Saving for retirement

Investing Strategies Retirement Investing
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“CNBC financial analyst Jim Cramer - who is worth over $100 MILLION - says Gen Z is broke because they buy too many ‘$14 margaritas at his Brooklyn bar’ and don’t invest enough cash in the stock market”

‘One of the problems that I see about Gen Z-ers is they’re not frugal enough,’ Cramer said. ‘They seem like they have a lot of money, even when they don’t have a lot of money.’

https://www.dailymail.co.uk/news/article-10948055/CNBC-host-…

When I got out of college, I bought a second hand car. Moved to Chicago suburbs and had 2 roommates in a small apartment. Paid off car loan and some student debt in 18 months being ‘frugal’. Ate 95% of meals at home. Once or twice a month, headed to downtown Chicago for some social activities and split parking costs and toll road costs.

Later moved to VA to inexpensive duplex… starting saving …

Majority of Current crop of kids thinks nothing on blowing big bucks on Starbucks and nights out blowing $50 or $100 at the ‘bar scene’ and saving little.

I’m really amazed at how many ‘fast cars’ I see around here. Seems kids on their 17th birthday wind up with new or nearly new cars courtesy of their parents…

Other 20s year olds types have BMWs and top end Nissans and Lexus, etc…and you have to wonder how much of their income goes to cars and booze (and drugs).

Not that this is new. Way back when, knew someone who traded cars every 18 months. Had to have the latest ‘muscle car’. Firebird, Dodge this or that, GTO…and spent a good part of his pay every month on car payments…year after year. DOn’t know if he ever got the message. Meanwhile, I was driving second hand cars and putting money away. Had just as much fun. Did go with him once or twice to drag races and other road races. Crazy fuelies and funny cars… Other friend was in to ‘time/speed’ road rallies on the back roads of IL. Went with him a few times. Not a ‘road race’ for speed, but you had to follow speed limit, watch for signs, and hit the check points at designated times - preferably within seconds - on a 50 or 70 mile or 100 mile course. The closer you came, the better your score and determination of winner. No GPS back then. All manual computation of exact speed and mileage…

Anyhow…saved and retired at age 53.

What will Gen Z do?

t.

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Sewing wild oats has been popular with the young forever. You hope they settle down one day and learn to save and invest.

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"“CNBC financial analyst Jim Cramer - who is worth over $100 MILLION - says Gen Z is broke because they buy too many ‘$14 margaritas at his Brooklyn bar’ and don’t invest enough cash in the stock market”

‘One of the problems that I see about Gen Z-ers is they’re not frugal enough,’ Cramer said. ‘They seem like they have a lot of money, even when they don’t have a lot of money.’

https://www.dailymail.co.uk/news/article-10948055/CNBC-host-…

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Gee.
All of a generation of people do and act alike?

Howie52
Only shows have people who act like dittoes.

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“‘One of the problems that I see about Gen Z-ers is they’re not frugal enough,’ Cramer said. ‘They seem like they have a lot of money, even when they don’t have a lot of money.’”

When I was growing up…the family ate out maybe 1 time a year other than vacations - when it might be a few times on a 3 week vacation. A real treat was going to a Ho-Jos.

Now…I see a Starbucks every mile or two in this suburb of 300,000 and none of them closed during the pandemic.

I see taco stands, fast food restaurants on every major intersection/shopping strip mall. At least a hundred in this town.

I see chain restaurants full of patrons…and likely $20 per person typical meals plus any ‘cocktails’.

One of the first McDs was in my town a few miles from my house. I never went there. I never had pizza growing up - it wasn’t a big thing.

Now, got to college and did consume a bunch of slices of pizzas. cheap food for the one night a week the cafeteria was closed - but cheap for college students.

I’m sure a bunch of baby boomers and the next generation eat out a few times a week…

but…after I got my job, eating out was maybe once a week on Saturday night (pizza?) and the rest of the time, cooking at home. Breakfast at home. For decades. Oh, Cici’s pizza is still $5.50/seniors, $6 for others - for all you can eat including salad bar - here. If you want pizza. I’ve eliminated it from the diet these days.

The take out pizza places do record business. GrubHub and others are busy delivering restaurant meals to those too lazy to cook at home.

Yeah, a lot of folks COULD be saving bundles of money but aren’t. Those $5 and up Lattes add up - along with $12 lunches (or more) and who knows how much for bar hopping.

When I was growing up - we went ‘tent camping’ - all over the country. No fancy $100,000 RVs. Station wagon , two kids, two parents, set up tent, cooked our own food.

Later dad built a small boat so we could go water skiing… at a summer home he and brothers built from the ground up…times were different then.

I learned my frugal habits from them.

Now, kids grow up in households that spend money like it has little value. Expect a nice car on their 16th birthday. Few know the value of money. They get money, they spend money. They can’t save…they got ‘too many expenses’ and habits.

t.

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‘One of the problems that I see about Gen Z-ers is they’re not frugal enough,’ Cramer said. ‘They seem like they have a lot of money, even when they don’t have a lot of money.’

https://www.dailymail.co.uk/news/article-10948055/CNBC-host-……

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Gee.
All of a generation of people do and act alike?

We have a Gen Z. Let’s remember that the beginning of Gen Z starts with 1997 so the oldest is 25. Barely at the age of maturity, at least for the boys. We are seeing the maturity ramp up in a huge way for our 24 year old. He is also struggling with crazy high prices for rent and cars. Their lack of savings is not all about their choices.

We started the kids saving for retirement at 14 with their first job. They were lucky to have us funding their Roths, but they did have to earn the money so we could do so. I confess we are still funding their Roths now as I believe it is one of the most beneficial ways we can transfer some of their inheritance to them. It’s not necessary for Eldest, who is well established and maxing out his 401K, but Youngest needs the help at this time and the early years of investing are more critical than receiving money after well established. Eldest just adds it to his pile of taxable accounts investments. Most importantly it gives us a chance to discuss investments and the critical nature of paying yourself first. Helps that they have seen how we were able to retire early by regular saving and investing.

Youngest took a working gap year during college so he graduated a year behind the rest of his initial class. It was a critical year. His friends who graduated just at the start of Covid still had job fairs and completed all their internships. Youngest had his most critical summer internship cancelled and was unable to get one at all his senior year, coupled with no job fairs and pretty much a halt to new grad hiring making it tough to get his first professional job. He spent a year of doing hard labor, living at home, sending out multiple resumes a week before FINALLY getting a professional job. He recently called us about wanting to stop contributing to his 401K so he could “save,” but I pointed out that he was getting 100% match on that money and between the match and the investments it was going into, he could not have a better way to save. But the 401K doesn’t help him replace the car he used in college, which has 250K miles on it now.

No, it’s not easy, and it’s not all about a lack of maturity. But it should get easier. 5% raise after a few months on the job almost takes care of the 6% salary he is putting in his 401K.

IP

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‘One of the problems that I see about Gen Z-ers is they’re not frugal enough,’ Cramer said. ‘They seem like they have a lot of money, even when they don’t have a lot of money.’

Our kids are not Gen Z-ers but I guess Millennials. They are in their early 30’s and both live and work in NYC.

I think I’ve FINALLY convinced them both that their $5 SBUX latte’s that they drink all day can be replaced with do-it-yourself cold brew for a fraction of the cost.

Now I’m trying to help them learn that the $14 cocktails that they pound down with their friends could be switched out for less expensive beer!!

Progress… in small steps.
'38Packard

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I think I’ve FINALLY convinced them both that their $5 SBUX latte’s that they drink all day can be replaced with do-it-yourself cold brew for a fraction of the cost.

Now I’m trying to help them learn that the $14 cocktails that they pound down with their friends could be switched out for less expensive beer!!

We did this with our kids and soda, when we would go out to eat. Particularly for lunch, a soda is a large percentage of your meal bill. When we would go fancy to a restaurant for dinner, we would skip the super expensive restaurant dessert and go to a fancy bakery where they could pick from a much larger selection of desserts and typically get a larger serving for half the price.

It’s not about eliminating the extras, but making choices wisely. One time they asked if they could get a half gallon of ice cream, which was half the price of a restaurant dessert. They had dessert for a week that way!

IP,
starts the education early and often

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We started the kids saving for retirement at 14 with their first job.

First job?? When I was growing up it was illegal to hire anyone under the age of 16. My father was p-o’d by that, but no one would hire a 15 yr old, so I could honestly tell him I couldn’t get a job even if I wanted to.

When did that law change?

1poorguy

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Many child labor laws are state dependent. My first outside paid job at 15 required authorization from my school.

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Oh. I thought it was federal.

When I did turn 16, my father was all eager for me to get a job. Honestly, I wasn’t. But I tried. Probably a dozen different interviews. Each and every one of them asked “do you have a car?”. I replied “my dad will get me one when I can tell him I have a job”. Their reply: “when you have a car, come back and see us”. He adamantly refused to accept that, so I didn’t have a job in high school.

The Navy didn’t require me to have a car, but I did have to be 18. Delayed-entry, so I thought I was set at 17…but that’s another story.

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First job?? When I was growing up it was illegal to hire anyone under the age of 16.

There have always been exceptions, notably for family businesses (other than mining and manufacturing) and agriculture. I started working at an agricultural job (detasseling corn) when I was 14.

AJ

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When did that law change?

It varies from state to state.

Honestly, we started earlier than 14, but that’s when the W2s came into play. Any jobs they did for us or the neighbors, like mowing, we documented and declared it for taxes, also contributing to their Roth for those times as well. But at 14 they were able to get part time jobs as servers at a continuing care facility. The retirees loved to see those kids.

Heh, I wonder how much the desire to retire younger than those “old” people were helped me get them to start their retirement savings right away.

IP

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My first job was delivering newspapers around age 12.

PSU

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I was baby sitting at age 13.

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My first job was delivering newspapers around age 12.

Been there and done that. Five years worth throwing a morning route. About the same age too. Many moons ago.

ImAGolfer

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Yeah, I did a paper route, also. That was allowed (I don’t know the details…I was only 12 or 13 also). But a fast food joint or restaurant or other menial job? Not allowed under age 16 (back in the 70s).

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But a fast food joint or restaurant or other menial job? Not allowed under age 16 (back in the 70s). - 1pg

My first jobs of mowing yards, shoveling snow, and baling hay, I was working for cash where no paperwork was required. I also worked in traveling carnival for one summer, also for cash and no paperwork. We traveled around to county fairs throughout Indiana and once even to Milwaukee. My job was working a food tent, setting up the tent and equipment, then working as a waiter during the fair, then tearing down and moving on to the next town. I slept in one of the semi trucks used to haul the tent and restaurant equipment. Quite an adventure for a 13 year old.

I was 14 when I started working for a real paycheck, as a car hop in a drive-in burger joint. Since I wasn’t yet 16, I had to get a “work permit”. My dad had to take me up to courthouse where he had to sign a form that it was OK for me to be working. I had to show that form to my employer before I could get hired. This was in Indiana.

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First job, also a paper route in the '50s, a daily at the time, now a weekly, then on to lawns, fish pond clean outs, thistle whacking, and then on to occasional work for my elder cousin, on his big old chicken farm, later, after school another chicken ranch, doing it all, shoveling the carp, feeding, picking up the eggs, washing 'em, packing for delivery.

Then off to Chicago, out in the NW off Belmont for DeVry Tech, living in a brownstone with 3 or 4 other guys off Belmont, working mornings in a small screw machine cam making company, the ones that automatically make nozzles, other parts, punching holes, roughing out the scribed shapes, foreperson was a tough lady, but OK, also had me do odd jobs like tear the owner’s MG apart (Broken cam), so a chance to drive his Corvair in the snow! Fun, also goof classes, but I wasn’t seeing the grads making a lot of money, so I bailed headed back to Calif.

Moving on, eventually, to a sheet metal shop, sign company, everything from highway signs, street signs, to cabinets for IBM/Ampex… Well the business had high n low cycles, so I actually looked for another job, fell into my 40 years of WeCo/T/LU here in NorCal… Perfect, well, almost, but tons of travel, now places, people, technology…

Thass it!

weco

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