Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Not too early to start is it?
Old 08-24-2012, 04:02 PM   #1
Confused about dryer sheets
 
Join Date: Aug 2012
Location: SW Mich
Posts: 1
Not too early to start is it?

I'll jump right into it, I have always thought of myself as an over thinker. So naturally in my early 20s I would be thinking of my retirement! My only investment being $50k mortgage at 3.1% on property with $50-$80k in equity. I have a high stress high workload job in Real estate sales. I have many questions, most of which I'm sure I'll find here. But one I must ask, is it ever too early to plan for retirement?
__________________

__________________
20something is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 08-24-2012, 05:51 PM   #2
Full time employment: Posting here.
 
Join Date: Nov 2008
Posts: 728
nope, but don't think of planning for retirement, think of it as planning for financial security. When you're financially secure you can choose to retire or.....choose to work.....if you aren't financially secure, you may end up hating work, since you can't quit. So.....earn, save, enjoy and look forward to being financially secure, the earlier age you are, the better.
__________________

__________________
jerome len is offline   Reply With Quote
Old 08-24-2012, 05:55 PM   #3
Full time employment: Posting here.
 
Join Date: Dec 2010
Location: Southern California
Posts: 916
Never to early to start thinking about anything.

Just be responsible with $$ and saving while enjoying life and contributing to society.... things will hopefully fall in place.
__________________
Aiming_4_55 is offline   Reply With Quote
Old 08-24-2012, 06:05 PM   #4
Thinks s/he gets paid by the post
Onward's Avatar
 
Join Date: Jul 2009
Posts: 1,667
To me, financial independence is the only real defense against the insanity of mid-life. The problem has always been that it's almost impossible to convince an optimistic 25-yr-old that he will ever be driven so insane. Then years go by. And then it happens.

If you have the foresight to begin planning now, you are way ahead of the game. Your 45-yr-old self will thank you, more than you can ever guess.
__________________
And if I claim to be a wise man, it surely means that I don't know.
Onward is offline   Reply With Quote
Old 08-24-2012, 06:40 PM   #5
Recycles dryer sheets
 
Join Date: Oct 2007
Location: San Diego
Posts: 283
Never too early. I think around age 6 I started putting 50% of my cash gifts into the bank. Seeing compound interest work was a great motivator for me. I didn't think of it as "retirement" at the time, was thinking more as a college fund, but it did end up being my emergency fund once I moved out.
__________________
meekie is offline   Reply With Quote
Old 08-24-2012, 07:51 PM   #6
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Mulligan's Avatar
 
Join Date: May 2009
Posts: 7,379
As the Bogleheads say, at your age focus on saving as much as you can as that is way more important than your investment options. Then become familiar with those as you go. Remember the power of compounding. A 20 year old who invests $200 a month for 10 years and stops, has about as money at 60, as a person who starts at 30 and contributes $200 a month for 30 years! I wish I had been more financially disciplined at a younger age.
__________________
Mulligan is offline   Reply With Quote
Old 08-24-2012, 08:04 PM   #7
Thinks s/he gets paid by the post
 
Join Date: Oct 2008
Location: Naples
Posts: 2,161
Quote:
Originally Posted by jerome len View Post
nope, but don't think of planning for retirement, think of it as planning for financial security. When you're financially secure you can choose to retire or.....choose to work.....if you aren't financially secure, you may end up hating work, since you can't quit. So.....earn, save, enjoy and look forward to being financially secure, the earlier age you are, the better.
+1. I think you are way to young to think about retirement. Financial security is another thing. That just takes into account goals, financial goals if you will. Rule of thumb is to save and invest 10%. Ours was real estate. Don't go through life without a goal but don't beat yoiur brains out. Enjoy life first. For years when real estate was going good, all we ever tried to do was to build equity. In our 40 years of marriage we have owned 14 homes and made money on all of them. Building equity. It's tough these days but still the best investment in the world. Best of luck in the future.
__________________
JOHNNIE36 is online now   Reply With Quote
Old 08-25-2012, 02:09 PM   #8
Thinks s/he gets paid by the post
Live And Learn's Avatar
 
Join Date: Feb 2012
Location: Tampa Bay Area
Posts: 1,689
When I got my first raise from my first post-college j*b (age 22) I had 1/2 of it deposited in to a sepcially designated savings account and spent the other half. I did that again the following year, and the following year. After awhile I was certain I had the discipline to LBYM and keep saving so I stopped automatically transferring to the special savings account. Those original auto deposits have continued on until today. Its amazing how much has accumulated and its one of the reasons I can consider retiring at 50 or working a few more years and going on some pretty awesome vacations !

Bravo to you for thinking ahead
__________________
"For the time being no discipline brings joy, but seems grievous and painful; but afterwards it yields a peaceable fruit of righteousness to those who have been trained by it." ~
Hebrews 12:11

ER'd in June 2015 at age 52. Initial WR 3%. 50/40/10 (Equity/Bond/Short Term) AA.
Live And Learn is offline   Reply With Quote
Old 08-31-2012, 01:34 AM   #9
Thinks s/he gets paid by the post
obgyn65's Avatar
 
Join Date: Sep 2010
Location: midwestern city
Posts: 4,061
It's never too early to start saving. Welcome.
__________________
Very conservative with investments. Not ER'd yet, 48 years old. Please do not take anything I write or imply as legal, financial or medical advice directed to you. Contact your own financial advisor, healthcare provider, or attorney for financial, medical and legal advice.
obgyn65 is offline   Reply With Quote
Old 08-31-2012, 05:48 AM   #10
Recycles dryer sheets
WestLake's Avatar
 
Join Date: Jun 2011
Posts: 239
I didn't really start contributing to a 401K until age 29 but I bought two homes (one a duplex) at age 25 in 1983. Paid $92,000 for one and $52,500 for the other. Now worth probably $350,000 and $200,000. I was also in Real Estate sales back then.

I say save 20% if possible. Otherwise it's difficult to retire by 55.
__________________
WestLake is offline   Reply With Quote
Old 09-04-2012, 11:23 PM   #11
Dryer sheet aficionado
CMH in CO's Avatar
 
Join Date: Mar 2011
Posts: 41
The earlier you start the better. For most of us it takes a combination of consistent saving in addition to LBYM if you plan for an early retirement.And we are talking years of
__________________
CMH in CO is offline   Reply With Quote
Old 09-04-2012, 11:53 PM   #12
Dryer sheet aficionado
CMH in CO's Avatar
 
Join Date: Mar 2011
Posts: 41
Whoops. Let's finish that thought. We are talking years of discipline with both. Some of us have had employers with great pension programs, which can really make a huge difference. But not as many employers are offering pensions now. So it may be up to you. Max a Roth Ira. Your contributions to a Roth are limited so save somewhere else too. I agree that 20% is good. If you want to retire early, keep in mind that you need access to funds for spending until you turn 59 1/2. So save in non-retirement funds too. Most important-don't buy a big house or expensive car unless you are really saving that 20%. Just as important as the saving is the LBYM. Many of is can tell you that it took decades of following these principles to be able to retire early.

Good luck. You are already way ahead of your peers just by asking the question. Listen to those on this forum. You get first hand knowledge from people that are successful at early retirement and the best thing you can do is learn from their experience.

Cases
__________________
CMH in CO is offline   Reply With Quote
Old 09-05-2012, 09:49 AM   #13
Full time employment: Posting here.
EvrClrx311's Avatar
 
Join Date: Feb 2012
Posts: 524
Never too early... I started with my first paycheck, setting aside double what most book/articles would tell you to set aside for retirement. Decided at the age of 23 I'd continue to do so for the rest of my working career. Luckily I love what I do, but who knows if that will always be the case... I figure at 45-50 I'll have the choice now.
__________________

__________________
EvrClrx311 is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


 

 
All times are GMT -6. The time now is 08:30 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.