I've been obsessed with savings since I was little. I don't remember how old I was when I got my first piggy bank, but I remember that I always tried to save every bit I could. I still remember the time when my parents doubled my allowance after finding out how much money I'd saved. If only that were still the case today!Now that I'm older, I'm obsessed about saving for my retirement. I don't get tired of hearing my financial advisor drilling me about putting more in my 401(k).. I scrutinize my monthly statements to see how much I've gained or lost in my IRAs. The only things that I don't play with are stocks. I just don't want to stress over every single one. I know it's all for the long term, but how could you not think about it all the time when the ticker is right in front of your eyes? I much prefer mutual funds so I don't put all of my eggs in one basket.
Sometimes I wonder if I'm too serious about savings for retirement, considering that I have another 35 to 40 years to retirement. I have to remind myself that it's never too early to save for retirement. A recent article in Money Magazine shows a comparison of retirement planning at different ages. They calculate how much money you'll have at age 65 if you contribute 10 percent in your 401(k) starting at 30, 35 and 45, with a starting salary of $40,000 and a 4 percent annual raise. They estimate that the 30-year-old will have $1 million while the 45-year-old will have $461,000. There, that makes me feel better!
One of these days, I'll fill out the paperwork to increase my 401(k) contribution so maybe I can retire earlier than I've planned. Any advice on saving for an early retirement?
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Reader Comments (Page 1 of 1)
1. I agree with comment #1. But you should always take care of your health.
Also "One of these days, I'll fill out the paperwork to increase my 401(k)" should be now. And if your employer pitches in by matching a cetain %, it's free money!!! Then you do it every time you get a raise. Take that money and add it to the 401K. If you are already maxed out put it into your mutual Funds. have it taken out of your checking automatic, so you don't have to "see" the money. You be suprised how quick it all adds up!
Go for it, but don't stress yourself out on the losses. It's long-term. If you are young go aggressive. Later you can switch to conservative.
And believe me, I have been saving "forever" it seems.And I still contibute. But I also enjoy the "fruits" now! Lots of traveling, good food and wines! Life is wonderful!
Posted at 9:03PM on Aug 27th 2007 by BB
2. I am not worried, I know the democrates will take care of me and pay me $75,000 or more per year, I have worked hard for 10 years at a fast food and I know I desirve the money. No worries, they goverment will pay my bills because I paid in to the system. BJ
Posted at 10:08PM on Aug 27th 2007 by Bob
3. it's fun to spend money but really there's no better feeling than having the sercurity of having money in the bank.
Posted at 10:20PM on Aug 27th 2007 by kevinbeair
4. I am 47 Y.O. I don't like how the whole Social Security system is working for a lot of us. We will pay in for years of working and probably not see a penny of it when we retire. If that is the case then we shouldn't have to have it taken out of our check so we can have it now and invest or like a lot of people that work for nothing can use it now.
Posted at 10:44PM on Aug 27th 2007 by Dean A. Stenberg
5. MOST FINANCIAL ADVICE, IN TODAY'S ECONOMIC CLIMATE, IS EITHER OBVIOUS OR, ALL TOO OFTEN ... BULLSHIT!
I have been reasonably successful in life, because I was born at the right time, and am nearly 70 years old. I COULD NEVER HAVE HAD THE SUCCESS I HAVE HAD,IN THIS DOG-EAT-DOG CLIMATE TODAY; and, short of GUERILLA ECONOMICS, NEITHER WILL YOU, YOUNG FOOLS!
NOW, for "Guerilla Economics": I would like to give seminars at high schools to Junior and Senior BOYS (I cannot talk to girls' issues, because I am not one - they will have to look out for themselves):
1. Put your sperm in a sperm bank, and GET A VASECTOMY. Do not, as so many fools do, have children "by default", and usually much too young. There is NOTHING that will affect your future success, including education or lack thereof, that will be so SIGNIFICANT as parentage.
2. Do not even THINK of getting married and having a family, until you have MADE IT, BIG! Let's say at 50, with a carefully selected 35 year old wife (if you really want to do this by then). And then, do it with planning, and with some legal advice before -- a prenuptial is a good idea.
3. Get as much education as you can, BUT DO NOT GO IN HOCK FOR IT (i.e. student loans, etc.). Take everything you can get from government, parents, and others, JUST LIKE THE CORPORATIONS DO.
4. For the early years, keep always looking for something that will pay MORE; and MOVE AS OFTEN AS NECESSARY -- AND SAVE MOST ALL OF THE DIFFERENCE.
5. GET ALL AGREEMENTS IN WRITING; AND KEEP RECORDS OF YOUR FINANCIAL PROGRESS, for "feedback" -- think of yourself as a BUSINESS!
6. LIVE CHEAP, at first -- so you can live like a King later. You are young and strong. Ask the boss if you can "watch the shop" and SLEEP ON THE SHOP/OFFICE FLOOR, for nothing, at first. Steal the knowledge of the business, and BANK THE RENT!
7. NEVER STOP THINKING HOW YOU CAN MAKE A BETTER BUSINESS THAN YOUR BOSS; and when you are through with him, forget him (unless you know how to make him useful).
8. DO NOT BELIEVE IN ANYTHING YOU DO NOT KNOW WELL, AND ARE SURE OF...DO NOT "INVEST", EXCEPT IN THINGS YOU CAN CONTROL!
9. ALWAYS COMPLY WITH THE LETTER (IF NOT NECESSARILY THE SPIRIT) OF THE LAW. Taxes (and political contributions ...i.e. "bribes") are what you pay to be left alone, and even favored, by those in political power.
10. Don't despair, or blame it on me. I did not make this system; and, like you, wish it were otherwise... WHICH HISTORY TELLS US IT WILL NEVER BE...
LET ME KNOW IF YOU WANT ME TO SCHEDULE A SEMINAR AT YOUR SCHOOL...and,
Have a nice day...
Posted at 11:39PM on Aug 27th 2007 by Hank
6. It is a very good thing to increase you 401k and if your employer matches you shopuld go for it. What we seem to forget is that the 401k program was the worst thing to ever happen to the american worker. In my dads day in privare industry if you worked for a company you got a undefined pension program which you last until you die and your wife would get half. Unfortunately these are becoming instint because the mutual funds companies have been pushing for years to replace these with 401k programs because they collect more fees that way. I am lucky as I work for the government and get a undefined program but unless you start saving 500 dollars every two weeks at age 18 a 401k program will never pay like an undefined pension. Things just get harder for everyone working and now throw in no health care when you retire and it is going to be tough world in the next 20 years-have a nice day!
Posted at 11:44PM on Aug 27th 2007 by Rob
7. best retirement advise,,,,,,,,,, vote democrat
Posted at 12:15AM on Aug 28th 2007 by cordova10ac
8. If your that obsessed with money ,DON`T GET MARRIED,Divorce lawters will clean your clock faster than a expert safe cracker. Oh, the house will be gone too , IF your dumb enough to have ( just one kid) !
Posted at 12:22AM on Aug 28th 2007 by lionel Ripepe
9. For number 8 , Why not give it to Hillary! She NEEDS MANY body guards and MORE MANSIONS TO LIVE IN !Forget Bill , he`s happy with a bottle of Scotch, ( ol red nose) ! LOL
Posted at 12:24AM on Aug 28th 2007 by lionel Ripepe
10. 4% annual raise my a**. no way that is the norm
Posted at 12:25AM on Aug 28th 2007 by Jason
11. There are very few ideas or strategies that are presented in the media, Internet, or wherever that have any basis in economics. Almost everything you read is opinion and cannot be verified. It is why only 4% of Americans can retire comfortably. If all the financial information that we receive is relevant, then more Americans would be living more comfortably.
For example, everyone talks about a tax savings in their 401K. There is NO tax savings in a 401K. Only a tax deferral! You will only get the tax savings if you are in a lower tax backet when you retire. If you are in a higher tax bracket in retirement, then the government wins. And, by the way, if your financial planner is planning on you being in a lower tax bracket when you retire, then you should fire him/her tomorrow.
Financial success will occur when you start thinking like the financial institutions. Good luck!
Posted at 12:50AM on Aug 28th 2007 by macro
12. Right on Hank, you go man!
Posted at 1:14AM on Aug 28th 2007 by michael saltzman
13. Saving money? Who in the mass of America cares until they're over whatever age span? In other words, the lesser fun lovers don't. The middle guy does. In between doesn't. All have everything, got to. It's the indoctrinated way to have it all, even at 17 or 18. Frivolous society, when will you awaken to life? If you, dumb reader, knew....would you have saved your pennies long ago? I doubt it. Instead, thank god for socialsecurity, huh? MOMMAGOV. Taking the place for your lack of responsibility to your own damned life!
Posted at 1:15AM on Aug 28th 2007 by cognacwheel
14. THE ABOVE REPLY IS A SPAM AD FOR A HEALTH SPA & A TRAVEL AGENT.
Posted at 1:23AM on Aug 28th 2007 by vsop333
15. Okay we base this on $40k/year plus 4% raise a year. i am a machinist. I went to school learned trig , math. C.N.C. programing etc. But i Have to compete against offshoring wages so my wages go down each year. Quit supporting slave /sweat shop labor and allow Americans to work for retirement. Dump the honda/toyota untill they make $25/hour over seas! and even out nthe currency. let America compete for American dollars on a fair playing feild. That all I ask cause I know it would take a lot from an asian to keep up with me. If he/she does then let the competion begain not on undercutting wages but on ability!
Posted at 1:46AM on Aug 28th 2007 by john
16. Money is a big joke that you just don't get when you don't have any, life is what happens while you're fretting about your IRA. Bottom line; money does NOT buy happiness but it does buy FOOD and you will never be happy if you are hungry. If you are not starving and if money and the aquisition of more money is your number one priority, you are really missing the boat. Wake up and smell your life, get married, have babies (as long as you can feed them), sky dive, eat weird food, whatever. You only have one shot at life, enjoy & eat dessert first!
Posted at 2:34AM on Aug 28th 2007 by mollyroepke
17. I've read all to date and am surprised at all of the negativity. Trust ONLY in GOD, Not man and you will surely prosper. If we live according to His plan, with His Wisdom, we will surely prosper. Check out His Ways in the Bible - you know the big book that may be on your book shelf collecting dust!
Posted at 3:22AM on Aug 28th 2007 by Sharon Mills Speas
18. Kudos go out to my man Hank for capturing so much in so little! Very well Put. EVERYONE...I mean GUYS listen to Hank!!!
Posted at 5:09PM on Aug 28th 2007 by Alex Arrieta
19. vote democrat save what you can but enjoy life now you may be hit by a bus tomarrow
Posted at 5:44PM on Aug 28th 2007 by jack
20. I recently go great advice from people who had the same questions as me and you. They always consider today financially and what you want as far as your future. They are Citigroups 3rd largest company and they come to your home for free. How many companies will do what's in your best interest and address your concerns? You might want to seek them out especially for free advice! They are Primerica Financial Service. They were featured this Aug. 2007 in Priemer Magazine by some amazing financial authors and speakers. Gotta check them out. Anyways, thank goodness were not the average 95% who don't think about retirement. Good luck and best wishes!
Posted at 8:09PM on Aug 28th 2007 by hillefresno