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Boomers Greed. 72% would rather spend their money than leave an inheritance.
Topic Started: 19 Sep 2014, 05:55 PM (7,156 Views)
herbie
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peter fraser
20 Sep 2014, 08:56 AM
It may be the only holiday that I can afford if Paul is going to tax what I have accumulated.
The whole Socialist attitude of "What? You've actually managed to acquire some assets in your life?? So you're not a total fuckup like us??? Damn! We mustn't have taxed you enough!! So we'll just have to have another crack!!!" does get to be bit annoying sometimes Peter.
Edited by herbie, 20 Sep 2014, 09:21 AM.
A Professional Demographer to an amateur demographer: "negative natural increase will never outweigh the positive net migration"
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Drgonzo
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Good to see boomer bashing is alive again, it's been awhile.
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zaph
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stinkbug
20 Sep 2014, 09:10 AM
I've never understood why people have such a bee in their bonnet about inheritence. Inheritence is about dividing what's left after some passes away. It should never be an expectation, or right, and it certainly doesn't belong to 'the kids' before the parents die.

I find the whole thing very distasteful. If people have worked and taken advantage of the opportunities afforded to them, then good on them. If they want to spend their money on a caravan and a car to tow it, good luck to them. It doesn't belong ot their children, it belongs to them.
I think it's often about the parents wishes too. I suspect that is where Pauk is coming from.

My parents intend to spend everything they have accumulated except the family home. They see passing the family home onto their kids as a must, like their parents did. Just a couple of weeks ago I was discussing reverse mortgages with mum, she was horrified at the thought of them doing it. I don't, and won't have any kids so I don't even qualify for that line of thinking. I floated the idea with her that I may reverse mortgage my home when I retire to enhance my lifestyle with no apparent heirs. She could see my point but still thought I shouldn't do it and leave my home to my niece.
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ThePauk
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zaph
20 Sep 2014, 09:30 AM
I think it's often about the parents wishes too. I suspect that is where Pauk is coming from.

My parents intend to spend everything they have accumulated except the family home. They see passing the family home onto their kids as a must, like their parents did. Just a couple of weeks ago I was discussing reverse mortgages with mum, she was horrified at the thought of them doing it. I don't, and won't have any kids so I don't even qualify for that line of thinking. I floated the idea with her that I may reverse mortgage my home when I retire to enhance my lifestyle with no apparent heirs. She could see my point but still thought I shouldn't do it and leave my home to my niece.
It is a very complex issue. Given that 72% of boomers do not want to leave any inheritance then it is a very solid case to raise the GST.
I agree the majority of the Lucky generation wanted to leave something for their kids and that boomers do not.

I fully realise that the proposal by Joe Hockey to inc the PPOR into the asset test is difficult to swallow, however the alternative is to tax the workers more to pay for the projected increases in pensions and health. JH realises that this is his biggest challenge he faces and is the basis for his 'emerging budget emergency'.
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zaph
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ThePauk
20 Sep 2014, 09:40 AM
It is a very complex issue.
I agree the majority of the Lucky generation wanted to leave something for their kids and that boomers do not.

I fully realise that the proposal by Joe Hockey to inc the PPOR into the asset test is difficult to swallow, however the alternative is to tax the workers more to pay for the projected increases in pensions and health. JH realises that this is his biggest challenge he faces and is the basis for his 'emerging budget emergency'.
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Given that 72% of boomers do not want to leave any inheritance


That's not what the study concluded. 72% of respondents said "They’d rather spend their money to enjoy their retirement, than leave it behind as inheritance" - I very much doubt many respondents included their home as 'money' when answering the question. Some probably didn't include investments as money either.

82% said "Now that they’re older, protecting their assets is more important to them than ever". It's not clear, but I would think protecting ones assets means not going on a spending spree, and by default leaving an inheritance.

You want boomers to fund their own retirement (including eating their home) and leave an inheritance; for the average boomer the two are mutually exclusive.

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then it is a very solid case to raise the GST.


What? Because people may not leave an inheritance we should raise the GST. I don't follow.

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inc the PPOR into the asset test is difficult to swallow


Very very difficult politically. The current mob certainly couldn't do it. In fact they couldn't even get a hand job in a brothel with a fist full of 50's.
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peter fraser
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herbie
20 Sep 2014, 09:19 AM
The whole Socialist attitude of "What? You've actually managed to acquire some assets in your life?? So you're not a total fuckup like us??? Damn! We mustn't have taxed you enough!! So we'll just have to have another crack!!!" does get to be bit annoying sometimes Peter.
Well I did think that I would be self sufficient in my retirement and not need anything at all from Centrelink, but hey it's nice to know that if plans go awry as they sometimes do, there will be maybe a part pension to help a little bit in my dotage.

But Paul has now set me straight - why save at all I say - lets just spend the lot and get the full pension. That's how it works. I was always happy to see other receive benefits that I didn't get - they needed it at the time. But of course I'm selfish.

Those Bushtracker Caravans look good herbie - bloody expensive but hey so what, I may as well spend it rather than just give it to the ATO.

All that careful planning - what a waste. My kids will be disappointed, but so what. It's all for a good cause.

The next generation are so much more deserving - I feel proud to support them.

http://www.youtube.com/watch?v=YT0JjcjTie0

I realise that's a quite unfair portrayal of our youth, the majority are fine people, but not any more unfair than Pauls portrayal of others.
Any expressed market opinion is my own and is not to be taken as financial advice
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ThePauk
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zaph
20 Sep 2014, 10:30 AM



That's not what the study concluded. 72% of respondents said "They’d rather spend their money to enjoy their retirement, than leave it behind as inheritance" - I very much doubt many respondents included their home as 'money' when answering the question. Some probably didn't include investments as money either.

82% said "Now that they’re older, protecting their assets is more important to them than ever". It's not clear, but I would think protecting ones assets means not going on a spending spree, and by default leaving an inheritance.

You want boomers to fund their own retirement (including eating their home) and leave an inheritance; for the average boomer the two are mutually exclusive.




What? Because people may not leave an inheritance we should raise the GST. I don't follow.




Very very difficult politically. The current mob certainly couldn't do it. In fact they couldn't even get a hand job in a brothel with a fist full of 50's.
Bullshit. So you are assuming they boomers are not counting the PPOR or investment in their spend it all and not leave anything behind. What crap.

A survey conducted by US investment advisers TD Ameritrade says just 16% of parents plan on leaving anything at all to their kids.
http://thegreynomads.com.au/planning/before-you-go/should-we-fell-guilty/

http://barefootinvestor.com/retirees-underestimate-challenge-living-on-savings/

http://www.theaustralian.com.au/national-affairs/were-just-spending-the-kids-inheritance/story-fn59niix-1226685249760

Mmmm. I wonder who owns the app name 'Grey Nomads', oh that's right I do....lol

"There is evidence of a drop in the amounts that older people are leaving

This trend has been observed in several countries. It especially raises the question of what older people are doing with their comparative wealth, and whether what could be left is being left, or is being spent. There is a distinct possibility that older people are spending money on themselves that they might otherwise have left to their children (e.g., Finch & Mason, 2000, for England; Kelly & Harding, 2006, for Australia). Another possibility is that older people, by dint of living longer, may be spending the money on medical and care expenses for the extra years. We probably need to distinguish between their discretionary and non-discretionary spending, but in either case it adds up to having less to pass on."
http://www.aifs.gov.au/institute/pubs/fm2011/fm88/fm88a.html
Edited by ThePauk, 20 Sep 2014, 01:10 PM.
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peter fraser
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ThePauk
20 Sep 2014, 01:01 PM
Bullshit. So you are assuming they boomers are not counting the PPOR or investment in their spend it all and not leave anything behind. What crap.

A survey conducted by US investment advisers TD Ameritrade says just 16% of parents plan on leaving anything at all to their kids.
http://thegreynomads.com.au/planning/before-you-go/should-we-fell-guilty/

http://barefootinvestor.com/retirees-underestimate-challenge-living-on-savings/

http://www.theaustralian.com.au/national-affairs/were-just-spending-the-kids-inheritance/story-fn59niix-1226685249760

Mmmm. I wonder who owns the app name 'Grey Nomads', oh that's right I do....lol

"There is evidence of a drop in the amounts that older people are leaving

This trend has been observed in several countries. It especially raises the question of what older people are doing with their comparative wealth, and whether what could be left is being left, or is being spent. There is a distinct possibility that older people are spending money on themselves that they might otherwise have left to their children (e.g., Finch & Mason, 2000, for England; Kelly & Harding, 2006, for Australia). Another possibility is that older people, by dint of living longer, may be spending the money on medical and care expenses for the extra years. We probably need to distinguish between their discretionary and non-discretionary spending, but in either case it adds up to having less to pass on."
http://www.aifs.gov.au/institute/pubs/fm2011/fm88/fm88a.html


Seriously - the trend has been observed in several countries?

You rely on a US study, and then you take the content of advertisements like the grey nomads website that is obviously going to encourage people to use their services as concrete evidence that the boomers en masse intend to spend every last dollar that they have?

You are an obsessed delusional fool.
Edited by peter fraser, 20 Sep 2014, 01:27 PM.
Any expressed market opinion is my own and is not to be taken as financial advice
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ThePauk
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peter fraser
20 Sep 2014, 01:23 PM


Seriously - the trend has been observed in several countries?

You rely on a US study, and then you take the content of advertisements like the grey nomads website that is obviously going to encourage people to use their services as concrete evidence that the boomers en masse intend to spend every last dollar that they have?

You are an obsessed delusional fool.
Not relying on a US study at all. SKIN is here in OZ and the Axa study confirmed my views.

http://www.smh.com.au/news/news/older-aussies-spending-their-kids-inheritance/2008/07/24/1216492606846.html

https://au.pfinance.yahoo.com/our-experts/ask-the-expert/investment/article/-/18898327/the-joys-of-skiing-spending-the-kids-inheritance/

"“A lot of baby boomers have a high amount of capital investment in property and generally higher expectations of lifestyle during retirement than generations before them. They are more comfortable with debt and have a different attitude towards spending the kids’ inheritance than previous generations.”
http://www.brokernews.com.au/news/breaking-news/proposed-pension-age-increases-to-heat-up-reverse-mortgage-market-186535.aspx

This is an Aust govt dept you know Peter...
http://www.aifs.gov.au/institute/pubs/fm2011/fm88/fm88a.html


Peter, remember in your club you are supposed to be playing the 'good cop' and comment like 'You are an obsessed delusional fool' might put you in conflict with the clubs plans.
Edited by ThePauk, 20 Sep 2014, 01:42 PM.
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Ex BP Golly
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ThePauk
20 Sep 2014, 01:01 PM
Mmmm. I wonder who owns the app name 'Grey Nomads', oh that's right I do....lol

Shit, you just opened yourself up to Revert 2 Mean joining your forum.
WHAT WOULD EDDIE DO? MAAAATE!
Share a cot with Milton?
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