Are you financially better off than your parents were at your age?

[Rain Man]

Simple question, multifaceted answer. Do you think you're better off, worse off, or about the same as your parents were when they were your current age?


Poll coming, and I promise not to tell your parents.

[NewChief]

My dad was a highly successful dentist. I'm a teacher, and my wife quite her job and started her own business 3 years ago.

You do the math.

[Bugeater]

Originally Posted by KurtCobain

What the **** do you have seven TVs for?

To watch TV on?

[Sully]

About the same.
My dad and mom had just gotten divorced. My dad was working for GSA making good money, but my mom had ruined his credit, so it was a few years of living lean when he and my step mom got together.
I'm settled in a good job, bit not really high pay. Same with my wife. We will do ok, but probably never make what my dad did, without major career changes, which neither of us want.

[Predarat]

Originally Posted by JASONSAUTO

just think they all told me i was a ****ing idiot to want to work on cars,in their minds i should have just taken that warehouse order puller position my pops had a set up after high school...

Many times I wish I had went that route. If you are good at it and can fix complicated issues, pretty good income and job security there.

[keg in kc]

OMG Justin Houston posts here

[Demonpenz]

My parents had good insurance. I spent 3 days in the hospital wiped out my 401k savings and going to have to sell my car to get a beater. That was WITH insurance.

[Demonpenz]

Originally Posted by DJ's left nut

Yeah, we've hit that point as well. Spoiled first world problems for sure, but my wife just wrapped up her masters and doubled her income. My firm is doing nicely as well - all told we got about a $50K income boost over where we were 2 years ago....no change in lifestyle to speak of. Now we've been able to throw a fair amount of money into savings and we're considering a fairly substantial upgrade in homes, but even that makes me wonder if it's worth the trouble. Do I really need to spend another $250K to add an extra garage and have an open floor plan? I friggen love my 2.75% 15 yr note - do I really feel like swapping that out for 30 yrs at 4.25%? And suddenly my monthly nut would nearly triple and I'd be a lot less free in what I can do. Is that worth the headache? I have a pretty nice home with a good yard in a fine neighborhood...what am I really gaining?

Then again...I can't take it with me either. Like you said, there's a middle ground there where you have a lot more freely spendable money...but not quite enough to make a 'leap' without it really hurting so you don't really want to do it.

It's the snootiest of snooty bullshit. It's just an odd spot to find yourself in. You work hard for promotions, raises, etc... but like you said, once you hit a point, the money doesn't actually make any difference in your lifestyle.

I would think time and energy is what should 100 more valuable at this point. If you can put more energy and time in things that you give a **** then do that instead of upgrading. Some peoples game is getting bigger and better shit, so for those people it might be worth it.

[BWillie]

So far, everybody is better than their parents. LOL okay chiefs planet. okay.

[DJ's left nut]

Originally Posted by JASONSAUTO

a wise old man once told me that if you do any real estate loan for more than 15 years you are a mother ****ing idiot

Maybe.

But let's say you have 100K that you could either put as a down payment to get yourself to a 15 year note or you could keep the liquidity and take the 30 yr note.

The 15 yr note is going to be about a point lower in interest - so point 15 yr. However, I can take that 100K and put it in the market. Over the 15 years that I'm 'saving', I will probably quadruple that in the market, considering a relatively steady historic return. Even with the market collapsing in/around '07, if you didn't need that money, it's recovered to the point that 100K invested in 2000 would be worth about 185K today if you did nothing more than shove it all into an S&P index fund. And that's with an absolute bed-shitting in the middle. Like I said, using historic average without a mid-term collapse and you're looking at it being worth about 400K.

And remember, the interest you pay on the notes is tax deductible, so your 4% note is going to figure more like 3% after the tax advantages (with the 3% note being at about 2.25%), so the gap on the % difference closes as well.

A 30 yr note really can be a very strong, sound financial decision if you're willing to take the liquidity that you save and use it to defray the added cost.

Ultimately I just like not having to give a shit about a budget. If I want to do something right now, I get to do it. If my monthly mortgage payment triples, sure I'll have a hell of a house...and it's a good thing because I'll be spending a lot more time sitting in it instead of going on vacations, going out to eat, etc...

[O.city]

Originally Posted by DJ's left nut

Maybe.

But let's say you have 100K that you could either put as a down payment to get yourself to a 15 year note or you could keep the liquidity and take the 30 yr note.

The 15 yr note is going to be about a point lower in interest - so point 15 yr. However, I can take that 100K and put it in the market. Over the 15 years that I'm 'saving', I will probably quadruple that in the market, considering a relatively steady historic return. Even with the market collapsing in/around '07, if you didn't need that money, it's recovered to the point that 100K invested in 2000 would be worth about 185K today if you did nothing more than shove it all into an S&P index fund. And that's with an absolute bed-shitting in the middle. Like I said, using historic average without a mid-term collapse and you're looking at it being worth about 400K.

And remember, the interest you pay on the notes is tax deductible, so your 4% note is going to figure more like 3% after the tax advantages (with the 3% note being at about 2.25%), so the gap on the % difference closes as well.

A 30 yr note really can be a very strong, sound financial decision if you're willing to take the liquidity that you save and use it to defray the added cost.

Ultimately I just like not having to give a shit about a budget. If I want to do something right now, I get to do it. If my monthly mortgage payment triples, sure I'll have a hell of a house...and it's a good thing because I'll be spending a lot more time sitting in it instead of going on vacations, going out to eat, etc...

We just bought a new home a few months back. First house, tired of paying 1400 for rent, yada yada.

Went with a 30 year for basically what you're saying here. I pay my wife from my 2 offices to do "bookwork" and basically take that extra income and just throw it at either A. Debt or B. the market.

She does well enough herself that she shouldn't be getting paid, especially when I do the bookwork anyway but from a tax perspective I guess it makes sense, or so I was told.

In terms of the house though, we ended up going a little smaller but we love it and have extra income to do shit with. I'm not huge on the big house right now, maybe in the future I would be I guess, but give me all my other shit.

Of course a 3k per month student loan tab eats taht other shit up a little quicker than I'd like but it is what it is.

[DJ's left nut]

Originally Posted by Demonpenz

I would think time and energy is what should 100 more valuable at this point. If you can put more energy and time in things that you give a **** then do that instead of upgrading. Some peoples game is getting bigger and better shit, so for those people it might be worth it.

True, but there's the caveat that Saul mentioned - there still is a point sometime further down the road than where I am now where that lifestyle does increase substantially. And he's right, it does seem to take about double of where you are once you reach a certain point. There is a brass ring, it's just not easy to track down.

If I decide that energy is 100 times important than money, then I'll dial back job responsibilities, etc... and ensure that I'll never hit that 'life changing' financial threshhold.

Or, I could keep my foot on the accelerator for another 3-5 years, figure that things will keep trending as they are and suddenly I've hit that 'doubling' point that allows the next level lifestyle choices I'd like to make.

Then again, I think that's just a question common to pretty much everyone in their 30s and has been for time immemorial. Just exactly how hard are you willing to push to make your 40s that much cushier? Rarely do you hit your professional peak in your 30s but damn if it doesn't feel like you've spent a long time pushing yourself. It's hard to keep your eyes on the prize, so to speak. For me, I've chosen to bear down, fight through the professional doldrums and see if I can't run down my folks, get my 3rd car garage with a shop and some land overlooking a golf course or a lake and then coast a bit through my 40s when the next batch of people like me are willing to do some of my work for me.

I certainly understand the opposite perspective though and there are months at a time where I think it's probably the way to go.

[displacedinMN]

I would say better. Dad was a farmer from day one. Mom was the best hired man dad could have. (his words)
There were years they worked at a loss. I don't see how the hell we made it. As we clean out the house, I am going to find their 1040's and find out. The late 70's and early 80's were terrible. Mom and Dad always paid the bills and never over extended themselves. Buy what you need, not what they wanted. Lesson learned. I wish more people would do that today.

Even as a teacher, my wife and I do well. She is kicking my ass right now. That helps.
I have been able to do things my parents NEVER would have been able to do. And I appreciate it every day. I am thankful for what I have and do not take it for granted.

The amazing thing, because of the last few years of farming, my parents secured my retirement and the fact that my kids can go to college. I cry every time I think of it. Never thought it would happen that way.

[Demonpenz]

Originally Posted by DJ's left nut

True, but there's the caveat that Saul mentioned - there still is a point sometime further down the road than where I am now where that lifestyle does increase substantially. And he's right, it does seem to take about double of where you are once you reach a certain point. There is a brass ring, it's just not easy to track down.

If I decide that energy is 100 times important than money, then I'll dial back job responsibilities, etc... and ensure that I'll never hit that 'life changing' financial threshhold.

Or, I could keep my foot on the accelerator for another 3-5 years, figure that things will keep trending as they are and suddenly I've hit that 'doubling' point that allows the next level lifestyle choices I'd like to make.

Then again, I think that's just a question common to pretty much everyone in their 30s and has been for time immemorial. Just exactly how hard are you willing to push to make your 40s that much cushier? Rarely do you hit your professional peak in your 30s but damn if it doesn't feel like you've spent a long time pushing yourself. It's hard to keep your eyes on the prize, so to speak. For me, I've chosen to bear down, fight through the professional doldrums and see if I can't run down my folks, get my 3rd car garage with a shop and some land overlooking a golf course or a lake and then coast a bit through my 40s when the next batch of people like me are willing to do some of my work for me.

I certainly understand the opposite perspective though and there are months at a time where I think it's probably the way to go.

yeah it sounds like hustling and grinding your way to a new level might flip your trigger in that case I would go for it. It is the people who only think thats the way they are actually get the shit and are let down because it doesn't make them happy. People have to know what it is that drives them. If you a relaxed person make enough money to chill out, if you are a hustler and grinder who levels up do that, if you want a balance do that, but just find out what it is and don't stray away from it. Also the skills and the leveling up is what really flips peoples triggers. Getting bigger and bigger things until you decide it is time to cut back then you get cancer and die, but you spent most of your life happy and productive.

[rico]

Way, way worse... Student loans and an inability to really use my degree in a job that pays better than a factory job, has just destroyed me. I've made some bad decisions financially, but mostly I have had some awful, awful luck. Every time it appears that I am going to catch a financial break, something crazy and unexpected comes from nowhere and just takes the wind out of my sails.

On the other hand, I will be inheriting a pretty large sum of money when my parents pass away. However, the last thing in the world that I want to experience is any of my loved ones dying...so lose-lose.

Going to college was my personal worst financial decision. Hands down.

[Saul Good]

Originally Posted by BWillie

So far, everybody is better than their parents. LOL okay chiefs planet. okay.

Why is that surprising?