Retirement investing...

[Mechanician]

It's true the price of homes has risen - even when adjusted for inflation.
But the price per square foot has not risen nearly as much. Today's home size standards are higher than in the 80's.
Bottom graph shows here.
https://www.supermoney.com/inflation-adjusted-home-prices

 

[4wd]

It's true the price of homes has risen - even when adjusted for inflation.
But the price per square foot has not risen nearly as much. Today's home size standards are higher than in the 80's.
Bottom graph shows here.
https://www.supermoney.com/inflation-adjusted-home-prices

Cheap money and cheap labor gave us 4k SF boxes in the sun - for DINK’s and a spoiled dog … Never was sustainable

 

[Dave Hess]

Just a little update, been investing in my company's 401K. I picked large cap SP500 mix. Anyway, it's killing VOO with a YTD return of 20% at present, and the fee is 0.02%. Kindof impressed.

Keep it up.

 

[Ws6]

It's true the price of homes has risen - even when adjusted for inflation.
But the price per square foot has not risen nearly as much. Today's home size standards are higher than in the 80's.
Bottom graph shows here.
https://www.supermoney.com/inflation-adjusted-home-prices

Supply and demand of those tiny homes is also a thing, AND you have to consider the price per ft goes up as the house gets smaller. You cannot compare a 2500sf house to a 800sf house in the 80's and compare the cost per SF. That's flawed methodology. The average first time home buyer today is about 1.5x older than in the 1980's.

 

[Ws6]

It amazes me how so many entitled young people whine so much about "how tough it is". I wish I could have them live a year in the 1980's. I had a 10.6% mortgage with excellent credit...

View attachment 306565

https://www.resiclubanalytics.com/p...buyer-age-jumps-from-28-in-1991-to-38-in-2024

People haven't suddenly changed. It's way rougher today, even once you compare the single metric of "mortgage rate".

 

[Ws6]

But in general it’s easier to find a job now. People forget 8-10% unemployment

What kind of jobs? I still always maintain the world is your oyster!

Yes, and 90th percentile income in 1980 was $24k. Now it's $220k.

 

[Pablo]

https://www.resiclubanalytics.com/p...buyer-age-jumps-from-28-in-1991-to-38-in-2024

People haven't suddenly changed. It's way rougher today, even once you compare the single metric of "mortgage rate".

I think people have changed the last 10-15 years+

Way rougher? No way.

 

[Mechanician]

Supply and demand of those tiny homes is also a thing, AND you have to consider the price per ft goes up as the house gets smaller. You cannot compare a 2500sf house to a 800sf house in the 80's and compare the cost per SF. That's flawed methodology. The average first time home buyer today is about 1.5x older than in the 1980's.

800 sf? Where did you come up with that? You're only off by about 1,000 square feet.
And that's also how much bigger today's average home is than an average 80s home.
https://www.newser.com/story/225645/average-size-of-us-homes-decade-by-decade.html

 

[Ws6]

I think people have changed the last 10-15 years+

Way rougher? No way.

Given what I see, the only generation that you'll ever convince me was "built different " is the Greatest, and we are sadly almost out of those. The Silent generation gets a huge honorable mention. Beyond that? Theyre just people.

 

[Pablo]

Given what I see, the only generation that you'll ever convince me was "built different " is the Greatest, and we are sadly almost out of those. The Silent generation gets a huge honorable mention. Beyond that? Theyre just people.

People really have changed. But I suppose there is no real measurement for entitlement attitudes

 

[Mechanician]

People really have changed. But I suppose there is no real measurement for entitlement attitudes

It used to be the older generation complained how much "rougher" they had it.
"I had to walk to school in a snowstorm, uphill both ways."
Now it's the younger generation complaining - that's one change.

 

[Pablo]

It used to be the older generation complained how much "rougher" they had it.
"I had to walk to school in a snowstorm, uphill both ways."
Now it's the younger generation complaining - that's one change.

“They” have your pronouns

 

[Ws6]

People really have changed. But I suppose there is no real measurement for entitlement attitudes

At what point did they change? Because I've met a ton of people 70+ who are absolutely entitled. Disgustingly so.

 

[Pablo]

At what point did they change? Because I've met a ton of people 70+ who are absolutely entitled. Disgustingly so.

I am thinking it starts in the 1960s

Nope not blaming a single generation.

 

[Vil_Riker]

At what point did they change? Because I've met a ton of people 70+ who are absolutely entitled. Disgustingly so.

I think the boomers are the most entitled generation. They screwed everything up and the younger ones have to pick up the pieces.

 

[Pablo]

I think the boomers are the most entitled generation. They screwed everything up and the younger ones have to pick up the pieces.

Do tell us how

 

[gfh77665]

https://www.resiclubanalytics.com/p...buyer-age-jumps-from-28-in-1991-to-38-in-2024

People haven't suddenly changed. It's way rougher today, even once you compare the single metric of "mortgage rate".

Wrong, wrong, wrong.

 

[gfh77665]

800 sf? Where did you come up with that? You're only off by about 1,000 square feet.
And that's also how much bigger today's average home is than an average 80s home.
https://www.newser.com/story/225645/average-size-of-us-homes-decade-by-decade.html

I thought he must have missed the "1" too. I considered it a typo, I hope?

 

[gfh77665]

You are are zeroing in on one hardship that you encountered. I had a similar interest rate on my first house in '87 but I had more opportunities to get ahead than young adults today. The whole deck is stacked against them, not just one card.

"One hardship"? Do you have any recollection what the job market was like in much of the 80's?

The early 80's were a level mess.

 

[Cardiobuck]

So, I have been plotting a retirement. If everything is paid off, and you have say, $500k in mutual funds etc, is there any reason not to put it in a fund like PRT or EFC or something and just live off the dividends?

Yeah there is a reason not to put it into something like PRT.
The reason is that PRT, and to a lesser extent EFC, look to me to be dividend traps. NAV depletion is much??

IMO, they are terrible investments that attract with high yields. I guess with $500,000 if your goal is to have annual income and you don't plan on living more than a decade and leaving any sort of legacy then you'll be fine.

Chalk mine up there with the sort of financial advice you get on a tribology forum