Buckly
5 year old buck +
I thought us boomers had all the wealth?
Stock Market is the bottom in?
- Thread starter Peplin Creek
- Start date
Brian662
5 year old buck +
I'm not sure where you're going with this, but that's quite the red herring.
Buckly
5 year old buck +
Maybe they secretly came to an agreement? If Powell doesn’t start lowering then I see Trump not taking it too well. I think it’s going to be a “YOUR FIRED” moment. LOL. More than likely Powell will just step aside. He doesn’t seem to take pressure well.
Brian662
5 year old buck +
Great question, everyone is (should be) responsible for themselves, IMO. We both unfortunately know it doesn't work that way.
I have family that I was surprised could afford two kids but they didn't stop until they had five. I'm far from a bleeding heart, but I don't want to see their kids go hungry if dad or mom loses their job or gets a laid off. Point being, American families are already strapped after the last round of inflation, there aren't many prepared for another round with unemployment on top of that.
Buckly
5 year old buck +
No red herring. I was to believe out of all generations that the boomers were the best situated financially. Is that not true?
Brian662
5 year old buck +
Are We in a Baby Boomer Retirement Crisis?
Research paints a gloomy picture of how prepared many Baby Boomers are for retirement.
No, it's not true. This (baby boomer) is the first generation in a long time that mostly doesn't have a pension to fall back on. They often weren't disciplined enough to save via tax sheltered retirement vehicles (or couldn't afford it), and it's going to be a major crisis. Numerous articles and sources out there stating this very thing. It's got the possibility of getting very ugly for them.
Buckly
5 year old buck +
I’m not sure if you’re serious but, Baby boomers are by far the wealthiest generation. There is endless data. But from US. News and World report.
If you're in this age group, you may have purchased a home and paid off your mortgage, received an inheritance from relatives and saved money early and consistently.
“A basic reason for this generation’s wealth is that they’ve benefited from the time value of money and reinvesting the interest,” says Jay Pelham, certified financial planner and president of Kaufman Rossin Wealth in South Florida.
"If people earned and saved and invested the same percentage of their income for 20 years or more, they’ve accumulated more than someone who has done this for five or 10 years,” he says.
Another reason for this generation’s wealth is owning and then selling a successful business. “We see this with baby boomers quite a bit,” Pelham says.
Wealthiest Generation: Baby Boomers
According to the Federal Reserve data, baby boomers – people born between the 1946 and 1964– win the top spot for the wealthiest generation in the U.S. In aggregate, their total net worth is $78.55 trillion.If you're in this age group, you may have purchased a home and paid off your mortgage, received an inheritance from relatives and saved money early and consistently.
“A basic reason for this generation’s wealth is that they’ve benefited from the time value of money and reinvesting the interest,” says Jay Pelham, certified financial planner and president of Kaufman Rossin Wealth in South Florida.
"If people earned and saved and invested the same percentage of their income for 20 years or more, they’ve accumulated more than someone who has done this for five or 10 years,” he says.
Another reason for this generation’s wealth is owning and then selling a successful business. “We see this with baby boomers quite a bit,” Pelham says.
Buckly
5 year old buck +
USA facts.org.
Baby boomers have the highest household net worth of any US generation.
Defined by the Federal Reserve as being born between 1946 and 1964 (currently in the ages between 59 and 77), baby boomers are in often in the sunset of their career or early into retirement.
Their higher net worth is expected: with most baby boomers financially planning for at least a few more decades, they benefit from wealth earned from long careers and have more robust retirement accounts than the silent generation, who have dipped further into retirement savings.
The silent generation (born before 1946) has the second-highest net worth (or assets minus liabilities) at around $1.29 million per household, followed by Generation X (born between 1965 and 1980) at $1.11 million per household. Millennials (born after 1980) are the generation with the least wealth. (The Federal Reserve does not have data on Generation Z yet.)
Baby boomers have the highest household net worth of any US generation.
Defined by the Federal Reserve as being born between 1946 and 1964 (currently in the ages between 59 and 77), baby boomers are in often in the sunset of their career or early into retirement.
Their higher net worth is expected: with most baby boomers financially planning for at least a few more decades, they benefit from wealth earned from long careers and have more robust retirement accounts than the silent generation, who have dipped further into retirement savings.
The silent generation (born before 1946) has the second-highest net worth (or assets minus liabilities) at around $1.29 million per household, followed by Generation X (born between 1965 and 1980) at $1.11 million per household. Millennials (born after 1980) are the generation with the least wealth. (The Federal Reserve does not have data on Generation Z yet.)
Buckly
5 year old buck +
Who has the most in assets?
Baby boomers also have the most assets per household, followed by the silent generation, Generation X, and millennials. As for asset components, baby boomers have the most in retirement savings, as many people of the generation have not yet retired or been retired for very long. They also have slightly more than the silent generation in stocks and real estate.Generation X and millennials are still building their wealth. Millennials in particular have little wealth in stocks and mutual funds, averaging around $18,000 per household. Many also do not own real estate, an asset area traditionally used to build wealth.
Baby boomers have the most in assets, with fuller retirement funds and more wealth in stocks and real estate.
Buckly
5 year old buck +
Money Magazine.
Despite railing against the trappings of mainstream capitalist America in the ‘60s and ‘70s, baby boomers went on to trade their bohemian headbands for suits, ties — and blossoming investment portfolios.
Boomers, which were born between 1946 and 1964, have now become the “wealthiest generation that has ever lived,” according to a new global wealth report from the financial firm Allianz. And it doesn’t look like subsequent generations are going to be able to dethrone them anytime soon.
How boomers got so rich, Allianz’s analysis shows, has less to do with financial prudence and more to do with the luck of the draw.
“A unique historical situation — strong economic growth, affordable housing markets and booming equity markets — allowed them to build up a handsome fortune,” Allianz researchers wrote.
Despite railing against the trappings of mainstream capitalist America in the ‘60s and ‘70s, baby boomers went on to trade their bohemian headbands for suits, ties — and blossoming investment portfolios.
Boomers, which were born between 1946 and 1964, have now become the “wealthiest generation that has ever lived,” according to a new global wealth report from the financial firm Allianz. And it doesn’t look like subsequent generations are going to be able to dethrone them anytime soon.
How boomers got so rich, Allianz’s analysis shows, has less to do with financial prudence and more to do with the luck of the draw.
“A unique historical situation — strong economic growth, affordable housing markets and booming equity markets — allowed them to build up a handsome fortune,” Allianz researchers wrote.
Brian662
5 year old buck +
I think both what you and I are saying is true. Of course they're the "richest" generation, just like the generation that follows them will surpass their wealth in aggregate. That doesn't change the fact that 2/3 of them are woefully unprepared for retirement and these market hiccups won't help them better achieve independence. Like @Mortenson said, they made their own personal decisions and should be accountable for them, no matter how it shakes out.
Sure seems like the interwebs are full of hate for "evil" boomers hoarding all the wealth. I imagine future generations will indeed be wealthier once the $80+ trillion wealth transfer takes place from Gen X and Millenials inheriting boomers' wealth.
Seems to me Gen X was/is the first generation to deal with a lack of a pension and having to invest independently. Most of what I read indicates the Xers are who are really in trouble in retirement. No pensions, likely reduced S.S. benefits, and late starts in funding 401ks.
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Foggy47
5 year old buck +
Does anyone here subscribe to the Motley Fool? They recently sent me a click bait that was touting an AI stock that would be outperforming every other stock in the next 10 years. Of course they make it sound like you need to subscribe now to get the intel on the stock they are pushing. I'm too tight to pay....but their come-on is pretty compelling. Anyone know who they are pushing?.......and it's not NVIDIA. Potential 30 trillion dollar stock!!??
4wanderingeyes
5 year old buck +
I have another question for you guys. How much is enough for retirement?
I can figure what I make now with inflation, but what I make now, I could easily live off half of what I earn now. Factor in social security, the lack of any house loan payments, because I would hope I dont take out anymore huge loans. I would assume I would live cheaper, because I would be older and less ambitious to go do stuff.
The reason I ask is my financial advisor keeps raising the stakes, and wants me to invest more, I personally think she just wants a bigger take home herself. My wife and I now live off less than 200k per year, and that includes investing, mortgage, and lots of frivolous spending on stuff like trees, tractors, and equipment, a few vacations each year, helping our kids, stuff that could easily stop. But 10 years ago it was you needed 1million to retire, then 3 years ago it was 3 million, now she says we would need 5 million to retire. I think we would need to up our spending a lot to spend that much.
I can figure what I make now with inflation, but what I make now, I could easily live off half of what I earn now. Factor in social security, the lack of any house loan payments, because I would hope I dont take out anymore huge loans. I would assume I would live cheaper, because I would be older and less ambitious to go do stuff.
The reason I ask is my financial advisor keeps raising the stakes, and wants me to invest more, I personally think she just wants a bigger take home herself. My wife and I now live off less than 200k per year, and that includes investing, mortgage, and lots of frivolous spending on stuff like trees, tractors, and equipment, a few vacations each year, helping our kids, stuff that could easily stop. But 10 years ago it was you needed 1million to retire, then 3 years ago it was 3 million, now she says we would need 5 million to retire. I think we would need to up our spending a lot to spend that much.
buckvelvet
5 year old buck +
I'm just guessing that when most people retire their house is paid for. So there isn't really large expenses, so if you have a bit of retirement to go with SS you're still going to make it.
$3-$5m all would love to have but again being just utilities, maintenance, taxes, living would not cost even $1m most likely. That sore of extra would be like renting condos 2-4 months a year down south or something cuz otherwise I'm not sure why they expect regular non 6 figure making people to get anything near that accumulated. Crazy.
$3-$5m all would love to have but again being just utilities, maintenance, taxes, living would not cost even $1m most likely. That sore of extra would be like renting condos 2-4 months a year down south or something cuz otherwise I'm not sure why they expect regular non 6 figure making people to get anything near that accumulated. Crazy.
Howboutthemdawgs
5 year old buck +
I don’t have the answer but the guy I passively use (friend of the family I just humor by letting “manage” a retirement account) keeps showing me charts of how much I’ll need at 90 to live comfortably. Have a couple million in the bank at 90 is the least of my worries! They just try to scare you into dumping more of your money into their basket so they can get their bonuses.
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Foggy47
5 year old buck +
In winter I live in an AZ retirement community that has over 6000 homes. Its a 55+ gated community and has 3 golf courses, a theatre, ballrooms, bars, pools, resterants, fitness, security force, and all the things you could possibly want. It's like living at a resort. Lots of different situations from the people that retired here. Some are ex-military, business owners, policemen, lawyers, bankers, postal workers.....you name it.
The homes run from $550 or so to 1.5 or so. A few are more. Some people work part time here...yet have been retired for 20 years. I'd bet most of the ones that do not work would tell you they have 2 to 5 million of investments. Most, own their homes, but some have mortgages too. About 50% are "snow birds" like me and own another property "up north". I think there are too many variables with pensions and such to divulge a certain amount to have socked away. Some worry about their pensions being cut.
I suppose there are a whole lot more people that cannot afford this lifestyle.....and do not have the assets to be satisfied in retirement. I do beleive that everyone has different spending habits. Some want to dine at Mortons steakhouse.....and others are fine at Applebees, etc.
I dont think your planner is doing you wrong by preparing you for what is to come, but this topic is always fascinating to me. Gonna be migrating north soon. Glad to be able to do what we want at our age......which is not much travel these days. We are hoping to pass some wealth to our kids and grandkids......'cause I think they are going to need it.
I'll say this.....twice as much as what you think might be a good number to shoot for. But you gotta do your own dreaming and planning. I'm going to play golf in an hour or so.....FORE!
EDIT: The reason I say twice as much as you think.....is that I retired 20 years ago. At that time most 'entres on the menu were from $10 to $25 or so...including my favorite rib-eye steak. Today, you can easily pay double or triple those amounts. I doubt that anyone is paying less than 2 to 3 times the amounts at the grocery store as compared to 20 years back. Inflation is not kind to seniors.
The homes run from $550 or so to 1.5 or so. A few are more. Some people work part time here...yet have been retired for 20 years. I'd bet most of the ones that do not work would tell you they have 2 to 5 million of investments. Most, own their homes, but some have mortgages too. About 50% are "snow birds" like me and own another property "up north". I think there are too many variables with pensions and such to divulge a certain amount to have socked away. Some worry about their pensions being cut.
I suppose there are a whole lot more people that cannot afford this lifestyle.....and do not have the assets to be satisfied in retirement. I do beleive that everyone has different spending habits. Some want to dine at Mortons steakhouse.....and others are fine at Applebees, etc.
I dont think your planner is doing you wrong by preparing you for what is to come, but this topic is always fascinating to me. Gonna be migrating north soon. Glad to be able to do what we want at our age......which is not much travel these days. We are hoping to pass some wealth to our kids and grandkids......'cause I think they are going to need it.
I'll say this.....twice as much as what you think might be a good number to shoot for. But you gotta do your own dreaming and planning. I'm going to play golf in an hour or so.....FORE!
EDIT: The reason I say twice as much as you think.....is that I retired 20 years ago. At that time most 'entres on the menu were from $10 to $25 or so...including my favorite rib-eye steak. Today, you can easily pay double or triple those amounts. I doubt that anyone is paying less than 2 to 3 times the amounts at the grocery store as compared to 20 years back. Inflation is not kind to seniors.
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Jerry-B-WI
5 year old buck +
How long is a piece of string? That question is easier to answer. I've recently read that 1.5M plus social security will last 41 years if you live in Wisconsin, you and I both live there. I also recently read that you should have 10X your last years combined wages.
All depends what you want to do. A house here for the summer and a condo/house somewhere warm like Foggy for the winter will cost you more. Depends on inflation and how the market does and where you have your money invested. If the Republicans ever give us the promised better/cheaper health care we've been waiting for that could make a huge difference.
I asked our investment guy how our account compared to his average client and he told me we have 2X-3X more than his average client. Does that make me feel good? Yeah on some days, other days not so good.
I don't understand why people get upset about investment advisors telling them to save more. It's like the ad for Fisher Investments say. We do better when you do better. When I checked into their services they charged about 1% of you account to manage it and be a fiduciary. If you think you're investment advisor is managing your money for the sole purpose of them getting richer it's time to either get a different advisor, or start doing it yourself.
The common rule of thumb is 25-35 times your yearly spend (spend not including what you’re putting back into savings) That allows for a 3-4% safe withdrawal rate. Google SWR and read up on it. I track and bucket every cent we spend for the purpose of understanding that nest egg estimation. Is it perfect? No, but it’s objective and has a defensible basis.
Here’s a good article about a similar concept.
The Shockingly Simple Math Behind Early Retirement
This is the blog post that shows you how to be wealthy enough to retire in ten years. Here at Mr. Money Mustache, we talk about all sorts of fancy stuff like investment fundamentals, lifestyle chan…
www.mrmoneymustache.com
ETA: didn’t mean to respond to Dawgs again
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