There are some who are, and many who are not.
Personally I think the people with obscene amounts of money are the real issue.
2 Likes
I suspect that many of the boomers (including me) would say, âsorry, not sorryâ. The subject of the article paid her debts, worked for many years, saved and invested her money, now wanting to enjoy some of it before she dies or becomes disabled. I totally get it, and I think that many people are in the same boat, working, cutting back and going without for years, now itâs time to do the things theyâve always wanted. And the children of these boomers will see wealth like no other generation when their parents pass away.
I have always thought there were two completely separate financial realities (just to generalize). Those who purchased real estate (at a reasonable price, paid it off and stayed put), and who consistently invested their moneyâŠâŠand those who didnât, for whatever reason. Obviously many factors play into this, but without an inheritance, I donât know how you could build up money otherwise.
10 Likes
I am an early boomer (1948). I will not have much to pass along to my only daughter and her husband, and his mother has less than me. But the couple is on a sound footing and I am sure they will have a comfortable financial life, starting with the house he bought them a year into the relationship. These things are hard to predict.
4 Likes
Very, very hard to predict. Nobody knows what path their life will follow, what tragedies, expenses, marriages/divorce, bankruptcy, illness, job loss, good or bad luck they will have. I just think that the âhavesâ are those who ended up with real estate and investments, for whatever reason. My parents (though not baby boomers), bought a house for 10K and if my mom fixes it up, it should easily go for a very high price. They invested a large amount of money, not because they were wise or had high paying jobs, but because my dadâs mental illness led him to believe he had to live like he was impoverished, âLife is about the struggleâ, was his mantra. And now she has real estate and investments, but has lived poor for so long, sheâs unable to change.
It sounds like your daughter is doing fine!
4 Likes
These articles are for entertainment purposes only.
Letâs explain why thereâs no recession:
- Interview some random people.
- Throw out broad general statistics to validate their point.
- Be purposefully vague as to what will happen next.
How many economists predicted a recession last year?
How many economists predicted a rate cut in the first half of this year?
How many economists have no idea whatâs going to happen next and will explain why something happened only after it already happened.
I remember being at a conference when someone asked the chief economist at a major firm, what they thought about the stock market. Their response (in a serious tone) - âIt could go up or it could go downâ.
5 Likes
I understand your point concerning the entertainment aspect, but within my circle of friends and acquaintances thereâs a lot of early retirements/retirements and a lot of travel going on right now. The amount of dining out has risen dramatically in our area too.
Iâm not saying itâs not true. But this was happening even when people were predicting a recession.
Itâs not like the affluent just started dining out, traveling and counting their millions in the last 6 months.
Hereâs an article on revenge travel in 2022. Fed funds rate was about 1.5-1.75% back then?
1 Like
May 2024 Readerâs Digest has an article about families struggling with difficult long term care choices (the two authors are from the New York Times). Gave some specific cases, had charts like âExhausted Savingsâ - among Americans who had $171,000 to $1.8 million in savings at age 65, those with greater long-term care needs were much more likely to deplete their savings than those who did not need long-term care (duh); percent who died broke and did not need long-term care (2%), Needed long-term care (9%), Had paid help (18%), and lived in a nursing home (23%).
Another chart: âExhausted Familiesâ Partners and daughters were the most common caregivers for people who needed help with daily activities. Spouse or partner (39%); daughter (34%); son (22%); nursing home (22%)â other professional (17%); other relative (10%); other individual (10%); grandchild (10%); in-law (9%).
Also stated âthe challenges will only grow. By 2050, the population of Americans ages 65 and older is projected to increase by more than 50% to 86 million, according to census estimates. The number of people 85 or older will nearly triple, to 19 million.â
In 2050, DH and I will both be 94 if still living.
I do think Covid has had an influence on peopleâs decisions now - people who have the funds and time are doing the travel that they couldnât do during heavy Covid time, and early Covid periods.
Some people are moving the more economic friendly areas, cashing out and having extra funds available for discretionary spending and perhaps investing. Some people are able to work remotely and have moved to where they want to live - be it for the things to do outside of work time, or other reasons.
We are waiting for some âshoesâ to drop for DDs, and remain in the area we have lived in since 1983, and in the home we built in 1992. We are in a strong growth area, and our home is situated in a great location with the best public school district (among 4 public schools within 20 mile radius).
For some cities, people do need to think carefully about the length of time they may be there, and also how factors can increase COL (taxes) while also decrease QOL (crime).
Some people love to cruise. Cousin, as a business owner - he is able to relax on a cruise, and his wife has âfigured outâ the best way to maximize their experiences while also having a travel adventure. I went on one cruise with a GF (DH wouldnât go - and I had a good time with GF); once was enough for me, but I go to Switzerland fairly often with relatives there (and I am a dual Swiss citizen, US born).
3 Likes
Single older adults and older couples who do not have children often just have to think of themselves, although some may be quite involved with nieces/nephews and their children. I met a single man (now age 66, but retired since 56) and a couple who are both under 65 (one has government health insurance for them and a pension, and other spouse has a pension - both professional employment and married for 30 years). These people are interested in expanding group activities through our Church, so that is how I have met them.
Different families do different things financially with their children and grandchildren; also how they spend their time - sometimes concentrated with family, and other times are spending some time each week with either safety net for their grandchildrenâs childcare (going to watch them in sports, helping with transportation/activities). Some have a vacation home that their families congregate at, or weekend retreat. Some grandparents will pay for grandchildren to have a trip with grandparent(s).
Consideration for DDs/grandkids was not in play with our decision to retire. DDs graduated from college debt free, and we have helped some with no-interest loan for a few thing (used vehicle; furnishing apartment right out of college). If DD1/SIL end up purchasing a home that can accommodate us on visits and SILâs parents on visits - we might help with down payment (and thus we would help DD2 similarly when the time comes). SILâs dad has Parkinsonâs, and just a few years down the road it may just be his mom traveling. The parents recently flew, but things are getting difficult for the dad (and he has stopped driving some time ago). SILâs mom has some health issues, but primarily the concern and care for her DH.
In the grocery store, ran into a couple - the H worked with DH for many years. He is originally from Italy, and he was there a month last year - she could not go due to health issues â she says she can no longer fly, but she has good mobility. But they can drive and take a cruise (we are not far from some of the cruise ports), and I planted that seed so she can enjoy some travel as well. Their kids live in our area.
1 Like
This reminds me why I follow the Buffet theory - both of them Warren & Jimmy!
10 Likes
We did both. And we were not affluent and still arenât. Those, along with saving for college, were our priority. We did not inherit any money. We worked, saved, spent carefully, and went without some thingsâŠbut looking back there is a lot one can live without.
If we donât end up in assisted living or skilled nursing, my kids could receive some money (but not massive wealth).
I couldnât read the article, but we arenât boomers (Gen X - shudder).
5 Likes
Ah, you youngster.
You may be far more affluent in ten years when youâre as old as most of us on here if you keep plugging away. Amazing how much easier it is when those college years are long gone!
8 Likes
Saw this statistic in a news article today
âNearly 3.6% of workers participating in employer-sponsored 401(k) plans made a so-called âhardshipâ withdrawal in 2023.â
Just got back from visiting my brother and his wife in Key West. He retired from UPS last May. His wife had gotten a settlement in '16 or '17 and they bought a place in KW in '18. Small at 810 sq ft. He found a job in KW working 3-4 days a week helping run a restaurant/bar. SIL is working about 15 hours a week at a boutique shop. Both are enjoying the life down there. Stress is down at least 50% for them both.
Told them they need to come visit us, but they would have to figure out what to do with the dogs.
7 Likes
Our friends range from the uber-affluent to artists who are just getting by (though most are in the top 1% or 2%, Iâd guess. The uber-affluent are still taking trips, but now not just with kids but with grandkids. Was on the phone with a guy I worked with who has done extremely well and he is taking his kids and grandkids for his wifeâs 70th to Mustique, where they have rented a house with a cook and a maid etc. Some other friends in the uber category â some subset of them seems to be taking a trip every month (Morocco, Japan, etc.). But, the frequency of trips is higher because kids are no longer in school or living with them.
Almost everyone seems to be traveling, not just the uber-affluent. Iâd actually like to stay home more but non-work travel seems required (weddings, family reunion) and some highly desired (visiting son and his wife, visiting MIL). Plus, I am planning a 40th anniversary trip with just ShawWife and a 70th bday trip with both kids and partners.
Per @busdriver11âs comments, real estate costs are really a problem for subsequent generations. We do need to really weaken exclusionary zoning to increase supply of housing and drive prices down. The high prices in places like San Francisco and Boston area result from high incomes but more the many restrictions on adding housing units in the cities but more importantly in the surrounding towns/burbs. Although it would be bad for our generation, I think it is important that the help for the millenials and Gen-Xâs not come just from affluent parents but from society (because we have taken steps to reduce housing prices that are high because of artificial restrictions weâve let each and every little suburb put in place).
3 Likes
We are not definitely in the 1-2%, but we have been traveling more in the last couple of years. It has been fueled partly from my newer job, D2 full-ride, and being empty nesters.
Xmas trip Decâ22
D1 graduation Mayâ23
Brother retirement Mayâ23(DW stayed home)
Move D1 to Masterâs Program Mayâ23
Couple visits to D2 during the school year
Xmas trip Decâ23
Visit Brother in Key West Aprâ24
D1 graduation Masters Mayâ24
Planned Xmas trip Decâ24
Some have been driving and some flights. We historically have not been a family that has traveled this much. Extra funds is allowing it.
3 Likes
On retirement travel:
We have been traveling (deliberately) more in the past year: Italy in 2023, Western US several times, Mexico in Jan 2024.
I can see it from two angles for the future: 1) fun trips to cool places can help encourage adult kids to spend their precious PTO with family of origin 
2) trips to possible retirement locations are a valuable source of âsecond stage of lifeâ research.
However - the few trips weâve taken recently havenât given me the travel bug such that I canât wait to save up and jet off to the next overseas locale and envision spending my retirement as a globetrotting adventurer. Odd because I thought I would! I like being home with pets/house/friends/routine.
But I think we need to save up enough to have the option to travel in retirement - for instance, if one kid moves overseas donât want to be financial constrained from visiting.
Very interesting to hear othersâ views (since mine could change, lol)
3 Likes
Deleted - replied to wrong post.
That 40th wedding and 70th birthday sound lovely! We are taking a 20 day Viking River Cruise tour for our 40th next year but our 70th birthdayâs are the following year and Iâm too chicken to spend the funds that close together. We tend to take annual comfort lazy beach vacations every summer but I would LOVE to take my kids on a BIG vacation! They grew up with annual Hilton Head summer week(s) and then every other year a Caribbean island and occasionally a big Hawaii or Christmas skiing in Banff. or Vail. Those trips did instill the love of travel in my kids - they now do their own travel but still some with us, but I make them pay a lot of their own way (airfare and sometimes a share of the housing) as they have well paying jobs. My 2 youngest are meeting in Munich for 12 days of Octoberfest and touring in late September. Hubby and I are just doing our regular HHI and Asheville in the fall - we canât afford to do those big vacations all the time, but I envy those that do.
2 Likes
H & I think exactly alike on almost everything. Unfortunately, travel is one of the few things we arenât on the same page on right now. We used to be. For some reason, heâs just not interested right now. It seems to be a Covid holdover ⊠I hope it doesnât last much longer. Itâs a little frustrating, but hopefully heâll change his mind sometime soon. If not, I guess Iâll find a friend to travel with (but I really enjoy going places with H).
6 Likes