 |
|
Uplifting Story from a Young Couple.........
04-03-2008, 07:26 AM
|
#1
|
|
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Aug 2006
Posts: 12,483
|
Uplifting Story from a Young Couple.........
Ok, all the bad stories of how young folks today are clueless about finance. One of my clients asked me to look over his daughter and SIL's finances and give them an opinion. Here's what they have, he is 27 and she is 26,no kids.
1)They both work at stable jobs and do the max into their 401Ks.
2)They both fund a Roth for $250 a month.
3)They bought a house and put 20% down 2 years ago.
4)The daughter's grandmother left her $30,000, which she has not touched for 7 years and is now worth $57,000.
5)They have NO credit card debt, or student loan debt.
6)The SIL makes extra money working as a baseball coach for a small local college.
7)They have $20,000 in an emergency fund.
Nice folks, they are truly on the path to FIRE. It was nice to get to know them, and see not all young people are clueless............... 
__________________
Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)
This Thread is USELESS without pics.........:)
|
|
|
 |
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!
|
|
04-03-2008, 07:41 AM
|
#2
|
|
Recycles dryer sheets
Join Date: Jan 2008
Location: Bloomington
Posts: 127
|
For various reasons the 'hard luck' stories are going to get all the attention for a while. Folks like these will come under the heading 'good news is no news'.
Anyway, thanks for sharing. Good to hear stories like this.
__________________
Relax your mind.
|
|
|
|
|
04-03-2008, 07:53 AM
|
#3
|
|
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Oct 2003
Posts: 5,105
|
"People become what they observe" - Marshall McCluen
We are not shown people like the ones you mention. We see the spenders and those in debt; so people think that is the way to act and they become that.
__________________
Sometimes death is not as tragic as not knowing how to live. This man knew how to live--and how to make others glad they were living. - Jack Benny at Nat King Cole's funeral
|
|
|
|
|
04-03-2008, 08:04 AM
|
#4
|
|
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Aug 2006
Posts: 12,483
|
 Quote:
Originally Posted by dex
"People become what that observe" - Marshall McCluen
We are not shown people like the ones you mention. We see the spenders and those in debt; so people think that is the way to act and they become that.
|
makes me think of two quotes regarding news:
"Bad news sells"
"If it smells, it sells"
__________________
Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)
This Thread is USELESS without pics.........:)
|
|
|
|
|
04-03-2008, 08:29 AM
|
#5
|
|
Thinks s/he gets paid by the post
Join Date: Feb 2005
Posts: 2,032
|
Quote:
Originally Posted by FinanceDude
"If it smells, it sells"
|
I thought that was "if it bleeds it leads"
|
|
|
|
|
04-03-2008, 08:47 AM
|
#6
|
|
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Jan 2007
Location: New Orleans
Posts: 47,500
|
Quote:
Originally Posted by FinanceDude
4)The daughter's grandmother left her $30,000, which she has not touched for 7 years and is now worth $57,000.
|
Wow! That is pretty impressive - - essentially equivalent to 9% increase year in and year out. There were some good years in there, but some bad ones as well and I think that is sure a nice return. Is it in equities, or what?
__________________
Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities. - - H. Melville, 1851.
Happily retired since 2009, at age 61. Best years of my life by far!
|
|
|
|
04-03-2008, 09:22 AM
|
#7
|
|
Thinks s/he gets paid by the post
Join Date: Apr 2007
Posts: 2,360
|
It is very clear that they are not living the American dream; and according to GWB et al., they are not doing their part to shore up the economy by spending 'til they drop.
They should be ashamed of themselves! 
__________________
"To know what you prefer, instead of humbly saying Amen to what the world tells you you ought to prefer, is to have kept your soul alive". Robert Louis Stevenson, An Inland Voyage (1878)
|
|
|
|
|
04-03-2008, 09:26 AM
|
#8
|
|
Full time employment: Posting here.
Join Date: Sep 2007
Posts: 514
|
Quote:
Originally Posted by Milton
It is very clear that they are not living the American dream; and according to GWB et al., they are not doing their part to shore up the economy by spending 'til they drop.
They should be ashamed of themselves! |
Agreed. The good news is, it's not too late for them to start. Their credit is probably fantastic, they'd surely be approved for a half-dozen high-limit cards in very short order. If they do the patriotic thing and max them out on HDTVs and designer clothes, they can be caught up in no time. 
|
|
|
|
|
04-03-2008, 09:44 AM
|
#9
|
|
Thinks s/he gets paid by the post
Join Date: Apr 2007
Posts: 2,360
|
Yes, it's never too late to start spending money like a drunken sailor.
At the very least, they should take their "economic stimulus" payments and purchase a Blu-ray player and some discs.
__________________
"To know what you prefer, instead of humbly saying Amen to what the world tells you you ought to prefer, is to have kept your soul alive". Robert Louis Stevenson, An Inland Voyage (1878)
|
|
|
|
|
04-03-2008, 09:51 AM
|
#10
|
|
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Dec 2006
Location: Collin County, TX
Posts: 9,296
|
I wish I had been that smart at their age.
__________________
There's no need to complicate, our time is short..
|
|
|
|
|
04-03-2008, 10:15 AM
|
#11
|
|
Thinks s/he gets paid by the post
Join Date: Nov 2007
Posts: 1,052
|
I'll bet I can tell you what's missing. No kids. I had a ton of savings before I had kids as well.
|
|
|
|
|
04-03-2008, 10:20 AM
|
#12
|
|
Confused about dryer sheets
Join Date: Mar 2008
Posts: 7
|
I'm sure there's a Nintendo Wii player out there for them. . . . that seems to be the latest 'must have' device. . . .
I, too, am always happy to hear about young adults who have the right attitude about saving and investing. I often get on my soapbox at work (I work at a university) and drill into my young coworkers and students the notions of early investing, NOT taking out student loans if there is any other option, and thinking about the long term rather than the short term.
Advice I wish someone had given me (and made me listen!) when I was in my early 20's. . . . .
__________________
finallyfrugal.blogspot.com
|
|
|
|
|
04-03-2008, 10:56 AM
|
#13
|
|
Recycles dryer sheets
Join Date: Jan 2008
Posts: 328
|
Quote:
Originally Posted by Want2retire
Wow! That is pretty impressive - - essentially equivalent to 9% increase year in and year out. There were some good years in there, but some bad ones as well and I think that is sure a nice return. Is it in equities, or what?
|
Actually, it's 9.6% 
__________________
Primary title "chief moron"
|
|
|
|
|
04-03-2008, 11:10 AM
|
#14
|
|
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Aug 2006
Posts: 12,483
|
Quote:
Originally Posted by Art G
I'll bet I can tell you what's missing. No kids. I had a ton of savings before I had kids as well.
|
Well, what if I told you they gave up cable, and are using the monthly savings to build up a
baby fund" so they don't have to use credit to buy all the expensive stuff you need for new babies?
Like I said, they ARE planners..........
__________________
Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)
This Thread is USELESS without pics.........:)
|
|
|
|
|
04-03-2008, 11:11 AM
|
#15
|
|
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Aug 2006
Posts: 12,483
|
Quote:
Originally Posted by Want2retire
Wow! That is pretty impressive - - essentially equivalent to 9% increase year in and year out. There were some good years in there, but some bad ones as well and I think that is sure a nice return. Is it in equities, or what?
|
Growth mutual funds...........
__________________
Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)
This Thread is USELESS without pics.........:)
|
|
|
|
|
04-03-2008, 11:12 AM
|
#16
|
|
Thinks s/he gets paid by the post
Join Date: Nov 2007
Posts: 1,052
|
Quote:
Originally Posted by FinanceDude
Well, what if I told you they gave up cable, and are using the monthly savings to build up a
baby fund" so they don't have to use credit to buy all the expensive stuff you need for new babies?
Like I said, they ARE planners.......... |
Gave up cable for children? They're gonna look back one day and wonder what they were thinking!
|
|
|
|
|
04-03-2008, 11:21 AM
|
#17
|
|
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Aug 2006
Posts: 12,483
|
That was the wife's idea, and the husband was facing a "non-option" on that idea so he went with it......... 
__________________
Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)
This Thread is USELESS without pics.........:)
|
|
|
|
|
04-03-2008, 11:30 AM
|
#18
|
|
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Sep 2005
Location: Charleston, SC
Posts: 13,566
|
And here I am with no tv and no kids...
__________________
“One day your life will flash before your eyes. Make sure it's worth watching.”
Gerard Arthur Way
|
|
|
|
|
04-03-2008, 11:37 AM
|
#19
|
|
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Jan 2007
Location: New Orleans
Posts: 47,500
|
That's great!
The reason I asked is that VGSMX (Vanguard Total Stock Market Index) didn't do nearly as well, according to the plot at the bottom of https://personal.vanguard.com/us/fun...BarChart=false .
VWUSX (Vanguard U.S. Growth Fund) did much worse during that time period:
https://personal.vanguard.com/us/fun...FundIntExt=INT
Assuming they are being totally forthright with you, I am thinking that they sure picked a good fund!
__________________
Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities. - - H. Melville, 1851.
Happily retired since 2009, at age 61. Best years of my life by far!
|
|
|
|
|
04-03-2008, 11:54 AM
|
#20
|
|
Thinks s/he gets paid by the post
Join Date: Feb 2007
Location: Moscow
Posts: 1,572
|
Quote:
Originally Posted by dex
"People become what they observe" - Marshall McCluen
We are not shown people like the ones you mention. We see the spenders and those in debt; so people think that is the way to act and they become that.
|
Exactly. When I was studying communication in college we called this "Perceived Mediated Reality Syndrome." If you watch it on TV enough, even in fictional shows, you start to think what you are seeing is the norm.
|
|
|
|
|
|
|
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
|
|
|
Posting Rules
|
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts
HTML code is Off
|
|
|
|
» Recent Threads
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
» Quick Links
|
|
|
Linear Mode
