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I started saving for retirement on a small scale at age 25 when I started making 401K contributions. But the amounts in that 401K account (now an IRA) are pretty low. My income increased a lot over time, so most of the money I have for retirement is of more recent origin, say the last 15 years. My net worth is about 8x what it was 15 years ago.
Much too old, did not start until age 41. And although I have been contributing over 20% of my income for many years, there is no making up for those early years when I was convinced there was no way I could afford to save. You really don’t realize how fast the years pass until, the years pass. Still “hoping” to retire before 65 but not so sure it will happen.
I started shortly before my 30th birthday, when I first became eligible to contribute to a 401(k) at my job. I contributed the maximum that my employer allowed, and ever since then (over 20 years) have always maxed my 401(k) (to either employer or federal limit). I've been fortunate to have had consistent employment that allowed me to do that.
I also contributed the max to a Roth IRA starting in the first year the Roth was created, and did so every year until we became fortunate enough to earn "too much" to take advantage of that.
After we got married, my wife started contributing the max allowed to her 401(k), and has done so almost every year since (which has been over 15 years).
The contributions have been 100% equities, split 70% in domestic index funds (S&P 500 or "total market", whichever choice was available) and 30% in international equity funds (usually a world equity index fund, but occasionally in an "actively managed" fund but with a low expense ratio when that was the only choice). We have never "rebalanced", and we have never put the retirement funds in anything other than equities.
Over the last 20+ years there have been times with a LOT of volatility, including some very sharp downswings that have taken a few years to recover from, but as you can imagine, maxed out retirement accounts all in equities over that time frame have grown to a very substantial sum.
So, even with a "late" start, we're well on track for retirement in the next 4-7 years.
Regretfully, I did not start until I was 2 years out of college. Thirty years from now I will probably look back and see how much those 2 wasted years cost me.
Regretfully, I did not start until I was 2 years out of college. Thirty years from now I will probably look back and see how much those 2 wasted years cost me.
Uggh, I do that to myself. It's pointless, but sometimes I can't help it.
Regretfully, I did not start until I was 2 years out of college. Thirty years from now I will probably look back and see how much those 2 wasted years cost me.
Quote:
Originally Posted by mysticaltyger
Uggh, I do that to myself. It's pointless, but sometimes I can't help it.
Really, guys?! You waited until 2 whole years out of college and you're beating yourself up about it? If that is your biggest regret in life then I think you're quite lucky - you need to get past it. Especially when you figure the likely pittance your salary was at that point and your other costs in becoming independent...so maybe $10k plus return? If you must, figure the percentage of that against your total portfolio at the time of retirement and chalk it up to a youthful indiscretion that you probably enjoyed as much then as you would have later.
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