Gen X ain't got no time for retirement!

[Mr.HappySilp]

Originally Posted by Gh0st

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!

Well I am thinking of renting the apartment once is ready. At least until I get into a serious relationship which most likely won't happen for awhile. Still going to pay rent/money to my parents even if I move out (My sister is doing the same so I am going to do the same.). I don't think my parents will downsize in the next 5 to 7 years at least. They like their house since they rent out the basement so it generates some income and also have a little garden for them to plant their vegetables.

They seem to live pretty well right now. The only thing they complain is how much property tax went up this year same. My parents never really like the idea of living an apartment or townhouse because they feel no only they lose out on rental income but they also have to pay starta fee.

[Tapioca]

The majority of Gen Xers are fine - middle management types or higher with detached houses. Some may be sacrificing their retirement for current expenses, like leased cars or kids' programs, but there are also a lot of Gen Xers who work in the public sector and have defined benefit pensions.

[dark0821]

Originally Posted by iPee

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.

Ahhh iPee made a good point, that is actually what I meant when I say "MAX" out my RRSP, I just put enough to offset my income tax, and plus you will always want to save those margin just in case you get a bigger raise in the future to cut you down a tax bracket or two...

having said that, with a stay @ home wife and 2 kids, my year end income taxes becomes pretty manageable...

@twichyzero - you are absolutely right, marriage lottery for sure! Took care of housing, and bought an EVO with engine mounts lol... can't imagine any other responsible wife would do this... she spoils me too much.... not to mention all those Autoarts... mmmm

[godwin]

Most people dont' think about retirement cost.. eg a place in a retirement home starts at $5k / month. Ever wonder why Anbang wants to by Retirement Solutions?

[Gh0stRider]

i remember fucking up my credit in my early 20's, maxing out a few credit cards..oops.
I had to work 4 jobs just to recover from that, while living at home.

Now im still living at home, trying to save for a downpayment for my own place. I am forced to work 2 jobs at this time since housing costs are getting out of hand.

[Jmac]

I've never really had any debt issues, but I've been sick for significant portions of my adult life (usually 2-3 years at a time) which generally sucks my savings dry.

I'm hoping to get a house soon, but I'm a little worried about taking on the debt load for the next time I get sick. Another year until my benefits include long-term disability, which will give me some degree of peace of mind.

I haven't contributed to my RRSP since 2011, when my employer matched to 5%. My new employer doesn't and I prefer the ease of access of a TFSA for obvious reasons.

[Mr.HappySilp]

Originally Posted by godwin

Most people dont' think about retirement cost.. eg a place in a retirement home starts at $5k / month. Ever wonder why Anbang wants to by Retirement Solutions?

The reality is by the time we hit retirement age the gov wouldn't even have any pension for us at all.

Why let someone take care of you when you can start now? Is always better to have your own life in your own control.

[Gh0stRider]

I've got a pension plan through work that im paying into, so hopefully its enough when i need it. Its not CPP