Retirement Planning - Lessons Learned

[MossRoad]

As far as retirement planning goes, I'd give the following advice to young people.


- Live well below your means.
- Invest at least 15% of your pay before you touch it in a ROTH IRA, 401K, etc. Basically, just pretend you make less money than you actually do.
- Compound interest is your best friend.
- Stay in it for the long haul.
- If you have children, think about a 529 plan or the benefits of a ROTH IRA VS a 529 plan. Start that as soon as the child is born.
- Stay away from shiny toys.

 

[two_bit_score]

As far as retirement planning goes, I'd give the following advice to young people.


- Live well below your means.
- Invest at least 15% of your pay before you touch it in a ROTH IRA, 401K, etc. Basically, just pretend you make less money than you actually do.
- Compound interest is your best friend.
- Stay in it for the long haul.
- If you have children, think about a 529 plan or the benefits of a ROTH IRA VS a 529 plan. Start that as soon as the child is born.
- Stay away from shiny toys.

Learn the rule of 78.

 

[dodge man]

Stay away from shiny toys? Some people don’t want to have fun. It is good advice though. Nothing wrong with some toys if you can afford them but you don’t want to work until your 75 either.

 

[Doofy]

Be frugal during those working years and if you live long enough, you can afford those toys.

Never Co-Sign for anyone and never loan money you expect to be repaid.

Stop buying crap on credit. Save for large purchases and refrain from impulse purchases.

Be kind, help others and support causes you are passionate about.

 

[Torvy]

$135 per month from age 18 - 68. Invested in an S&P indexed fund would end up with about $3MM or $1MM adjusted for inflation. You could make more with more selective investments.

I teach HS Economics. At least the 200 or so kids I teach will know how to save and invest. The trick is like said above, self-denial early leads to a more comfortable future.

 

[goeduck]

Stay away from shiny toys? Some people don’t want to have fun. It is good advice though. Nothing wrong with some toys if you can afford them but you don’t want to work until your 75 either.

When I retire I hope to buy some shiny toys. I have never really done that.

 

[Doofy]

$135 per month from age 18 - 68. Invested in an S&P indexed fund would end up with about $3MM or $1MM adjusted for inflation. You could make more with more selective investments.

I teach HS Economics. At least the 200 or so kids I teach will know how to save and invest. The trick is like said above, self-denial early leads to a more comfortable future.

With the decline of Defined Benefits retirement plans and the transient nature of jobs today, one must take any opportunities to increase personal wealth. I never felt comfortable dabbling in the stock market but I wish I had. I did it the hard way and worked that 30+ years to earn that pension.

 

[beowulf]

As far as retirement planning goes, I'd give the following advice to young people.


- Live well below your means.
- Invest at least 15% of your pay before you touch it in a ROTH IRA, 401K, etc. Basically, just pretend you make less money than you actually do.
- Compound interest is your best friend.
- Stay in it for the long haul.
- If you have children, think about a 529 plan or the benefits of a ROTH IRA VS a 529 plan. Start that as soon as the child is born.
- Stay away from shiny toys.

Agree totally. And regarding your last point, that is why I don't wash my tractor.

 

[Steppenwolfe]

Never have had a penny in stocks or an IRA. Being a builder, I have stuck to what I know; building. I buy a house, restore it to better than new and sell it. Buy a more expensive house, ditto... and sell it. My current project will net me mid six figures profit. When I am done and ready to retire, I will keep my last house (already under contract), be debt free and big $$$ in the bank. Not everyone needs a financial advisor... Just skin in the game.

 

[Semper Paratus]

In 119 calendar days I will be without a paying job for the first time in 48 years. I transitioned a few times but always had something lined up. My first goal in retirement is to be able to regularly sleep to 0600, if I want to. Way too many years of 0dark15 6 and 7 days a week.