I have to share this with someone

My husband has another similar saying. Cant remember the first part but the second part is "......................, nothing in the fridge".
 
It doesn't make sense, something must have changed.

They built a house and got way ahead on the repayments for the last 18 years? THEN they splurged on toys?

I would have thought that the kind of person who liked instant gratification would have a track record of it.

I'd be interested to know what was the turning point that made them suddenly change their spending habits.

Nick

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www.spanishhomecooking.com.au
 
possibly their bank manager or a MB or FP or someone told them about the equity in their home, and how it was now worth so much more than their mortgage, and how they could "spend that equity on doodads".... of course with the intention that they REFINANCE their home to spend on the doodads.

... but instead, Mr & Mrs Financially-Illiterate SOLD the home to realise their equity and spend on the doodads, much to the amazement of the person who informed them of their equity.


Seriously - i could see how that could happen. There are a LOT of seriously financially illiterate (i'd say financially retarded) people out there.
 
They made choices, that's all. Not your choice, not mine, but theirs! Maybe they just inherited a lot of money; maybe they got tired of twenty years of paying off the mortgage; maybe they just want to sit back and have some toys. Their choice, doesnt mean they are financially illiterate, it just means they have decided to do different things with their assets.
 
I'd be interested to know what was the turning point that made them suddenly change their spending habits.


We just experienced a death in the family, someone very close. It changes your perspective alot.


When you are standing there over the coffin, looking at the body, all of the properties left behind don't really make for a hill of beans.


For me, I extracted things like respected by family and friends, a life well lived, travelled and explored.....and above all seen to have been "kind and nice". It was an epiphany of sorts.


A couple of family members of my generation admitted that this delayed gratification was a nonsense. They had their house and cars paid off, and they were quite determined to spend their surplus income on travel (mainly skiing and cruises) and buying a bigger boat....cos that's what gives them joy.


I can well see why some folks would want to "live it up".


Overall, I think it taught me to be more tolerant of people's decisions, even if I disagree with them. I must be mellowing in my retirement phase.
 
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Pushka - yeah they made that choice, and thats fine.

I just suggested that *perhaps* they mightve made that choice through ignorance or lack of knowledge about better financial alternatives to the choice they did make - you know, how they could've had the cake and ate it too :)
 
I felt like driving around to find these people and slap them around a bit.

I thank the good Lord everyday that people like this exist. Without them all the property investors on this forum would have to earn a crust elsewhere.

Any property investors that criticise people like this are very naive about how the world works. Financially ignorant people are incredibly profitable, they make a lot of other people rich. And considering the desire for everyone in this forum to buy more property, you should be celebrating stories such as this one.

Remember, money is never wasted, it is simply transferred to someone else.

I feel like driving around to find these people and give them a high-five. Their predicament suggests that they will be tenants for life. I would honestly love to have them as a tenant.
 
As a business owner, my business has an exit strategy?? One day I had an AH-Ha moment and questioned myself....Why don't I/we
have an exit stragegy???

Do we "want" to leave the kids with $???? or just leave them with enough $$ to bury us?

:D We decided... "enough $$ to bury us?"

We have contributed to uni degrees (not PAID for them..helped @ around $100 a week).....that "investmet" has produced high paying salaried adults :)

So it is now a case of ....DO IT YOUSELF!!!!!
Both kids now earn WAYYY more than we EVER did .

So they better buy a really GOOD nursing home!! (seriously though..no..we will organise OUR life...they can organise theirs)

Maybe these people have an exit strategy of "Blow it all now!!" :) :D
well it is one theory :D
 
So they better buy a really GOOD nursing home!!

And that's what the rest of Australia is saying. If people knew the state of the nursing home industry in Australia, they would be protesting in the streets.

Seriously though, depending upon your age, estimate (before inflation) a SIGNIFICANT six figure sum for both you and your partner. Plus you'll need ongoing income. And if you want somewhere 'nice', well I know of places in my area that are asking seven figures.

Perhaps people should think twice about kicking the kids out with a few pennies as soon as they reach 18. Remember, choosing a nursing home for yourself is a luxury. Most people have very little say in the matter.
 
Do we "want" to leave the kids with $???? or just leave them with enough $$ to bury us?

:D We decided... "enough $$ to bury us?"

Did you recieve any inheritance from your parents? Will that be passed on? I find it intriguing-the whole baby boomer generation seems to be the greediest we have ever seem. Raped and pillaged the world, polluted it, taken what they could from their own parents who lived a hard and frugal life and then are happy to leave nothing for their own children...nice....:rolleyes:
 
Did you recieve any inheritance from your parents? Will that be passed on? I find it intriguing-the whole baby boomer generation seems to be the greediest we have ever seem. Raped and pillaged the world, polluted it, taken what they could from their own parents who lived a hard and frugal life and then are happy to leave nothing for their own children...nice....:rolleyes:
A lot of assumptions in there.

Bitter, much?
 
A lot of assumptions in there.

Bitter, much?

The poster stated they had made the decision to only leave the kids enough to 'bury' them...

Fact is this baby boomer generation has in many cases inherited generations of hard work and saving from their decendants, only to then decide that they are the centre of the universe and everyone else can look after themselves.

Bitter....no, makes no difference to me what anyonme else does with their money. Just sad that people can be so selfish...

Why should this generation be the first to spend all and not pas on? Would you not say that is selfish? This is of course asuming they inturn recieved something from their own parents...
 
Fact is this baby boomer generation has in many cases inherited generations of hard work and saving from their decendants, only to then decide that they are the centre of the universe and everyone else can look after themselves. ... Why should this generation be the first to spend all and not pas on? Would you not say that is selfish? This is of course asuming they inturn recieved something from their own parents...
I see our point of difference. We must mix in different circles. ;) I don't know anybody who inherited anything substantial; maybe a few 10s of $K that was "left over", but nothing that changed their life. Everybody I know has made their own wealth (or not ;)), and as such, I think they're perfectly entitled to do whatever they want with their money.

I much more frequently see the situation where kids resent parents spending the parents' own hard-earned money, talking about "spending my inheritance". I don't believe anybody has an entitlement to money they haven't earned. An inheritance, as far as I'm concerned, is just what's "left over" after somebody's gone, and a bonus that shouldn't be expected.

I've even heard of people asking for an "advance" on their inheritance. What a hide!
 
I understand what you are saying, and in such cases agree. however many, many people have for example inherited the family home, which could now be worth hundreds and hundreds of thousands of dollars. So why should the buck stop with them?

Im a 'look after my own'. My family is the most important thing in the world-so I would rather set up my family and their family with an appreciating, cash flow positive property than waste it all on a Winabago and a boat.. ;)
 
Easy fix. Amass enough wealth to both live life to the fullest, and still leave the kids with an extensive estate once you pass. That's my strategy. :)
 
Dunno, I think you may have your generations mixed up. Boomers that I know have not actually inherited a lot. Many of the boomers born towards the end of the period have parents very much alive and well, many of whom have their own home and not much else. Remember, most boomer women were not allowed to work until well into their working lives. Their parents didn't have too much. One house, split between several kids.

I think you might be aiming your bitterness at the generation following the boomers or those boomers at the tail end. Boomer generation used to finish in around 1959 but the goalposts have been moved and now it appears the boomer generation finished in 1964. I know, because I am now officially a boomer, where once I was not :eek:.

My parents are 72 and 75 and will be passing on an inheritance, but the majority of their acquaintances are not "rolling in it". My parents are rather unusual amongst their acquaintances, some of whom are well off, but many who are not.

I really dislike the type of sweeping generalisation made in your post.
 
Like Ozperp, I don't know anyone that has inherited anything of worth. I know I won't be getting an inheritance & I don't care. I can make my own wealth with the benefit of the financial intelligence that my parents did not have. I am planning on leaving something behind for my offspring, however who knows if that will change with the passage of time.

My parents sold the family home about 15 years ago & moved to a retirement home. My father has since passed away & my Mother barely survives on the pension. They moved to the retirement home so they could spend their retirement years travelling. Well, that didn't work, as the money ran out & Mum has nothing. She pays rent each fortnight and receives rent assistance, but the cruel catch is that they spent around half of the proceeds of the family home to "buy" into this place.

On Hubby's side, when his father passed away, his mother sold the family home & downsized. She put the proceeds in the bank & lives off that combined with her pension. Yes, there will be a property remaining when she passes, however he is from a huge family, so any inheritance will be extremely small. It will probably be divided up equally between ALL remaining family members and their respective spouses of which there is more than 50.
 
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