Gen X'ers (like me) FCUKED

Damocles said:
A deduction is not a credit. In every case you pay more than you "get back", people who are fooled into thinking that they should carry a mortgage because they "get it back" can't do simple math and are fooled into paying good money after bad. Pay off your mortgage.
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Yep paid off mine, felt great :D

deductions are like getting a 15-30% discount is all.
sometimes better if they happen to drop you a bracket.
 
boomers have amassed on average about 100,000 outside of their homes and they have SS of up to 2,500 mo and some have pensions too though SS would be reduced.
Me. quadruple that
 
Robdawg said:
Indeed, the expenses of a house, car and all the other possessions that go along with being an adult often leave Gen Xers very little to sock away in a 401(k) system that grows money incrementally, said Van Remortel. Even if they are not supersizing their lives and living beyond their means, she said, many Gen Xers — generally defined as those born from 1965 to 1980 — carry significant debt due to college alone. Once they have kids, they begin to worry about saving for their college educations, and retirement planning often drops in priority.

Still, Gen Xers may face bigger financial challenges than their parents and grandparents did. On top of the big mortgages, college loans and the rising child education costs, they face the fact that few employers offer traditional pensions anymore, meaning they take on more of the burden of retirement. Plus, the future of Social Security is more uncertain than ever. Unless Congress makes changes, the trust fund that helps pay for the federal entitlement is likely to be exhausted by 2040 — about the time most Gen Xers hit retirement.

http://www.msnbc.msn.com/id/21083120/
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Gen Xers face different challenges than the generation before them, but not necessarily bigger challenges, and many of the problems of this generation are self-induced.

Why do they need big mortgages?

The good news is that they have more access to information.

The bad news is that they're soft.

Gen Xers aren't fucked until they convince themselves that their safety is dependent on their isolation. Amidst the problems are great oportunities to change this nation.
 
Umm is SS income taxed based on Earned income only or just income ?
If you are over the limit of course.
just curious, have a few years till I get there....Waiting on the high age to draw since I don't need it.
 
Gen Xers aren't F**ked unless they convince themselves that collectivism is a magical creation that hasn't failed miserably in the past.
 
if your in the 25% bracket your getting that plus 10% on top if your in a 401K as a return. That was not their for most boomers.
X'rs are way soft and way spoiled.
But it's boomers faults we spoiled them, me included.
 
Then there will be the decline in the US economy that hits the boomers....

Of course thay can move to China.
 
Damocles said:
Pay off your mortgage.
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Depends on what your interest rate is on your mortgage vs. the investment return you can generate in other investments. If the mortgage rate is higher, you pay it down/off. If you can get returns that are higher elsewhere, you invest the money elsewhere and book the difference.

That said, in volatile times like this, you may be unsure of what returns you can get elsewhere and in times of uncertainty, pay down debt.
 
That said, in volatile times like this, you may be unsure of what returns you can get elsewhere and in times of uncertainty, pay down debt.
//

Yep my advise to all.

It is good to have a place to live in hard times....
 
Superfreak said:
Depends on what your interest rate is on your mortgage vs. the investment return you can generate in other investments. If the mortgage rate is higher, you pay it down/off. If you can get returns that are higher elsewhere, you invest the money elsewhere and book the difference.

That said, in volatile times like this, you may be unsure of what returns you can get elsewhere and in times of uncertainty, pay down debt.
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Mostly the advice was for those people who think that their mortgage somehow pays for itself because they get a "tax break" on the interest. It is simply a myth perpetrated by those who want to sell more mortgage to them.

Don't get more debt because of the "tax break", you are paying more than you get from your "break" by a longshot.
 
all I know is i worked at fidelity retirement company for 7 years and i was a financial analyst looking at average balances by age, pension studies, withdrawal habits.. you name it.

Because i got that education early I invested allot of money early. I only need to do 10% of my own money now since i did like 25% for first 10years of my career..

BUT.... the average balance of 50 YO's is like 50K. at least they have pensions for most part. most 20-40 have way less... have no pensions offered, and wont get SSI till they are like 70.
 
Chapdog said:
all I know is i worked at fidelity retirement company for 7 years and i was a financial analyst looking at average balances by age, pension studies, withdrawal habits.. you name it.

Because i got that education early I invested allot of money early. I only need to do 10% of my own money now since i did like 25% for first 10years of my career..

BUT.... the average balance of 50 YO's is like 50K. at least they have pensions for most part. most 20-40 have way less... have no pensions offered, and wont get SSI till they are like 70.
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wow. 50K at 50?
 
Damocles said:
Mostly the advice was for those people who think that their mortgage somehow pays for itself because they get a "tax break" on the interest. It is simply a myth perpetrated by those who want to sell more mortgage to them.

Don't get more debt because of the "tax break", you are paying more than you get from your "break" by a longshot.
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Like nails on a chalk board, "oh, don't worry about it.......you get a tax break"
 
actuall 22M for a 30yo is not bad
the key as you pointed out is putting >10% in those early years.
 
Topspin said:
actuall 22M for a 30yo is not bad
the key as you pointed out is putting >10% in those early years.
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i have been saying since my first year fresh out of college that they should have taught us this shit in high school instead of sowing and other crap.

FIRST dollar invested is worth the most when u retire. if you can get to 100K before 30 your golden.
 
i think they need to make some changes..

#1 - take the restrictions off and make em more portable.

#2 - entice company's to offer better plans.

#3 - Get rid of the vesting cycles

#4 - auto enrollment. to many just are to fucking lazy to pick up the paperwork.
 
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