To all you young folks out there

[SiberianDVM]

This is primarily directed to the USA audience, as I have no idea what the tax/investment strategy is like in the rest of the world.

I was going over my fairly small IRA today. Last year it made about 12%. According to my calculations using today's dollars, which will obviously need to be adjsuted as time goes by, if an individual can somehow manage to squirrel away between $250,000 and $500,000 in various IRAs, etc., by the time you reach retirement age you can have a pretty good income, and never touch the nut.

That's the key part and how rich folks get richer. Never touch the principal.

In order to take advantage of the magic that is compounding interest, you must start early. In your 20s!

Now here is the sacriligious part, at least in terms of this forum: do whatever you need to do, including not buying golf clubs, and maybe even not playing some rounds of golf, but sock away a minimum of $2000 a year in a tax deferred IRA.

Make sure your investments are diversified. You don't want to lose everything just because the stock market tanks.

Don't count on Social Security. If SS pays you anything, ever, look at it as gravy.

[Davebud]

Doc while I agree with the thought, the vehicle is not my drive of choice. Real Estate, you can rent it out to defer some of your investement, and still reap the return in the future, now this particular investement is much easier for those of us that are in the construction industry as we can repair the home(s) as needed, but it is a solid investement.

[Rockford35]

Social Services is giving out gravy? Sweet.

I"m way ahead of you, Doc. Even in Canadian dollars, it pays off. Both the GF and I returned nearly 19.5% last year. I like the sounds of that.

R35

[SiberianDVM]

Absolutey. I did not mean to imply that IRAs are the only way, in fact diversification is the key. Having income, whether from rental or capital gain is the key, as is starting early. And it's much easier to put a couple of grand into an IRA every year than to finance a $100,000 rental unit.

[SiberianDVM]

Good for you, Rock. That'll buy a lot of moose meat.

[Silver]

One day, I hope to have an income.

That will sure make saving money easier...even if only conceptually.

[Crossfire]

Since ive been 16, and took an economics class in school i have been putting away $100 a month into a mutual fund. My only real goal in life, is to live on a golf course. If my education works out, I'll be making some decent money (im going pre-med) and if it doesnt, i plan on not touching my mutual funds and investments untill I want to retire. Being rich isnt hard, its all about driving used cars, not using a credit card, and never dipping into your investments, always have 3-6 months "extra cash" incase of job loss or emergency.

[kiwi]

You know I'm 24 and down in NZ i still have no idea how the whole retirement package works down, better go find out and start stashing a bit of cash i think

[Sandpiper3]

Originally Posted by kiwi

You know I'm 24 and down in NZ i still have no idea how the whole retirement package works down, better go find out and start stashing a bit of cash i think

Or you can just throw your money under your matress!

(sssshhhhh dont tell anyone, thats how i finance my golf)

My parents are already talking me into the whole putting money away and saving and all that stuff. I cant remember wat amount we had set out, but im putting something like 10% a month into some sorta account.

[Jules150]

i just starting investing some of the $$$ i earned this year, i just hope the stocks i picked are good

[demon]

I bought US Savings Bonds for my first 5 years when I was in the Navy. I really didnt monitor it till after I received the bonds and I was shocked how much I had. I then worked for a semiconductor company and invested in technology stocks back in 1999 through 2001 and made a killing. I also contributed the max I could in my 401K since my employer matched it 100% for the four years I worked there. Now I sit on a bunch of mutual funds.

My military disability check (904.00 per month) is for golf and equipment.