edit: FYI -links in comment are literally just wikipedia definitions of the generations mentioned for those not too familiar. Is this cyclical? Does every generation think less of the next? Of course they do. The Lost Generation probably thought the The Greatest Generation were a lousy, no good group of wimps, until they saved the world. The Boomers thought the gen-x'ers to be lazy and complacent, but guess what... it's easy to "change the world" and "drop out" when mommy and daddy are flipping the bill (Boomers were the first trustafarians) until like you say, Gen-x'ers invented our new economy. The point is, each generation thinks the next is worthless until the crux of them come of age and do something meaningful. It seems to happen with each generation. The Millennial's will have their moment to shine. Your testimony about your wife's student loans mirrors our situation, I know we've discussed this in the past. One thing we had to do was to file taxes separately so that our loan repayment isn't effected by our household income but only her income. The system is extremely broken and the cost of higher education is no longer justified. aside: We are currently debating some big questions in our household about finances and opportunity costs. Do we buy another house and put down 20% or do we rent? If we rent we have a large chunk of capital to invest in the market. Realestate doesn't have the ROI that it used to. Money is cheap right now, but still we are currently seeing a 16% return on some of our mutual funds, that's hard to say no to. We could rent and buy a rental property. We could rent a house and start buying a new rental every year. I'm thinking this may be the route to go. The rental market's good where I live. Side question: Do you use a property management company for your rental? If not, is it a pain being so far away from your property? Any horror stories about tenants or has it been good? Back to the article:So what happened? Well, we invented the Internet. Not in a Tim Berners-Lee way but in a "we can buy and sell you from petty cash" way. Gerry Yang? GenX. Sergei Brin? GenX. All the money the Internet ever generated it generated because of GenX. Which made the 'Boomers STFU right quick. Now nobody even really remembers the phrase "Generation X" because we're the guys paying the bills while the 'boomers start collecting more social security than they put in.
I've never met someone who describes themselves as a "hipster." It's a pejorative, not a class of people.
-It's not a term of endearment. I have a cousin that had a great job in marketing for Kraft. He designed the labels and such of many every day products. He couldn't stand it anymore and has just recently bought a piece of property to start an organic farm in Michigan. He's MUCH happier. I think what we are seeing is a redefining of "success" that has less to do with monetary achievements and more to do with, I don't know how to say it... but maybe even spiritual achievements?The "hipsters" are the vanguard and while you're looking down your nose at them, they're enjoying themselves.
-Well said.
Worth pointing out: nobody hates on their own children. The 'boomers did not spawn the GenX'ers. The "Baby Boom" is everyone born after VJ Day in 1945. They came of age during the Vietnam war. The "Greatest Generation" gave birth to the 'Boomers. By contrast, Generation X is everyone born to the generation born before VJ day. There's obviously lots of overlap, but we're really talking about two overlapping cohorts. Thus, most of the GenX hate came from the 'Boomers; most of the Millenial hate comes from GenX. Shameless plug time: one of the subreddits I rescued is /r/realestate, which was a sinkhole of SEO linkspam but I beat it back to usefulness. It's now a haven for real estate investors. The answer to your question is complex. Large foreign blocs have been purchasing single family dwellings as rental opportunities, driving up the prices of everything under $380k. You have to understand: Real Estate has NEVER been a decent speculative investment, outside a few hapless bubble years. Real Estate doesn't even track the Dow. However, income property is a very safe and secure investment traditionally pursued by conservative investors. Anything other than buy'n'hold is a misstep. Your mutual funds will crash, it's just a matter of time. I used to play with them and I did damn well, primarily by betting against the American economy from 2004-2009. However, current financial prospects are disquietingly tied to legislation which follows no real rules. I'm in ratcheting index funds now. We have a property manager. There's no other way to fly. It takes exactly one eviction to make ten years worth of property management fees worthwhile. Our approach to finding one was we asked people we saw moving out who managed the property and if they liked them. When we got the same answers ("this lady" and "yes") three times, we called her up. We then let her decide what renovations to make to the place prior to opening it for rent. It cost me $6k in improvements but the place hasn't been vacant for a day in five years and we've been through four sets of tenants. I don't even know their names. The latest bunch I know literally nothing about them and I'm totally fine with that.Is this cyclical? Does every generation think less of the next? Of course they do.
aside: We are currently debating some big questions in our household about finances and opportunity costs. Do we buy another house and put down 20% or do we rent?
Commenting so I don't forget this. I recently did two things: 1 started self managing our Roths, and 2: bought a rental. I suspect our Roth handlers skimmed, and I suspect you are right about a property manager. I feel there is a rift fast opening in our country, and having a daughter has given me powerful incentive to get her on the good side of it. My dad was in Nam, grandpa in WWII. Am I gen Y?
George Packer's The Unwinding is an interesting read. It cemented to me that I wasn't imagining it, the middle class is vanishing, and not in a "we're all getting richer" sort of way. You have a choice: be rich or be poor. Both choices are equally valid; both choices have their upsides and downsides (granted, one has more upsides, thus it's the one desired more often). One thing is certain, though - If you don't choose, your choice will be made for you. Your generational assignment depends entirely on when your parents were born. Before VJ day? GenX. After VJ day? GenY. Makes sense? No, but there it is.
Really? So, my granddad was born in the 1890's and my dad in the 1950's. By this reasoning, my dad is not a Boomer?Your generational assignment depends entirely on when your parents were born. Before VJ day? GenX. After VJ day? GenY. Makes sense? No, but there it is.