Gen X ain't got no time for retirement!

[Euro7r]

A lot of people I know have no fucking financial literacy, even the most basic common sense. They feel that by a certain age, gotta "grow up" and move out of parents home since that appears to the "thing" or "norm" to be done these days. If you can't save shit while out out there on your own, how the heck do you retire since you can't work forever. They rather pay someone else' mortgage than live at home....

Times have changed and grown up adults still live at parents basement. I get called out a lot on "living at home" which I don't give a damn since it's my life. I'm not living a life to satisfy anyone. Just my personal thoughts, not everyone will agree =P

[Manic!]

Guys don't worry in the future governments will tax robots and everyone will get a minimum living wage.


Bill Gates? answer to robots: tax them | The Seattle Times

[Traum]

Originally Posted by Euro7r

A lot of people I know have no fucking financial literacy, even the most basic common sense. They feel that by a certain age, gotta "grow up" and move out of parents home since that appears to the "thing" or "norm" to be done these days. If you can't save shit while out out there on your own, how the heck do you retire since you can't work forever. They rather pay someone else' mortgage than live at home....

Times have changed and grown up adults still live at parents basement. I get called out a lot on "living at home" which I don't give a damn since it's my life. I'm not living a life to satisfy anyone. Just my personal thoughts, not everyone will agree =P

The obvious problem with living in your parents' basement is... "managing your love life". It's one thing to sneak a girl into your room when you're 16. It's quite another when you are 26. And if you are 36 -- well... in that case... I really don't know what to say anymore.

[twitchyzero]

Originally Posted by Euro7r

They feel that by a certain age, gotta "grow up" and move out of parents home since that appears to the "thing" or "norm" to be done these days.

lump me in with that group

the day i turned 25 i knew i overstayed my welcome

being independent is starting to shrink in this city because of the high cost of housing

most of my peers are still living with family and asks me why

but paying for someone else's mortgage is the cost of growing up to me

[hud 91gt]

There's living at your parents because you are really trying to save, then there is living at home because you can't afford to leave (Because you've been there for ages and have been accustomed to the cheap living).

Sometimes many people need that boot to get out and realize what real life is. Depends on the kid.

[320icar]

Originally Posted by twitchyzero

the day i turned 25 i knew i overstayed my welcome

Psh i was 19 or so when I hit that point. Sure it's expensive living on your own, but I wouldn't ever choose to move back home unless something happened where I had no choice, or responsibilities for looking after aging parents

[Tapioca]

Living at home when you're at the point in life where you can be self-sufficient is the ethnic immigrant way.

The more ingrained in the culture you are, the better it works. You will likely find a significant other who's fine with you living at home. If you're Western in your ways, it can be a grind.

[MG1]

I don't think it's an Asian only thing. Family oriented cultures like Eyetalians, for example. My neighbours have married children living downstairs.

Whatever works, man. And who are we to judge?

[ZN6]

Originally Posted by twitchyzero

it is not white and black...so many factors here.

amazing it worked out for you...those trying to do more than 10-15 hours a week on top of full-time studies is generally at the expense of their grades.

Not every program is equal either...In my third year I had 40+ credits while others had 25.

and there are students who not only have no family support but may have dependents...a child..a sick parent, etc.

refer to the image I posted in the 'where should I send my kid to kindergarten' thread

Life choices; it was definitely tough getting through that especially when I had 3 labs per week with two other courses. My parents kicked my ass hard and having a single mom who looked down on me didn't help at all. I was out on my own right after graduation at 23. Packed my bags and said "Peace" to my mom.

Like I said, there will always be people who have it worse off who make it further. It depends on peoples' resolve. Where I focused my time was not partying/clubbing but working. You ever see those club Taiwanese Associations at school? People join those clubs just to go clubbing and drinking.

It's not really that hard to distinguish black from white. Like you said, and like what I said, there are some who go through university who have it easier than others. I took the hard path, sciences will always trump any arts degree in difficulty. Some go to school in GT-Rs or lambos at school and get a degree in "general studies".

[twitchyzero]

Originally Posted by 320icar

Psh i was 19 or so when I hit that point. Sure it's expensive living on your own, but I wouldn't ever choose to move back home unless something happened where I had no choice, or responsibilities for looking after aging parents

agreed

I wanted to finish undergrad, did two years in the work force before going for more independence

back on topic though...it's true that the majority in their 20's-30's do not have retirement savings even on their mind

majority are just settling in their career and overwhelmed by housing expenses...not what happens around ages 60-70

those Gen X in approaching 40's etc, when did you start seriously think about retirement?

[SumAznGuy]

Originally Posted by twitchyzero

those Gen X in approaching 40's etc, when did you start seriously think about retirement?

I've always jokingly said I was going to retire by age 55.
Then it hit me hard when I had health issues last year which caused me to miss out on most of the summer.
After getting much needed surgery, I thought I could enjoy this summer but the same issue has reoccurred. While not life threatening, it does affect my quality and enjoyment of life and puts extra stress on my wife.

[underscore]

Originally Posted by Hondaracer

How much does the first woman make in that she can't carry a 130k mortgage?

25 year amartization on 130k is like 1000 a month, you could probably even go lower than that if you wanted to.

Even with a terrible interest rate it should be a lot lower than that, $130k for 25 yrs at 2.9% is ~$600/month. Tack on a strata of say $200/month, you're at $9600/year. Unless she's taking home less than $25k/yr that shouldn't be a problem.

[The_AK]

Originally Posted by Traum

The obvious problem with living in your parents' basement is... "managing your love life". It's one thing to sneak a girl into your room when you're 16. It's quite another when you are 26. And if you are 36 -- well... in that case... I really don't know what to say anymore.

Tell me about it. Coming from an Eastern European family the culture is definitely support one another as much as possible but at the same time love life is compromised when you hear about it all the time when at home. As much sense as it makes to stay at home financially and save as much as possible it almost comes at a cost of your sanity if parents don't approve of your partner, you're trying to start a family or whatever it might be. At a point moving out becomes a necessity if you want to progress in your life.

Been saving aggressively for past 2 years and become frugal with my spending (sold mountain bike, no vacations, worked a second weekend job at friend's bakery as a driver for a few months, only maintenance stuff for car except when gf surprises with something nice) to finally buy something for myself.

[DGN23]

Originally Posted by Rallydrv

people gotta know that in another 20-30 years (maybe sooner), pension/cpp (gov't funded )and/or others will not exists anymore.

Your source?

[Tapioca]

Originally Posted by DGN23

Your source?

The claim is a crock of shit.

The government raised CPP contribution rates to ensure the long term sustainability of the fund.

An analysis done by actuaries in 2014 claimed the fund was sustainable until 2075. Assessing the Sustainability of the Canada Pension Plan through Actuarial Balance Sheets

[DragonChi]

It should be doable, but as others have mentioned, it's her spending habits that are the issue here. She had pre-existing debt before getting the place. I don't think those habits have changed.

[Digitalis]

The source will be Trudeau's immigration policy he keeps bringing people in without taking care of citizens first and we will go belly up.

[DragonChi]

How would you take care of this type of citizen?

[dark0821]

Originally Posted by The_AK

Tell me about it. Coming from an Eastern European family the culture is definitely support one another as much as possible but at the same time love life is compromised when you hear about it all the time when at home. As much sense as it makes to stay at home financially and save as much as possible it almost comes at a cost of your sanity if parents don't approve of your partner, you're trying to start a family or whatever it might be. At a point moving out becomes a necessity if you want to progress in your life.

Been saving aggressively for past 2 years and become frugal with my spending (sold mountain bike, no vacations, worked a second weekend job at friend's bakery as a driver for a few months, only maintenance stuff for car except when gf surprises with something nice) to finally buy something for myself.

frugal but drives bimmer lol...

but jokes aside... I admire all those people who has made it on their own. I pretty much had a free hand out where my parents in law paid for my down payment 140K on a 850K house (or else I will never be a home owner lol well 1/3 of it)...

My brother in law and his wife, me and my wife and parents in law lives together.

My brother in law and me just pays the monthly mortgage nowadays + property tax/upkeep, utilities. Whatever works I guess.

Parent's in law pays most of the groceries though, but its on us if we wanted to eat anything "fancier"?

back on topic though... I basically started RESP the moment my kids were born, and max out my RRSP and TFSA every year since I was like 24?

Special note *** am looking forward to the day kids start Elementary so my wife can start working again. Even just part time, the extra income will be nice.

[Mr.HappySilp]

Originally Posted by twitchyzero

agreed

I wanted to finish undergrad, did two years in the work force before going for more independence

back on topic though...it's true that the majority in their 20's-30's do not have retirement savings even on their mind

majority are just settling in their career and overwhelmed by housing expenses...not what happens around ages 60-70

those Gen X in approaching 40's etc, when did you start seriously think about retirement?

Mid 30s and every since I had a full time job I always put at least the maximum credit I can put on RRSP for tax credit purpose.

I still live at home and save around 150k for my apartment already (half of the cost of the apartment.). My parents don't mind they actually encourage it. I thin one of the reason is that having me at home I usually help out with the house work and the bills and pay rent (mind you is still cheaper than renting a $1200 apartment). Is also healthy for me. Home cook meals everyday, closer ties with my parents and actually have someone who isn't afraid to give me shit if I step one of the line (not washing my own dishes, bringing food in my room, not eating fruits, sleeping late on a weekday). It might seems to annoy you at first but once you think about it all they want is for me to be healthy.

[The_AK]

Originally Posted by dark0821

frugal but drives bimmer lol...

but jokes aside... I admire all those people who has made it on their own. I pretty much had a free hand out where my parents in law paid for my down payment 140K on a 850K house (or else I will never be a home owner lol well 1/3 of it)...

My brother in law and his wife, me and my wife and parents in law lives together.

My brother in law and me just pays the monthly mortgage nowadays + property tax/upkeep, utilities. Whatever works I guess.

Parent's in law pays most of the groceries though, but its on us if we wanted to eat anything "fancier"?

back on topic though... I basically started RESP the moment my kids were born, and max out my RRSP and TFSA every year since I was like 24?

Special note *** am looking forward to the day kids start Elementary so my wife can start working again. Even just part time, the extra income will be nice.

hahah I can see how people can see that as a contradiction. In all fairness I did a bit of research before buying the car and its the perfect combination of bang for the buck (rationalized in my eyes). Car has already depreciated enough that relatively speaking I won't be losing a whole lot more on depreciation (if anything, at this point it should hold its price pretty well in the used car market given its a 330 and 6 speed with an example being my e46 330ci msport in manual when it was written off), low mileage and "diy'able", no worries about turbos or hpfp, and most importantly I get a big smile each time I drive it. From an economics perspective this car (for me) has significantly more utility than say a Honda Accord for more-or-less the same price (which btw are flooded on craigslist when they get older).

[Gh0st]

Originally Posted by Mr.HappySilp

Mid 30s and every since I had a full time job I always put at least the maximum credit I can put on RRSP for tax credit purpose.

I still live at home and save around 150k for my apartment already (half of the cost of the apartment.). My parents don't mind they actually encourage it. I thin one of the reason is that having me at home I usually help out with the house work and the bills and pay rent (mind you is still cheaper than renting a $1200 apartment). Is also healthy for me. Home cook meals everyday, closer ties with my parents and actually have someone who isn't afraid to give me shit if I step one of the line (not washing my own dishes, bringing food in my room, not eating fruits, sleeping late on a weekday). It might seems to annoy you at first but once you think about it all they want is for me to be healthy.

If you're happy with your decisions and life then more power to you man.

Nothing like good old fashion love from the parents.. that's going to be the part I miss most!!

I think we share differently ideologies. I'm 25 - Asian (if that makes a difference in what follows)

While the thought of being taken care of (not financially) by our parents is wonderful and we should cherish it for as long as we can, I realized in my early 20's that I should be the one taking care of them both financially and emotionally.

Having 150k in savings is great. I commend you. Have you considered rolling 100k at the time you had it into a pre-sale of a townhome or apartment with a value of 500k? Save 50k for investment or emergency funds. You are still able to contribute and take care of them even if that means renting out the new place if times get rough.

I'm not saying this route is the best route or anything - just probing whether you had thoughts of doing something else? I couldn't imagine living at home past 25, let alone 35. That's a personal opinion only!

My sisters and I have successfully retired our mum because we contributed to the mortgage the last many years, mum sold when the market was hot, made her retirement money at 55 years old, fully bought and paid off a new 2 bedroom condo and just chills now. We downsized from our 3100 sqft Vancouver home because we all wanted a life of our own and after mum got settled in her pad, we went and bought places of our own without taking a dime from the sale of the home. She spends the retirement money however she likes. My two sisters and I all live in close proximity to her and visit, call, and eat dinner at home regulary so mums never lonely. Plus she's got a dog and new member to the family arriving soon (sister's boy). She will soon be a babysitter all over again.

My mom's a widow that immigrated here in the 90's and the word freedom was foreign to her. She doesn't speak English, worked labor jobs her entire life, lived in constant fear and worry of the uncertain future with 3 kids and no support. We grew up okay. My sisters a lawyer (28) and the other ones an accountant (26), and I work in professional services (25).

I guess that's a long winded way of saying I have a soft spot for parents that fall in this era because I saw first hand the difficulties they face just raising us in today's society let alone putting food on the table and a roof over our head. For that reason, the sooner I can contribute and give back, the better.

You make a very good point of being healthy. That's most important. Healthy and happiness. If everyone is both, all is well!

[twitchyzero]

Originally Posted by dark0821

I pretty much had a free hand out where my parents in law paid for my down payment

looks like you won the marriage lottery

and when everyone's saying they're maxing out RRSP...is it sitting there or being invested?

Cheers to everyone who's chimed in.

[The_AK]

Originally Posted by twitchyzero

looks like you won the marriage lottery

and when everyone's saying they're maxing out RRSP...is it sitting there or being invested?

Cheers to everyone who's chimed in.

Doesn't matter too much I think depending on your goals. The more you put towards it the higher tax return you get. Then you can pull it back out when buying your first home. As long as you repay the amount back at the end of 10 year turn you won't need to return anything back to government in form of taxes. For example sake why you might want to do this, $10k today is "a lot more money" today than it will be in 10 years times (inflation) so theoretically it should be easier to pay that back down the road when prices for everything increase (as long as you're making a contribute each month).

Someone correct me if I'm wrong or has a better idea lol

[iPee]

Originally Posted by The_AK

Doesn't matter too much I think depending on your goals. The more you put towards it the higher tax return you get. Then you can pull it back out when buying your first home. As long as you repay the amount back at the end of 10 year turn you won't need to return anything back to government in form of taxes. For example sake why you might want to do this, $10k today is "a lot more money" today than it will be in 10 years times (inflation) so theoretically it should be easier to pay that back down the road when prices for everything increase (as long as you're making a contribute each month).

Someone correct me if I'm wrong or has a better idea lol

I think it depends on the ROI on your RRSP. If it's a GIC type, chances are you are earning enough to cover inflation. If you invest in riskier products you'll have a higher chance of getting a bigger return but also risk losing what you invested. I'm lucky that my work matches my contributions up to 5%. So I just have that deducted from my pay cheque and put it into the company funds. We still have to pay a fee for the funds but it is significantly lower than what the clients are paying.

In theory it should be easier to pay down, assuming that you still have potential growth in your career. Hopefully you'll be making more in 10 years from today.

Lastly I don't contribute the max available to my RRSP each year. I put enough so I don't have to pay taxes or get a slight return. The rest I put into TFSA. My reasoning for that is when it's time to retire and you need to take money out of RRSP it could be taxed quite heavily depending on your other sources of income.