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SHAKE YOUR ASS-ets baby!

SHAKE YOUR ASS-ets, baby! That's the theme of this new series I'm writing over in Long Beach, CA.

club Depression Economics

Grandpa Economics or Depression Economics starts off with the theory that you go to school, study hard, get a good job, save up money, buy a home and pay it off, save more money, retire, and live debt-free on a pension and/or social security. That was a great plan for our grandparents. They are often referred to as "The Greatest Generation" and I don't wish to take away from their many accomplishments. They lived through the Depression, fought the war, built the roads and ports in our state, and were the backbone of our country. These children of the Depression put Long Beach on the national map!

So why would I suggest that this thinking is wrong for the middle class of the new millennium?

Boomer Economics:

Baby Boomers have had a profound impact on America, as consumers. One economist described that impact like brian "watching a basketball pass through a python". Everything the Boomers touch goes up in price. Look at all of the elementary schools built in the 50s and 60s. The cost of a college education skyrocketed from 1975-1995 because of their impact. Housing rose during the 80s as they bought their nests, stocks in the 90s as they invested their 401-k accounts, and real estate in the first half of this decade as they purchased their vacation/retirement homes. Health care has steadily increased in costs during the past 15 years as the Boomers have aged and acquired aches and pains.

Now, the Boomers are getting ready to retire and everyone is concerned that they'll drain the Social Security system. I wouldn't

Posted by Brian Brady- America's VA Home Loan Broker on 05/23/2007 11:22 PM

Comments (9)

shake your assets, long beach real estate, longbeachrealestatehomecom

Originally posted at: America's #1 Mortgage Broker: SHAKE YOUR ASS-ets baby!

9 Comments on SHAKE YOUR ASS-ets baby!

MAY

2007

Brian... I read what you wrote and you said it perfectly. I have been trying to educate consumers on this. About your house and the old rules don't really apply now, in todays market. I tell them to let the house work for them... and use their money in other investments. thanks for sharing this.

jeff belonger

MAY

2007

Thanks Brian - I've been doing my best to educate buyers on this, too. Many of the buyers I work with are first time buyers and they get it...I generally have to educate Mom and Dad who are helping with down payment.

I agree economics and money today is not like it was in years past. My first stock purchase 1994 form a broker I had never saw back in New Jersey was $160 a trade. I sent my check to his firm then waited for the funds to be available, requested my purchase, and a few weeks later received my statement of my transaction. Today over the Internet I can login to my account 24/7, review anything I want about my account, research on stocks in more ways then I could ever learn, make a trade pretty much instantly when the markets are open, have confirmation by the time I lift my fingers off the enter button, all this and more for under 10 bucks!! Now that's how far the speed of economics has come today for me.

MAY

2007

Brian,

They should give you a show on CNBC. You're much smarter than Suze Orman she is like my parents save save for your retirement. My mother died a few months after retirement after working at good job, save up money, buy a home and pay it off, save more money, retire, and live debt-free on a pension and/or social security. Now my father has two pensions, ss and is debt free cash from their house and he only takes out the minimum mandatory withdrawls.

How about enjoy your money when you're still young enough to enjoy it.

MAY

2007

Thanks, Mitchell. I'm clearly more like Jim Cramer than Suze Orman.

MAY

2007

You are a piece of work! Catchy Title.

This is a great series Brian. Looking forward to the next installment. Going to your brother/sister example with the boomers....you must admit timing plays a role...but just how big? If the sister had bought a similar property in the late 80's, she would have lost money until 95, no?

You are a piece of work!

THAT is a compliment coming from you. Gracias, Ardell.

Kaushik,

You are correct in theory; timing is important but not everything. California real estate, when leveraged, has out performed the S&P, over any ten year period going back to WW2.

Great post Brian. More people need to be educated on this.

Dave

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