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.

[Shaid]

Yes and no. I've saved more, have a better house and have it way younger than my parents did. My dad had a job with the govt and a nice retirement plan though. He started his govt job around my age. He also had been a farmer as a young man and was renting it out so he had retirement money coming in that way too. So I'd say he wins on more of a guaranteed retirement plan. Mine is more dependent on how the market does but I'm far enough from retirement that I've got plenty of time to be aggressive and make other moves, which I've been considering.

[lewdog]

To add, my parents both had pensions which are a thing of the past for many of us young workers starting careers. They also had quite a bit of investments but at least with pensions you know that amount will always be there. My retirement will be based solely off investments and money made that way. Not as safe as the pension route with far less security and stability from the older generation and retirement plans.

[bobbymitch]

My dad never made it this far, so who really knows.

[cdcox]

My dad had a long career with IBM. He retired from there with a pension in his mid-50s (about my age) but continued to work at various jobs into his mid-70s. I have passed his inflation-adjusted salary during his peak earning years and will continue to earn a high salary until I retire in a dozen years or so. He did better than me when we were younger, but I think I've passed him in recent years. Through our 50s and 60s I'll make considerably more and work in a better job. I plan to be fully retired before I hit 70, and he still worked part time through most of those years.

[mdchiefsfan]

Originally Posted by lewdog

To add, my parents both had pensions which are a thing of the past for many of us young workers starting careers. They also had quite a bit of investments but at least with pensions you know that amount will always be there. My retirement will be based solely off investments and money made that way. Not as safe as the pension route with far less security and stability from the older generation and retirement plans.

401K?

[Mr. Flopnuts]

Originally Posted by keg in kc

I'm much, much worse off. I have not owned a car since April (totaled in an accident), I have no savings and I don't expect to ever get out of debt as I don't believe there's any way I will ever make more than 25-30 grand in any given year, if I can even earn that much. Decades of bad life choices combined with no social or networking skills and zero marketable work skills just don't paint a very pretty picture of the future. I'm lucky to have a job that pays ten an hour at this point.

This just depressed the shit out of me. I just want to do something to help you.

[Mr. Flopnuts]

Originally Posted by Stop, Chiefs

At my age my dad was supporting a family of 4 plus a dog, but he also lived in the UK, so taxes were higher. He also worked in manual labor on an offshore oil rig. I have a desk job.

I'm going to guess, accounting for inflation and currency values, he made 10-15% more than I make right now, but I have a much nicer TV, live in a nicer city and don't have to buy diapers, so while he probably comes out ahead in gross income, I'm surely winning in disposable income.

Long term he will surely win though. I don't think I can compete with a 40-year career in the oil services industry. That's mad bank.

How you did it is nothing short of amazing. People really don't understand what you accomplished from this very website.

Originally Posted by Saul Good

The pension thing actually works in our favor, believe it or not. I've got a couple of defined benefit plans, and my wife is a teacher, so she can retire in her early 50s if she wants to. She doesn't make much (mid $50Ks), but the benefits are great. That makes it harder to calculate the 'better off' part.

That said, I wouldn't be shocked if someone told me that I've pretty much peaked in terms of my earning potential. I've decided that I'm unwilling to take on more work/stress/etc. for more money unless the money is dramatially higher. Right now, my job is cake. I work about 30 hours a week, I come and go as I please, I've got less than a 20 minute commute, and I can wear jeans, a polo, and tennis shoes most of the time. By the end of the month, I'll pretty much be working from home, so its a pretty good gig.

I don't make a ton of money, but I certainly don't struggle. Short of doubling my pay, I feel like I'd be making a mistake if I gave all of that up for more money. Still, it feels strange to be in my mid 30s and feeling like I'm done trying to move up the chain.

Sales/Marketing? I'm in the same boat. I just live in a shittier part of the world than you do. Lol

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.

Don't take this the wrong way because I like you, but weren't you bitching about having to let people go over Obama care? I mean 50k would hire someone right? I'm confused. If I have you confused with someone else my apologies, and I'm really not here to judge, it's your firm, just trying to understand what changed.

Originally Posted by 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.

As Bearcat said regarding his parents, you and Jilly work for reward not profit. You're richer than I, I'd guarantee it.

[Mr. Flopnuts]

Originally Posted by BWillie

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

EXACTLY what I was thinking. Even anonymously, mother****ers lie...

[Mr. Flopnuts]

Originally Posted by Hootie 2.0

but you're really not taking it into account that you're a huge ****ing queer so people have to give you better jobs

the ****?

[Mr. Flopnuts]

Originally Posted by DJ's left nut

For many, perhaps most, you're right. A 4 year degree is probably the way to go. But like I said, it's not the only way to go and I feel like the educational system stigmatizes anyone that doesn't choose to go that route.

And remember, I just said there are diminishing returns - not no returns.

It's just so hard to wealth-build at all in your 20s if you're lugging around 50K plus in student loan debt and you're dealing with a non-specialized degree that gives you an entry level position of around $30-40K. You can't really even think about home ownership at that point so you're not building equity. Your interest rates are generally in the 5-8% range on student loan debt so it's either a higher monthly payment or a pretty long term. It's just a nasty thing to have hanging around your neck and makes even the march to middle class substantially more difficult.

I'm not saying that college shouldn't be encouraged. I am saying, however, that for many people it shouldn't be the only consideration and to my eyes, that's the only route that guidance counselors and other secondary ed employees will push you towards. And heaven help you if you're a parent that encourages a child that doesn't choose that path.

For your son, Astrophysics may be the proper dream. For others, it could be wanting to open your own shop or even work outdoors. It may be photography. It may be any number of things that your degree doesn't do anything to get you in the door for but perhaps a low-wage apprenticeship would. Those kids are going to be steered away from that and end up in a sort of indentured servitude whereby they have to put in 10 years at a desk in the first job they could get because suddenly the balances were coming due on those subsidized, deferred loans they took out to get through a 4 year program they didn't really want to go into at all.

My 30 year old millionaire boss and I just had that conversation a week ago. And we came up with pretty much, exactly this.

[LoneWolf]

While I'm much better off financially than my parents were at 40, I'll end up working harder and longer than they had to later in life. Most of that has to do with the retirement dreams my wife and I have.

My folks were content with retiring in Kansas and living out the rest of their days staring at wheat fields and hedge rows. We have dreams of buying a beachfront condo in Maui and living on the island six months of the year. Fortunately, we've been able to make enough money up to this point in our lives to be on pace to fulfill this dream, but there are times I wonder if it would be easier to work less, have less stress, and have a different retirement plan.

[Mr. Flopnuts]

Originally Posted by O.city

It sucks, that's for sure

Originally Posted by ThaVirus

Bright side is, if he's paying that much then he's bringing home a ****ing shit ton. Imagine when he gets out from under that debt. Straight cash, homie!

Exactly what I was thinking. Dude's gonna be filthy in no time. Especially if he's throwing everything he can at it to make it go away. Great investment and a great degree.

Originally Posted by rico

This is a great post.

From your previous post about your decisions and lifestyle, you should seriously consider a career in sales. You're very charismatic, and would make a great salesman. Six figures is just the starting point for good salespeople.

[Mr. Flopnuts]

Originally Posted by LoneWolf

While I'm much better off financially than my parents were at 40, I'll end up working harder and longer than they had to later in life. Most of that has to do with the retirement dreams my wife and I have.

My folks were content with retiring in Kansas and living out the rest of their days staring at wheat fields and hedge rows. We have dreams of buying a beachfront condo in Maui and living on the island six months of the year. Fortunately, we've been able to make enough money up to this point in our lives to be on pace to fulfill this dream, but there are times I wonder if it would be easier to work less, have less stress, and have a different retirement plan.

Why Maui? Why not say, Florida on the ocean? Or even a place like Belize that has a similar climate and landscape, and a fraction of the cost? My line of work has me fortunate enough I will be moving to some version of island paradise in the next couple of years, and earning a larger income because of it. I'm considering St. Thomas as a couple of buddies of mine were just recruited from branson, moved there, and are loving it. I want to wait and see how they feel in a year. Lol

[lewdog]

Originally Posted by mdchiefsfan

401K?

Not sure what you're asking.

Yes my wife and I have 401k's but that's investing and your money isn't guaranteed. It's based on market fluctuations. We don't have the luxury of guaranteed money from a pension in retirement.

[Rams Fan]

I'd like to think we're about the same. I won't be having any debt coming out of undergrad because of mainly my parents(though I did get a 4th of my cost covered via an academic scholarship). But the world my mom and dad grew up in when they were in college(35-40 years ago) is much different than the one I'm in today.