reality check
I was reading about retirement planning. There were sample calculations of how much you should save, and to be on the safe side they assumed 30 years in retirement. I thought, 30 years in retirement? I haven't even lived 30 years yet! That put some perspective on things
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Comments 11
2: None
3: $5000
4: None
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2)None
3)$2,500
4)None
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I may give myself away, but I feel I should qualify my post, because my situation is different than most. I'm still in school, but I worked full time in a well-paying profession before coming back to school. I made $38k before I started working part-time to do school full time.
1) About how much do you earn a year?
This year I grossed about $25k (but I make $30/hr)
2) Do you have any retirement savings? If so, how much?
After 2 years of working full time, I had $4k in savings, but I spent it on my first year of school.
3) Do you have any other savings that you don't plan to spend within a year? If so, how much?
No
4) Do you have any debt other than student loans or mortgage? If so, how much?
Car doesn't really count, but I still owe about $8k on that. And I have about $15k in credit card debt. I won't even mention what damage 3 years of Emory tuition has caused, since you said "other than student loans." =)
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2.) 15% of my check goes toward a retirement investment account every time I get paid
3.) ~$15,000
4.) No
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2)10%, first 5% matched by employer in conservative mutual funds
3)20K(emergency/6mo unemployment insurance), 10K Misc Savings
4)Debt Free
If you want some very introductory stuff, start out with Dave Ramsey, and maybe Suzy Ormand(I think she's a little too preachy). They are written as an introduction, and geared towards people with modest incomes.
If I may be so bold:
You are young, clever, and well educated; dont panic
Financing/Credit is Evil
Sears Credit card devision makes more money than it's retail.
10-15% is a good first estimate for an IRA
Start as big as you can, compound interest adds up fast
Dont expect to have the same lifestyle as your parents
Keep an emergency fund as liquid as posible for accidents, unemployment, etc
Ideally it should be enough for you to cover bills and food for six months.
Good luck, I'm sure you'll come out fine.
PS: Saving 30K/yr sounds like a very unreasonable goal for anyone so young, even if they factor in home Equity. Dont beat yourself up if you fall short of that.
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