Today's high school seniors.....ouch.

[Creamer]

One item the OP did that may have been a disservice is to mention $100/month from 18 to 65 will create $1.5M. If you're going to show the magic of compounding interest, you should also include the loss of buying power over those 47years! The $1.5M will be worth about $206,000 in today's dollars because of inflation. Anyone thinking they can put away $100/month now at 18 years of age and retire rich are in for a big surprise.

Oh come on! You are telling the financial planning industry's dirty little secret!

 

[TCJatko]

One item the OP did that may have been a disservice is to mention $100/month from 18 to 65 will create $1.5M. If you're going to show the magic of compounding interest, you should also include the loss of buying power over those 47years! The $1.5M will be worth about $206,000 in today's dollars because of inflation. Anyone thinking they can put away $100/month now at 18 years of age and retire rich are in for a big surprise.

According to this data, you would be "rich".

Americans still don't have enough savings

https://blog.personalcapital.com/re...hLwgPC7gn_PfHICK4efpnlnyqRD3xo1t2ThoCzVPw_wcB

 

[NorTracNY]

Oh come on! You are telling the financial planning industry's dirty little secret!

No that's not a secret of the financial planning industry. They want you to believe you'll have to save as much money as possible so they can get their cut. Their secret is that you don't need to replace as much of your income as they suggest. A few will do it the right way... Determine what you spend, determine what sources of income you'll have, and then determine the gap and how to fill it.

The 70-80% of your income blanket some use is just to get you to invest more with them. Let's see when I retire, no need to save for retirement, no mortgage, no saving for college, no paying to feed the kids, but I will likely have to pay for healthcare.

 

[NorTracNY]

According to this data, you would be "rich".

Americans still don't have enough savings

https://blog.personalcapital.com/re...hLwgPC7gn_PfHICK4efpnlnyqRD3xo1t2ThoCzVPw_wcB

Article just points out that we don't teach financial literacy in high schools enough. Why would I care what anyone else has in their 401K? Those articles are garbage. They often don't take into account age, income, how many 401Ks they have, how much they have in their IRAs, retirement desires, or tons of other factors to even be meaningful. I have many co-workers that never plan to retire. I wouldn't expect them to have much in a 401K.

 

[turnkey4099]

I liked the material so much that I did 2,7 and 9 twice.

Back in my day we had 16 year olds driving to public school (Gr. 8).

We had 14 yoa driving to school. I was driving a very clapped out 34 Chev 1 1/2 ton truck in grain harvest at 15. Yes, we could get licenses that young.

Harry K

 

[turnkey4099]

You're response is much gentler than mine would have been. So, if you don't mind, I'll just second yours. Wonder what the OP knew about "it all" when he/she was that age??

Back in the 40s/50s we actually learned practical life stuff. Look up some of the tests given back then.

Harry K

 

[turnkey4099]

No that's not a secret of the financial planning industry. They want you to believe you'll have to save as much money as possible so they can get their cut. Their secret is that you don't need to replace as much of your income as they suggest. A few will do it the right way... Determine what you spend, determine what sources of income you'll have, and then determine the gap and how to fill it.

The 70-80% of your income blanket some use is just to get you to invest more with them. Let's see when I retire, no need to save for retirement, no mortgage, no saving for college, no paying to feed the kids, but I will likely have to pay for healthcare.

Even allowing for inflation I don't need to worry. 3 retirements (21 years military) and two wage slave types all with COLA increases. My 50% military retirement now pays double what my highest months pay was back in 1975. Health care paid for life. property, house, car paid for. Car is old (2005) but only has 66,000 on the clock and I don't expext to ever put many more on it. Wife died, no kids to support. Good bank account and my retirements bring in more than I can reasonably spend unless I go crazy.

Harry K

 

[Looking4new]

I was driving the Farmall C on the farm at 13 and the 1/2 ton truck at 14, but only on the farm and straight across the road to the back 100 acres.

 

[ovrszd]

Again, I reiterate your misguided attitude....

I "get" that they might not have a clue about 401's and retirement. Geez....they're still pooping in their diapers.

I can say however, with resolute conviction that when I was a senior in high school, probably 90% of the student body could be asked "what is 10% of 10,000" and would have nailed the answer WITHOUT having to use a calculator.....and....be told what numbers to put into it at that.

Don't misconstrue my purpose for being there with my shock & awe at their complete & total confusion of simply taking 10% of a number. (I'd bet most everyone reading this thread could have done it as a senior in high school)

Are you talking to me?? Excuse me if you aren't.

I don't have a misguided attitude.

And if you knew how to be financially successful as a Senior in High School, congratulations. You were in an extreme minority.

 

[ovrszd]

I worked for my Grandfather in his drugstore and he taught me that when making change to always count up from the price to the amount tendered as you put the change into the customers hand. That is the way I do it today, too.

Yep. People will say, "I struggle with subtraction". I say, what the H*** are you subtracting for.