Millennials smarter with their money

• sleeper

  

  http://www.theatlantic.com/magazine/archive/2012/09/the-cheapest-generation/309060/
  
  Essentially this article demonstrates that my generation is adapting to the reckless entitled selfish boomer generation by being smarter with their money. Pretty much destroys the arguments that the selfish boomer generation worked hard for the things they got; mostly they got stuff handed to them for their whole lives with cheap credit and borrowing from the future. The boomers enjoyed the lowest tax rates and the lowest mortgage rates ever in history and ran this country into the ground. This article gives me hope that our generation will fight through adversity and hardship left and generated by the worst generation(the boomers) and bring the United States back to its rightful place at the top.
• Steel Valley Football

  There is no future for the USA. Father China will save us all someday.
• sleeper

  

  Steel Valley Football;1252893 wrote:There is no future for the USA. Father China will save us all someday.

  The future is life without the boomer generation who will go down in history as the worst American generation. Their selfishness and unwillingness to "eat their peas" have ruined the future of this country for their children and their children's children whom they claim to "love". Lies. You wouldn't kick your child that you love down and then expect the child to pay their own medical bills. Hypocrite comes to mind.
• Automatik

  

  Once the boomers start to fade religion will go with it and brighter days will come. :thumbup:
• Steel Valley Football

  There is no future for your soul. God will see to that.
• wkfan

  sleeper;1252882 wrote:http://www.theatlantic.com/magazine/archive/2012/09/the-cheapest-generation/309060/
  
  Essentially this article demonstrates that my generation is adapting to the reckless entitled selfish boomer generation by being smarter with their money. Pretty much destroys the arguments that the selfish boomer generation worked hard for the things they got; mostly they got stuff handed to them for their whole lives with cheap credit and borrowing from the future. The boomers enjoyed the lowest tax rates and the lowest mortgage rates ever in history and ran this country into the ground. This article gives me hope that our generation will fight through adversity and hardship left and generated by the worst generation(the boomers) and bring the United States back to its rightful place at the top.

  Really? So my first mortgage rate of 12.5% was the lowest in history?
• sleeper

  

  wkfan;1252906 wrote:Really? So my first mortgage rate of 12.5% was the lowest in history?

  Real interest rate was probably like 1%. Thanks for running the country into the ground; but it's okay though because you chose to buy a house at a ridiculously high interest rate. I'd suggest renting, but you'd just tell me that you are entitled to owning a home.
• sleeper

  

  Automatik;1252904 wrote:Once the boomers start to fade religion will go with it and brighter days will come. :thumbup:

  Religion is going to outlive the boomers unfortunately. But the elimination of religion will happen in my lifetime and you can take that to the bank.
• wkfan

  sleeper;1252911 wrote:Real interest rate was probably like 1%. Thanks for running the country into the ground; but it's okay though because you chose to buy a house at a ridiculously high interest rate. I'd suggest renting, but you'd just tell me that you are entitled to owning a home.

  Please...if you are as smart as you say you are (and you are not), you would know that the going rate for home mortgages in 1980 was in ther 12 - 13% range withan APR in the 13's. My amortization schedule called for me to pay approximately $5 per month toward principal....the rest went toward interest.
  
  Real interest rate 1%.....right.
• Steel Valley Football

  sleeper;1252912 wrote:Religion is going to outlive the boomers unfortunately. But the elimination of religion will happen in my lifetime and you can take that to the bank.

  
  A change in deity is not "elimination" of religion. That's the next step.
• vball10set

  sleeper, this thread begs me to ask...do you suffer from DID, or are there other people in your ward posting with your username? On one thread you'll post an intelligent and lucid thought, and then you turn around and make an idiotic statement like this.....smh
  

  Pretty much destroys the arguments that the selfish boomer generation worked hard for the things they got; mostly they got stuff handed to them for their whole lives with cheap credit and borrowing from the future. The boomers enjoyed the lowest tax rates and the lowest mortgage rates ever in history and ran this country into the ground.

• Automatik

  

  Steel Valley Football;1252905 wrote:There is no future for your soul. God will see to that.

  LOL.
• sleeper

  

  wkfan;1252914 wrote:Please...if you are as smart as you say you are (and you are not), you would know that the going rate for home mortgages in 1980 was in ther 12 - 13% range withan APR in the 13's. My amortization schedule called for me to pay approximately $5 per month toward principal....the rest went toward interest.
  
  Real interest rate 1%.....right.

  I assure you I am as smart as I say that I am. Who's decision was it to pay 12% interest on mortgages? Yours and yours alone. Typical boomer, always someone else's fault. Spare me.
• sleeper

  

  vball10set;1252921 wrote:sleeper, this thread begs me to ask...do you suffer from DID, or are there other people in your ward posting with your username? On one thread you'll post an intelligent and lucid thought, and then you turn around and make an idiotic statement like this.....smh

  Idiotic? The boomers have spent 16 trillion dollars they don't have and want an additional 60 trillion in benefits they didn't pay for. :thumbdown:
• sleeper

  

  Steel Valley Football;1252918 wrote:A change in deity is not "elimination" of religion. That's the next step.

  Good point. The only true way to eliminate religion is to eliminate the poor and stupid. These are not easy tasks.
• mucalum49

  

  Reps for the article Sleeper. I can relate a lot. Unfortunately my 8 year old car died last year so I have a payment now mainly because Zipcar doesn't exist where I live. If I was in Chicago or NYC I'd definitely use that. But the rest of it, I rent near a train stop just outside the city and we have a bike share station as well. The only place I drive is to play golf or work. My area is full of people in the same age range (22-35) and it's great, almost a college like atmosphere again.
  
  I would like to buy someday but what wasn't mentioned in the article was job stability in this economy. No matter how great I am at my job, our company has a reputation of a "serial restructurer" and with the corporate HQ only 3 hours away there are always rumors about consolidating down in ATL. Too much uncertainty in the world these days to take the risk of buying.
• vball10set

  sleeper;1252934 wrote:Idiotic?

  Did I stutter?
• sleeper

  

  vball10set;1252948 wrote:Did I stutter?

  I believe I understood your post. The only thing idiotic in this thread is the belief that boomers are not the worst generation and have run this country into the ground with endless entitlements they didn't pay for based on poor choices that they don't accept responsibility for.
• sleeper

  

  mucalum49;1252946 wrote:Reps for the article Sleeper. I can relate a lot. Unfortunately my 8 year old car died last year so I have a payment now mainly because Zipcar doesn't exist where I live. If I was in Chicago or NYC I'd definitely use that. But the rest of it, I rent near a train stop just outside the city and we have a bike share station as well. The only place I drive is to play golf or work. My area is full of people in the same age range (22-35) and it's great, almost a college like atmosphere again.
  
  I would like to buy someday but what wasn't mentioned in the article was job stability in this economy. No matter how great I am at my job, our company has a reputation of a "serial restructurer" and with the corporate HQ only 3 hours away there are always rumors about consolidating down in ATL. Too much uncertainty in the world these days to take the risk of buying.

  Gone are the glory days beholden by the boomers where job security could be relatively guaranteed for life provided you didn't rape somebody younger than 18. Gone are the glory days where the boomers had a bottomless government pit of money to prop up the economy when things got tough. Gone are the glory days when the boomers got to enjoy low tax rates and extraordinary deficits designed to prop up the country in the short term to cripple it when the boomers all have passed.
  
  History books are being written regarding the collapse of this country on the backs of the boomers who want everything but want someone else to pay for it.
• Steel Valley Football

  sleeper;1252935 wrote:Good point. The only true way to eliminate religion is to eliminate the poor and stupid. These are not easy tasks.

  
  You are giving the "smart, rich people" WAY too much credit. Just watch and see.
• Go4alOngbOmB

  

  sleeper;1252911 wrote:Real interest rate was probably like 1%. Thanks for running the country into the ground; but it's okay though because you chose to buy a house at a ridiculously high interest rate. I'd suggest renting, but you'd just tell me that you are entitled to owning a home.

  Umm, I own a really nice home. I just shopped and got a great deal on it....and I pay less on my mortgage monthly, (with house insurance, property tax and everything included in the payment) than most people pay in rent a month. To rent a home the size in which I live, would easily cost me 300-400 more than my mortgage is currently.
• sleeper

  

  Go4alOngbOmB;1252997 wrote:Umm, I own a really nice home. I just shopped and got a great deal on it....and I pay less on my mortgage monthly, (with house insurance, property tax and everything included in the payment) than most people pay in rent a month. To rent a home the size in which I live, would easily cost me 300-400 more than my mortgage is currently.

  Right. Typically, not always, but typically buying is cheaper than renting. However, buying a home in a distressed market has its risks which you are not accounting for in your ill contrived analysis. The biggest being your house is dependent on a job that is holding quite possibly the worst guarantee ever in the United States history. If you get fired, you limit your next job search to where you live, further lowering your prospects of finding acceptable work to help pay off your mortgage. Depending on where you live, good luck selling your house by the time another job in a different area picks up.
  
  I don't blame you for thinking you got a great deal; I'll wait until I say "I told you so" when the ten tail risk of losing your job hits you. $10 says you'll blame someone else and keep your head in the sand regarding who's really at fault here. All is good until it's not is really the be all end all to this discussion. If now is such a great time to buy a new house, why are all these houses for sale? They are overpriced and smart money knows it; simple as that.
• sportchampps

  A few years ago when I went back to school to finish up the last couple classes I had before I could get my CPA I took a finance class that focused on financial investments. We actually did a large project on the rent vs buying a home discussion. We looked at about 20 different markets mainly large city's and suburbs. In the study we took into account inflation deflation risk ( losing a job or being relocated, losing a home completely, divorce) and we learned that buying a home in 19 out of the 20 markets was the better choice. It usually with everything factored in saved you between 2.5 - 15 percent a year. We also found in most areas homes were undervalued by about 2 percent as a whole after the collapse of the housing market.
  
  I also know a couple ( wife is a real estate lawyer and husband is a accountant) who completely used the system. The husband bought a house in his name using only his credit with only 1 percent down. They lived in the house 3 years without making a single payment before it was reposed from them. During these three years they saved all their cash up and when they were kicked out used the cash to buy a house outright. So basically they ruined his credit but lived three years rent free in a 200000$ house and since they both make big bucks didn't need credit to buy their next home. I figure the home they loved in for three years woulda rented for at least 1500 a month so they saved 50 k with no real punishment. Their an example of why the system needs fixed.
• sleeper

  

  sportchampps;1253132 wrote:A few years ago when I went back to school to finish up the last couple classes I had before I could get my CPA I took a finance class that focused on financial investments. We actually did a large project on the rent vs buying a home discussion. We looked at about 20 different markets mainly large city's and suburbs. In the study we took into account inflation deflation risk ( losing a job or being relocated, losing a home completely, divorce) and we learned that buying a home in 19 out of the 20 markets was the better choice. It usually with everything factored in saved you between 2.5 - 15 percent a year. We also found in most areas homes were undervalued by about 2 percent as a whole after the collapse of the housing market.
  
  I also know a couple ( wife is a real estate lawyer and husband is a accountant) who completely used the system. The husband bought a house in his name using only his credit with only 1 percent down. They lived in the house 3 years without making a single payment before it was reposed from them. During these three years they saved all their cash up and when they were kicked out used the cash to buy a house outright. So basically they ruined his credit but lived three years rent free in a 200000$ house and since they both make big bucks didn't need credit to buy their next home. I figure the home they loved in for three years woulda rented for at least 1500 a month so they saved 50 k with no real punishment. Their an example of why the system needs fixed.

  Nice analysis. Ask LTCM how financial models worked out for them. :rolleyes:
• MoldyDog

  AWWW
  Don't worry Sleeper. You've got your smart phone and your tattoos as well as a shelf full of "participation" trophies.