This was by far my favorite /biz/ thread some weeks ago. Post real life anecdotes of financial horror stories.
>have younger brother
>uninspired, has fully bought into "living the dream"
>barely has stable employment despite being a qualified electrician
>partner is motivated and has decent job with future though
>both lower to mid 20's
>buys house in new development with minimal deposit and $350,000 bank loan (australian housing bubble)
>no money, garden barely established but buying a $1500 Golden Retriever puppy followed closely by equally expensive Labrador puppy seems the next logic step
>immediately goes on expensive holiday and proposes to partner
>holiday + ring = more debt
>comes back and quits (gets fired) from sparky work so decides he's going to be a SCAFFOLDER
>has to get married same year of course
>obviously can't afford it, but that's ok just borrow more money
>goes to our single mother wanting to borrow $15,000 cash from her (her life savings) for a fucking wedding
>goes on 2 week cruise for honeymoon (wonder where the money came from)
>already has another holiday booked less than a month after getting back
>will 100% want to have kids in next couple years
All within a year. So lets do the math:
>no stable employment
>0 savings or investments (my house is an investment huuur)
>more debt from wedding that i dont even want to know about
>100% guaranteed to financially cripple himself with children in near future
>interest rates go up even 2% it'll probably ruin him
>all at the ripe old age of 25
I wonder what the outcome of all this is. Will these people be sent to work camps or will they vote their currency into total devaluation? A little extreme, but I hate sharing currency with these people. Can markets actually correct anymore? Is it reasonable to think that governments will do whatever shenanigans are necessary to prevent corrections?
I'm a tradesman in a shop. Foreman hardly touches tools anymore, hasn't in years because he runs logistics now, great guy but he bought a massive Snapon box for like $15k. For all his dusty tools he doesn't use.
Shop lead buys a $300 socket set off the truck to get a free radio (?). Same guy just moved out of his condo, decided to keep it to rent, borrowed money from his parents for a downpayment on a house (!!!). This is in Canada btw
1st year Apprentice knocked up his girlfriend. Enough said. Rawdogging, can't really be sympathetic
Work at a dealership, people know this is a hustle, still finance new cars despite this (???)
My entire line of work exists due to easy credit and there's a good chance yours does too so idk. Hard to sleep knowing:
You're adding value to products and the OEM underpays you
Your job relies on people buying shit they can't afford
Hardly anyone benefits from this process except the banks, the OEM, and the dealer owner.
>will they vote their currency into total devaluation?
Alexis de Tocqueville already answered this:
"When the public discovers they can vote themselves money from the public treasury, the experiment will be over"
i only have $1000 in the bank but -technically- i'm richer than your brother
oh well he can just declare bankruptcy, lose his house, cars, dogs and get divorced and pay childsupport for 20 years
At least your brother is pumping loads into a women. You're being a miserable austimo. Sure his life is all debt, but that's his life. You're just jealous.
>Muh investments and savings
I have those, but I don't go to the extreme which /biz/ reportedly does to their finances. Most of this board are NEETs with no money. You will not have a billion dollaroos by the age of 30, nor will you have a million by 45. Most people are in debt to their eyeballs. This is a fact of life, created by the bankers.
>expensive wedding, honeymoon, and lots of holidays
He's a tosser but he can declare bankruptcy.
I was the former financial planner from the previous thread. The sheer number of clients that have midlife crisises and want to zero out their IRA is astonishing. Someone wanted to close out his retirement to buy some artwork from a dealer as an investment. I told him to stick with index funds and bonds as appropriate given his age. The painting ended up being a fake and he was out 900,000. But I'd see people like that all the time. Guys in their fifties who realize they haven't lived and feel the need to go out and but a Lamborghini or something frivolous. Really a frustrating job. The guys in their 30s are just as bad too. People wanting to put 100% of their retirement in a single tech stock (or bitcoins or something they read on gizmodo). A lot of people felt they missed the Facebook boat and wanted to put all of their money in twitter. Things like that get on my nerves. It's frustrating, you can give these people advise but they don't have to follow it and if they say "put it all in x" you pretty much have to do it.
I see this all the time with people as well. What are the best index funds and bonds? I know the current interest rate hike has made some bonds "unlikable" or I maybe wrong here. Also how did you start as a financial planner?
My dad spent $4000 on washing machines from ebay and tried to 'upsell' them by glueing rubix cubes and monopoly boards to them, for some reason he thought washing machine game rooms were going to be a hit. (Based on the fact I used to play my PSP when I washed my socks)
Needless to say he never made it back.
>let's do the math
Seriously. How could these sums of money be lent to such a fool? As an anon who knows very little about modern day banking, I feel naive to ask if these lenders are at all concerned with the odds of getting their money back. Do all these lenders immediately sell his liability to other parties?
Well, most people who come and see me don't have enough cash to pull anything fancy. I mean the way I see it is that it was my job to act as the voice of reason in their decision making. I'd typically put someone mostly in a s&p 500 or a target date ETF. If they had a higher tolerance for risk or volatility you can put a potion in small cap, brandes international equity, etc. None of the advise that I gave is something you couldn't get from doing a few hours of research. The only thing that I did that the average person would struggle with was trusts. And in these cases we had a dedicated lawyer who did all the dirty work. I got into it because I interned with a financial planner in my senior year and he offered me a job. If you can market/network well, its not hard to sign up with Edward Jones or a similar company. A lot of them will sign anyone up to their firm and treat you like an insurance agent or realtor. You get commissions for selling their products. Our firm charged by the hour rather than take commissions (similar to a CPA firm that does your taxes etc.)
Yeah bond yields may suck right now but if you are 55 and planning on retiring soon you have no choice but to take some volatility out of your portfolio to hedge against a market crash ruining your plans. A lot of the bond ETFs will naturally adjust yields upwards over time as they cash in low rates and buy higher ones. There's no reason to own individual bonds unless they're paying 5% plus and are still investment grade.
I honestly don't have to network or where. I can try those firms and find some entry level gig. Also I usually would put 35 and under in some risky ETF because they can afford it due to their age. But moderate funds and bonds are great for most people. /biz/ thinks this is shit and should be rolling in money like Jordan Belfort. This board is filled with delusional kids.
its actually pretty smart , or maybe im retarded, tell him to sell on etsy they love these custom hipster shit there , or go craigs . spin the story on how he is some famous new art type shit