Millennial behind - but still have time to [catch up]

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
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BanquetBeer
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Millennial behind - but still have time to [catch up]

Post by BanquetBeer » Mon Nov 19, 2018 10:40 am

I read another article this morning - they all tend to say the same thing 'when comparing millennial ~25-35 to the baby boomers, they are doing much worse (income, assets) after adjusting for inflation. The articles point to a number of reasons the author things this is the case (great recession, college debts, stagnant min wage, etc.) but they always add at the end 'despite these headwinds, millennials have plenty of time on their side to make up for the difference!'

If asset accumulation was a race or sport, I don't know how comforting it would be to say 'the had a terrible first quarter but there is still a lot of game left to play".

It does make me wonder what policy changes might be in the future as their vote becomes more powerful.

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Sandtrap
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Re: Millennial behind - but still have time to ketchup

Post by Sandtrap » Mon Nov 19, 2018 10:42 am

Can you please post a link to the article you read?
And, an actionable question if possible.

Given the long and often arduous journey to financial security, filled with starts and stops, "ketchup" may or may not apply. Perhaps one must first pass the "mustard".

j

magicrat
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Re: Millennial behind - but still have time to ketchup

Post by magicrat » Mon Nov 19, 2018 10:58 am

I wouldn't rely on policy changes if I were you.

Turbo29
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Re: Millennial behind - but still have time to ketchup

Post by Turbo29 » Mon Nov 19, 2018 11:43 am

Was just at they gym yesterday and noticed millennials with color coordinated shoes and gym outfits, $300+ headphones, and $100 water flasks. (Not a high income area either.)

Actionable: Less trendy stuff, more investing.

stimulacra
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Re: Millennial behind - but still have time to ketchup

Post by stimulacra » Mon Nov 19, 2018 11:50 am

BanquetBeer wrote:
Mon Nov 19, 2018 10:40 am
I read another article this morning - they all tend to say the same thing 'when comparing millennial ~25-35 to the baby boomers, they are doing much worse (income, assets) after adjusting for inflation. The articles point to a number of reasons the author things this is the case (great recession, college debts, stagnant min wage, etc.) but they always add at the end 'despite these headwinds, millennials have plenty of time on their side to make up for the difference!'

If asset accumulation was a race or sport, I don't know how comforting it would be to say 'the had a terrible first quarter but there is still a lot of game left to play".

It does make me wonder what policy changes might be in the future as their vote becomes more powerful.
Whatever happened to Gen X? They're like the Jan Brady or Fredo Corleone of American cohorts… 

jadedfalcons
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Re: Millennial behind - but still have time to ketchup

Post by jadedfalcons » Mon Nov 19, 2018 11:53 am

"still have time to ketchup"

Is this Patrick Mahomes? Don't worry, just keep playing the way you are and you'll get that big paycheck! Concentrate on tonight!

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FlyAF
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Re: Millennial behind - but still have time to ketchup

Post by FlyAF » Mon Nov 19, 2018 11:54 am

stimulacra wrote:
Mon Nov 19, 2018 11:50 am
BanquetBeer wrote:
Mon Nov 19, 2018 10:40 am
I read another article this morning - they all tend to say the same thing 'when comparing millennial ~25-35 to the baby boomers, they are doing much worse (income, assets) after adjusting for inflation. The articles point to a number of reasons the author things this is the case (great recession, college debts, stagnant min wage, etc.) but they always add at the end 'despite these headwinds, millennials have plenty of time on their side to make up for the difference!'

If asset accumulation was a race or sport, I don't know how comforting it would be to say 'the had a terrible first quarter but there is still a lot of game left to play".

It does make me wonder what policy changes might be in the future as their vote becomes more powerful.
Whatever happened to Gen X? They're like the Jan Brady or Fredo Corleone of American cohorts… 
We're here, quietly killing it in the background. Many of us retiring before our parents LOL.

stimulacra
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Re: Millennial behind - but still have time to ketchup

Post by stimulacra » Mon Nov 19, 2018 12:07 pm

I'm on the tail end of the Gen X cohort and remember reading Douglas Coupland's novel that coined the term back in middle school. That book was notable in that it gave me a profound sense of diminished expectations regarding my future adult life; McJobs, inability to buy a home, high likelihood of divorce, and financial insecurity. You can transfer all of those anxieties 27 years ago to today regarding millennials and not miss a beat.

We'll be doing the same again within a decade for Gen Z. There's nothing new under the sun.

FireProof
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Re: Millennial behind - but still have time to ketchup

Post by FireProof » Mon Nov 19, 2018 12:07 pm

Yes, there's plenty of evidence that a worse start (even as simple as graduating from college into a worse economy) will lead to a PERMANENT life-long earnings gap for a cohort. On the other hand, the modern world is wealthy and tremendously wasteful , so there is a massive amount of slack to save and retire well even with a disadvantage (as many a doddering Baby Boomer has tried to grasp at, when attributing large-scale structural income, job stability, and housing cost gaps to too many avocado toasts and wearing clothing of the same color).

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bligh
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Re: Millennial behind - but still have time to ketchup

Post by bligh » Mon Nov 19, 2018 12:19 pm

My personal opinion is that among millennials, the rise of the FIRE movement, Tiny house movement and minimalist movements are all reactions to these financial headwinds.

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Cycle
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Re: Millennial behind - but still have time to ketchup

Post by Cycle » Mon Nov 19, 2018 12:19 pm

There is usually more variation within groups than between groups. Plenty of millennials are doing very well.

As a millennial, I feel like I've been given an unfair advantage over baby-boomers in the availability of information about personal finance via the Internet.

Now all one needs to do is read a single book, the bogleheads guide to investing, and you know more than 99% of the population about personal finance.

NextMil
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Re: Millennial behind - but still have time to ketchup

Post by NextMil » Mon Nov 19, 2018 12:25 pm

Stop reading those articles, and just pay down debt and invest like crazy. As someone who has fallen into the trap of reading those click bait articles for my generation, I can tell you they will not do a single thing to change your financial position. Just LBYM and invest. Everything else is just noise.

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Cycle
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Re: Millennial behind - but still have time to ketchup

Post by Cycle » Mon Nov 19, 2018 12:26 pm

Turbo29 wrote:
Mon Nov 19, 2018 11:43 am
Was just at they gym yesterday and noticed millennials with color coordinated shoes and gym outfits, $300+ headphones, and $100 water flasks. (Not a high income area either.)

Actionable: Less trendy stuff, more investing.
I'm a megacorp working FI millennial. I sold my apple airpods that I won at work for $150 on eBay. I use a pair of Bluetooth headphones that were $20 on eBay.

I have a yeti water flask that I got free at work.

My shoes... I run barefoot... Baby-boomers wear shoes, how wasteful.

Snowjob
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Re: Millennial behind - but still have time to ketchup

Post by Snowjob » Mon Nov 19, 2018 12:27 pm

Cycle wrote:
Mon Nov 19, 2018 12:19 pm
There is usually more variation within groups than between groups. Plenty of millennials are doing very well.

As a millennial, I feel like I've been given an unfair advantage over baby-boomers in the availability of information about personal finance via the Internet.

Now all one needs to do is read a single book, the bogleheads guide to investing, and you know more than 99% of the population about personal finance.
I would agree with this

The power of information and networking that the internet provides gives each young person a monumental leg up on other generations even GenX. As someone who was the leading edge of the millennial I can attest to this. Young people have no excuse when it comes to these fronts. College on the other hand is wildly more expensive, so there is a trade off. But this is also a well known fact and that should be taken into account when looking at what degrees to pursue.

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gunn_show
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Re: Millennial behind - but still have time to ketchup

Post by gunn_show » Mon Nov 19, 2018 12:34 pm

jadedfalcons wrote:
Mon Nov 19, 2018 11:53 am
"still have time to ketchup"

Is this Patrick Mahomes? Don't worry, just keep playing the way you are and you'll get that big paycheck! Concentrate on tonight!
I just want to acknowledge this as a pretty funny play on words :) .. should be a great game tonight

as for the OP and article... "meh" ... click bait
"The best life hack of all is to just put the work in and never give up." Bas Rutten

MathWizard
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Re: Millennial behind - but still have time to ketchup

Post by MathWizard » Mon Nov 19, 2018 12:34 pm

This thread will be locked soon for lack of a question.

The OP appears to be implying that millennials not saving will cause the government to step in and take
from Peter to pay Paul, and he is afraid that he is Peter.

I don't believe the millennials not saving, in fact I have observed the opposite, and have read that as well:

Code: Select all

https://www.businessinsider.com/millennials-saving-twice-as-much-as-baby-boomers-2017-10
In addition, speculation about future laws/policies is not allowed on the forum, and for good reason.
You'd be better off speculating in the market than on speculating about future government action.

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randomizer
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Re: Millennial behind - but still have time to ketchup

Post by randomizer » Mon Nov 19, 2018 12:54 pm

Gen-Xer here trying to catch up with the millennials.
87.5:12.5, EM tilt — HODL the course!

mmmodem
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Re: Millennial behind - but still have time to ketchup

Post by mmmodem » Mon Nov 19, 2018 2:03 pm

BanquetBeer wrote:
Mon Nov 19, 2018 10:40 am
If asset accumulation was a race or sport, I don't know how comforting it would be to say 'the had a terrible first quarter but there is still a lot of game left to play".
If that's all there is to play, they wouldn't call it a quarter. They'd call it the game. Might I remind you the tale of the tortoise and the hare?

Baby boomers have it tough the next few years as interest rates remain low unless they already have a lot of retirement savings. Time is against them. Meanwhile millennials have a lot of time for compounding to work is magic. Should I be glad I'm a Gen X'er? :sharebeer

Pickles. I can't think of a clever pun.

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Sandtrap
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Re: Millennial behind - but still have time to ketchup

Post by Sandtrap » Mon Nov 19, 2018 2:12 pm

mmmodem wrote:
Mon Nov 19, 2018 2:03 pm
BanquetBeer wrote:
Mon Nov 19, 2018 10:40 am
If asset accumulation was a race or sport, I don't know how comforting it would be to say 'the had a terrible first quarter but there is still a lot of game left to play".
If that's all there is to play, they wouldn't call it a quarter. They'd call it the game. Might I remind you the tale of the tortoise and the hare?

Baby boomers have it tough the next few years as interest rates remain low unless they already have a lot of retirement savings. Time is against them. Meanwhile millennials have a lot of time for compounding to work is magic. Should I be glad I'm a Gen X'er? :sharebeer

Pickles. I can't think of a clever pun.
Yes.
Especially for "Boomers" in the "Retirement Red Zone" (Search forum for "Kitces"). :shock:
j

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rcjchicity
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Re: Millennial behind - but still have time to ketchup

Post by rcjchicity » Mon Nov 19, 2018 3:01 pm

FlyAF wrote:
Mon Nov 19, 2018 11:54 am
stimulacra wrote:
Mon Nov 19, 2018 11:50 am
BanquetBeer wrote:
Mon Nov 19, 2018 10:40 am
I read another article this morning - they all tend to say the same thing 'when comparing millennial ~25-35 to the baby boomers, they are doing much worse (income, assets) after adjusting for inflation. The articles point to a number of reasons the author things this is the case (great recession, college debts, stagnant min wage, etc.) but they always add at the end 'despite these headwinds, millennials have plenty of time on their side to make up for the difference!'

If asset accumulation was a race or sport, I don't know how comforting it would be to say 'the had a terrible first quarter but there is still a lot of game left to play".

It does make me wonder what policy changes might be in the future as their vote becomes more powerful.
Whatever happened to Gen X? They're like the Jan Brady or Fredo Corleone of American cohorts… 
We're here, quietly killing it in the background. Many of us retiring before our parents LOL.
We were the forgotten latch key kids, often products of divorce, chugging along and sometimes raising ourselves. As adults, still forgotten...

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Re: Millennial behind - but still have time to [catch up]

Post by LadyGeek » Mon Nov 19, 2018 4:16 pm

This thread has run its course and is locked (not personal nor actionable). General comment threads are off topic in the forums with "Personal" in the title. See: A reminder that non-investing general comment threads are OT
- It must be personal. In other words, you must be asking about your own situation. You can also ask on behalf of someone specific, such as a family member.

- It must be actionable. You must be able to do something specific with the replies that will make a difference in your situation.
If you have a specific question, please ask directly and provide sufficient information for members to supply appropriate advice.
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