GagHalfrunt
Lifer
- Apr 19, 2001
- 25,297
- 2,001
- 126
ultimatebob
Lifer
- Jul 1, 2001
- 25,135
- 2,445
- 126
Eh... That's really not good advice. If you don't save anything in your 20's, you'll have to work twice as hard in your 30's and 40's to make up for savings and interest that you lost out on.
At the bare minimum, you should at least contribute up to the employer matching percentage on your 401k. Save a little more, if you can afford it.
None. When you turn 50 there will be a desperate need for whiners to call into Talk Radio and bitch about how they can't retire on Social Security. 
Seriously, you can't put a dollar figure on this. What you need to aim at is a savings plan that will result in a total retirement income close to your previous take home pay. This varies wildly depending on your sources of income (Social Security, Pension, Inheritance, etc). Some people who are in gold plated union jobs or in some government pension programs may find they need very little savings for retirement. Many people today have to do it all themselves.
As a rule of thumb, you should try to put away 10% of your income into a balanced investment program. The advisor programs from the big investment companies are helpful, but be careful. Many of those overestimate retirement needs and neglect income from other sources to scare you into investing more. You need to save for the future, but you may not find you can have all that much fun with a bunch of money when you're 80. It has to be balanced.
Seriously, you can't put a dollar figure on this. What you need to aim at is a savings plan that will result in a total retirement income close to your previous take home pay. This varies wildly depending on your sources of income (Social Security, Pension, Inheritance, etc). Some people who are in gold plated union jobs or in some government pension programs may find they need very little savings for retirement. Many people today have to do it all themselves.
As a rule of thumb, you should try to put away 10% of your income into a balanced investment program. The advisor programs from the big investment companies are helpful, but be careful. Many of those overestimate retirement needs and neglect income from other sources to scare you into investing more. You need to save for the future, but you may not find you can have all that much fun with a bunch of money when you're 80. It has to be balanced.
Consider the job market is in shambles and most people out of college aren't doing so great right now...
I haven't paid off my friggin school loans yet... heck, I even repaid at three times the normal rate when I had a real job but that still leaves me in debt to the tune of $44k.
I haven't paid off my friggin school loans yet... heck, I even repaid at three times the normal rate when I had a real job but that still leaves me in debt to the tune of $44k.
mugs
Lifer
- Apr 29, 2003
- 48,924
- 45
- 91
Originally posted by: SONYFX
Just pure saving
Wow, we're all impressed by your question, which is clearly just a thinly-veiled attempt to brag about how much money you have. We all bow down to you in all of your awesomeness. Was that what you were looking for, or should I continue?
500k in 9 years is defintely attainable. The only expenses my brother has is his rent + utilities. All food, transportation, entertainment, etc is all taken care of by the company he works for.Originally posted by: notfred
Originally posted by: Spac3d
Not all of us are idiotsOriginally posted by: notfred
Heh, Yes, you graduate from school at 22, immediately get a job making $50k/year, work till you turn 30, and have made a total of $400,000. Yes, $500k in savings sounds totally reasonable
. My brother will have $500,000 in the bank within 4 years of graduating college.
How the hell do you know what's going to happen in the future? And you're right, not all of us are idiots, but if you think that it's reasonable to expect the average American to save $70,000 a year until he's 30, you are.
Even if your brother is saving $125k/year, it's still not "reasonable" it's EXTREMELY high.
His rent+utilities adds up to $20,000 a year. He banks more or less, everything else. Making $225,000 + bonus per year, it isn't so hard to save $500,000.
Just join the Navy, and serve on a submarine for a tour or two. You get 18 months of pay deposited into your bank, waiting for you when you return.
Originally posted by: Spac3d
500k in 9 years is defintely attainable. The only expenses my brother has is his rent + utilities. All food, transportation, entertainment, etc is all taken care of by the company he works for.Originally posted by: notfred
Originally posted by: Spac3d
Not all of us are idiotsOriginally posted by: notfred
Heh, Yes, you graduate from school at 22, immediately get a job making $50k/year, work till you turn 30, and have made a total of $400,000. Yes, $500k in savings sounds totally reasonable. My brother will have $500,000 in the bank within 4 years of graduating college.
How the hell do you know what's going to happen in the future? And you're right, not all of us are idiots, but if you think that it's reasonable to expect the average American to save $70,000 a year until he's 30, you are.
Even if your brother is saving $125k/year, it's still not "reasonable" it's EXTREMELY high.
His rent+utilities adds up to $20,000 a year. He banks more or less, everything else. Making $225,000 + bonus per year, it isn't so hard to save $500,000.
And which crack house is this business run out of?
Originally posted by: Spac3d
500k in 9 years is defintely attainable. The only expenses my brother has is his rent + utilities. All food, transportation, entertainment, etc is all taken care of by the company he works for.Originally posted by: notfred
Originally posted by: Spac3d
Not all of us are idiotsOriginally posted by: notfred
Heh, Yes, you graduate from school at 22, immediately get a job making $50k/year, work till you turn 30, and have made a total of $400,000. Yes, $500k in savings sounds totally reasonable. My brother will have $500,000 in the bank within 4 years of graduating college.
How the hell do you know what's going to happen in the future? And you're right, not all of us are idiots, but if you think that it's reasonable to expect the average American to save $70,000 a year until he's 30, you are.
Even if your brother is saving $125k/year, it's still not "reasonable" it's EXTREMELY high.
His rent+utilities adds up to $20,000 a year. He banks more or less, everything else. Making $225,000 + bonus per year, it isn't so hard to save $500,000.
If what you say is true then he's probably in the top .01% of earners for people his age. I'm 31 and don't make half that.
How old is your brother now anyway? The way you talk it makes it sound like he isn't out of college yet.
He is a 22 year old investment banker and graduated in 2002 from Wharton.Originally posted by: Spac3d
500k in 9 years is defintely attainable. The only expenses my brother has is his rent + utilities. All food, transportation, entertainment, etc is all taken care of by the company he works for.Originally posted by: notfred
Originally posted by: Spac3d
Not all of us are idiotsOriginally posted by: notfred
Heh, Yes, you graduate from school at 22, immediately get a job making $50k/year, work till you turn 30, and have made a total of $400,000. Yes, $500k in savings sounds totally reasonable. My brother will have $500,000 in the bank within 4 years of graduating college.
How the hell do you know what's going to happen in the future? And you're right, not all of us are idiots, but if you think that it's reasonable to expect the average American to save $70,000 a year until he's 30, you are.
Even if your brother is saving $125k/year, it's still not "reasonable" it's EXTREMELY high.
His rent+utilities adds up to $20,000 a year. He banks more or less, everything else. Making $225,000 + bonus per year, it isn't so hard to save $500,000.
funny, I work at an investment bank (a pretty good one at that), and I don't know of a single first year analyst who even made half of that last year (unless your brother somehow has an MBA from wharton already).
plus, most junior ibankers will never see a base salary of 225K, that is just BS. Most bankers who have been there for 5-6 years probably won't even see a base pay of that high (although they might make 150k base + 750k bonus).
Yet somehow your brother did this in one of the crappiest M&A and IPO markets in years...
I just finished reading this thread and immediately signed onto fidelity and bumped my 401k deduction from 10 to 20%. ATOT has affected my finances...actually I was planning on doing it anyway but the thread reminded me.
lets check out tokamak's projected budget for fiscal year 2003:
+ $3,000 estimated earnings from summer job
- $2,995 expenditures on pc parts, beer, and tuition
= $5.00 saved
i'd say i'm ahead of the game
+ $3,000 estimated earnings from summer job
- $2,995 expenditures on pc parts, beer, and tuition
= $5.00 saved
i'd say i'm ahead of the game
Originally posted by: Spac3d
He is a 22 year old investment banker and graduated in 2002 from Wharton.Originally posted by: Spac3d
500k in 9 years is defintely attainable. The only expenses my brother has is his rent + utilities. All food, transportation, entertainment, etc is all taken care of by the company he works for.Originally posted by: notfred
Originally posted by: Spac3d
Not all of us are idiotsOriginally posted by: notfred
Heh, Yes, you graduate from school at 22, immediately get a job making $50k/year, work till you turn 30, and have made a total of $400,000. Yes, $500k in savings sounds totally reasonable. My brother will have $500,000 in the bank within 4 years of graduating college.
How the hell do you know what's going to happen in the future? And you're right, not all of us are idiots, but if you think that it's reasonable to expect the average American to save $70,000 a year until he's 30, you are.
Even if your brother is saving $125k/year, it's still not "reasonable" it's EXTREMELY high.
His rent+utilities adds up to $20,000 a year. He banks more or less, everything else. Making $225,000 + bonus per year, it isn't so hard to save $500,000.
Sounds like you really like to brag about your brother. Besides, Notfred was pointing out that it is unreasonable for most people to save 500k by the age of 30. Your brother is an exception. Therefore, your example is moot.
He just completed his first year of investment banking. His new job, starting in three months, is at that salary of 225k. He only made $100k this year, including his bonus.
Edit: How do you have time to browse the web? My brother works something like 100+ hours a week, he has no free time until his new job.
Just wondering.
I have my own company opening up this year. I hope within 10 years it will be profitable enough to have $500,000 in savings by the age of 30.Originally posted by: dafatha00
Originally posted by: Spac3d
He is a 22 year old investment banker and graduated in 2002 from Wharton.Originally posted by: Spac3d
500k in 9 years is defintely attainable. The only expenses my brother has is his rent + utilities. All food, transportation, entertainment, etc is all taken care of by the company he works for.Originally posted by: notfred
Originally posted by: Spac3d
Not all of us are idiotsOriginally posted by: notfred
Heh, Yes, you graduate from school at 22, immediately get a job making $50k/year, work till you turn 30, and have made a total of $400,000. Yes, $500k in savings sounds totally reasonable. My brother will have $500,000 in the bank within 4 years of graduating college.
How the hell do you know what's going to happen in the future? And you're right, not all of us are idiots, but if you think that it's reasonable to expect the average American to save $70,000 a year until he's 30, you are.
Even if your brother is saving $125k/year, it's still not "reasonable" it's EXTREMELY high.
His rent+utilities adds up to $20,000 a year. He banks more or less, everything else. Making $225,000 + bonus per year, it isn't so hard to save $500,000.
Sounds like you really like to brag about your brother. Besides, Notfred was pointing out that it is unreasonable for most people to save 500k by the age of 30. Your brother is an exception. Therefore, your example is moot.
Originally posted by: Spac3d
I have my own company opening up this year. I hope within 10 years it will be profitable enough to have $500,000 in savings by the age of 30.Originally posted by: dafatha00
Originally posted by: Spac3d
He is a 22 year old investment banker and graduated in 2002 from Wharton.Originally posted by: Spac3d
500k in 9 years is defintely attainable. The only expenses my brother has is his rent + utilities. All food, transportation, entertainment, etc is all taken care of by the company he works for.Originally posted by: notfred
Originally posted by: Spac3d
Not all of us are idiotsOriginally posted by: notfred
Heh, Yes, you graduate from school at 22, immediately get a job making $50k/year, work till you turn 30, and have made a total of $400,000. Yes, $500k in savings sounds totally reasonable. My brother will have $500,000 in the bank within 4 years of graduating college.
How the hell do you know what's going to happen in the future? And you're right, not all of us are idiots, but if you think that it's reasonable to expect the average American to save $70,000 a year until he's 30, you are.
Even if your brother is saving $125k/year, it's still not "reasonable" it's EXTREMELY high.
His rent+utilities adds up to $20,000 a year. He banks more or less, everything else. Making $225,000 + bonus per year, it isn't so hard to save $500,000.
Sounds like you really like to brag about your brother. Besides, Notfred was pointing out that it is unreasonable for most people to save 500k by the age of 30. Your brother is an exception. Therefore, your example is moot.
Yes. Hope is the key word.
Turkish
Lifer
- May 26, 2003
- 15,549
- 1
- 81
Originally posted by: dafatha00
Originally posted by: Spac3d
I have my own company opening up this year. I hope within 10 years it will be profitable enough to have $500,000 in savings by the age of 30.Originally posted by: dafatha00
Originally posted by: Spac3d
He is a 22 year old investment banker and graduated in 2002 from Wharton.Originally posted by: Spac3d
500k in 9 years is defintely attainable. The only expenses my brother has is his rent + utilities. All food, transportation, entertainment, etc is all taken care of by the company he works for.Originally posted by: notfred
Originally posted by: Spac3d
Not all of us are idiotsOriginally posted by: notfred
Heh, Yes, you graduate from school at 22, immediately get a job making $50k/year, work till you turn 30, and have made a total of $400,000. Yes, $500k in savings sounds totally reasonable. My brother will have $500,000 in the bank within 4 years of graduating college.
How the hell do you know what's going to happen in the future? And you're right, not all of us are idiots, but if you think that it's reasonable to expect the average American to save $70,000 a year until he's 30, you are.
Even if your brother is saving $125k/year, it's still not "reasonable" it's EXTREMELY high.
His rent+utilities adds up to $20,000 a year. He banks more or less, everything else. Making $225,000 + bonus per year, it isn't so hard to save $500,000.
Sounds like you really like to brag about your brother. Besides, Notfred was pointing out that it is unreasonable for most people to save 500k by the age of 30. Your brother is an exception. Therefore, your example is moot.
Yes. Hope is the key word.
Hope is your enemy. Don't trust him.
ultimatebob
Lifer
- Jul 1, 2001
- 25,135
- 2,445
- 126
My 401k is only at 10% but I have to be careful about the maximum contribution limit. I do plan to also do a Roth IRA in January if I'm eligible.
Originally posted by: mugsywwiii
Originally posted by: SONYFX
Just pure saving
Wow, we're all impressed by your question, which is clearly just a thinly-veiled attempt to brag about how much money you have. We all bow down to you in all of your awesomeness. Was that what you were looking for, or should I continue?
word. and yes... *yawn*
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