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Wight Flight

Financial future for the under 20s

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Following on from elsewhere, how does the hive mind see them positioning themselves. They clearly can't do what the current adults did.

They clearly can't just buy a property and watch the value increase.

They can't just start with £200k, invest in vct's and become income tax negative.

They can't salary sacrifice everything into a pension fund as their rent will eat all their income.

They could go for bangernomics - but living in a third floor flat with no garage makes self fixing a bit of a challenge.

They can't stick spare money in a bank knowing that interest rates are below inflation.

Just what should we advise them to do apart from get the Feck out of the UK?

 

 

 

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Option 1 - Work (part time + tax credits), spend, spend, spend, avoid accumulating any savings (ie avoid means testing). Put any surplus funds into physical commodities (gold, jewelery, antiques). Under no circumstances buy property (that can be confiscated to pay for your care home fees in later life). Retire asap and plead poverty - get the state to provide for you. Bonus points if you can blag some disability entitlement and retire early. Sell off commodities for cash as needed. Tip : avoid personal pensions (due to means testing and / or pension raids).

Option 2 - go straight to pleading poverty and getting the state to provide for you.

Option 3 (thoretically possible but not realistic for many reasons), work full time and enjoy life :/

Option 4 - (preferred choice but not an option on this poll) get the feck out of UK ! >:(

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Posted (edited)
30 minutes ago, Wight Flight said:

Following on from elsewhere, how does the hive mind see them positioning themselves. They clearly can't do what the current adults did.

They clearly can't just buy a property and watch the value increase.

They can't just start with £200k, invest in vct's and become income tax negative.

They can't salary sacrifice everything into a pension fund as their rent will eat all their income.

They could go for bangernomics - but living in a third floor flat with no garage makes self fixing a bit of a challenge.

They can't stick spare money in a bank knowing that interest rates are below inflation.

Just what should we advise them to do apart from get the Feck out of the UK?

 

 

 

First and foremost, this mantra that I've lived by:

1) Don't buy anything new if you can buy it secondhand

2) Don't buy anything secondhand if you can borrow it

3) Don't borrow anything that you don't really need

Then,

Don't be materialistic. Don't live to other's expectations just to fit in e.g., owning a house is not necessary.

Don't waste money on stuff that doesn't give you experiences or make your work better. You  don't need tattoos or designer clothes or other crap just in order to fit in.

Be yourself.

Live for today

 

Edited by Hopeful

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Yep understand the whats yours is the states.

That leads to spend. That could be ok in some folks circumstances.

Use any cash saved by parents to buy back parents house. Saves on incontinence tax..

Very wary of Uni degress without professional future quallies.

Potentially load up on debt and scoobie...but any assets will looked at greadily if any inherhitance.

All a bit complicated.

Ofski abroad basic best bet if you have any talent.

The above is the domain of accountants and minimising losses...above average kids till their old enough and too late.

 

 

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Delay gratification/lower expectations/be grounded

Put £100+ a month away as soon as you start working. Every pound (forget exact figures) invested in your 20's is worth £88 in retired compared to £36 and £12 in your 30s and 40s respectively

Don't go to uni and do a worthless degree.

Don't be afraid of learning a trade

Try and have some foresight and choose an occupation/trade that will be iin demand in the future. 

Don't be afraid to go it alone

Don't be afraid to move/relocate especially away from negative nancy's/parents


But really most of the above won't happen because of conditioning. Pass driving test and get yourself down the audi dealership while booking the around the world tour

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Posted (edited)

The only thing about extreme frugalism is that it can leave you somewhat socially ostracised.

There is a wider expectation to have x y and z, by romantic partners but also social groups in general. Good luck finding a partner who is even happy to buy stuff second hand.

Heck even my little brother thinks it's beneath him to buy anything at all second hand - and I'm typing this on his old iphone I bought off him over 5 years ago.

I think basically it will be Debt till you Die and nobody will retire. The worst hit will be the childless who can't claim their big fat tax credit bonus. Single childless men will be worst hit - see the 'herbivore' phenomenon in Japan for what happens to them eventually.

Edited by JoeDavola

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3 minutes ago, The Grey Man said:

Use any cash saved by parents to buy back parents house. Saves on incontinence tax..

 

 

This is an interesting one. I've thought about it a bit in the sense that parents of my generation have generated a lot of wealth especially from property and in pensions. They hold onto it for dear life. Will not downsize until near death. However may pass a tiny bit down to be house deposit. Other than that will hold onto it or spend their money until they die. Subsequently children inherit what's left with no time to put it to work. Madness. If you have children and have money seems a bit counterintuitive but get it working as early as possible.

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5 minutes ago, JoeDavola said:

 

I think basically it will be Debt till you Die and nobody will retire. The worst hit will be the childless who can't claim their big fat tax credit bonus.

Actually I think childless is the way to go. Unless you are very rich or very poor.

What a fucked up world.

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Posted (edited)
9 minutes ago, JoeDavola said:

The only thing about extreme frugalism is that it can leave you somewhat socially ostracised.

 

That's a benefit.

and you'll still have a small circle of friends. I have 5.

Edited by Hopeful

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2 minutes ago, A_P said:

This is an interesting one. I've thought about it a bit in the sense that parents of my generation have generated a lot of wealth especially from property and in pensions. They hold onto it for dear life. Will not downsize until near death. However may pass a tiny bit down to be house deposit. Other than that will hold onto it or spend their money until they die. Subsequently children inherit what's left with no time to put it to work. Madness. If you have children and have money seems a bit counterintuitive but get it working as early as possible.

Would be interesting to make inheritance tax chargeable on homes but not cash.

That would get the boomers downsizing pdq.

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Go all pikey , buy a bit of land and put a mobile / park home on it 

Dare all comers to move you, 1 person doing it is easy to beat , 500,000 with smart solicitors not so much 

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Posted (edited)
14 minutes ago, JoeDavola said:

The only thing about extreme frugalism is that it can leave you somewhat socially ostracised.

Is that a problem? xD 

I think breaking the conditioning that you need to be doing things and have lots of friends is one of the big ones.

 

Edited by A_P

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2 minutes ago, A_P said:

This is an interesting one. I've thought about it a bit in the sense that parents of my generation have generated a lot of wealth especially from property and in pensions. They hold onto it for dear life. Will not downsize until near death. However may pass a tiny bit down to be house deposit. Other than that will hold onto it or spend their money until they die. Subsequently children inherit what's left with no time to put it to work. Madness. If you have children and have money seems a bit counterintuitive but get it working as early as possible.

Lot of truth in that my mother said when I die your set up I replyed why you could end up penniless if you need care and even if you pass on 240k divided 3 ways it’s not going to change my life I’m 54 sadly I’m not rich enough to help my kids but I will be long dead before I hit my mothers age of 82 

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14 minutes ago, A_P said:

This is an interesting one. I've thought about it a bit in the sense that parents of my generation have generated a lot of wealth especially from property and in pensions. They hold onto it for dear life. Will not downsize until near death. However may pass a tiny bit down to be house deposit. Other than that will hold onto it or spend their money until they die. Subsequently children inherit what's left with no time to put it to work. Madness. If you have children and have money seems a bit counterintuitive but get it working as early as possible.

I have already spent my kids' inheritance on their education.

Only time will tell if that was a good move. Presently I would have been better putting them in the local (pikey dominated) school and buying a btl house for each of them.

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A friend. An only child purchased his mothers house about 20 years ago. He got a cheap council flat after and then purchased many years after. Not commenting on ethics.

Ok that line dead.

He had his mum pay him rent for his then house. She later briey needed care but her assets had been purchased. Her cash..no idea.

Any  cash for kids..re.savings.. Child Isa bla bla..they have the choice of uni or house.

The gift option of your house to your kids....and not my field...seems to be wobbly..notably if you need social care and dement.

The councils want that cash and wi go for you.

Its an idea is what I think.

An accountant friend mentioned though...your kid divorces...your alive...the lady has access to your house.

A minefield sure

But at the moment times on our side for a while.

And this is if kids stay in UK.

Dosent even figure Corbyns chant for IHT.

 

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1 hour ago, Wight Flight said:

Following on from elsewhere, how does the hive mind see them positioning themselves. They clearly can't do what the current adults did.

They clearly can't just buy a property and watch the value increase.

They can't just start with £200k, invest in vct's and become income tax negative.

They can't salary sacrifice everything into a pension fund as their rent will eat all their income.

They could go for bangernomics - but living in a third floor flat with no garage makes self fixing a bit of a challenge.

They can't stick spare money in a bank knowing that interest rates are below inflation.

Just what should we advise them to do apart from get the Feck out of the UK?

 

 

 

Option 1.

Be young.

Some demographic turbulence at the mo. Be over in 5 years.

I get people going Oh arnt you worried about spyjrs future? Nope. By time oldedt is 25 theyll be begging for workers.

My suggestion for 20yo niw is go North. Fuck the South. Theyll be avoiding a shit storm as the debt unravels.

 

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It has to work out for them over the longer term.  

The problem is we're living in temporarily anomalous times.  It'll revert to the mean (and overshoot) at some point.

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1 hour ago, Wight Flight said:

Following on from elsewhere, how does the hive mind see them positioning themselves. They clearly can't do what the current adults did.

They clearly can't just buy a property and watch the value increase.

They can't just start with £200k, invest in vct's and become income tax negative.

They can't salary sacrifice everything into a pension fund as their rent will eat all their income.

They could go for bangernomics - but living in a third floor flat with no garage makes self fixing a bit of a challenge.

They can't stick spare money in a bank knowing that interest rates are below inflation.

Just what should we advise them to do apart from get the Feck out of the UK?

 

 

 

Actually one good one - avoid buying a car as long as poss.

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Posted (edited)
55 minutes ago, Hopeful said:

First and foremost, this mantra that I've lived by:

1) Don't buy anything new if you can buy it secondhand

2) Don't buy anything secondhand if you can borrow it

3) Don't borrow anything that you don't really need

Doesnt matter how frugal you, your going to get rent-raped for your entire adult life, going to be living hand to mouth scraping the rent together every month.

Unless that is you get a top 5% salary job, in which case you can upgrade to living like a monk in a 2 up 2 down with a mortgage that you will be paying your whole life.

Not that any of the young people give a fuck any of that though as long as they can scrape together enough for gladstonbury and virtue signal to their mates on facebook about trump.

Edited by goldbug9999

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