U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Retirement
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
 
 
Old 10-15-2014, 10:54 AM
 
Location: Tennessee
23,649 posts, read 17,623,979 times
Reputation: 27733

Advertisements

Quote:
Originally Posted by oddstray View Post
This does not doom them to a life a scrimping and an impoverished retirement.

I had 12 "lost" years before I even got back to get a degree. I did look at which degrees were paying well, and was fortunate enough that I liked one of them. I'm now retiring three years early.

If you save and invest as soon as you can, and as much as you can (without cheating yourself out of a good life), you don't need an entire adulthood's worth of earning years to have a good retirement.
It doesn't completely doom someone, but it does make things more difficult. Sure, someone could not have a penny saved up at 50, and then does very well on a business, but that is unlikely. The longer one is unable to save and invest, the more likely it is you will have a tough retirement.
Quick reply to this message

 
Old 10-15-2014, 01:40 PM
 
Location: Chapel Hill, N.C.
36,485 posts, read 43,827,673 times
Reputation: 47263
When my son was in high school I gave him a copy of The Wealthy Barber after he got his first paycheck from a part time job at Home Depot. He says that book set him on the right path. I've always been interested in financial management and investing and I wanted my kids to be money savvy.

Today he is 33, single, and on his first university teaching job after a 3 year post doc. He has no debt and portfolio of over $350,000. In college we let him drive our 1985 Toyota pick up truck. He later paid us the blue book value of that truck and drove it till it was hauled away for parts. I think that was in 2006-2007. After that he had a bike and then nothing.

He has been planning for retirement since he was 16 and I know other young people who think that far ahead. The only negative about his financial situation is that he has sworn off marriage as too big a risk. But he is still young and may change his mind. Not really that important to me as it seems he is not alone in that way of thinking.

The Wealthy Barber - Wikipedia, the free encyclopedia
Quick reply to this message
 
Old 10-15-2014, 01:52 PM
 
Location: Woodinville
3,185 posts, read 4,053,064 times
Reputation: 6267
Quote:
Originally Posted by no kudzu View Post
When my son was in high school I gave him a copy of The Wealthy Barber after he got his first paycheck from a part time job at Home Depot. He says that book set him on the right path. I've always been interested in financial management and investing and I wanted my kids to be money savvy.

Today he is 33, single, and on his first university teaching job after a 3 year post doc. He has no debt and portfolio of over $350,000. In college we let him drive our 1985 Toyota pick up truck. He later paid us the blue book value of that truck and drove it till it was hauled away for parts. I think that was in 2006-2007. After that he had a bike and then nothing.

He has been planning for retirement since he was 16 and I know other young people who think that far ahead. The only negative about his financial situation is that he has sworn off marriage as too big a risk. But he is still young and may change his mind. Not really that important to me as it seems he is not alone in that way of thinking.

The Wealthy Barber - Wikipedia, the free encyclopedia
Interesting looking book!

He's on his first job after completing his post doc? How did he build his portfolio? Did he have a job before going back to school? Did he pay for his own school?
Quick reply to this message
 
Old 10-15-2014, 02:22 PM
 
Location: Chapel Hill, N.C.
36,485 posts, read 43,827,673 times
Reputation: 47263
He finished undergrad on scholarship in 3 years and worked part time as well. In graduate school he was teaching assistant, had no tuition and tutored ROTC students (physics) and even a few high school kids. We made both kids take out student loans but did not tell them we would pay them off when they got their degrees. That worked for our family. So he actually made some money while pursuing his PhD.

His big leg up and admittedly unusual circumstances is that we let him live rent free in some investment property which has been in the family for many years. He squirreled away as much money as possible. He had a long distance romance for a number of years and he said he figured even considering air fare (which they shared) he spent less than dating locally would have cost him.

He was willing to make big sacrifices which might turn others off. He shaved his own head since high school so no hair cuts. Used university gyms to full advantage, had only school health insurance, walked or rode his bike and rented cheap campus wheels when needed. Minimal wardrobe. He "cooked" most of his own meals but did go drinking with the guys when he wanted to and spent a bit on pot from time to time.

His post poc was 3 years in Singapore and he rented out his 2nd bedroom the full time. He rented out his parking space.Great public transportation there. When he traveled all over Asia he couch surfed. He was making $50,000 and still managed to save over half. And somehow he had plenty of time and money for girlfriends.
He's now making $140,000 and signed a 3 year contract in August. BUT....it's in Kazakhstan. He figures while he is single and young he can afford to do quirky things and live in less desirable places to get more money for his future. Plus they are giving him free ticket home every 6 months. He believes in experience over material possessions and I have to agree this has worked well for him.
Quick reply to this message
 
Old 10-15-2014, 02:36 PM
 
Location: Tennessee
23,649 posts, read 17,623,979 times
Reputation: 27733
Quote:
Originally Posted by no kudzu View Post
He finished undergrad on scholarship in 3 years and worked part time as well. In graduate school he was teaching assistant, had no tuition and tutored ROTC students (physics) and even a few high school kids. We made both kids take out student loans but did not tell them we would pay them off when they got their degrees. That worked for our family. So he actually made some money while pursuing his PhD.

His big leg up and admittedly unusual circumstances is that we let him live rent free in some investment property which has been in the family for many years. He squirreled away as much money as possible. He had a long distance romance for a number of years and he said he figured even considering air fare (which they shared) he spent less than dating locally would have cost him.

He was willing to make big sacrifices which might turn others off. He shaved his own head since high school so no hair cuts. Used university gyms to full advantage, had only school health insurance, walked or rode his bike and rented cheap campus wheels when needed. Minimal wardrobe. He "cooked" most of his own meals but did go drinking with the guys when he wanted to and spent a bit on pot from time to time.

His post poc was 3 years in Singapore and he rented out his 2nd bedroom the full time. He rented out his parking space.Great public transportation there. When he traveled all over Asia he couch surfed. He was making $50,000 and still managed to save over half. And somehow he had plenty of time and money for girlfriends.
He's now making $140,000 and signed a 3 year contract in August. BUT....it's in Kazakhstan. He figures while he is single and young he can afford to do quirky things and live in less desirable places to get more money for his future. Plus they are giving him free ticket home every 6 months. He believes in experience over material possessions and I have to agree this has worked well for him.
While this is all well and good and I'm glad it worked out for him, most of us under thirty don't have the luxury of living in an investment property rent-free. If I wasn't paying $700 a month in rent, my savings would be a lot more too.

What if he had a major accident or illness that the university insurance didn't cover sufficiently? He's lucky nothing like that happened.

In many areas of this country, public transportation is insufficient to meet daily needs and biking/walking is too dangerous or not practical during the winter. I could also save a lot more money if I didn't have to pay for a car, its maintenance, gas, insurance, and registration, but I have to have the car to simply get to and from work, to and from the grocery store, etc.

$140k is good money...but it's in a majority Muslim country. With current events as they are, I wouldn't live in a majority Muslim country for any price.

Your son has exercised good financial judgment, but he's also had a lot of lucky breaks many of us won't get, and most of us are not going to pretty well expatriate ourselves for the majority of at least three years to earn more money. It's not a practical nor realistic example of most Millennials at all.
Quick reply to this message
 
Old 10-15-2014, 02:54 PM
 
Location: Chapel Hill, N.C.
36,485 posts, read 43,827,673 times
Reputation: 47263
I definitely agree with everything you've said.

I will add that he had a serious bike wreck and had to have surgery on his hand. he paid for it himself on time. Also he started 529 accounts for his younger sisters still at home and contributes regularly.

To be fair he really didn't have a lot of choice in his work location or even his post doc. There are not a lot of positions open in US for theoretical physicists! He much wanted to be in U.S. and went all over the country on interviews but most jobs were for visiting assistant professors -usually to fill in while some dude or dudette is on sabbatical and then he would have to go through the whole job search all over again only a year later.

We too were very concerned about the move to Kz. But it is not the typical Muslim country and seems to be very modern. He feels safe, has gone to bars and parties and travels freely. There are Muslims and there are Muslims if you know what I mean. He did get offered a great paying job in Saudi Arabia close to the Yemen border. Thank god he turned that down.
Quick reply to this message
 
Old 10-16-2014, 02:29 PM
 
2,079 posts, read 2,607,690 times
Reputation: 3947
Quote:
Originally Posted by Longford View Post
How many 30 year olds are participating on this particular forum?
I am 25 and I lurk on this forum fairly often
Quick reply to this message
 
Old 10-16-2014, 07:07 PM
 
Location: Central Massachusetts
4,800 posts, read 4,856,396 times
Reputation: 6379
Quote:
Originally Posted by StAcKhOuSe View Post
I am 25 and I lurk on this forum fairly often

Thank you for speaking up. I am glad you do. Some of us old codgers have some good ideas and solutions. Some of us though are helping use up the available oxygen.

Just teasing all. This is a great forum.
Quick reply to this message
 
Old 10-17-2014, 04:01 AM
 
Location: Los Angeles
2,919 posts, read 1,965,544 times
Reputation: 2450
Not investing early and often can greatly impact your retirement. Time is critical. Ric Edelman is always talking about that.
Quick reply to this message
 
Old 10-17-2014, 07:42 AM
 
2,079 posts, read 2,607,690 times
Reputation: 3947
Quote:
Originally Posted by golfingduo View Post
Thank you for speaking up. I am glad you do. Some of us old codgers have some good ideas and solutions. Some of us though are helping use up the available oxygen.

Just teasing all. This is a great forum.
since my plan is to semi-retire early, I want to get a good jump on it now. this is not the first retirement article I've read. although it wouldn't let me read the entire thing without signing in. I am sure it is stuff I already know anyway.

not many people my age are thinking about retirement, and I get that. student loans, minimum wage jobs, medical bills, and a lousy job market makes you prioritize. that and most my age dig the whole conspicuous consumption thing. me? I can't fathom working full-time until the age of 65 just to maintain a certain lifestyle. i would rather cut my spending now, invest aggressively, and keep working two jobs to accumulate a nest egg large enough to retire at 45. but hey, not everyone thinks like me. after all, we need frivolous spenders to stimulate the economy, right?
Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


 
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:
Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Retirement
Similar Threads
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2019, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top