S/O Timeshares Thread - The Next Big Recession

[L&Lfan]

Man, I thought the recession was longer too!

 

[gemini2727]

I agree with you about college costs! We started buying into our state's prepaid tuition program when our kids were 4 and 6 years old. I wanted to do it earlier, but DH was convinced we didn't have the money to do it. We waited about 3 years, and the cost for 4 years of prepaid state tuition doubled in that time. I showed that to DH, and he agreed we couldn't afford NOT to do it. We scraped together every tax refund, gift money, a little inheritance money and monthly income to buy 4 years for each kid. Some we paid for outright; some we paid monthly until they were 18. Having their tuition covered has been a God send. I went from part time to full time at my job to cover room, board and books. During his 3rd and 4th years, DS was awarded $20,000 in scholarship money, which also helped. We are going to be able to get 2 kids through 4 years at really great state schools with no student loans. DS's tuition, room, board, and books will be $30,000 at his in state school this year (this includes a $5000 tuition differential for his Finance program). DD's total is about $6,000 less due to her school's lower tuition and lack of tuition differential. It is a fortune! However, DS already has a job offer going into his senior year for a Financial Analyst position with a Fortune 200 company at a starting salary package of $69,000 ($63,000 plus a $6000 signing bonus). So I'd say the struggle to pay for college was worth it!

What a gift you given them, to start out their lives debt-free, that's really great!

 

[cruiser21]

Comparisons of the effects of tax cuts aren't strictly year-over-year, though. If the economy is growing, tax revenues will rise. Period. The comparison is whether they can generate enough economic growth to offset the revenue lost by the cuts - in other words, is the total revenue higher or lower than it would be at the same point in time if the cuts hadn't happened. Figuring that out isn't an exact science, but by most non-partisan economic modeling recent tax cuts fail that test.

And when we're cutting in good times, we water down both the viability and the impact of cuts as a tool for stimulating growth when the economy hits a down cycle.

Would there be economic growth with the tax cuts? We really didn't have any economic growth from 2008 to 2017. The tax cuts and rollback of regs have only been in place a short while. I think we need too see what happens.... way to early make predictions. You could poll a hundred economists and there all going to say something different.

 

[QueenIsabella]

I've got half in secure funds, but I *need* my money to grow. Savings, 401Ks, and SS just are not enough. I've been saving since my 20s and aggressively investing in my 401K but it never seems like it will be enough. They way to increase, of course, is stocks so I'm still trying to benefit off of that but I'm trying to watch closely so I can pull it out when I think it starts to slide. Like others, I feel like we've got another 18-24 months left but I think we'll start seeing cracks around then. I hope I'm wrong.

How old are you? We finally reached a point where we really felt our 401ks were taking off, but it wasn't until we were 40-ish (maybe 15 years ago? So, after the 1999-2000 bubble, but before the 2008 recession). I know for the first 10 or so years, it didn't feel like our 401ks were growing much at all. Then suddenly--boom! These days, our kids have investments, courtesy of a generous grandmother. I'm teaching them my patented "set it and forget it" strategy--they have mutual funds. I point out how their money grows, while they (the kids) are sitting on their butts. This is very appealing to my lazy children! Obviously, nobody can expect only positive growth, but they are appreciating the value of long-term savings.

 

[Christine]

How old are you? We finally reached a point where we really felt our 401ks were taking off, but it wasn't until we were 40-ish (maybe 15 years ago? So, after the 1999-2000 bubble, but before the 2008 recession). I know for the first 10 or so years, it didn't feel like our 401ks were growing much at all. Then suddenly--boom! These days, our kids have investments, courtesy of a generous grandmother. I'm teaching them my patented "set it and forget it" strategy--they have mutual funds. I point out how their money grows, while they (the kids) are sitting on their butts. This is very appealing to my lazy children! Obviously, nobody can expect only positive growth, but they are appreciating the value of long-term savings.

I'm 54. And while my 401K probably looks appealing to most, it doesn't feel enough to me. Part of that probably comes from the fact that I live in a high COL area and, if I stay (which I may do because my family is here), it doesn't feel like enough. Plus I like to do things, and shop, and eat out and it just doesn't feel like enough. It probably is, but *I* need it to have about $400K more in it than it does. Probably my own hang up.

 

[QueenIsabella]

I'm 54. And while my 401K probably looks appealing to most, it doesn't feel enough to me. Part of that probably comes from the fact that I live in a high COL area and, if I stay (which I may do because my family is here), it doesn't feel like enough. Plus I like to do things, and shop, and eat out and it just doesn't feel like enough. It probably is, but *I* need it to have about $400K more in it than it does. Probably my own hang up.

It may be a hang-up of yours, but there's nothing wrong with wanting a comfortable retirement. Not necessarily in the "Thurston and Lovey Howell" category, but certainly enough for a few splurges. I understand that the HCOL thing can be a dream-killer. We moved from the Northeast to North Carolina 3 years ago, and still can't get over the difference in housing costs.

 

[Christine]

It may be a hang-up of yours, but there's nothing wrong with wanting a comfortable retirement. Not necessarily in the "Thurston and Lovey Howell" category, but certainly enough for a few splurges. I understand that the HCOL thing can be a dream-killer. We moved from the Northeast to North Carolina 3 years ago, and still can't get over the difference in housing costs.

Yes, I've pretty much faced the fact that I'll probably have to move but that does mean my visits with my adult children will probably be minimal. I'm pretty sure they will be staying in the DC area. I could go south but, so far, not a fan of the south or rural areas.

 

[gemini2727]

How old are you? We finally reached a point where we really felt our 401ks were taking off, but it wasn't until we were 40-ish (maybe 15 years ago? So, after the 1999-2000 bubble, but before the 2008 recession). I know for the first 10 or so years, it didn't feel like our 401ks were growing much at all. Then suddenly--boom! These days, our kids have investments, courtesy of a generous grandmother. I'm teaching them my patented "set it and forget it" strategy--they have mutual funds. I point out how their money grows, while they (the kids) are sitting on their butts. This is very appealing to my lazy children! Obviously, nobody can expect only positive growth, but they are appreciating the value of long-term savings.

If you don't mind my asking, how did you go about setting up mutual funds for them? I want to start my kids saving towards a retirement fund now (not a lot, but just to get them started, and appreciating compounding interest!) but not sure the best way...

 

[QueenIsabella]

If you don't mind my asking, how did you go about setting up mutual funds for them? I want to start my kids saving towards a retirement fund now (not a lot, but just to get them started, and appreciating compounding interest!) but not sure the best way...

We use a financial adviser--he sets up the stuff for the kids. My late MIL set them up with trusts (not huge ones, but a decent start), which we switched over to our guy after she died. She also left our kids life insurance proceeds, but with stipulations--they get 25% upon graduating college, the balance at age 30. So, some stuff they manage (oldest are 23 and 21), some we manage. Out of her 25% graduation bonus, we convinced DD23 to put $5k in a Roth, using our adviser. We hope she does this for a couple years--she has the other trust for other expenses. One day she'll thank us. She also has a 403b through her teaching job.

 

[Kellykins1218]

I'd stock up on tacos and hope for the best. I absolutely love tacos.

 

[Christine]

We use a financial adviser--he sets up the stuff for the kids. My late MIL set them up with trusts (not huge ones, but a decent start), which we switched over to our guy after she died. She also left our kids life insurance proceeds, but with stipulations--they get 25% upon graduating college, the balance at age 30. So, some stuff they manage (oldest are 23 and 21), some we manage. Out of her 25% graduation bonus, we convinced DD23 to put $5k in a Roth, using our adviser. We hope she does this for a couple years--she has the other trust for other expenses. One day she'll thank us. She also has a 403b through her teaching job.

I should probably get an advisor.

My son received a $9,000 signing bonus last year (he was still in college) and my first idea was to put it in a Roth; however, when going through that, I believe I came across a rule where you had to be employed to a Roth. So his $9,000 is sitting in the bank. He finally starts work next week so I think we'll make some moves with it then.

 

[QueenIsabella]

I should probably get an advisor.

My son received a $9,000 signing bonus last year (he was still in college) and my first idea was to put it in a Roth; however, when going through that, I believe I came across a rule where you had to be employed to a Roth. So his $9,000 is sitting in the bank. He finally starts work next week so I think we'll make some moves with it then.

Believe me, if I could have my other kids start Roths, I would. Only DD23 has an income. As a teacher, she's not raking it in, but this is found money, she won't miss it. But, having him put in $5500 this year, and maybe (if you can talk him into it) the remaining next year, he'll be on a good path towards retirement savings. One thing I emphasized with DD was, she can take it out in 5 years, if need be. Not that I want her to, of course, but telling her to sock it away for 45+ years is just something she can't wrap her head around. And frankly, I was probably the same way at 23! Now, of course, we see how the time flies. With her insurance money, I told her, 2/3 in savings, 1/3 for travel--she loves traveling, as did her grandmother, so I figure it's a fair balance.

We were lucky with DS21--his money's in an UTMA. Although he's now 21, if we leave the accounts alone, they're treated like UTMAs, which means that I control them. He has very poor impulse control, he knows the safest place for the money is out of his reach. He loves looking at the growing balance. I'm hoping that one day, he'll be able to manage the accounts himself, but it won't be this year.

 

[Colleen27]

Would there be economic growth with the tax cuts? We really didn't have any economic growth from 2008 to 2017. The tax cuts and rollback of regs have only been in place a short while. I think we need too see what happens.... way to early make predictions. You could poll a hundred economists and there all going to say something different.

That simply isn't true, though. We have had steady economic growth from 2010 (first year after the recession officially ended) through the present. Anyone who says otherwise is simply ignoring data for the sake of their own narrative. And on most matters, you can get solid economic consensus from experts... as long as you're willing to look at actual working economists, researchers, etc., not those employed by partisan think-tanks and other orgs. with a political leaning.

 

[gemini2727]

We use a financial adviser--he sets up the stuff for the kids. My late MIL set them up with trusts (not huge ones, but a decent start), which we switched over to our guy after she died. She also left our kids life insurance proceeds, but with stipulations--they get 25% upon graduating college, the balance at age 30. So, some stuff they manage (oldest are 23 and 21), some we manage. Out of her 25% graduation bonus, we convinced DD23 to put $5k in a Roth, using our adviser. We hope she does this for a couple years--she has the other trust for other expenses. One day she'll thank us. She also has a 403b through her teaching job.

Thank you! I'm considering Roths for them as well, nothing major, just a start that they can add to. I think a sit down with an adviser is a very good idea, we've never done that. You're kids are fortunate to have you guiding them, nothing beats starting early!

 

[cruiser21]

That simply isn't true, though. We have had steady economic growth from 2010 (first year after the recession officially ended) through the present. Anyone who says otherwise is simply ignoring data for the sake of their own narrative. And on most matters, you can get solid economic consensus from experts... as long as you're willing to look at actual working economists, researchers, etc., not those employed by partisan think-tanks and other orgs. with a political leaning.

I think the partisan think tanks are on both sides. It was actually the slowest recovery in history. That’s a fact.

 

[Cannot_Wait_4Disney]

Would there be economic growth with the tax cuts? We really didn't have any economic growth from 2008 to 2017. The tax cuts and rollback of regs have only been in place a short while. I think we need too see what happens.... way to early make predictions. You could poll a hundred economists and there all going to say something different.

You're entitled to your own opinion, but you're not entitled to your own facts. Real GDP grew every single year between 2010-2017, 2009 overall was a drop but we've had growth since June of 2009. That makes this at 106 months (not counting June or July yet) of growth the second longest such period.

 

[Cannot_Wait_4Disney]

I think the partisan think tanks are on both sides. It was actually the slowest recovery in history. That’s a fact.

You're attempting to move the goal posts here. You said we really didn't have any economic growth. We in fact did.

 

[cruiser21]

You're attempting to move the goal posts here. You said we really didn't have any economic growth. We in fact did.

Normally after a recession there is faster growth. There’s generally always some kind of growth. I personally don’t think the last 10 years have been as good as they could have been. I’m optimistic about the next few years but time will tell.
As far as the original question about timeshares I’ve never felt they were a good investment. Not at Disney’s current prices. They’e hard to get rid of during of during a downturn, but if your in the market to buy you can find some good resale. I almost bought a resale for really cheap in 2010. That ship has sailed now my kids are almost grown.

 

[cruiser21]

You're entitled to your own opinion, but you're not entitled to your own facts. Real GDP grew every single year between 2010-2017, 2009 overall was a drop but we've had growth since June of 2009. That makes this at 106 months (not counting June or July yet) of growth the second longest such period.

1 to 2% growth is not great.

 

[cruiser21]

Still haven’t heard back chicken little on why the sky is falling.