Generation Xcluded

[krisbarry]

Interesting Report issued by AMP

www.amp.com.au/display/file/0,2461,FI48897%5FSI3,00.pdf?filename=summary_issue_vi.pdf

 

[krisbarry]

From reading this report it is now more clear than ever before that many of the positives and negatives about being a generation X'er are a direct result of my environment.

...there is lots of things I wouldn't change, much that I can change, but most is out of my control

 

[Judd]

Averages are really strange. It includes those that earn $200,000 pa as well as those who receive $20,000 pa. So take your pick as to where you lay when the average is $110,000.

And once you do take your pick, out will go the cry "Infamy! Infamy! Everybody's got it in for me."

Trouble is very few even know from whence that quote eminates.

 

[Realist]

A completely useless report that tells us nothing.

Of course baby boomers are richer than us, they've worked many more years. they deserve to be. We'll inherit their wealth.


It is no more difficult to buy a house than 20 odd years ago.

And before argue think about the 20% interest rates, and the fact young people now go overseas alot more, have mobile phones, internet connections, gym memberships, go to flash restaurants, and 'waste' their money on other such 'luxuries' that most people 20 to 30 years ago did not.

Life is easier now in my opinion, if you are careful with your money - it is harder to be careful with your money though. Gen X'ers will retire wealthier than baby boomers did if not just because of compulsory super.

Stop worring about house prices you WA folk, they'll even out as they always do, be patient and careful with your money, invest wisely and you can not go wrong.

 

[krisbarry]

I reckon lots of this report is very relevant and it also shows the contrast between one end of the generation x'ers and the other end. 14 years is a long time but much has changed.

 

[krisbarry]

This report not only compares the differences between generations but compares timeframes within a specific generation, thats the key!

 

[Realist]

What are the key points then?

What does this report tell us that we do not already know?

 

[krisbarry]

I am suprised you are asking me this

 

[Realist]

Haha, answer the question...

 

[macca]

What a load of sensationalistic drivel.

How a previously respected company like AMP could manage to collect so much dross and publish with their name on it is unbelievable.

Tired old cliches rehashed to suck up to the generation that is about to come into money either through inheritance or career advancement.

Come in suckers, you can trust us, we are on your side

 

[rub92me]

Well, for starters the report is about 3 years old. I don't see anyhting in there either that isn't blatantly obvious or new. Most of it points to a lack of accountability and laziness of the generation X-ers. Nothing new there... :

 

[krisbarry]

Haha, answer the question...

I am not going to play the ping pong thing here, maybe just take some more time out, make yourself a coffee and re-read the article again.

Its like being at school and comparing and contrasting the differences between generations and timeframes within generations.

Try it!

I will make it a little easier for you and give you a helping hand...

For example...

Less renters from the start of generation x, to more renters by the end

Of course we all know this fact but why?....

Then start constructing the argument as to why?

 

[Yezzy]

On average, Gen Xers are consuming rather than trying to build wealth, and are not increasing home equity, the traditional route to long-term wealth in Australia.

Who'd have thought .

 

[krisbarry]

Yes I would agree they spend more than they save and there is certainly much evidence to back that claim up, but much much more is spent in areas such as housing (rental) and education than ever before.

Its not always about the latest car, mobile phone, flat screen TV or holiday.

So to suggest that they spend more than save is certainly true, but its where its going that is another key.

...and its at the sacrafice of....?

 

[Realist]

Less renters from the start of generation x, to more renters by the end

Of course we all know this fact but why?....

Well houses are expensive now, especially in Perth where you live. That is one important factor.

But also people are more likely to travel for work or pleasure, young people don't want to be tied down to a 30 year mortgage. People get married older, and are far more likely to be divorced. Girls and guys, and friends live together more, jobs are more global, people move overseas or interstate easily.

Many many reasons why renting is better than owning if you are young and single. which more and more people are these days (we single anyway).

 

[Yezzy]

...

...and its at the sacrafice of....?

As it said in the quote before, long term wealth. Equity in your home doesn't appear over-night.

 

[krisbarry]

As it said in the quote before, long term wealth. Equity in your home doesn't appear over-night.

What I meant by sacrifies is the example of...

Having less children, smaller housing etc to afford to spend longer in education institutions etc.

Off course building wealth takes a lifetime, and the one thing that generation X has in there favour is starting to save from a young age with superannuation. Many generation x'ers have between $13,000 to $60,000.