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Boomer couple divide audiences after revealing they're spending their children's inheritance

<p>A couple from Victoria have ignited a fierce debate over spending their children's inheritance, after they revealed they are happy to spend the money on holidays during their retirement years. </p> <p>Leanne and Leon Ryland appeared on the SBS show <em>Insight</em>, along with their son Alex, to discuss how they are spending their retirement fund without considering leaving their cash flow to their two grown up kids. </p> <p>The couple have spent $170,000 on travelling so far, with their goal to visit the wonders of the world taking them to Machu Picchu in Peru, India, Sri Lanka and the Maldives, with the US being next on their agenda. </p> <p>The couple joked the only thing their two sons would inherit would be their “shelf of s***”, a pile of cheap trinkets from their travels.</p> <p>However, the couple also own a home, and have been using their superannuation, pension and savings to fund their travels. </p> <p>Their jet setting comes after they saw a financial planner before they retired about four years ago after saving their whole lives.</p> <p>“We’ve done all the right things by investing in property, boosting up our super, making sure that was healthy, going without a lot of things,” Ms Ryland said.</p> <blockquote class="instagram-media" style="background: #FFF; border: 0; border-radius: 3px; box-shadow: 0 0 1px 0 rgba(0,0,0,0.5),0 1px 10px 0 rgba(0,0,0,0.15); margin: 1px; max-width: 540px; min-width: 326px; padding: 0; width: calc(100% - 2px);" data-instgrm-permalink="https://www.instagram.com/reel/C9JyzoDvYkM/?utm_source=ig_embed&amp;utm_campaign=loading" data-instgrm-version="14"> <div style="padding: 16px;"> <div style="display: flex; flex-direction: row; align-items: center;"> <div style="background-color: #f4f4f4; border-radius: 50%; flex-grow: 0; height: 40px; margin-right: 14px; width: 40px;"> </div> <div style="display: flex; flex-direction: column; flex-grow: 1; justify-content: center;"> <div style="background-color: #f4f4f4; border-radius: 4px; flex-grow: 0; height: 14px; margin-bottom: 6px; width: 100px;"> </div> <div style="background-color: #f4f4f4; border-radius: 4px; flex-grow: 0; height: 14px; width: 60px;"> </div> </div> </div> <div style="padding: 19% 0;"> </div> <div style="display: block; height: 50px; margin: 0 auto 12px; width: 50px;"> </div> <div style="padding-top: 8px;"> <div style="color: #3897f0; font-family: Arial,sans-serif; font-size: 14px; font-style: normal; font-weight: 550; line-height: 18px;">View this post on Instagram</div> </div> <div style="padding: 12.5% 0;"> </div> <div style="display: flex; flex-direction: row; margin-bottom: 14px; align-items: center;"> <div> <div style="background-color: #f4f4f4; border-radius: 50%; height: 12.5px; width: 12.5px; transform: translateX(0px) translateY(7px);"> </div> <div style="background-color: #f4f4f4; height: 12.5px; transform: rotate(-45deg) translateX(3px) translateY(1px); width: 12.5px; flex-grow: 0; margin-right: 14px; margin-left: 2px;"> </div> <div style="background-color: #f4f4f4; border-radius: 50%; height: 12.5px; width: 12.5px; transform: translateX(9px) translateY(-18px);"> </div> </div> <div style="margin-left: 8px;"> <div style="background-color: #f4f4f4; border-radius: 50%; flex-grow: 0; height: 20px; width: 20px;"> </div> <div style="width: 0; height: 0; border-top: 2px solid transparent; border-left: 6px solid #f4f4f4; border-bottom: 2px solid transparent; transform: translateX(16px) translateY(-4px) rotate(30deg);"> </div> </div> <div style="margin-left: auto;"> <div style="width: 0px; border-top: 8px solid #F4F4F4; border-right: 8px solid transparent; transform: translateY(16px);"> </div> <div style="background-color: #f4f4f4; flex-grow: 0; height: 12px; width: 16px; transform: translateY(-4px);"> </div> <div style="width: 0; height: 0; border-top: 8px solid #F4F4F4; border-left: 8px solid transparent; transform: translateY(-4px) translateX(8px);"> </div> </div> </div> <div style="display: flex; flex-direction: column; flex-grow: 1; justify-content: center; margin-bottom: 24px;"> <div style="background-color: #f4f4f4; border-radius: 4px; flex-grow: 0; height: 14px; margin-bottom: 6px; width: 224px;"> </div> <div style="background-color: #f4f4f4; border-radius: 4px; flex-grow: 0; height: 14px; width: 144px;"> </div> </div> <p style="color: #c9c8cd; font-family: Arial,sans-serif; font-size: 14px; line-height: 17px; margin-bottom: 0; margin-top: 8px; overflow: hidden; padding: 8px 0 7px; text-align: center; text-overflow: ellipsis; white-space: nowrap;"><a style="color: #c9c8cd; font-family: Arial,sans-serif; font-size: 14px; font-style: normal; font-weight: normal; line-height: 17px; text-decoration: none;" href="https://www.instagram.com/reel/C9JyzoDvYkM/?utm_source=ig_embed&amp;utm_campaign=loading" target="_blank" rel="noopener">A post shared by Insight at SBS (@insightsbs)</a></p> </div> </blockquote> <p>“And he said, ‘You’re crazy if you don’t retire when you can, because you’ll spend most of your wealth on travel or whatever in the first 10 years and then after that it slows down’."</p> <p>“It’s changing your mindset. You get into a phase now where you actually spend instead of save.”</p> <p>The cashed-up boomers run a Facebook group called “SKIclub”, which stands for “spending kids inheritance”, where retirees can share travel tips.</p> <p>Ms Ryland said she’s trying to convince her husband they have to “spend now, because if we don’t spend it, you know he gets it”, pointing to her son.</p> <p>“We’re not going be able to spend all this money so let’s do it because in another 10 years we won’t be climbing the Great Wall of China. We won’t be going up Machu Picchu,” she said.</p> <p>“We won’t be doing those things. So we’ve gotta do it now because what else is there?”</p> <p>The attitude of the couple quickly welcomed a wave of criticism online, who were quick to brand the pair as “entitled”. </p> <p>“SBS <em>Insight</em> tonight is hilarious — boomer privilege at its best &amp; still not conscious of it. So entitled,” one person wrote on X.</p> <p>“Boomers are evil … bragging about overseas holidays with no regard for the environment, spending all their money so their kids have no inheritance,” another wrote.</p> <p>“Clogging healthcare due to their perceived entitlement for health and refusal to die. Selfish and privileged.”</p> <p>However, despite the views of many on social media, the couple’s son Alex appeared to support his parents' decision.</p> <p>“It’s their money,” he told the program.</p> <p>“They’ve worked hard their entire life and invested well in order to get that money so I think they should be able to do whatever they’d like with it.”</p> <p>Alex's sentiment was echoed by others online, with one person saying, "They have a right to do what they want, after the years of being so amazing and responsible for raising a kids, their turn is now."</p> <p>Another simply stated, "It's their money, they can do what they want."</p> <p><em>Insight</em>’s ‘The Boomer Economy’ is available to stream on <a title="https://www.sbs.com.au/ondemand/news-series/insight" href="https://www.sbs.com.au/ondemand/news-series/insight" data-outlook-id="534ae148-66c7-42db-b3ee-8f15bf016de4">SBS On Demand</a> now.</p> <p><em>Image credits: SBS</em></p>

Retirement Life

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"Tax the boomers": Outrage over elderly couple's complaint after $1m Lotto win

<p>A "greedy" elderly couple have been rinsed online after complaining about losing their age pension payments after they won the Lotto. </p> <p>The couple, aged 73 and 67, wrote into <a href="https://www.smh.com.au/money/super-and-retirement/we-won-the-lottery-but-lost-our-pension-could-we-have-prevented-this-20240702-p5jqga.html" target="_blank" rel="noopener"><em>Sydney Morning Herald</em></a>'s financial advice column with Noel Whittaker to ask how they could've prevented losing the government funds and still kept hold of their million-dollar winnings. </p> <p>The couple's submission read, "We are a couple... both retired and receiving the full aged pension. We recently won $1,000,000 in the lottery and have placed that money in a basic interest-bearing savings account with our bank."</p> <p>"We intend to use that money to buy a new house and sell our existing one but may just renovate. The windfall has stopped our pension completely until we spend the money, which is all good and well. But could we have prevented the pension loss in any way?"</p> <p>Whittaker responded that the couple should consider themselves extremely fortunate and enjoy the money, saying they "could have a far better lifestyle living off capital instead of relying on welfare". </p> <p>He also urged the couple not "spend to get a pension". </p> <p>The boomers' questions quickly drew attention online, with many flocking to Facebook comments to slam the couple for their "greed". </p> <p>One person wrote, "If you won the lotto, why would you want the pension?", while another added, "Ah yes, the call of the boomers everywhere, 'I have millions but where's my pension money?'"</p> <p>Others said the Lotto winners should consider themselves lucky they are now able to provide for themselves, with one person writing, "Pension is a support system to allow you to survive without/reduced work in retirement. If you are a multimillionaire then you don't need it."</p> <p>Another person echoed the sentiment, saying, "Wow, what entitlement. The pension is a safety net, if you don’t qualify for it think yourself lucky."</p> <p>Other social media users simply shared their outrage towards the boomer generation, as one frustrated person wrote, "Won a million and whinging they can't scam the taxpayers, what self-centered arrogance", while another added, "Tax the boomers! No more handouts."</p> <p><em>Image credits: Shutterstock</em></p> <div class="x6s0dn4 x3nfvp2" style="font-family: inherit; align-items: center; display: inline-flex; min-width: 604px;"> <ul class="html-ul xe8uvvx xdj266r x4uap5 x18d9i69 xkhd6sd x1n0m28w x78zum5 x1wfe3co xat24cr xsgj6o6 x1o1nzlu xyqdw3p" style="list-style: none; margin: 0px -8px 0px 4px; padding: 3px 0px 0px; display: flex; min-height: 15px; line-height: 12px; caret-color: #1c1e21; color: #1c1e21; font-family: system-ui, -apple-system, BlinkMacSystemFont, '.SFNSText-Regular', sans-serif; font-size: 12.000001px;" aria-hidden="false"> <li class="html-li xe8uvvx xdj266r xat24cr xexx8yu x4uap5 x18d9i69 xkhd6sd x1rg5ohu x1emribx x1i64zmx" style="list-style: none; display: inline-block; padding: 0px; margin: 0px 8px;"> </li> </ul> </div>

Retirement Income

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"These can't be real": Boomers' Olympic uniform sparks instant outrage

<p>Australia’s basketball uniforms for the Paris Olympics have hit a new low, or should we say a new “high jump” with the kit’s release on social media sparking a full-blown hoopla.</p> <p>Designed by Asics, these uniforms have quickly become the butt of jokes faster than a basketball rolling down a court.</p> <p>The “outfit” features a bright yellow singlet with “Australia” across the chest, an Asics logo on one shoulder, and the coat of arms on the other – and the reactions have been nothing short of a slam dunk of disdain.</p> <p>Daniel Moldovan, a basketball player manager with a flair for theatrics, didn’t hold back. “Let’s just call a spade a spade," he wrote on X, "yet another embarrassment for a team full of NBA players at the peak of their sport. Our guys are going to be dressed like marathon runners. If the old adage ‘Look good, feel good’ has any truth to it, then our guys are going to feel like trash.”</p> <p>He even suggested that whoever approved these “marathon runner uniforms” for the Boomers should have their citizenship revoked. “What the f*** is this abomination?” he asked. Even past and present Boomers players chimed in.</p> <p>Josh Giddey, Oklahoma City Thunder’s rising star, simply commented “lol absolute joke”. Jock Landale of the Houston Rockets humorously mused, “Looks like we are off to throw a javelin.” And Andrew Bogut, never one to mince words, quipped that the Australian Olympic Committee had Stevie Wonder design the uniforms. Ouch.</p> <blockquote class="twitter-tweet"> <p dir="ltr" lang="en">Let’s just call a spade a spade. This is a fucking DISGRACE. Yet another embarrassment for a team full of NBA players at the peak of their sport. </p> <p>Our guys are going to be dressed like marathon runners. </p> <p>If the old adage of “Look good feel good” has a modicum of truth to it,… <a href="https://t.co/mSxlLeHvGl">https://t.co/mSxlLeHvGl</a></p> <p>— Daniel Moldovan (@AgentMoldovan) <a href="https://twitter.com/AgentMoldovan/status/1800659140022595903?ref_src=twsrc%5Etfw">June 11, 2024</a></p></blockquote> <p>The social media backlash was swift and savage. Benyam Kidane of NBA Australia tweeted, “Nah, this disrespectful. Boomers gonna bring home the gold in the decathlon.” Sam Vecenie from The Athletic added, “Pumped to see the Australian basketball team compete in the high jump at the Olympics. Probably not the optimal use of their skill, but will be fun to see them in these track-and-field-ass uniforms.”</p> <p>NBA Straya was in on the joke too: “Great to see we’re following in a hallowed Aussie tradition and getting Bali knockoff jerseys for the national team.” And one user couldn’t believe their eyes: “Is April Fools Day a different day? These can’t be real!!”</p> <p>The ASICS website, in its defence, claims the design incorporates Indigenous Australian artwork and Japanese design features. They boasted about the recycled fabrics and the artworks by Paul Fleming and David Bosun. While noble, it seems like they may have missed the mark on “aesthetic appeal”.</p> <p>The Boomers are set to kick off their Paris Olympics campaign on July 27, with warm-up matches against Japan, China, Serbia and the USA. Let’s just hope they’re not mistaken for a track-and-field team when they step onto the court. After all, no one wants to see them dribble with a javelin.</p> <p>In the end, perhaps the real win would be for the Boomers to win gold while sporting these “unique” threads. It might just prove that in the world of fashion, sometimes the ugliest outfits make for the most unforgettable moments.</p> <p><em>Images: Asics</em></p>

Beauty & Style

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Boomers vs. Bikers: Teens and elderly residents face off over bike rules

<p>A tense intergenerational argument has broken out in Sydney's Northern Beaches, as a group of seniors stopped two teenagers from riding their electric bikes on a footpath. </p> <p>The incident was captured on camera by a bystander and uploaded to social media with the caption, "Battle of the beaches. E-bikes vs. elderly", before quickly going viral. </p> <p>The video shows elderly man and woman standing outside a dental centre in the suburb of Mona Vale, stopping the youths from riding any further and are seen holding the bike as the teens appear to argue for their release.</p> <p>After the video garnered much attention, hundreds of people shared their thoughts on who was in the right. </p> <p>Many appear to have taken the side of the senior citizens, but in this case, with the teen’s ages not immediately clear, both parties could have a case. </p> <p>According to the<a title="www.nsw.gov.au" href="https://www.nsw.gov.au/driving-boating-and-transport/roads-safety-and-rules/bicycle-safety-and-rules/cyclist-road-rules#:~:text=Riding%20on%20a%20footpath,under%20the%20age%20of%2016"> New South Wales Government</a>, cyclists (on both pedal or electric bikes) are not allowed to ride on a footpath. However, children under 16 can ride on the footpath unless there is a “NO BICYCLES” sign. </p> <p>In the comment section, plenty of arguments backed the case of the seniors. </p> <p>“Elderly are right; it’s a footpath, it’s dangerous. Annoying they drive fast,” one wrote.</p> <p>Another said: “Look I don’t know what happened, but yesterday (kids) similar to these guys were zooming on an E-bike at a dog park, almost hit us, no bells or anything and off the path. If you have these, just stay on the road.”</p> <p>Others, however, were quick to side with the teens, as one person wrote, “Entitled old people thinking they are the police.”</p> <p>Another added, “Boomers need to admit they are bored and have nothing to do.”</p> <p><em>Image credits: TikTok</em></p>

Travel Trouble

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Boomers vs millennials? Free yourself from the phoney generation wars

<div class="theconversation-article-body"><em><a href="https://theconversation.com/profiles/bobby-duffy-98570">Bobby Duffy</a>, <a href="https://theconversation.com/institutions/kings-college-london-1196">King's College London</a></em></p> <p>Generational thinking is a big idea that’s been horribly corrupted and devalued by endless myths and stereotypes. These clichés have fuelled fake battles between “snowflake” millennials and “selfish” baby boomers, with younger generations facing a “war on woke” and older generations accused of “stealing” the future from the young.</p> <p>As I argue in my book, <a href="https://atlantic-books.co.uk/book/generations/">Generations</a>, this is a real shame. A more careful understanding of what’s really different between generations is one of the best tools we have to understand change – and predict the future.</p> <p>Some of the great names in sociology and philosophy saw understanding generational change as central to understanding society overall. <a href="http://dhspriory.org/kenny/PhilTexts/Comte/Philosophy2.pdf">Auguste Comte</a>, for example, identified the generation as a key factor in “the basic speed of human development”.</p> <p>He argued that “we should not hide the fact that our social progress rests essentially upon death; which is to say that the successive steps of humanity necessarily require a continuous renovation … from one generation to the next”. We humans get set in our ways once we’re past our formative years, and we need the constant injection of new participants to keep society moving forward.</p> <p>Understanding whether, and how, generations are different is vital to understanding society. The balance between generations is constantly shifting, as older cohorts die out and are replaced by new entrants. If younger generations truly do have different attitudes or behaviours to older generations, this will reshape society, and we can, to some extent, predict how it will develop if we can identify those differences.</p> <p>But in place of this big thinking, today we get clickbait headlines and bad research on millennials “<a href="https://www.businessinsider.com/millennials-hate-napkins-2016-3?r=US&amp;IR=T">killing the napkin industry</a>” or on how baby boomers have “<a href="https://www.theatlantic.com/ideas/archive/2019/06/boomers-are-blame-aging-america/592336/">ruined everything</a>”. We’ve fallen a long way.</p> <h2>Myth busting</h2> <p>To see the true value of generational thinking, we need to identify and discard the many myths. For example, as I outline in the book, gen Z and millennials are not lazy at work or disloyal to their employers. They’re also no more materialistic than previous generations of young: a focus on being rich is something we tend to grow out of.</p> <p>Old people are not uncaring or unwilling to act on climate change: in fact, they are more likely than young people to boycott products for social purpose reasons.</p> <p>And our current generation of young are not a particularly unusual group of “culture warriors”. Young people are always at the leading edge of change in cultural norms, around race, immigration, sexuality and gender equality. The issues have changed, but the gap between young and old is not greater now than in the past.</p> <p>Meanwhile, there are real, and vitally important, generational differences hidden in this mess. To see them, we need to separate the three effects that explain all change in societies. Some patterns are simple “lifecycle effects”, where attitudes and behaviours are to do with our age, not which generation we are born into. Some are “period effects” – where everyone is affected, such as in a war, economic crisis or a pandemic.</p> <p>And finally, there are “cohort effects”, which is where a new generation is different from others at the same age, and they stay different. It’s impossible to entirely separate these distinct forces, but we can often get some way towards it – and when we do, we can predict the future in a much more meaningful way.</p> <p>There are many real generational differences, in vitally important areas of life. For example, the probability of you owning your own home is hugely affected by when you were born. Millennials are around half as likely to be a homeowner than generations born only a couple of decades earlier.</p> <p>There is also a real cohort effect in experience of mental health disorders, particularly among recent generations of young women. Our relationship with alcohol and likelihood of smoking is also tied to our cohort, with huge generational declines in very regular drinking and smoking. Each of these point to different futures, from increased strain on mental health services to declining alcohol sales.</p> <p>But lifecycle and period effects are vitally important too. For example, there is truth in the idea that we grow more conservative as we age. One analysis suggests that this ageing effect is worth around <a href="https://www.sciencedirect.com/science/article/abs/pii/S0261379413000875">0.35% to the Conservatives each year</a>, which may not sound like a lot, but is very valuable over the course of a political lifetime.</p> <p>And, of course, the pandemic provides a very powerful example of how period effects can dramatically change things for us all.</p> <h2>Reaching beyond the avocado</h2> <p>When there is such richness in the realities, why are there so many myths? It’s partly down to bad marketing and workplace research – that is, people jumping on the generation bandwagon to get media coverage for their products or to sell consultancy to businesses on how to engage young employees.</p> <p>This has become its own mini-industry. In 2015, US companies spent up to US$70 million (£51 million) on this sort of “advice” <a href="https://www.wsj.com/articles/helping-bosses-decode-millennialsfor-20-000-an-hour-1463505666">according to the Wall Street Journal</a>, with some experts making as much as US$20,000 an hour. Over 400 LinkedIn users now describe themselves solely as a “millennial expert” or “millennial consultant”.</p> <p>Campaigners and politicians also play to these imagined differences. Our increasing focus on “<a href="https://www.kcl.ac.uk/policy-institute/assets/culture-wars-in-the-uk.pdf">culture wars</a>” often involves picking out particular incidents in universities, such as the <a href="https://www.bbc.co.uk/news/uk-england-manchester-45717841">banning of clapping</a> at events or the <a href="https://www.bbc.co.uk/news/uk-england-oxfordshire-57409743">removal of a portrait of the Queen</a> to exaggerate how culturally different young people today are.</p> <p>Maybe less obviously, politicians such as former US President Barack Obama repeatedly lionise coming generations as more focused on equality, when the evidence shows they’re often not that different. These assertions are not only wrong, but create false expectations and divides.</p> <p>Some have had enough, calling on the Pew Research Center in the US, which has been a champion of generational groups, to <a href="https://www.washingtonpost.com/opinions/2021/07/07/generation-labels-mean-nothing-retire-them/&amp;data=04%257C01%257C">stop conducting this type of analysis</a>. I think that misses the point: it’s how it’s applied rather than the idea of generations that’s wrong.</p> <p>We should defend the big idea and call out the myths, not abandon the field to the “millennial consultants”.<!-- Below is The Conversation's page counter tag. Please DO NOT REMOVE. --><img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/167138/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /><!-- End of code. If you don't see any code above, please get new code from the Advanced tab after you click the republish button. The page counter does not collect any personal data. More info: https://theconversation.com/republishing-guidelines --></p> <p><em><a href="https://theconversation.com/profiles/bobby-duffy-98570">Bobby Duffy</a>, Professor of Public Policy and Director of the Policy Institute, <a href="https://theconversation.com/institutions/kings-college-london-1196">King's College London</a></em></p> <p><em>Image credits: Shutterstock </em></p> <p><em>This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/boomers-vs-millennials-free-yourself-from-the-phoney-generation-wars-167138">original article</a>.</em></p> </div>

Mind

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'Boomer' cyclist allegedly caught keying cars

<p>A baby boomer on a bicycle has allegedly been caught red-handed by CCTV footage, which reportedly shows the man keying a series of cars. </p> <p>Residents of the affluent Brisbane suburb of Woolloongabba have been terrorised by the anonymous car-keyer since September of last year. </p> <p>Mick Brown, who lives in the area, checked local CCTV cameras after his car had been keyed on September 29th, to try to identify the culprit.</p> <p>The footage showed what Mr Brown described as a “regular, well-dressed elderly man” cycling down Hubert Street.</p> <p>The man then turned around and cycled past 30 seconds later with one arm extended toward the parked cars with something attached to a red lanyard in his hand.</p> <p>Mr Brown told the <em><a href="https://www.couriermail.com.au/subscribe/news/1/?sourceCode=CMWEB_WRE170_a_NEW&dest=https%3A%2F%2Fwww.couriermail.com.au%2Fnews%2Fqueensland%2Fwoolloongabba-resident-claims-cars-repeatedly-targeted-by-man-on-bike-with-keys-over-period-of-months%2Fnews-story%2Fd6ca80fcd103ff0eaae3bc02e33e8fb4&memtype=anonymous&mode=premium&v21=LOW-Segment-1-SCORE&nk=5bc945873ffec79da7263488711d2aab-1715304777" target="_blank" rel="noopener">Courier Mail</a></em>, “This act cost myself and the owner of the other two vehicles in excess of $10,000 in repairs.”</p> <p>“After repairs were completed on all three vehicles this same person has struck again on Saturday, December 30 (2023),” he said.</p> <p>After being struck by the cyclist three times and paying over $10,000 to fix the cars, Mr Brown said his car was targeted again on May 5th. </p> <p>"These attacks are happening in broad daylight,” he said. “While these appear to be targeted attacks neither myself nor the other victim know or recognise this person."</p> <p>“It is becoming quite distressing and this individual needs to be stopped.”</p> <p>The cyclist has yet to be identified, and no charges have been laid. </p> <p><em>Image credits: Courier Mail </em></p>

Legal

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How baby boomers are benefiting from Australia's "worst financial mistake"

<p>A financial expert has explained how baby boomers have remained largely unscathed by the ongoing housing crisis in Australia. </p> <p>ABC finance guru Alan Kohler described the crisis as Australia's "worst financial mistake", as Adelaide has now become the country's second least affordable city. </p> <p>The South Australian capital, which has long been known as one of the more affordable places in the country to live, has skyrocketed in price, as the median price for houses and units in Adelaide was $721,376 in January, which is 7.9 times higher than the state's average full-time salary of $91,026.</p> <p>"There are a couple of things that might surprise you: Adelaide became the second, least affordable Australian city last year," Mr Kohler explained.</p> <p>"Adelaide has just taken over from Hobart in second place."</p> <p>"What's going on: put simply, incomes in Adelaide, Hobart and Brisbane are not keeping up with house prices, which are being pushed up by fast-rising population and by first-home buyers."</p> <p>Mr Kohler, a baby boomer, noted that when he and his wife bought their first home in Melbourne for $40,000 in 1980, he was earning $11,500 as a journalist, meaning his home cost just 3.5 times his income before a mortgage deposit.</p> <p>"When my wife and I bought our first house in 1980, the average house price was 3.5 times average income," he said. "Now, it's 7.5 times and rising."</p> <p>"That didn't have to happen: it's Australia's worst, economic mistake."</p> <p>Mr Kohler said parents were increasingly propping up the mortgage deposits of first-home buyers, as first-home buyer subsidies from the federal government only pushed up property prices.</p> <p>"Despite rising prices and crushing interest rates, first-home buyers were the fastest-growing type of borrower," he said.</p> <p>"The Bank of Mum and Dad coughing up early inheritances and politicians showering them with grants and concessions, desperate to appear to be doing something about affordability while actually making it worse."</p> <p><em>Image credits: Shutterstock / ABC</em></p> <p class="mol-para-with-font" style="font-size: 16px; margin: 0px 0px 16px; padding: 0px; min-height: 0px; letter-spacing: -0.16px; font-family: graphik, Arial, sans-serif;"> </p>

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Kochie's brutal message to Baby Boomers

<p>David Koch has shared his brutal thoughts on the housing crisis and rising interest rates, claiming millennials have been dealt the "short end of the stick", while boomers have been spared. </p> <p>The former <em>Sunrise</em> host, who is now the Economic Director at Compare the Market, said young borrowers are copping the brunt of rising interest rates and soaring inflations. </p> <p>“If you bought your home in early 2022 under the pretence that interest rates would stay low for longer, you’ve now been lumped with the short end of the stick,” Mr Koch said.</p> <p>He went on to say young people had difficulty generating any decent savings due to record rental prices and cost-of-living, and those that can scrape together a deposit on a home now face onerous interest charges.</p> <p>Recent data from Compare the Market found homeowners who bought their homes at the peak of the market in early 2022 were far worse off compared to those who bought three years earlier. </p> <p>Those who also bought property before the Covid lockdown have also benefited from a rise in their equity, as property prices have significantly increased over the past four years.</p> <p>Kochie said the repayment hike as a result of rising interest rates was a "tough pill" for young Aussies who had no time to accrue a strong savings buffer.  </p> <p>Given these factors, Kochie said many Aussie baby boomers have been spared the pain of rising interest rates.</p> <p>"Meanwhile, a lot of mature Australians have missed this pain altogether after selling their properties at the peak and having reaped the benefits over more equity for years," he said.</p> <p>"A lot of mature Australians have been shielded from the rate rises, and it's already widely believed that their spending drove inflation."</p> <p>A recent report from CommBank iQ found that baby boomers spending on luxuries appears to be further fuelling Australia's inflation crisis as millennials are forced to cut back on essentials.</p> <p>This goes a long way to explaining why the current cycle of interest rate rises are not dampening inflation as expected, as the new big spenders are older people who own properties outright and are therefore unaffected by rate rises.</p> <p>Boomers are are going on holidays and dining out more often, while millennials, battling higher rents and mortgage repayments, rare being forced to reduce their spending to cope with the worst cost of living crisis in a generation.</p> <p>Koch said, "It's time policy-makers should be asking: how could the pressure be more evenly spread?"</p> <p>Aussie baby boomers have long claimed that they had to make the same sacrifices when they were buying their first homes, given the home loan rate in 1989 to 1990 was at 17 per cent, compared to today's six per cent variable rates.</p> <p>However, Kochie debunked this claim, saying current house prices are far higher when measured against average salaries, and that level was only accelerating, far outpacing wages growth.</p> <p>"Back in the 80s, the average cost of an Aussie house was $70,000, now it's $700,000 - ten times more expensive," he said. </p> <p>The financial guru explained how in the 1980s the average salary was $19,000, compared with $94,000 in 2023.</p> <p>"So in the 80s, the price of a house was four times the average person's income," he said.</p> <p>"In 2023, it's eight times the average Aussie salary."</p> <p>Kochie urged mortgage holders hit with higher repayments to call their banks and explore whether refinancing to a lower-rate loan is possible. </p> <p>"We urge people in mortgage pain to reduce the interest on their repayments as much as possible by shopping around for a better deal," Koch said. </p> <p>"When every dollar counts, 2024 should be the year of the new lender."</p> <p><em>Image credits: Compare the Market </em></p>

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Baby boomers fight back against "self-entitled whingeing generations"

<p>Angry baby boomers have hit back at young Australians for continuing to blame the ageing population for the current housing crisis. </p> <p>A group of disgruntled seniors have shared their thoughts with the <a href="https://www.smh.com.au/national/blaming-baby-boomers-for-your-money-woes-is-unfair-lazy-and-wrong-20231127-p5en21.html" target="_blank" rel="noopener"><em>Sydney Morning Herald</em></a> about the "self-entitled" young Australians, who are facing never-before-seen financial and social barriers to break into the housing market. </p> <p>The open letters come in the wake of Census data showing empty-nesters are hanging on to their big homes in inner-city suburbs, while young families are struggling to find suitable housing while also battling mortgage stress and renters are getting relentlessly price-gouged. </p> <p>Despite the current system disproportionately affecting younger Australians, boomers have hit back at universal claims that they had it easier back in the day. </p> <p>"We bought and paid for these homes; it's not our job to house the next generations, it's the government's," explained Kathleen Kyle in a letter to the <em>Sydney Morning Herald</em>. </p> <p>"Nobody questions people who spend their money on lovely cars or antiques, or suggests that they don't need them any more."</p> <p>In another letter, Kathy Willis from Kew near Port Macquarie wrote, "Boomers have worked very hard to get what they have, having brought up their families in these homes."</p> <p>"I suggest the discourse be directed to people such as town planners, local councils and state governments for their lack of vision in the past, and what the present authorities are going to do about it – and of course, the taxpayers' expense."</p> <p>Suzanne Hopping from Redfern, Sydney, wrote that she could no longer stay silent on "boomer bashing" from "self-entitled whingeing generations".</p> <p>"I bought my first home when I was 39 in an undesirable suburb. Buying a home (at 17.5 per cent interest) was as difficult then as it is today."</p> <p>"When I left home I had no expectations of ever being able to afford to buy a place of my own."</p> <p>"Self-entitled whingeing generations, if you don't like what you see, do something positive about it. Each generation has its unique problems, stop the moralising."</p> <p>Wendy Cousins from Balgownie NSW wrote that "boomer bashing" is futile, adding, "Why encourage resentment of boomers because many choose to stay in their homes? This will not free up any housing."</p> <p>"Many have already downsized and those who haven't, have a variety of reasons why they don't. We have enough division in our society without the constant boomer bashing."</p> <p>Despite the views of many disgruntled boomers, University of Melbourne Professor Allan Fels, an economist and mental health advocate, said figures show beyond a doubt that life is much tougher for the younger generation, and basic economics prove it is much harder for them to buy a house.</p> <p>"We baby boomers have had it a lot easier than the new generation of young people," he told <a href="https://www.dailymail.co.uk/news/article-12793605/Boomers-hit-self-entitled-whingeing-young-Aussies-reveal-theyre-not-blame-housing-crisis.html" target="_blank" rel="noopener"><em>Daily Mail Australia</em></a>.</p> <p>"They face a future of much less home ownership and associated mental health stability. The mere fact they are missing out is a cause of stress."</p> <p>"The trend of rising prices adds to the stress because many used to think that they could buy their own house but they keep missing out because prices are continually rising just beyond their grasp."</p> <p><em>Image credits: Shutterstock</em></p>

Money & Banking

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"Sorry about that, kids": Baby Boomers blamed AGAIN for national woes

<p>Australia's ongoing battle against soaring inflation is taking a toll on ordinary households, particularly young Australians, while – according to a recent News.com.au analysis – "<a href="https://www.news.com.au/finance/economy/australian-economy/why-boomers-and-big-business-are-to-blame-for-australias-economic-woes/news-story/d6478109e7701ad4cef152f38956e6b7" target="_blank" rel="noopener">cash-rich baby boomers and price-gouging corporations</a>" remain largely unscathed.</p> <p>This stark reality has been brought to light by financial experts and youth advocates, who point to the disproportionate impact of rising interest rates and living costs on younger generations.</p> <p>"Some interesting results from CBA's results presentation," observed ABC financial journalist Alan Kohler in a recent television appearance that has since gone viral. "They all highlight the great divide between generations."</p> <p>Kohler presented data showing that Millennials have the most debt and "baby boomers have most of the savings", with young people drawing down on their limited savings while boomers continue to grow their nest eggs.</p> <p>"And Gen Z and millennials are cutting back their spending and therefore doing all the hard work, helping the Reserve Bank get inflation down, but baby boomers are spending more and undermining that effort," Kohler explained. "So, sorry about that, kids."</p> <div class="embed" style="box-sizing: inherit; margin: 0px; padding: 0px; border: 0px; font-size: 16px; vertical-align: baseline; color: #323338; font-family: Figtree, Roboto, 'Noto Sans Hebrew', 'Noto Kufi Arabic', 'Noto Sans JP', sans-serif; background-color: #ffffff; outline: none !important;"><iframe class="embedly-embed" style="box-sizing: inherit; margin: 0px; padding: 0px; border-width: 0px; border-style: initial; vertical-align: baseline; width: 580px; max-width: 100%; outline: none !important;" title="tiktok embed" src="https://cdn.embedly.com/widgets/media.html?src=https%3A%2F%2Fwww.tiktok.com%2Fembed%2Fv2%2F7267335675010141442&display_name=tiktok&url=https%3A%2F%2Fwww.tiktok.com%2F%40equitymates%2Fvideo%2F7267335675010141442&image=https%3A%2F%2Fp16-sign-sg.tiktokcdn.com%2Fobj%2Ftos-alisg-p-0037%2FocNiGB6EkWBejOG1BH8DgQnwC2AVIM2QIebTQs%3Fx-expires%3D1699671600%26x-signature%3DSWclfroCkbHi55dgIg5%252FyW0Gf%252Bk%253D&key=5b465a7e134d4f09b4e6901220de11f0&type=text%2Fhtml&schema=tiktok" width="340" height="700" frameborder="0" scrolling="no" allowfullscreen="allowfullscreen"></iframe></div> <p>Kos Samaras, director of research firm RedBridge Australia, echoed Kohler's sentiment, noting that millions of Australians are now in negative cash flow, struggling to make ends meet.</p> <p>"It's a train wreck," Samaras asserted. "These households are not driving inflation. It's people like myself and much older. Spending from 50+ is up, savings are up, and higher interest rates equal higher earned interest on savings. It's also super profits and other international drivers."</p> <p>PropTrack economist Angus Moore offered a more nuanced view, explaining that inflation is "never driven by a single thing or a single group."</p> <p>"For the sake of simplifying it, the reason we're seeing high inflation is down to two things," Moore clarified.</p> <p>"One is supply-led inflation, which is things like petrol and energy prices, disrupted supply chains driving up import costs, growth in construction costs, and so on.</p> <p>"More recently in the past 18 months, we've seen the second cause emerge, which is demand-led inflation. Basically, the economy is broadly doing very well. Unemployment is the lowest it's been in five decades. That's helped to give people more money, which has supported spending – or demand-led inflation."</p> <p>Amidst widespread financial hardship, corporations are reaping record profits, further fuelling public resentment.</p> <p>Electricity prices surged by 4.2 per cent in September, reflecting higher wholesale costs being passed on to consumers. Origin Energy, one of the country's largest electricity suppliers, saw a staggering 83.5 per cent increase in profits in the 2022-23 financial year.</p> <p>"The public have been told that supply chain issues and inflation are to blame for the cost-of-living crisis," said Joseph Mitchell, assistant secretary of the ACTU. "But when you see the profits like those posted, it is legitimate to ask whether Australia's big supermarkets have used the cost-of-living crisis as a smokescreen to push up their profit margins, despite costs decreasing for themselves."</p> <p>Similarly, Australia's biggest insurer IAG, which owns NRMA and CGU among others, posted a net profit of $832 million in 2022-23, skyrocketing 140 per cent on the year prior.</p> <p>"Insurance is an essential," Mitchell emphasised. "To protect our homes and to get to work we all have to pay those premiums. It's beyond the pale to expect hard working Australians to continue cop increases to life's essentials just to have big business creaming from the top."</p> <p>The Australia Institute's Centre for Future Work is demanding price regulations across strategic sectors such as energy, housing and transport, as well as competition policy reform to restrain exploitative pricing practices.</p> <p>"The evidence couldn't be any clearer – enormous corporate profits fuelled the inflationary crisis and remain too high for workers to claw back wage losses," stated Dr Jim Stanford, the centre's director.</p> <p>"The usual suspects in the business community want to blame labour costs for inflation. That claim simply doesn't stack up under the weight of international and domestic evidence that shows corporate profits still account for the clear majority of excess inflation, despite inflation moderating from its peak last year."</p> <p><em>Image: TikTok</em></p>

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Baby boomer's "humble brag" backfires spectacularly

<p>A baby boomer has been mercilessly mocked online after complaining that the value of her home skyrocketed by $1 million. </p> <p>A Sydney mother took to Reddit to share that she purchased a family home for $2 million six years ago, and was shocked to learn her neighbour had sold their home for a whopping $3 million. </p> <p>The boomer parent feared that the property market was becoming so unaffordable that her children would also need to come up with a seven-figure sum to eventually own their own homes. </p> <p>Despite the poster being genuinely concerned, commenters on Reddit were less than sympathetic that her children might end up "worse off", and asked why they even needed a multi-million dollar home in the first place. </p> <p>The mother insisted that she was not bragging about her situation and that she considered herself "lucky" to be able to buy her first house "when they were affordable".</p> <p>"Prices have risen since, it's not news to anyone," she wrote.</p> <p>"I have never been excited about the value of my house going up because I've always known it just meant things would be harder for my kids and all other younger people."</p> <p>Despite trying to appear understanding of the plight of would-be homeowners, she was slammed for her "tone deaf" take on the issue. </p> <p>"Oh my heart bleeds, but why do your kids need multi-million dollar homes," one user asked. </p> <p>Another user said that her "humble brag" was "very sad".</p> <p>Others agreed that she was facing the reality that they had been facing for years and suggested that she toned down her children's expectations for home ownership. </p> <p><em>Image credits: Getty Images </em></p>

Money & Banking

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Aussie shopper sparks outrage over "boomer hour" pitch at supermarkets

<p>A frustrated Aussie shopper has called for major supermarkets to implement a dedicated "boomer hour" for seniors to do their groceries. </p> <p>The shopper, from Victoria's Mornington Peninsula, caused an uproar after posting on Facebook saying that elderly customers should be "more mindful of time-poor workers and busy parents".</p> <p>The person went on to write that senior shoppers often take up too much space in the aisles to stop and socialise, making it "inconvenient" for other shoppers in a rush.</p> <p>The divisive post attracted a lot of attention, with many younger shoppers flocking to the comments to back the controversial idea. </p> <p>One person said older shoppers should save their socialising for the cafe or park like “every other normal person”.</p> <p>“This means not using the entire width of supermarket aisles as a catch-up spot to discuss what cruise Bazza’s on, or how the tenants in Jenny’s 13th investment property are really grinding her gears because they want the aircon fixed before summer. Not at 5pm on a weekday.”</p> <p>Despite some support for the idea, consumer behaviour analyst Barry Urquhart branded the idea as "ageism personified".</p> <p>"It won't work because they are a primary driver of the marketplace at the moment," he told <em>Seven News</em>.</p> <p>"At a time where the cost of living and the cost of doing business is acute, you can't turn and marginalise any consumer group."</p> <p>"This is ageism personified. People are wanting to say 'let's marginalise the older people, let's make them invisible'' and they're saying 'no we're asserting ourselves in tourism, hospitality, flight purchases at large'," he said.</p> <p>"Follow the money and the money in Australia at the moment is for people aged 50 years of age and older because they've got less mortgage, more discretionary purchases and are spending it."</p> <p>Urquhart went on to tell <a href="https://www.3aw.com.au/frustrated-shoppers-call-for-boomer-hours-in-supermarkets/" target="_blank" rel="noopener"><em>3AW</em></a> radio that the measures would be impractical for businesses and senior shoppers. </p> <p>He said, “Trying to group boomers into one group … it’s not possible.”</p> <p><em>Image credits: Getty Images </em></p>

Retirement Life

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Boomer calls out young Aussie's "war on oldies"

<p>A baby boomer has called out Australia's "war on oldies", as millennials have a "growing resentment" to the older generation. </p> <p>Former political reporter David Jones wrote that millennials are making boomers “feel they’re a looming burden” on the country in an opinion piece for <em>The Daily Telegraph</em>, saying they have "drawn the battle lines" in an intergenerational war.</p> <p>Jones, the self-proclaimed boomer, wrote, “Make no mistake, there is a ‘war on oldies’ happening in Australia, with growing resentment directed at the nation’s ageing baby boomer population.”</p> <p>“It is happening in subtle and not-so-subtle ways but the underlying message is the same."</p> <p>“Baby boomers, you’ve had it too good for too long and now that you’ve reached your dotage, it is time to pay for your’ sins’ of affluence – and hard work.”</p> <p>Jones went on to argue that millennials' anger at the older generations is misplaced, especially when they had “actually contributed a lot” to building modern Australia.</p> <p>“Are baby boomers really as bad as people think? No we’re not,” he continued.</p> <p>He wrote that boomers were Australia's "finest generation", and had grown up appreciating the struggles of their childhoods as their parents endured the Great Depression and two world wars. </p> <p>Jones admits his generation was “born into the halcyon days of full employment and a seemingly endless economic boom” when recruitment was easy.</p> <p>Employers “recruited us on the quadrangles of Sydney’s high schools”, Jones said.</p> <p>“The lingering insinuation is that the ‘boomers’ are too self-satisfied and electorally powerful for their own good."</p> <p>“They own too many properties, they’ve occupied too many rungs on the career ladder, they don’t have mortgages and looking after them in their old age will be a burden on the state and the generation to come.”</p> <p>Jones concedes that millennials have “good reason to be resentful about a number of things” – from the cost of living and housing crisis, sky-high interest rates, even stagnant career opportunities – “but the blame doesn’t rest at the feet of baby boomers”, he said.</p> <p>Instead, he said the anger belongs on the shoulders of politicians for making “dumb decisions” in government.</p> <p>“In defence of baby boomers, we shouldn’t be held responsible for the catastrophic failure of all levels of government to allow home housing in sufficient numbers to satisfy demand for purchase and for rent."</p> <p>“We didn’t … feel comfortable about the orgy of government spending and borrowing during Covid that put Australia on the road to high inflation and economy crippling interest rate hikes."</p> <p>“Nor did we have a choice about getting older.”</p> <p><em>Image credits: Getty Images</em></p>

Retirement Life

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Expert's bold claim that boomers are to blame

<p dir="ltr">An expert has claimed that baby boomers have “won the intergenerational lottery”, while young Australians continue to struggle to make ends meet. </p> <p dir="ltr">Chief economist for the MB Fund, Leith van Onselen, shared new data to support his claims, as he said governments have continuously favoured the older generations and neglected the financial needs of young people. </p> <p dir="ltr">The economist believes boomers have long had the upper hand in terms of taxes, wages, and house prices, and are completely unaware of their financial privilege. </p> <p dir="ltr">In terms of homeownership, van Onselen wrote for <em><a href="https://www.news.com.au/finance/economy/australian-economy/data-reveals-how-baby-boomers-have-seized-aussie-economys-spoils-as-young-people-suffer/news-story/dc59569780fb42389915e11cdb41dba6" target="_blank" rel="noopener">news.com.au</a></em> that boomers were “lucky” to break into the housing market when house prices were still achievable. </p> <p dir="ltr">He said, “Baby Boomers have the highest home ownership rate in Australia and were lucky to have gotten into the market while houses were still reasonably priced.” </p> <p dir="ltr">“They then enjoyed the rapid appreciation of home values, while younger Australians have been priced out.”</p> <p dir="ltr">He continued, “They mostly own their homes outright and are largely unaffected by rising mortgage rates or rent increases.”</p> <p dir="ltr">“Some Boomers are even benefiting from soaring rents, as they own a large chunk of the nation’s investment properties.”</p> <p dir="ltr">Van Onselen also discussed the spending habits of everyday Aussies, citing data from the Commonwealth Bank that shows how many young Australians halted spending in the face of the cost of living crisis, while baby boomers did the opposite. </p> <p dir="ltr">He said, “According to an analysis of seven million CBA customers’ purchasing habits, spending per capita for all age groups under 55 fell relative to the rate of inflation in the year to March 2023.”</p> <p dir="ltr">“Australians aged under 35 increased their spending by only 3.4 per cent in the year to March, which was less than half the rate of inflation.”</p> <p dir="ltr">“This means that the average young person is buying fewer goods and services.”</p> <p dir="ltr">He continued, “By contrast, spending among the over 55s climbed at a faster rate than inflation over the year to March, with CBA customers over the age of 75 increasing their spending by approximately 13 per cent.”</p> <p dir="ltr">The economist said that this drastic change in spending habits within the older generation has directly impacted inflation rates, as well as interest rates that continue to rise. </p> <p dir="ltr">He said, “Therefore, the older generations are driving Australia’s household consumption and are helping to push up house prices, which has forced the RBA to respond with higher interest rates – which is negatively impacting younger Australians with mortgages.”</p> <p dir="ltr">Van Onselen summarised his claims by stating he believes that “Older Australians also look to have tightened their stranglehold on the nation’s homes.”</p> <p dir="ltr">“To the Baby Boomers go the economy’s spoils.”</p> <p dir="ltr">He concluded his claims by taking aim at a common argument that the older generations use against younger Aussies who are struggling financially, as he wrote, “Now watch on as they eat smashed avocado toast.”</p> <p dir="ltr"><em>Image credits: Shutterstock</em></p>

Money & Banking

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Kochie silences Boomer housing myth

<p><em>Sunrise</em>’s David Koch has set the facts straight for Baby Boomers across Australia, putting an end to the popular notion that it’s laziness and greed preventing younger generations from getting their foot in the housing market. </p> <p>In a bid to prove his point, the TV host analysed each contributing factor, and broke down the various obstacles between buying a house in the late 1980s and buying one in 2023. </p> <p>“Back in my day,” Kochie began his segment, imitating a popular line utilised by Boomers when launching their arguments, “I was paying 17 per cent on my home loan. Now that was tough.”</p> <p>“Alright, hands up who has said that or been told that at a family get together recently,” he continued. “So, is that grumpy oldie right or wrong? These are the facts.”</p> <p>From there, he went on to explain that at a surface level, the answer seems obvious, and in favour of the older generations. Home loan rates reached 17% in 1989, while a variable loan is just 6% in 2023. </p> <p>However, a deeper dive into the matter soon revealed the concerning truth. While the average cost of a house was $70,000 in the 1980s, that number had multiplied by 10 in 2023, coming in at $700,000. </p> <p>“A 20% deposit has gone from $14,000 to $140,000,” Kochie added, before explaining that the issues kept coming from there, as “wages have not kept pace. 40 years ago, the average person was earning $19,000, now it’s closer to $90,000.”</p> <p>And, as <em>news.com.au</em> had previously reported, Australian wages basically had not budged in the decade leading up to 2023. </p> <p>“So, in the ‘80s, the price of a house was four times the average person’s income,” Kochie surmised. “In 2023, it’s 8 times the average Aussie salary.</p> <p>“The bottom line is that today’s 6% mortgage rate is causing the same financial pain as that grumpy old oldie’s 17% in the 1980s, and with rates set to go higher, it has never been tougher to meet a mortgage. So hopefully, that puts that myth aside.”</p> <div class="media embed-iframe" style="box-sizing: inherit; display: flex; flex-direction: column; align-items: center; width: 705.2px; margin-bottom: 24px; font-family: 'Helvetica Neue', HelveticaNeue, Helvetica, Arial, sans-serif; font-size: 18px;"> <blockquote id="v86519172471096370" class="tiktok-embed" style="box-sizing: border-box; margin: 18px auto; padding: 0px; border: 0px; font-style: inherit; font-variant: inherit; font-stretch: inherit; line-height: 1.15; font-family: proxima-regular, PingFangSC, sans-serif; font-optical-sizing: inherit; font-kerning: inherit; font-feature-settings: inherit; font-variation-settings: inherit; vertical-align: baseline; position: relative; width: 605px; overflow: hidden; text-size-adjust: 100%; max-width: 605px; min-width: 325px;" cite="https://www.tiktok.com/@sunriseon7/video/7214279116877516034" data-video-id="7214279116877516034" data-embed-from="oembed"><p><iframe style="box-sizing: inherit; border-width: initial; border-style: none; width: 605px; height: 740px; display: block; visibility: unset; max-height: 740px;" src="https://www.tiktok.com/embed/v2/7214279116877516034?lang=en-GB&amp;referrer=https%3A%2F%2Fwww.news.com.au%2Fentertainment%2Ftv%2Fmorning-shows%2Fkochie-smashes-baby-boomer-housing-myth%2Fnews-story%2F60ad99c43bdc36ec5bb287d8de71f95f&amp;embedFrom=oembed" name="__tt_embed__v86519172471096370" sandbox="allow-popups allow-popups-to-escape-sandbox allow-scripts allow-top-navigation allow-same-origin"></iframe></p></blockquote> </div> <p>And while many were glad to see someone finally telling it as it was, others believed that the situation may actually still be worse than Kochie had outlined. </p> <p>As one TikTok user put it, “if they use[d] the real average wage of $60,000 and not $90,000 it just gets even worse.” </p> <p>“Either I’m not getting paid enough or the average is closer to $60k pa,” one agreed. </p> <p>“Don’t forget they also had 20% interest on their savings accounts,” a digital marketer contributed. </p> <p>“Finally Kochie did something right,” another user wrote, “and broke it down in layman’s terms for the Boomers.”</p> <p>And as another said, “thanks for doing the research! I’m saving this video for EVERY CHANCE I CAN GET when someone tells me ‘it was harder in my day’.” </p> <p><em>Images: Sunrise / Seven</em></p>

Real Estate

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Millennials clash with Boomers in the battle of the housing market

<p>A 27-year-old home loan document has reignited debate over which generation had the biggest mountain to climb in their quest to buy a place to call their own. Read more: </p> <p>The document, uploaded to the Facebook group Perth Reflect, outlines ANZ bank’s various interest rates offered on “owner occupied” homes, as well as those available for “investment property loans”, both respectively effective as of February and March 1996. </p> <p>The poster encouraged the group to discuss the find, and to share their experience with their own first home loans, with the caption “found this in our filing cabinet (1996) and was wondering what interest rates others were paying on their first home loan.”</p> <p>In 1996, the East Start loan for a home was 7.95 per cent per annum, and a variable at 10.50 per cent. Fixed rates began at 8.69 per cent for one year term, and went up to 9.69 per cent for five years. Loan terms for homes were offered up to 25 years, and 20 for investment properties.</p> <p>Meanwhile, in 2023, ANZ boasts a variable interest rate of 5.09 per cent per annum. Fixed index rates now begin at 5.69 per cent, 6.59 per cent for five years, and peak at 7.69 per cent for 10 years. This comes after Australia’s Reverse Bank passed down nine consecutive rises, with the cash rate reaching a 10-year high. </p> <p>The reveal came as a surprise to some, with the numbers of paper appearing much worse for those trying to buy a property in the ‘90s. And in the Facebook comment section, some recalled how their actual rates were even higher than the document suggested.</p> <p>“Paid 17.5 per cent initially, but was on variable,” wrote one of a purchase in the late ‘80s. </p> <p>Another noted how those with a fixed term loan believed they had it “much better” at the time. </p> <p>The younger members of the group, however, were quick to point out that while the numbers looked to be in favour of the older generation, the rates for 2023 did not accurately compare with those from 1996. </p> <p>“Houses were a 5th of the price,” one wrote, referencing an old and recurring argument about the disparity in house prices over the years. </p> <p>It was mentioned that while interest rates were high, prices were low, and “everything was affordable”. </p> <p>The discussion over the impact of the cost of living on wages has been covered from all sides on many occasions, but it didn’t stop it from coming up in this debate too, with one commenter writing, “regardless [of] if wages have increased, everything else has increased twice as much.”</p> <p>It led to the older members of the group circling back to a tired argument, too. One was determined to stop that line of argument in its tracks, suggesting that they’d been able to afford their home with the higher rates because they didn’t purchase takeaway coffee and “only ate out occasionally”.</p> <p>This wasn’t to be taken lying down, with the younger generation refusing to allow that buying the occasional little treat was the reason they couldn’t get a foot in the door of their own home. </p> <p>One member, perhaps realising that bickering wasn’t going to get them anywhere, decided to whip out a calculator and get to the bottom of it all. </p> <p>Someone wrote that they paid $44k for a 3 bedroom home in 1986, with a yearly income of $31k behind them, before allowing that “maybe things weren't so tough”.</p> <p>“If adjusted for inflation,” one said in response, before sharing their maths, “your income today would be $92k pa and the price you paid for your house would have been $131k.”</p> <p>While both generations faced struggles with the property market, the challenges faced in 2023 are an entirely new beast, and one member of Perth Reflects shared their sympathy over the situation. </p> <p>After explaining that they struggled through a 17.5 per cent interest rate themselves, they outlined the difference in their situation and their kids’, writing “my home loan was way less than what my kids are paying today”. </p> <p>They bought land and built a house in High Wycombe on a loan of around $130k, and noted that it can be difficult - if not impossible - find a deal like that in even a country town, where prices tend to err on the ‘cheaper’ side of the scale. </p> <p>“Wages are different,” they surmised, “but housing affordability has gone stupid and wages [have] not [been] increased accordingly.”</p> <p><em>Images: Getty, Facebook</em></p>

Money & Banking

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Baby boomers outraged by satirical post about buying a home

<p>A group of older Australians have fallen for a satirical news article about rising interest rates and home ownership, with baby boomers everywhere expressing their disapproval. </p> <p>A post from Australian satire news site <em>The Shovel</em> has gone viral, after they riled up the older demographic who likely bought their homes for a very reasonable price, while still urging millennials to try harder to get into the impossible property market. </p> <p>The headline of the joke post reads, “'But interest rates were 17 per cent in my day!' complains man who bought house for $67,000".</p> <p>The satirical article goes on to state John Bradly, a fictional 63-year-old man from Melbourne who bought his house in the 1980s, thinks young people concerned about interest rate rises “don’t know how good they have it”.</p> <p>Bradley is quoted as saying he had to save up “for weeks” for a house deposit and that he only had his salary to rely on which was “only about one-fifth of the value of the average home back then”.</p> <p>“It took me more than seven years to pay off my first house. Seven years! I was practically in my thirties by the time I was debt free. Can you imagine? Being beholden to a bank for your entire twenties! I’m pretty sure no-one in their twenties these days has to go through that,” the joke article stated.</p> <p>The article finishes with another jab at older Australians who are making it even harder for first home buyers by owning multiple properties.</p> <p>“Try managing tenants across 11 investment properties scattered around Melbourne and Sydney during a global pandemic. That’s what hard work is,” Bradley was quoted as saying.</p> <p>Despite the almost palpable satirical tone, dozens of Aussies were convinced the article was legitimate, flocking to comment that the article made them feel personally attacked.</p> <p>Even general manager of the Canterbury-Bankstown Bulldogs, Phil Gould, got caught up in discourse, urging the "news" site to do more research before publishing their articles.</p> <p>“Average full-time wage in 1990 was $566.80. Try to do just a little research,” he wrote, sharing a link to the satire article on Twitter. </p> <p>His followers were quick to point out that he had been duped by a fake news post, while others chose to highlight how he was only proving the point the article was making.</p> <p>Gould was not the only one who took the post seriously, with angry baby boomers sharing their stories of hardship when it came to buying their first home. </p> <p>“When my wife and I bought a 2 bed duplex in 90/91?, it cost us $108,000. Interest rates were 17 per cent. $108,000 was a LOT of $$ back then,” one person wrote.</p> <p>“We sacrificed a LOT. We started modestly as well.”</p> <p>Another person claimed that, while they bought their first house in the late 1980s for just over $71,000, but added they didn’t get things like paid parental leave and subsidised child care.</p> <p>“And yes interest rates at 17-18 per cent scared us,” the commenter said.</p> <p>Despite the outrage over the post, many people pointed out that despite the article being of a satirical nature, there could be an element of truth behind the sarcasm. </p> <p>One person said, "It’s getting harder and harder to tell the actual “news” content now", while another wrote, "I thought this was supposed to be a satirical publication".</p> <p><em>Image credits: The Shovel / Getty Images </em></p>

Real Estate

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Boomers are thrifty shoppers and Aussies throw out more than we think

<p dir="ltr">Fast fashion has become the subject of much criticism lately, mostly because of its reliance on cruel (and often illegal) conditions for workers, and its enormous toll on the environment – including increases in clothing heading to landfill.</p> <p dir="ltr">A new report from Vanish has found that the average Australian buys 27kg of new clothes and discards 23kg every year, with the nation throwing away a whopping $6 billion worth in this past financial year.</p> <p dir="ltr">The report, called <em>Stain on the Nation</em>, asked Aussies about their clothing habits and their opinions on everything from whether you should throw clothes in the red bin or donate to charity, to how much waste they think they throw out each year.</p> <p><span id="docs-internal-guid-6aeb0c8e-7fff-232b-0a92-b80ffc2b9a9b"></span></p> <p dir="ltr">It found that 6,000kg of clothing enters landfill every ten minutes, which is a serious issue considering clothing takes years to break down and releases carbon emissions in the process.</p> <blockquote class="instagram-media" style="background: #FFF; border: 0; border-radius: 3px; box-shadow: 0 0 1px 0 rgba(0,0,0,0.5),0 1px 10px 0 rgba(0,0,0,0.15); margin: 1px; max-width: 540px; min-width: 326px; padding: 0; width: calc(100% - 2px);" data-instgrm-captioned="" data-instgrm-permalink="https://www.instagram.com/p/Cb_UWlUPzX3/?utm_source=ig_embed&amp;utm_campaign=loading" data-instgrm-version="14"> <div style="padding: 16px;"> <div style="display: flex; flex-direction: row; align-items: center;"> <div style="background-color: #f4f4f4; border-radius: 50%; flex-grow: 0; height: 40px; margin-right: 14px; width: 40px;"> </div> <div style="display: flex; flex-direction: column; flex-grow: 1; justify-content: center;"> <div style="background-color: #f4f4f4; border-radius: 4px; flex-grow: 0; height: 14px; margin-bottom: 6px; width: 100px;"> </div> <div style="background-color: #f4f4f4; border-radius: 4px; flex-grow: 0; height: 14px; width: 60px;"> </div> </div> </div> <div style="padding: 19% 0;"> </div> <div style="display: block; height: 50px; margin: 0 auto 12px; width: 50px;"> </div> <div style="padding-top: 8px;"> <div style="color: #3897f0; font-family: Arial,sans-serif; font-size: 14px; font-style: normal; font-weight: 550; line-height: 18px;">View this post on Instagram</div> </div> <div style="padding: 12.5% 0;"> </div> <div style="display: flex; flex-direction: row; margin-bottom: 14px; align-items: center;"> <div> <div style="background-color: #f4f4f4; border-radius: 50%; height: 12.5px; width: 12.5px; transform: translateX(0px) translateY(7px);"> </div> <div style="background-color: #f4f4f4; height: 12.5px; transform: rotate(-45deg) translateX(3px) translateY(1px); width: 12.5px; flex-grow: 0; margin-right: 14px; margin-left: 2px;"> </div> <div style="background-color: #f4f4f4; border-radius: 50%; height: 12.5px; width: 12.5px; transform: translateX(9px) translateY(-18px);"> </div> </div> <div style="margin-left: 8px;"> <div style="background-color: #f4f4f4; border-radius: 50%; flex-grow: 0; height: 20px; width: 20px;"> </div> <div style="width: 0; height: 0; border-top: 2px solid transparent; border-left: 6px solid #f4f4f4; border-bottom: 2px solid transparent; transform: translateX(16px) translateY(-4px) rotate(30deg);"> </div> </div> <div style="margin-left: auto;"> <div style="width: 0px; border-top: 8px solid #F4F4F4; border-right: 8px solid transparent; transform: translateY(16px);"> </div> <div style="background-color: #f4f4f4; flex-grow: 0; height: 12px; width: 16px; transform: translateY(-4px);"> </div> <div style="width: 0; height: 0; border-top: 8px solid #F4F4F4; border-left: 8px solid transparent; transform: translateY(-4px) translateX(8px);"> </div> </div> </div> <div style="display: flex; flex-direction: column; flex-grow: 1; justify-content: center; margin-bottom: 24px;"> <div style="background-color: #f4f4f4; border-radius: 4px; flex-grow: 0; height: 14px; margin-bottom: 6px; width: 224px;"> </div> <div style="background-color: #f4f4f4; border-radius: 4px; flex-grow: 0; height: 14px; width: 144px;"> </div> </div> <p style="color: #c9c8cd; font-family: Arial,sans-serif; font-size: 14px; line-height: 17px; margin-bottom: 0; margin-top: 8px; overflow: hidden; padding: 8px 0 7px; text-align: center; text-overflow: ellipsis; white-space: nowrap;"><a style="color: #c9c8cd; font-family: Arial,sans-serif; font-size: 14px; font-style: normal; font-weight: normal; line-height: 17px; text-decoration: none;" href="https://www.instagram.com/p/Cb_UWlUPzX3/?utm_source=ig_embed&amp;utm_campaign=loading" target="_blank" rel="noopener">A post shared by UPPAREL (@upparelofficial)</a></p> </div> </blockquote> <p dir="ltr">Much of the country (40 percent) also believe that Australia ranks 6th and 12th place in the world for textile consumption per person, when in actual fact we are in second place, behind the US.</p> <p dir="ltr">Surprisingly, the report also found that those aged over 55 were the thriftiest of the different generations, with 76 percent spending less than $50 a month on new clothes. </p> <p dir="ltr">In comparison, 71 percent of 18-25-year-olds spend more than $50 a month on clothing.</p> <p dir="ltr">But the difference in spending could be attributed in part to the gap between the old age pension and the cost of living, with the Australian Bureau of Statistics revealing that living costs have increased by 3.4 percent for age pension households, versus 2.6 percent for working households, according to the <em><a href="https://www.abc.net.au/news/2022-04-03/what-the-rising-cost-of-living-means-on-australian-age-pension/100947258" target="_blank" rel="noopener">ABC</a></em>.</p> <p dir="ltr">Following the report, Vanish announced a new campaign, with texticle upcycler Upparel, to divert one million clothing items from landfill over the next two years, starting with an installation of 3,000kg of clothing at Sydney’s Bondi Beach and in St Kilda, Melbourne.</p> <p dir="ltr"><span id="docs-internal-guid-1ef36b88-7fff-3c73-f0b8-059c6c872baf"></span></p> <p dir="ltr">With 6,000kg across both cities, the installations are meant to represent the amount of clothing thrown away every 10 minutes.</p> <p dir="ltr"><em>Image: Getty Images</em></p>

Beauty & Style

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68% of millennials earn more than their parents, but boomers had it better

<p>A lot of us are pessimistic about our children’s future. According to the most recent data from the Pew Global Attitudes Survey (in 2019), just 29% of Australians believe today’s children will be <a href="https://www.pewresearch.org/global/question-search/?qid=1625&amp;cntIDs=&amp;stdIDs=">better off financially</a> than their parents.</p> <p>Such pessimism is common in many developed nations. In Japan, just 13% believe children will be better off, in France 16%, in Britain 22%. Australians are still marginally less optimistic than Canadians (30%) and Americans (31%), and significantly less optimistic than Swedes (40%) and Germans (48%).</p> <p><a href="https://www.lifecoursecentre.org.au/research/journal-articles/working-paper-series/are-we-richer-than-our-parents-were-absolute-income-mobility-in-australia/">Our research shows</a> things aren’t as bad as many fear, with 68% of millennials (those born between 1981 and 1987 for our research) earning more income than their parents did at the same age. This is close to the highest percentage <a href="https://www.iza.org/publications/dp/13456/trends-in-absolute-income-mobility-in-north-america-and-europe">among countries</a> for which estimates are available. The experience of gen-Xers (born from the early 1960s to late 1970s) has been similar.</p> <p>But it’s not all good news. That percentage is lower than the upward mobility enjoyed by baby boomers (born from 1946 to the early 1960s). For those born around 1950, 84% earned more at age 30-34 than their own parents did at the same age.</p> <p>There are two prime reasons for this decline in absolute mobility since the 1980s. Lower economic growth leading to average incomes growing more slowly; and growing income inequality.</p> <p><strong>How we did our research</strong></p> <p>The share of people whose income is higher than their parents at the same age is known as “absolute income mobility”. It is an appealing indicator of economic progress because it captures aspirations for our children. It reflects economic growth, inequality and opportunity.</p> <p>Estimating absolute mobility, though, is quite hard. The data we need to measure it directly – information about what people earned at a particular age compared to their own parents – does not exist for Australia.</p> <p>To do this exercise, therefore, we’ve applied <a href="https://science.sciencemag.org/content/356/6336/398">new statistical methods</a> that have been developed in recent years to estimate absolute mobility without linked parent-child data. These methods, using separate generational data on income distribution, have been verified in research published <a href="https://4a2bc32e-a967-44a4-9e23-f2b3b9cf578e.usrfiles.com/ugd/4a2bc3_10d644c7d36c42eba03136cca93e56fc.pdf">in 2018</a> and <a href="https://www.iza.org/publications/dp/13456/trends-in-absolute-income-mobility-in-north-america-and-europe">in 2020</a>.</p> <p>Our own approach closely follows leading international studies. We used sources of data including the Melbourne Institute’s Household, Income and Labour Dynamics in Australia (HILDA) survey, data from Australian Bureau of Statistics surveys and income tax records.</p> <p><strong>What our research shows</strong></p> <p>The main results are below. Of people born in 1950, 84% had higher household incomes than their parents. This fell to about 68% for those born since the early 1960s. It has stayed roughly constant for gen-Xers and millennials.</p> <hr /> <p><iframe id="CxoOP" class="tc-infographic-datawrapper" src="https://datawrapper.dwcdn.net/CxoOP/3/" height="400px" width="100%" style="border: none;" frameborder="0"></iframe></p> <hr /> <p>The main driver of this change is slower economic growth. Boomers’ incomes were much higher than their parents particularly due to decades of uninterrupted economic growth from World War II to the mid-1970s.</p> <hr /> <p><iframe id="qjHQt" class="tc-infographic-datawrapper" src="https://datawrapper.dwcdn.net/qjHQt/1/" height="400px" width="100%" style="border: none;" frameborder="0"></iframe></p> <hr /> <p>The other driver has been rising income inequality over the past 40 years, after falling in earlier decades, as the next chart shows. The relationship between inequality and mobility is complicated, because high inequality for either generation lowers the rate of mobility.</p> <hr /> <p><iframe id="8bQEW" class="tc-infographic-datawrapper" src="https://datawrapper.dwcdn.net/8bQEW/1/" height="400px" width="100%" style="border: none;" frameborder="0"></iframe></p> <hr /> <p>Absolute mobility would be higher if income was adjusted for family size – 78% for millennials, because the younger generation have smaller families than their parents did at the same age.</p> <p><strong>Complicating factors</strong></p> <p>Our results are for income earned in a single year (at about age 32). We have also found similar results when looking at income at around age 37.</p> <p>Ideally, we’d like to calculate absolute mobility of lifetime income. But methods to do this have not yet been developed. So we don’t know what mobility in lifetime income is. The same could be said for indicators of income inequality, which mostly use single-year income measures as well.</p> <p>You also might be wondering about how the cost of housing fits in – an important issue given the escalating cost of a home compared to the median wage.</p> <p>In all the results shown, income is adjusted for inflation using the Consumer Price Index. Housing is a big part of the index though costs such as the price of land and mortgage interest payments are <a href="https://www.abs.gov.au/ausstats/abs@.nsf/Lookup/6467.0Feature+Article1Mar+2017">not included</a>.</p> <p>The ABS does factor mortgage debts into its “Selected Living Cost Indices”, but these only go back to 1998, so couldn’t be used in these calculations. However, the changes in the CPI and the SLCI over the past 20 years are similar, which gives us some assurance our estimates account for the cost of housing. Further work could explore this in more detail.</p> <p><strong>Valid concerns</strong></p> <p>Australia has achieved high levels of absolute income mobility for all generations since at least the 1950s. This is still the case. But the pessimism about our children’s financial future is rooted in some valid concerns.</p> <p>Wage growth has been <a href="https://www.rba.gov.au/publications/bulletin/2017/mar/2.html">slow for years</a>. Income inequality has been <a href="https://wid.world/country/australia/">increasing for decades</a>. So has the gap <a href="https://grattan.edu.au/report/generation-gap/">between young and old</a>.</p> <p>So there are clear threats for the prosperity of today’s children – even without factoring in concerns such as climate change.<!-- Below is The Conversation's page counter tag. Please DO NOT REMOVE. --><img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important; text-shadow: none !important;" src="https://counter.theconversation.com/content/161647/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /><!-- End of code. If you don't see any code above, please get new code from the Advanced tab after you click the republish button. The page counter does not collect any personal data. More info: https://theconversation.com/republishing-guidelines --></p> <p><span><a href="https://theconversation.com/profiles/peter-siminski-250958">Peter Siminski</a>, Professor of Economics, <em><a href="https://theconversation.com/institutions/university-of-technology-sydney-936">University of Technology Sydney</a></em></span></p> <p>This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a rel="noopener" href="https://theconversation.com/68-of-millennials-earn-more-than-their-parents-but-boomers-had-it-better-161647" target="_blank">original article</a>.</p>

Retirement Income

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Why this Baby Boomer hit song is topping the charts 40 years on

<p>Fleetwood Mac are back in the spotlight after a TikTok featuring one of their songs went viral last month.</p> <p>The album Rumours was released over 43 years ago but it quickly moved up to No. 11 on the ARIA Albums Chart this week, jumping six spots from the previous week.</p> <p>The song Dreams had an even more impressive week after a man long boarding down the street used it in his TikTok video.</p> <p>The single has moved up to No. 4 - a 10-spot jump from last week.</p> <p>Nathan Apodaca was the man behind the viral TikTok - dubbed The Dreams Challenge - and quickly became an internet sensation.</p> <blockquote class="twitter-tweet"> <p dir="ltr">I don’t use this verbiage often but this is a whole vibe. simple as that <a href="https://t.co/NfdLsgLkxu">pic.twitter.com/NfdLsgLkxu</a></p> — DrewFrog (@DrewFrogger) <a href="https://twitter.com/DrewFrogger/status/1309531633545089024?ref_src=twsrc%5Etfw">September 25, 2020</a></blockquote> <p>It currently has over 60 million views.</p> <p>Soon it caught the attention of the band’s very own Mick Fleetwood, as he recreated the video.</p> <p>Apodaca appeared on the Today show and said he was honoured after watching the TikTok.</p> <p>"He made his own TikTok account. His first video was this one. The parody of my video. I feel honoured. A legend doing that. It's just amazing," he said. "I got to talk to him in the another interview. He was telling me that his daughters and everything said 'Dad, you need to do this'.</p>

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