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Heimdallr

aSK anything: 5.0: Designated Steve-vivor

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8 hours ago, SemperFeist said:

The system preys on them. 

Walk around a campus at the start of each semester, and at the end, and you’ll find lenders and credit card companies all over the place trying to sell kids to take on more debt, either by loan or credit. 

My 2nd year in school, coming back for the spring semester, I had someone aggressively try to get me to sign up for a $5,000 student loan. When I told him that I didn’t need it because my parents were helping me, he started saying that I could use it for other things. I didn’t need to use it for school. Went so far as to try and get me to use it for a “unbelievable spring break”. How many 18-22 year olds fell for something like that?

Such predatory lending is despicable. Why do college campuses let them on campus? Campuses should be referring kids to the financial aid office for such needs and the financial aid office should have financial advisers that can solidly council the kids about the choices they are looking at making. Most kids that age do not have the knowledge that should be required to be making those choices. Heck, it takes most people several years out of college before they get it. I was lucky that it only took me ~3 years. Too many people are still stuck at a near zero (<$100k) net worth going into their 50s because they never learned. By that time, with the habits that they've developed and had reinforced for decades, it will be a huge challenge for them to get enough saved up for retirement.

Some people never get it. The older generation is ill-equipped to teach the yutes because they never had to deal with it. They grew up in during the time of defined benefit pensions and such. For example, my father never saved up for retirement. Several years ago before he retired I had a conversation with him about how he figured he'd get by. His first line of defense in case he needs money is taking out a reverse mortgage on his house. That seemed pretty cringe worthy but even worse was his second line of defense which seemed to be leaching off the system. In his mind, he deserves it. He is entitled. He spent many years in the Air Force and retired in his mid fifties with 30 years of federal service. The government allows one to retire with 30 years of federal service but I don't know that it is advisable when you have not saved up enough money and are almost 100% entirely dependent on your pension check and social security.

I feel that my generation is the first generation that really has to figure this out. We are the first that generally does not have defined benefit pension plans. We are left to figure out on our own with the generation that came before us completely ill-equipped to offer advice or be an example from which we can learn. Most of my generation is failing miserably. 50 year olds in the US have an average net worth below $100k. Most of that would be tied up in home equity. Since everyone needs to live somewhere that isn't a place anyone should be counting on for retirement.

Why does the school system not have a required class that teaches kids about such an important thing? Everyone eventually needs to figure it out on their own. Instead, my high school sent me to an economics class that taught me about macroeconomics. That is less useful than a class on basic money management and family economics. 98% of what I learned in grammar and secondary school was less applicable to me than a good class on family finances would have been.

As my generation blazes the trail in the non-pension world I really hope that the yutes of today are able to learn from our mistakes and our successes. It will give them a better base of knowledge from which to drawn than any of us (my generation) ever had.

For my part, I can only share my story. It seems to be working for me but is but one way. Yutes, draw upon the knowledge of everyone that has went ahead of you. Look for success stories and see if any of them are something that might appeal to you. Look at failure stories and learn from them. People in your 40s and 50s that have been trying to navigate this new world, please be willing to share what you have learned -- mistakes and successes -- with the yutes. Boomers, I am sorry but my experience is that you are useless in this regard. Please accept that and be quite. You (generally) are not equipped with knowledge or experience that people growing up today are going to need. Enjoy your pensions but realize that you have no idea and try to stop offering unhelpful advice and no longer relevant stories of your "success".  Counting on a reverse mortgage is ridiculous.

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1 hour ago, Cearbhall said:

Such predatory lending is despicable. Why do college campuses let them on campus? Campuses should be referring kids to the financial aid office for such needs and the financial aid office should have financial advisers that can solidly council the kids about the choices they are looking at making. Most kids that age do not have the knowledge that should be required to be making those choices. Heck, it takes most people several years out of college before they get it. I was lucky that it only took me ~3 years. Too many people are still stuck at a near zero (<$100k) net worth going into their 50s because they never learned. By that time, with the habits that they've developed and had reinforced for decades, it will be a huge challenge for them to get enough saved up for retirement.

Some people never get it. The older generation is ill-equipped to teach the yutes because they never had to deal with it. They grew up in during the time of defined benefit pensions and such. For example, my father never saved up for retirement. Several years ago before he retired I had a conversation with him about how he figured he'd get by. His first line of defense in case he needs money is taking out a reverse mortgage on his house. That seemed pretty cringe worthy but even worse was his second line of defense which seemed to be leaching off the system. In his mind, he deserves it. He is entitled. He spent many years in the Air Force and retired in his mid fifties with 30 years of federal service. The government allows one to retire with 30 years of federal service but I don't know that it is advisable when you have not saved up enough money and are almost 100% entirely dependent on your pension check and social security.

I feel that my generation is the first generation that really has to figure this out. We are the first that generally does not have defined benefit pension plans. We are left to figure out on our own with the generation that came before us completely ill-equipped to offer advice or be an example from which we can learn. Most of my generation is failing miserably. 50 year olds in the US have an average net worth below $100k. Most of that would be tied up in home equity. Since everyone needs to live somewhere that isn't a place anyone should be counting on for retirement.

Why does the school system not have a required class that teaches kids about such an important thing? Everyone eventually needs to figure it out on their own. Instead, my high school sent me to an economics class that taught me about macroeconomics. That is less useful than a class on basic money management and family economics. 98% of what I learned in grammar and secondary school was less applicable to me than a good class on family finances would have been.

As my generation blazes the trail in the non-pension world I really hope that the yutes of today are able to learn from our mistakes and our successes. It will give them a better base of knowledge from which to drawn than any of us (my generation) ever had.

For my part, I can only share my story. It seems to be working for me but is but one way. Yutes, draw upon the knowledge of everyone that has went ahead of you. Look for success stories and see if any of them are something that might appeal to you. Look at failure stories and learn from them. People in your 40s and 50s that have been trying to navigate this new world, please be willing to share what you have learned -- mistakes and successes -- with the yutes. Boomers, I am sorry but my experience is that you are useless in this regard. Please accept that and be quite. You (generally) are not equipped with knowledge or experience that people growing up today are going to need. Enjoy your pensions but realize that you have no idea and try to stop offering unhelpful advice and no longer relevant stories of your "success".  Counting on a reverse mortgage is ridiculous.

I am fortunate. Except for mortgage and one car  payment, my wife and I are basically debt free.  I had a small loan in college that was paid off in six years and with scholarships, grants and part-time work I was able to pay for my master's and my doctorate as I went.  NO ONE can do that these days.  I also have been earning a pension for the last 31 years, and my wife and I have been able to save and invest, and I feel like we are in pretty solid shape (we are, according to my financial advisor!)  It really bothers me, however, that my son and any children he produces will not have the same advantages that I have had.  I hope that I've saved enough that I can leave something behind to help family and leave a legacy.

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Aside from some student loan debt (across two degrees), and a small car payment, I'm doing just fine.  I'm able to live comfortably on a teacher salary that I supplement with coaching (which never feels like work), I'm able to save, and to spend money on travel (just spent two months overseas, and I've got trips to Hawaii and Ireland planned for next June). Teacher benefits in terms of insurance are a lifesaver.  I don't pay a dime for health/dental insurance and just a small amount for a VSP (since my eyes are awful and I would be spending a ton on glasses/contacts without the discounts from the VSP).

The car payment is so small, I'm not worried about paying it off quickly and I do still spend money like I'm a college student (minus the travel). I don't eat out often, cook most of my own food, and always find deals/free events for things to do for entertainment.  Best thing about still looking like a college student is being able to go to Twins games for $5 and get hot dogs for $1 on Wednesdays during the summer.

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Quote

In a significant step toward the elimination of the one-and-done rule, basketball's biggest stakeholders have come together to make an unprecedented agreement that will allow the NBA to begin formally working with the nation's top teenagers to help prepare them for pro careers.

http://www.espn.com/nba/story/_/id/24513084/in-step-abolition-one-done-rule-basketball-stakeholders-align-support-usa-basketball

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On 7/14/2018 at 6:12 AM, vike daddy said:

if any FF members are interested in changing their usernames, Webby is making a one time offer good until July 31:

Wish I would have been on here more during the summer...

 

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A month ago I just wanted to move out of my current home to a new apartment but now I can't get the digital nomad lifestyle out of my head. Not sure I have the skills for it but it's something to think about for sure. 

Also travel dudes, the world is great. 

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