For those of you working in your 20's

Discussion in 'SHH Community Forum' started by Malice, Feb 7, 2008.

  1. Malice BMFH

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    Greetings all.

    I have some words of Wisdom.
    If you are 20-25 and working, please make sure to start putting money towards your retirement. You may not believe that you dont need to now, but the more you do now, the more you have later on.

    I am not an expert in this....this is more just a little Public Service Announcement.

    The big issue in investing to prepare for retirement thru IRAs....Roth IRAs...ect..
    Is TIME.

    The earlier you invest, the better.
     
  2. SuBe Voluntaryist

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  3. KALEL114 Impending Return

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    Also, check and see if your company has a 401k plan. Several company's match, up to a certain percentage, that you put in it. :up:

    Now you know. And knowing is half the battle.
    [​IMG]
     
  4. Darthphere Kneel before 'Drox!

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    Pffft. I plan on winning the lottery.
     
  5. terry78 My name is Stefan, sweet thang

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    People in their 20's think they're invincible, will have unlimited resources, and can take risks without worry. Granted , that is the time to think so, but don't be stupid either. I'll be 30 this month and I'm making sure all my **** is in order for the future.
     
  6. the_ultimate_evil CURSE YOU GIN MONKEY.

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    a pension is something I've been really looking into, but sadly the more i look into it, the less trusting i am. the way pensions are going in the uk by the time i hit 65(or what ever the hell the retirement age is by then) the government would have messed it up
     
  7. Badger Side-Kick my Ass!

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    Say you regularly invest $200 a month in an all-stock tax-deferred account such as an IRA or a 401(k) plan.

    If your fund returns an annual average of 10 percent — which is about what you should expect over long periods in an index mutual fund that reflects the market — you will have $48,300 at the end of 10 years. After 20 years, you'll have $167,352; after 40 years, $1.3 million; after 50 years, $3.4 million.

    Link
     
  8. chamber-music Infinity Ammo

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    what if you don't plan on living that long?

    What if you plan on going out in a blaze of glory young guns style
     
  9. TNC9852002 Banned User

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    lol. I need to find a decent job first.

    -TNC
     
  10. jaguarr Be Your Own Hero

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    Diversification of your portfolio is also important. Spreading your investments out over different investment types will help protect you if something goes south in one or more of the types of things you invest in. A 401k with matching funds from your company is the first place to start and you'll want to maximize your contributions and matching company funds for that as that's pretty much free money the company is kicking in towards your retirement. A Roth IRA is a good investment as well, and mutual fund portfolios can be a good place to invest. If your company has a stock purchase plan, that can also be a good investment. Stocks, CD's and Bonds have their benefits, too and real estate can be a good investment opportunity if you know what you are doing as well. It's sort of the "don't put all your eggs in one basket" approach to investing. If you're really serious about investing, find yourself a good investment advisor. It will be worth it. :up:

    jag
     
  11. Logan's Runt Runtmuffin

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    Also, the current estimates of the amount a current 20-something needs to have saved up to live comfortably in retirement are in the $2-3 million range. Thats for one person, taking into account inflation and the rising costs of living, etc.
     
  12. LexCorp Lex Luthor

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    Thanks Malice, I got it covered.

    I save on average £1000 a month for the future and have been doing so since I was 21, I am 23 now. That is simply future money that has remained untouched.

    Now I am a lot better off than most guys my age. The average wage in the UK is £20,000....which is down right bad considering in that tax bracket that person will loose almost one quarter of it to tax :(

    The USA has let me earn more money than the UK.
     
  13. jaguarr Be Your Own Hero

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    Are you just saving that money and letting it earn low interest out of a savings account? If you are, you could be doing so much more with that. If you took $10k and invested it in the right portfolio you would pretty much be set for retirement by the time you hit 65 or even earlier.

    jag
     
  14. LexCorp Lex Luthor

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    In fact I have an ISA set up which has people at my bank helping me monitor a portfolio. It's working pretty well.
     
  15. jaguarr Be Your Own Hero

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    An ISA as in an Individual Savings Account? You could be doing so much more with that money, dude. Seriously. Talk to a good financial advisor. You're young, single and have the capital to fund a hell of a nice portfolio that would leave you very comfortable when you hit retirement age. An ISA isn't going to get you where you need to be all on it's own.

    jag
     
  16. Badger Side-Kick my Ass!

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    Also be agressive, when younger, but diversify as jag said. Then as you get older dial it back a little.
     
  17. Erzengel |-o-| (-o-) |-o-|

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    10% of my Salary is put into a 401k which is matched partially by my Boss.
     
  18. LexCorp Lex Luthor

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    I know that is only where I keep certain money, as for the single thing me and my fiance who are marrying this year have 2 portfolios. One in the states and one in the UK. We also plan to open our own business in the next few years to progress. ;)

    Also I helped pay for a house in Aussi for my aunt and Uncle....my dad is from Aussie so I get natural right there to do more than a non citizen. I have it covered.
     
  19. Carcharodon Registered

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    Did that confuse the absolute hell out of anybody else?
     
  20. jaguarr Be Your Own Hero

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    One of the best things my wife and I ever did was take an evening class once a week for a month that was focused on Retirement Investing. It was an intro level class but really demystified what all of these different types of investment opportunities are about and how they can be used and helped us map out a clear strategy to get us where we want to be when we retire. A 401k is great, and I maximize mine, but it's not going to get most people to where they need/want to be when they retire. Other supplemental investments will help you diversify your portfolio and help you get to where you need to be when you hit retirement age. Especially considering all the tax implications, inflation, interest rate fluctuations and cost of living increases that come with time. If you have a continuing ed program in your city or your local university offers a little night course like that in retirement investing, it's something I'd highly recommend. :up:

    jag
     
  21. Badger Side-Kick my Ass!

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    I do as well, that's the max my job will match against. Then I throw around 20% into a ING Direct Savings (has a good rate for a savings account) and then about 8% on average is automatically drawn from there and put into a Roth IRA through Wells Fargo. Then my wife does about the same as well.

    Bottom line, I really really do not want to work past my early 50's.
     
  22. jaguarr Be Your Own Hero

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    Well why didn't you say so in the first place? :huh: Quit wasting my time, dammit! :cmad:

    jag
     
  23. LexCorp Lex Luthor

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    It's a lot to put down at once. I didn't know I would have been probe so hard by you dude....

    I did say I had a portfolio already when I was talking about ISAs...;)
     
  24. jaguarr Be Your Own Hero

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    [​IMG]

    YOU'RE FIRED!!!!!

    jag
     
  25. LexCorp Lex Luthor

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    You charmer
     

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