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      10-15-2019, 06:58 AM   #111
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Arrow Love your story - one more thing to lecture them about

Originally Posted by unluky View Post
The older I get the more I notice the complete lack of sound financial decision by basically 75% of the population. Whats worse - they don't seem to care. It's like the thought of retiring or what happens when they are 70 years old is someone else's problem. I can't tell you how many "fatherly" talks I have had with employees over the years, some older than me, about finances. Now I am not financial genies by any means, but I am 50 and could retire today and be OK. I don't want to be just OK, so I am still working. Plus I like my job.

I worked for a manufacturing company prior with a nice sized skilled laborer pool that made pretty decent wages. We in the offices were compensated well too, but there were a few booming years where the bonuses were staggeringly good - as in we thought the owners would cap them but did not. Everyone in the office still had the cars they had 4-5 years ago and every car in the wage roll parking lot turned over to not only new cars....but NICE new cars. Being an exec and on the HR team - I was a part of helping with the 401K program - so I saw what these people had saved. All those great years they turned down the tax safe haven and company match opportunities and instead bought brand new cars, motorcycles, and other toys. It was hard for a conservative guy like me to watch, but everyone has to walk their own path.

I never say a word unless my advice is asked, but it is very satisfying when you open the eyes on a worker early in their career and see them start making saving habits that will change their whole lives - and maybe their kids lives too.

It is scary how fast the "get it now and worry about paying for it later" ideology has progressed. Weighing the up/down sides to debt are of little concern to a majority of Americans I believe. As long as they hear a YES - they are willing to sign on the dotted line. I'm sure we have all seen the surprised look at the dealers when the light bulb just went off understanding they have a different critter in front of them that pays attention.

Bravo to you. It takes a village and itís important to share our wisdom with the next generations.

I have two daughters in their 20s and my husband is a fiend about teaching them financial responsibility. So they are doing very well and I expect them to do that going forward.

However, most of their friends, and our relatives of similar ages, are idiots. They all have college degrees but canít crunch simple numbers.

One thing Iím hard over on, when talking to young people angsting to buy a house is - watch out for flood insurance. If you have a mortgage you must get it in quickly expanding locations. It can cost as much as the damn mortgage.

Always ask the realtor if the house requires flood insurance. Factor that into your costs.

The larger problem is that the flood insurance situation is dire. They simply donít pay out many claims since the Sandy storm. Totally corrupt.

After watching a documentary about a man who lost his home in New Jersey, could not get any flood insurance benefits, and STILL has to pay his mortgage AND flood insurance on an empty lot - we RAN to the phone and cancelled our flood insurance.

We live right on the water, and our neighborhood floods regularly but never high enuf to damage the homes (itís flatland and the water just spreads out). Since we donít have a mortgage we had the option.

Most people are stuck paying ever increasing premiums, that they are unlikely to ever be able to collect on - like flushing their money down a toilet.

So, if you have kids or other young people in your life, please help them understand this horrid situation before they buy a home. Houses are not investments. They can take you down quick if you buy more than you can handle.