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Advice for interns: request input
Another thread reminded me that we need to update our basic advice we give to our DPT interns.
Most don't have a clue, and are deep in student loan debt. Starting salaries 60Kish. Input appreciated before we update.
Start investing early and often! Both retire at 65 years old
Age 25: $300 a month earning 8% on average for 40 years is $1,007,211
Age 35: $300 a month earning 8% on average for 30 years is $440,445
Do Roth 401k up to employer match (or regular 401k if no Roth option)
Roth IRA up to maximum $6000 per yr or $500 per month
Good options: Vanguard, Fidelity, or other low cost companies
S&P 500 index fund or Life Cycle funds (these are age appropriate funds)
If markets go down, don't worry. Buy more when it is on sale. Do not sell in down markets, the markets will come back. Best investing is to "dollar cost average" . Make it automatic each month or each pay check to your savings/investing
Do not invest in whole life insurance or variable annuities! These are sold by life insurance sales people and have very high cost!
Ask how much the sales person makes if you buy this. These have such a bad reputation and are so bad that they are now trying to market these as 1035 tax code policies, etc. instead of calling them annuities.
Ask if they are a fiduciary? If not, run the other way. Fiduciary means that they must put your best interests 1st and not just sell you what makes them the largest commission. If your "gut" is saying don't do it, don't do it!!
Student loans are forever and can't be discharged even in bankruptcy, so pay them back.
LBYM: live below your means. Stay out of credit card debt. Try to pay cash for vehicles, but if you must finance... If you need to finance for more than 3 years you can't afford that expensive of a vehicle.
Save half of each raise and put it into your 401K and IRA contributions, enjoy the rest!
If you want to be broke, do what broke people do. If you want to be wealthy, do what wealthy people do.
Happy retirement!!
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