would stop saying about how much easier the other had it. Each generation suffered through it's own problems and hardships and it's never as easy as some would like to paint it.

[MarchHare]

Originally Posted by The Fonz

It's getting pretty pathetic the way people complain about "I can't advance in my career because the baby boomers are taking all of the good jobs".

Maybe you're just not good at what you do, and that's why you don't advance. Or maybe you've got a bitch attitude, and expect everything handed to you, and that's why you haven't advanced.

That could certainly be true for individuals, but you have to look at macro trends. It is absolutely the case that baby boomers who are not retiring "on schedule" are preventing career advancement opportunities for subsequent generations (Gen X in particular). There's even a name for this phenomenon: the gray ceiling.

For many of today’s most ambitious young managers and professionals, there are no openings in the hierarchy above them. No matter how stellar their educational background or how hard they work, they are facing the realistic possibility that they will not be promoted to the ranks of upper management for another 20 or 30 years.

How could this be? People in their 30s and early 40s are being held back by the powerful demographic force of the Baby Boom generation. The 78 million Americans born between 1946 and 1964 are the largest generation in history. They represent 29 percent of the U.S. population. By contrast, the 40 million Gen Xers, born between 1964 and 1976, account for just 16 percent of the population.

We’ve discussed the Boomers’ impact on a number of other trends in previous issues. The fact that this generation is so large and so active means that, even as they age, they are increasingly staying in place and blocking the careers of younger workers.

To understand exactly what is happening, consider this: The U.S. Census Bureau reveals that in 1996, there were only 43 million workers in their 40s and 50s, while there were 64 million workers in their 30s. Now, only a decade later, the situation has changed dramatically as the youngest Baby Boomers hit middle age. There are now 69 million workers in their 40s and 50s, and just 40 million in their 30s.

At most American companies, there’s little chance for younger managers to earn promotions because there is a multitude of executives in their 40s and 50s above them. Most of these Boomer executives aren’t going to retire for two or three more decades. For example, Fortune magazine reports that 44 percent of senior-level executives surveyed by Korn/Ferry said they plan to keep working past the age of 64.

At law firms, partners are delaying retirement — and, as a result, they are delaying the advancement of younger attorneys. According to Vault.com’s annual survey, the average time it takes for an associate to make partner grew from seven years in 1998, to eight and a half years in 2003, to nine and a half years today.

[MoneyGuy]

Originally Posted by Buff

I know a guy who "retired" at the age of 54. He sold his business and was able to live off the profits for the rest of his life. He got bored quickly and less than a year later he was working for a friend. Then he tried to retire again a couple of years later but was still bored, so back to work he went. Then his daughter got into massive legal battles with her ex over custody and visitation rights over her kid. She didn't learn a damned thing about money management from her parents so daddy paid for all her legal fees. The guy is now 70 and still working because he needs the money. He has paid every single legal fee for his daughter. Bought her a house and car and anything else she needs because she doesn't know how to budget money.

In the end, a financial responsible person made a lot of bad decisions with his money to help out his daugher, and now he is broke and living payday to payday probably never going to retire, because he actually wants to be retired now, but can't afford to.

Wow, he's not doing the daughter or himself any favours.

I'm a fan of letting kids make money mistakes. And no bailouts.