Boomers' Billion-Dollar Bonanza: The Unseen Hoarding Behind Millennial Struggles

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:This boomer once had a 17.25% mortgage and never had one in the 3% area. My husband also got drafted and had to fight and get wounded in Vietnam. He didn’t want to go but he didn’t have an option and he did his duty. We have set up very well funded 529 plans for all of our grandchildren. We gift our kids a lot of money every year at Christmas and they will inherit a great amount of money. I inherited very little from my parents and my husband deferred his inheritance and it went to our children. Yes, our children and grandchildren are very lucky and unlike OPs crowd they are very grateful.

So incredibly tone deaf and sanctimonious!!!! Of course your kids and grandkids are grateful. They are not in the position that many of their peers are in - they are benefitting from the boomers wealth. What about all their peers who don't have boomer wealth in their families? You are completely missing the point, either intentionally or you don't have the ability to think on a more nuanced level....

No, I’m not missing the point. I’m just tired of boomers being trashed by people who are clueless about interest rates and inflation when boomers were your age. Interest rates in the teens, inflation in the teens all during our 30’s. If you don’t think we were scared you are so wrong. Unemployment was high and if you lost your job and you had a 10% interest rate plusconstantly 10% inflation eating into your savings you were screwed. You have been spoiled by 2% inflation and 3% mortgages. That’s free money. Yes, inflation and interest rates are up…….welcome to the world boomers lived in for a decade.

Not only was our interest rate on our first townhouse in the double digits when we bought in the 80s, but our annual income was something like $30K. I ended up going back to graduate school because the job market was so awful, I couldn't find a job for nearly a year. There are plenty of non-boomers on here posting about their high HHIs, big law careers, and expensive homes and vacations. Quit trying to find someone else to blame for your problems.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:My greatest generation parents did better than their parents. My boomer siblings have done better than our parents. And my millennial children are on a path where they could do better than their boomer parents. I believe the differentiators are better education opportunities and dual income households. Hard work has always been part of success for all the generations.

I agree. Pick a more lucrative career. The days of majoring in whatever you want and getting a good paying job is over.

The bolder alone is worth much more than anything else others have complained about.

+1 I have to believe the number of useless majors being offered today is significantly greater than 40 years ago. Back then we thought that sociology and philosophy were of questionable economic value but the list today is much longer.

I think back then you could major in some liberal arts degree and find a good paying office job because there were less people going to college. Not so today. We have way more college grads competing for the good paying jobs. Back then you could go to vocational school and get a job and live a middle class life. It's getting harder to do that.

You’re right about the college degree. It mattered some. A Master’s even less. I have one and no one ever cared what it was in. But it increased my salary by 50%. But you’re wrong about todays value for vocational training. Right out of school my kid was making $60k and same for my friend’s kid.

The problem is that the $60K paying job out of vocational school won't pay that much more in 20 years. Also, with automation and offshoring jobs, there are less and less vocational type jobs. My dad was a machinist, and my mom was a seamstress.

Even so, vocational training has a much better ROI than paying for a college degree in something useless and getting a job that pays the same $60k that a vocational trained person gets paid.

I was just reading about certification job training programs in the semiconductor industry. This guy had a psych degree and was working at Taco Bell because he couldn't find a job. So, he signed up for the vocational training program. Technician in semiconductor starting pay is $20 to $25/hour. What a waste of a college degree.

[Anonymous]

Anonymous wrote:Millennials are always complaining that they will never have the wealth of their parents. Think about this:
M’s will spend $1000 on a cell phone plus $100/mos for service. We didn’t have cell phones when we were in our 30’s.
M’s will spend $5+ a day at Starbucks. We didn’t spend the money because there wasn’t a Starbucks.
M’s will spend hundred a month on all types of streaming services. We had CBS, NBC and ABC. They were free.
M’s love Door Dash, Uber Eats and Instacart. We shopped at Safeway and cooked at home.
Boomers money went to cover 7-10% mortgage rates.

The one very big advantage that boomers had was much lower education debt. But our colleges didn’t have food courts, climbing walls, incredible athletic facilities etc etc. And most boomers were smart enough not to take out huge loans to major in something that employers don’t care about.

I am an older millennial (36) but I have to agree with some of this. I see many of my peers wasting money on convenience apps like DoorDash and Uber because they are too lazy or feel they don’t have time. As a once in a while treat, sure, go for it. But if you use them regularly the costs add up.

[Anonymous]

Please explain what you mean by “hoarding.” Are you saying boomers should just die already? Give their money to strangers? What?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:This boomer once had a 17.25% mortgage and never had one in the 3% area. My husband also got drafted and had to fight and get wounded in Vietnam. He didn’t want to go but he didn’t have an option and he did his duty. We have set up very well funded 529 plans for all of our grandchildren. We gift our kids a lot of money every year at Christmas and they will inherit a great amount of money. I inherited very little from my parents and my husband deferred his inheritance and it went to our children. Yes, our children and grandchildren are very lucky and unlike OPs crowd they are very grateful.

Ofc they’re grateful for all the gifts you’re giving them. The point is - OP and her generation don’t have the same parameters to make all that money on their own, which you did have when you were younger. That’s the whole point. Unless you inherit, you’re screwed.

PP - you’re wrong! Our kids are in the mid 30’s and make more than we did at the same age and their homes are nicer than the ones they grew up in and they bought those homes with 3% mortgages and no help, at the time, from us. How does OP not have the same parameters to make that money on their own? We didn’t start to make a lot of money until we were in our late 40’s when my husband took a very high risk job and the business succeeded beyond our expectations.

I am like your kids - millennial, mid-30s, have a house I bought on my own (property ladder, folks) with no parental help and a 3% interest rate. Now, a lot of that was pure luck with the timing.

But, there’s always going to a range of luck and circumstances across any generation. I feel sorry for gen Zers and younger millennials who are probably shut out of a lot of the opportunities I had. I think the most part, at least amongst who I know, the older millennials have it pretty good!

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:My greatest generation parents did better than their parents. My boomer siblings have done better than our parents. And my millennial children are on a path where they could do better than their boomer parents. I believe the differentiators are better education opportunities and dual income households. Hard work has always been part of success for all the generations.

I agree. Pick a more lucrative career. The days of majoring in whatever you want and getting a good paying job is over.

The bolder alone is worth much more than anything else others have complained about.

+1 I have to believe the number of useless majors being offered today is significantly greater than 40 years ago. Back then we thought that sociology and philosophy were of questionable economic value but the list today is much longer.

I think back then you could major in some liberal arts degree and find a good paying office job because there were less people going to college. Not so today. We have way more college grads competing for the good paying jobs. Back then you could go to vocational school and get a job and live a middle class life. It's getting harder to do that.

You’re right about the college degree. It mattered some. A Master’s even less. I have one and no one ever cared what it was in. But it increased my salary by 50%. But you’re wrong about todays value for vocational training. Right out of school my kid was making $60k and same for my friend’s kid.

The problem is that the $60K paying job out of vocational school won't pay that much more in 20 years. Also, with automation and offshoring jobs, there are less and less vocational type jobs. My dad was a machinist, and my mom was a seamstress.

Even so, vocational training has a much better ROI than paying for a college degree in something useless and getting a job that pays the same $60k that a vocational trained person gets paid.

I was just reading about certification job training programs in the semiconductor industry. This guy had a psych degree and was working at Taco Bell because he couldn't find a job. So, he signed up for the vocational training program. Technician in semiconductor starting pay is $20 to $25/hour. What a waste of a college degree.

Have you seen the raises that county and Metro unions get?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:This boomer once had a 17.25% mortgage and never had one in the 3% area. My husband also got drafted and had to fight and get wounded in Vietnam. He didn’t want to go but he didn’t have an option and he did his duty. We have set up very well funded 529 plans for all of our grandchildren. We gift our kids a lot of money every year at Christmas and they will inherit a great amount of money. I inherited very little from my parents and my husband deferred his inheritance and it went to our children. Yes, our children and grandchildren are very lucky and unlike OPs crowd they are very grateful.

Ofc they’re grateful for all the gifts you’re giving them. The point is - OP and her generation don’t have the same parameters to make all that money on their own, which you did have when you were younger. That’s the whole point. Unless you inherit, you’re screwed.

PP - you’re wrong! Our kids are in the mid 30’s and make more than we did at the same age and their homes are nicer than the ones they grew up in and they bought those homes with 3% mortgages and no help, at the time, from us. How does OP not have the same parameters to make that money on their own? We didn’t start to make a lot of money until we were in our late 40’s when my husband took a very high risk job and the business succeeded beyond our expectations.

I am like your kids - millennial, mid-30s, have a house I bought on my own (property ladder, folks) with no parental help and a 3% interest rate. Now, a lot of that was pure luck with the timing.

But, there’s always going to a range of luck and circumstances across any generation. I feel sorry for gen Zers and younger millennials who are probably shut out of a lot of the opportunities I had. I think the most part, at least amongst who I know, the older millennials have it pretty good!

Well, except for 2008.

[Anonymous]

Anonymous wrote:

Anonymous wrote:This boomer once had a 17.25% mortgage and never had one in the 3% area. My husband also got drafted and had to fight and get wounded in Vietnam. He didn’t want to go but he didn’t have an option and he did his duty. We have set up very well funded 529 plans for all of our grandchildren. We gift our kids a lot of money every year at Christmas and they will inherit a great amount of money. I inherited very little from my parents and my husband deferred his inheritance and it went to our children. Yes, our children and grandchildren are very lucky and unlike OPs crowd they are very grateful.

Ofc they’re grateful for all the gifts you’re giving them. The point is - OP and her generation don’t have the same parameters to make all that money on their own, which you did have when you were younger. That’s the whole point. Unless you inherit, you’re screwed.

I don’t think I’ve seen too many posters here who make under $100,000. Always bragging about salary, big house, private school. So confusing.

[Anonymous]

Anonymous wrote:https://fortune.com/2023/10/28/great-wealth-transfer-baby-boomers-bank-of-america-millennials-government-policy/amp/

Wow, I just came across this shocking article from Fortune which reveals that the so-called "great wealth transfer" is not the $72 trillion we've been hearing about, but rather a whopping $129 trillion. And guess where most of it went? Yup, straight into the pockets of baby boomers, thanks to government policies over the last 40 years.

We've all heard about the economic challenges millennials face today, especially with the housing market and student debts. But to think that the government has been so instrumental in enriching an entire generation, predominantly boomers, is mind-blowing! This massive wealth transfer is arguably a result of policies from when boomers were in their prime working years. The research shows that two-thirds of the current U.S. household net worth (around $146 trillion) is held by boomers and "traditionalists."

What's even more shocking is that while millennials struggle with high-interest rates on mortgages, most boomers were able to lock in at a low 3% rate. We often hear about boomers giving financial advice to younger generations, but it's evident they had a huge leg up due to these policies.

It's time for a change. Millennials and Gen Z are battling a completely different economic landscape, one that has been significantly shaped by previous generations. While there's hope that a pending wealth transfer might offer some relief, current projections don't seem as promising as what boomers enjoyed.

Thoughts? How do we bridge this generational wealth gap? It's evident now more than ever that we need a system that supports all generations equitably.

Interest rates were 3% literally two years ago. Millennials can and DID buy/refinance homes at those historically low rates. You keep posting all these rants about boomers, I think you really, really need to get some help.

Boomers are wealthy not because they cheated somehow, but because they are old and they've been around longer than you. Let's see how much money is in your bank account in 40 years, OP.

I wish Jeff would just block you, your rants are getting so old.

[Anonymous]

Anonymous wrote:https://fortune.com/2023/10/28/great-wealth-transfer-baby-boomers-bank-of-america-millennials-government-policy/amp/

Wow, I just came across this shocking article from Fortune which reveals that the so-called "great wealth transfer" is not the $72 trillion we've been hearing about, but rather a whopping $129 trillion. And guess where most of it went? Yup, straight into the pockets of baby boomers, thanks to government policies over the last 40 years.

We've all heard about the economic challenges millennials face today, especially with the housing market and student debts. But to think that the government has been so instrumental in enriching an entire generation, predominantly boomers, is mind-blowing! This massive wealth transfer is arguably a result of policies from when boomers were in their prime working years. The research shows that two-thirds of the current U.S. household net worth (around $146 trillion) is held by boomers and "traditionalists."

What's even more shocking is that while millennials struggle with high-interest rates on mortgages, most boomers were able to lock in at a low 3% rate. We often hear about boomers giving financial advice to younger generations, but it's evident they had a huge leg up due to these policies.

It's time for a change. Millennials and Gen Z are battling a completely different economic landscape, one that has been significantly shaped by previous generations. While there's hope that a pending wealth transfer might offer some relief, current projections don't seem as promising as what boomers enjoyed.

Thoughts? How do we bridge this generational wealth gap? It's evident now more than ever that we need a system that supports all generations equitably.

You're absolutely right. it's time for a change. Good think the boomers are all going to die in the next 0-20 years and leave millennials and gen z all their money.
SHUT UP.

[Anonymous]

To summarize OP: "Just die already so I can inherit your money"

[Anonymous]

Anonymous wrote:It’s all luck and timing. Gen X couple who bought in 06 in a hot gentrifying neighborhood for $600k. Had an interest only loan. Refinanced to 2.5 percent. It’s worth $1.1.

That's around 4% appreciation. Given the risk you undertook, not at all a great return.

[Anonymous]

Anonymous wrote:

Anonymous wrote:https://fortune.com/2023/10/28/great-wealth-transfer-baby-boomers-bank-of-america-millennials-government-policy/amp/

Wow, I just came across this shocking article from Fortune which reveals that the so-called "great wealth transfer" is not the $72 trillion we've been hearing about, but rather a whopping $129 trillion. And guess where most of it went? Yup, straight into the pockets of baby boomers, thanks to government policies over the last 40 years.

We've all heard about the economic challenges millennials face today, especially with the housing market and student debts. But to think that the government has been so instrumental in enriching an entire generation, predominantly boomers, is mind-blowing! This massive wealth transfer is arguably a result of policies from when boomers were in their prime working years. The research shows that two-thirds of the current U.S. household net worth (around $146 trillion) is held by boomers and "traditionalists."

What's even more shocking is that while millennials struggle with high-interest rates on mortgages, most boomers were able to lock in at a low 3% rate. We often hear about boomers giving financial advice to younger generations, but it's evident they had a huge leg up due to these policies.

It's time for a change. Millennials and Gen Z are battling a completely different economic landscape, one that has been significantly shaped by previous generations. While there's hope that a pending wealth transfer might offer some relief, current projections don't seem as promising as what boomers enjoyed.

Thoughts? How do we bridge this generational wealth gap? It's evident now more than ever that we need a system that supports all generations equitably.

Interest rates were 3% literally two years ago. Millennials can and DID buy/refinance homes at those historically low rates. You keep posting all these rants about boomers, I think you really, really need to get some help.

Boomers are wealthy not because they cheated somehow, but because they are old and they've been around longer than you. Let's see how much money is in your bank account in 40 years, OP.

I wish Jeff would just block you, your rants are getting so old.

I think you hit the nail on the head. everyone is focused on interest rates which is so tedious, but OP is saying it's an aggregate of favorable policies that caused one group to benefit (in aggregate, over time). Not just a generation, but anyone able to benefit from that serious of policy at the various times.

Now a lot of those favorable policies have been shut down. Do we have others to replace them? Maybe but probably not. Since reagan we absolutely know that trickle down does not work, but corporations now have the favorable policies. Do people from all generations benefit from corporate wealth hoarding? Yes, it is across generations, but mostly favors the old and a very very small percentage rather than a large group.

[Anonymous]

Well, they've had a lifetime to build that wealth. I mean, what do you expect at 25? To be as wealthy as someone who's put in 40+ year of work and financial planning?

[Anonymous]

Anonymous wrote:

Anonymous wrote:It’s all luck and timing. Gen X couple who bought in 06 in a hot gentrifying neighborhood for $600k. Had an interest only loan. Refinanced to 2.5 percent. It’s worth $1.1.

That's around 4% appreciation. Given the risk you undertook, not at all a great return.

DP. It’s more than just appreciation. It’s the investment into a level of financial freedom at retirement due to being mortgage free.