Sunday 13 January 2013

Boomers' Retirement Plan - its Us Yuppies

The landlady came by the other day to pick up rent. Had a nice long chat with her...asked me if everything is alright and if I plan on buying a place of my own anytime soon. ``Advised`` me that is too early to buy at my age, and I'd better stick to renting from her (not that I would expect any other advice, or have any other course of action). Also told me about her deadbeat 40-something son with a failing business in Saratosa, Florida...I politely inquired about how is he able to live in such an expensive city on the gulf if he's not bringing in any money. Turns out he's living at one of their properties there, so it must be smooth sailing failing business or not. Apart from that, they got 2 more rental condos in Toronto. Living the dream, if they wouldn`t be so close to kicking the bucket.

My writing might have a bitter taste to it, and I do notice it seeping through. Back in 1989 my family bought a townhouse in Edmonton...for a meagre (relatively speaking) price of ~$55k. Thats with my dad bringing in ~$40k/yr at the time. The difference between the landlady and my family is that we didn't have an aim to become landlords or perhaps have not recognized the opportunity at the time. Now I'm wondering how is it possible for any young professional to buy their own 1-2 ($350k-$450k in a good area) bedroom condo in Toronto (not even considering a townhouse/house atm) without being a slave to the bank for the next 10-20 years. If you're interested to see some calculations on the topic, I got some in a previous post. In short, buying my own condo would leave me with savings of $121 left per month, for the next 10 years, which isn't exactly pretty. So of course, I, as countless others, rent from the boomers who were able to capitalize on the opportunities in the 80s and before that. They don`t need to rely on their retirement savings, invest in stocks or bonds, create businesses or do anything at all. They already got their best investment in front of them - its us yuppies.

I consider myself quite well off for my age, I have a nearly new econobox car, can afford to get out, dress well, treat the girls, engage in personal projects, went on a vacation last year. But I can`t help but be disillusioned when I can`t even come ``home`` at night and that I`m not a person but a high yield bond. In feudal system the term would be a serf. Maybe I`m overly ambitious...but is having a place of your own a grand ambition?

If any other yuppies would like to pitch in their thoughts, you`re more than welcome too.

6 comments:

  1. That's a good start for a young individual like you.I like the ideas of the landlady who is very industrious at their old age.They still striving for a good living.

    retirement options

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  2. World view. I'll say it again. World. View. You need to re-examine yours. I perceive you as only seeing lifestyles in your little corner of the world as the only lifestyles in the universe. You are not a microcosm of modern life, friend. You are a fragment of it. If you don't want to pay 300k for a house, then look to an area where the price of a house is not 300k. Telecommute to work from a country house. Move to another country. Take your city and wanted lifestyle in that city off the pedestal and expand your horizons. You make the choice to work in your line of work, pay rent, live in a city with no prospects, not plan for your future, and then you blame others who took advantage of a good thing?

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    1. Thank you for your opinion, but what you call "World View", I call "Vision". And concerning housing - my vision is to own a nice place in a relatively decent area in Toronto. Your suggestions in themselves are not invalid, they are quite useful, indeed some people do live out of the country and telecommute to work. I can work out of home two, three times a month but constantly doing that is not an option. But to cut long story short, your suggestions are compromises. In reality is, there is NOTHING done for young professionals or young people in general in this country to help us get a start in life. Instead we are fleeced like sheep, sponsoring retirement of some old maggots. In China and Israel there are new cities built for my generation that are affordable and as pleasant to live in as the more established one. In Russia I believe people are even paid to have kids (not a big supporter of paying people to reproduce, rather it should be as it was in Rome - a nominal tax on bachelors). In Canada, the only option is to move to a small shitty town.

      I am not so worried about myself, I know I will archive my vision eventually. However a society with little upward mobility is a dead society. There are less people born than required for replacement. Whos gonna be repairing the roads I'll be driving on when Im in my 50s, and how easy would it be to get a doctors appointment? No wonder China, Israel and Russia are not in a depression, a growing, productive population means more economic activity. Everyone has to eat, and the money for food comes from producing something.

      Boomers are essentially devouring their own children and killing themselves in the process. Professional and blue collar work is outsourced. As of this moment it doesn't matter that much to me, any professional worth his salt will find decent work with adequate compensation eventually. Online commerce is booming and I'm gotta be employed for a long while. However, less intelligent people need decent jobs too. Most boomers earned their living and property by cranking wrenches in factories or practicing a trade, as my father did and still does. As for retirement - selling their secondary or primary residence to a shady overseas speculator allows for a comfortable living in a high end nursing home, without having to see their kids sour faces. The middle class is shrinking with boomers' complacency, and there isn't a new cohort of citizens to fill the ranks.

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  3. To the person above me. Because being saddled with debt early on via an education that makes you unqualified for positions and jobs due to lack of connections and overqualified for retail positions is so conducive to your whole, if you don't like X go to Y! Mentality. We are not microcosms but we look at life through that lens everyday. Let me just tear up my lease so I can move to China and work in all the fast paced industrial work!Your world view is idyllic and childish for this modern era.

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    1. Outsourcing of professional and blue-collar work is a whole other can of worms that deserves its own entry on the blog.

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  4. Real life stories always force you to think twice and this story did the same. Thanks for opting this style of writing as this help me and I can relate with this example. Keep doing this great work.

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