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The only thing I would add is that I have seen quite a few marriages that ended in divorce and left nothing but a path of destruction behind.
Maybe it's living in California or years of managing residential rentals... but it is sad to see so many people "Starting" over in mid-life or worse... not being able to start over because the fighting never stops.
I don't believe the value of a good marriage can ever be over estimated...
There is so much truth in this post. I agree with you completely.
plenty of poorly paid people have retired well by saving 10% off the top, but instead of market investments (risky no matter what they say) use a basic 3% savings account and when you max it out put it in another bank. Once you get enough you can afford a good investment advisor and they require minimum investments--ask around of people who are really well off.
The heir to the Mondavi wine company said the most important two decisions anyone makes is what you do and who you marry. I believe he had a point.
The only thing I would add is that I have seen quite a few marriages that ended in divorce and left nothing but a path of destruction behind.
Maybe it's living in California or years of managing residential rentals... but it is sad to see so many people "Starting" over in mid-life or worse... not being able to start over because the fighting never stops.
I don't believe the value of a good marriage can ever be over estimated...
I agree.
It does not matter when in your life it happens. Divorce will stop your efforts to prosper.
Any snap-shot of your life: at that moment give your house away, give your car away, give 50% of your gross income away, but keep the mortgage, the car payments, the insurance bills; and oh by the way go find your own place to live. Ouch
We have offered our living room couch to friends a few times when they were hit by that situation.
The last time we helped out a workmate with this issue, the judge had ordered support at a higher level than his gross income. We were living overseas, the judgement was done stateside 'in absentia', and suddenly he had no income what so ever, they took his entire paycheck and each month he was further behind in his support.
Divorce can instantly wreck total ruin on your best laid plans.
At least if you were starting out in a career-field, your income would be lower, so the judge can only take a lower amount.
But if you are at your career-field's 'peak wage, you walk away hurting and if your income level ever drops, you are left living under a bridge.
First of all give us your definition of millionaire. If you mean a million dollars, that ain't gonna do it. Your only 20 + years old. By the time you reach retirement there wont be any Social Security or Medicare plus you will have to factor in 40 or so years of inflation.
My guess would be, you will need a minimum of 10 million to live comfortable.
It helps if you can find an energetic spouse that wants the same life as you and wants to work. Forget having a family unless your really making big bucks and can sock away 15-20% after all expenses.
Start a Roth IRA immediatly and max it out. Same for your spouse if you have or get one. Contribute to any 401K or other tax deferred plan to the max you can.
Drive used cars and SWALLOW YOUR PRIDE.
Stay away from risky investments. At your young age I would invest with Vanguard or Fidelity in "NO LOAD" funds like the "total stock market fund" and or the "S&P 500 fund"
Forget fixed income investments until you get to 50-55 years old.
Buy low, sell high, any other investments you make. No Exceptions.
You have a tough schedule ahead so take a little time and have a strategy that makes sense.
Keep your eyes wide open but be very careful.
Read some of Warren Buffets stuff.
I am a millionaire several times over and it wasn't easy getting to where I am today, but I did all the things I mention plus lots more to accomplish what I set out to do. I didn't get serious until I was 40. You will need the extra years to make the 10 million mark.
Good Luck and use comon sense.
And Oh and yeah....Divorce is a Killer, but so is your health.
Divorce was of the smart things I did. Doing it relatively early was also smart. My health is important, both emotionally and physically. Financially, a foolish, spendthrift spouse can derail even the best saver. If it is bad, better to cut your losses early than to drag it out and hope someone will change - it doesn't happen. People are who they are and stay that way. Hoping they will change is just a red flag for you to make some changes. Even smart people make mistakes in the emotional arena.
First of all give us your definition of millionaire. If you mean a million dollars, that ain't gonna do it. Your only 20 + years old. By the time you reach retirement there wont be any Social Security or Medicare plus you will have to factor in 40 or so years of inflation.
My guess would be, you will need a minimum of 10 million to live comfortable.
It helps if you can find an energetic spouse that wants the same life as you and wants to work. Forget having a family unless your really making big bucks and can sock away 15-20% after all expenses.
Start a Roth IRA immediatly and max it out. Same for your spouse if you have or get one. Contribute to any 401K or other tax deferred plan to the max you can.
Drive used cars and SWALLOW YOUR PRIDE.
Stay away from risky investments. At your young age I would invest with Vanguard or Fidelity in "NO LOAD" funds like the "total stock market fund" and or the "S&P 500 fund"
Forget fixed income investments until you get to 50-55 years old.
Buy low, sell high, any other investments you make. No Exceptions.
You have a tough schedule ahead so take a little time and have a strategy that makes sense.
Keep your eyes wide open but be very careful.
Read some of Warren Buffets stuff.
I am a millionaire several times over and it wasn't easy getting to where I am today, but I did all the things I mention plus lots more to accomplish what I set out to do. I didn't get serious until I was 40. You will need the extra years to make the 10 million mark.
Good Luck and use comon sense.
And Oh and yeah....Divorce is a Killer, but so is your health.
Silverfox
My definition of a millionare is to live comfortably and travel anywhere once a year and eat out and maybe get a dog, pay for health care and my funeral.
I'm not sure about a used car. I find them undependable and they break down too much. Too much matience involved. I would rather get a descent new car and maintain for a long time.
I plan to max out my roth IRA at fidelity. I need more info on the S&P 500 investments.
I do want to get married but to have kids. Otherwise, I would stay single. If I don't have kids, then all this money is pointless. I can't enjoy wealth when i'm dead and history won't know my name.
I am truely afraid of divorce especially the divorce rate is 50%. That's money gone and it's bad enough I have to spend so much money just to get a woman in the first place.
By the time you reach "retirement" age an average annual income will be a million dollars or more. I'd buy gold on a regular basis and over the years you will be OK. Don't place any faith in dollars. And don't marry.
By the time you reach "retirement" age an average annual income will be a million dollars or more. I'd buy gold on a regular basis and over the years you will be OK. Don't place any faith in dollars. And don't marry.
I doubt that.
I retired at 42.
From when I graduated High school in 1977, until I got my pension and retired in 2001; inflation did rise a lot. But it did not rise as much as you are implying.
My definition of a millionare is to live comfortably and travel anywhere once a year and eat out and maybe get a dog, pay for health care and my funeral.
I'm not sure about a used car. I find them undependable and they break down too much. Too much matience involved. I would rather get a descent new car and maintain for a long time.
I plan to max out my roth IRA at fidelity. I need more info on the S&P 500 investments.
I do want to get married but to have kids. Otherwise, I would stay single. If I don't have kids, then all this money is pointless. I can't enjoy wealth when i'm dead and history won't know my name.
I am truely afraid of divorce especially the divorce rate is 50%. That's money gone and it's bad enough I have to spend so much money just to get a woman in the first place.
For the car.....if you feel you need to buy and hold onto a new car, then just be careful on your choice and keep in mind where we are going on energy costs. Check with your Insurance Co. first to see what the rate class is on your choices. Don't feel rushed in making your choice.
Check out the warantees carefully. It's a buyers market now so you have some leverage on your side.
The marriage issue is personal ....Your call.
As far as the investments in the markets go, Fidelity is a good choice.
Call and ask them about their S&P 500 index fund.
Do they charge a commision or fee to buy and sell?
Ask them for the expense ratio on the fund. Very important...
I prefer Vanguard. Here are there expense ratios etc.
Total stock market fund, Fund # 0085
No commisions or fees to buy or sell.
expense ratio.... 0.15%
S&P 500 index fund, Fund # 0040
No commisions or fees to buy or sell.
expense ratio.... 0.15%
They are both Quality Brokerages but charges and expenses add up over time so go with the least expensive in this case.
...
As far as the investments in the markets go, Fidelity is a good choice.
Call and ask them about their S&P 500 index fund.
Do they charge a commision or fee to buy and sell?
Ask them for the expense ratio on the fund. Very important...
I prefer Vanguard. Here are there expense ratios etc.
Total stock market fund, Fund # 0085
No commisions or fees to buy or sell.
expense ratio.... 0.15%
S&P 500 index fund, Fund # 0040
No commisions or fees to buy or sell.
expense ratio.... 0.15%
If you can't find investments that perform better than the stock market, then you are not looking very hard.
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