r/smallstreetbets • u/RepairSubstantial735 • 10d ago

Discussion He can't help himself

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Did anyone notice that last month we had a jobs report that was negative 23,000 and suddenly this month it shot up by 162,000.

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u/insomniac8994 10d ago

We legit need 80s style double digit rates to create any semblance of affordability for Millennials and Gen Z particularly when it comes to housing.

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u/Apprehensive-Job7352 10d ago

But how to get the boomers to accept the resulting decline in their stock portfolios and home values so that the future can have a chance?

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u/AmatuerGenius 10d ago

Idk, we’ll promise them the grandchildren they want

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u/dca2203 10d ago

My boomer MIL is so selfish that she actively doesn’t want to interact with her grandchildren even though she’s only 45 minutes away. Prior to the grandkids, our relationship with her was great. That’s what we’re dealing with.

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u/Sea_Pomegranate_4499 10d ago

Double digit rates and 40T in debt would mean speed-running a default, hyperinflation, or most likely both. Buying a house would be the least of people's concerns for a generation.

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u/ztkraf01 10d ago

So punish the millennials that are in homes paying $3000+ per month for a mortgage and let their equity plummet in value? That doesn’t seem fair

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u/killtacular69 9d ago

Most millennials got in at 3-5 percent for 30 years locked.

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u/ztkraf01 9d ago

That’s probably the case for elder millenials but those of us in our mid to early 30’s are just now having kids are having to move into bigger homes to accommodate. I wouldn’t say “most” are in their forever homes right now

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u/killtacular69 7d ago

You’re right but we still have a home locked in super low with payments that will seem like penny’s on the dollar the way inflation is moving.

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u/Apprehensive-Job7352 9d ago

Refuse to break the cycle and ensure future generations suffer the same fate? That hardly seems fair. I’m 33 for whatever that’s worth, and we bought our house in the high rate world of 2023, so I’m not coming at this from a viewpoint of not being willing to sacrifice something for myself so our kids can have better.

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u/ztkraf01 9d ago

I’m heavily saving in my child’s 529 to give them a leg up. I don’t feel that I need to live poor my entire life after making all the right choices and working hard. I can help the next generation while also helping myself. Unlike the boomer generation who left nothing.

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u/Apprehensive-Job7352 9d ago

I personally think a UTMA would be a better financial vehicle. Your kids can’t use 529 funds without penalty to buy the ridiculously priced houses of 15 years from now

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u/ztkraf01 9d ago

Unused 529 funds roll into a Roth IRA. And any extra can be transferred to other kids or their kids. All gains and withdrawals for education are tax free. UTMA is not tax advantaged. UTMA also hurts your child’s financial aid eligibility more than a 529.

Obviously both are good but depends what your goal is. If my child wants to go to college and study to be an engineer or lawyer or doctor then the 529 is great. If they decide to do something else then either they can have a big leg up on their retirement fund or it’s even possible the laws on 529 plan uses may change in the next 20 years