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Re: How do other VERY young dreamers plan?
Old 04-26-2007, 02:22 PM   #21
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Re: How do other VERY young dreamers plan?

Originally Posted by dandan14

Do all of that starting in your early 20's, and by the time you are married with kids, you will be well on your way.
Definite words of wisdom. Once the kids come along and your pop-tart, microwave popcorn, and trips-to-dairy-queen costs skyrocket, it is harder to sock it away.

Time is an incredible ally, use it well.

- John
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Re: How do other VERY young dreamers plan?
Old 04-27-2007, 05:53 PM   #22
Recycles dryer sheets
Join Date: Feb 2007
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Re: How do other VERY young dreamers plan?

I'm 28, & I think that planning any kind of date is a crapshoot at this point. The stock market could tank (I am diversived in the US market + overseas + US bonds, but still...). Crazy things could happen. Depending on when/how my parents die, I could inherent between half a million & nothing (the nothing is assuming that between now & then, they both go crazy, burn down the house/get catastrophically sick, let the life insurance lapse. and FYI, I am NOT depending on them, just keeping it in mind, since it could make quite a difference. I think I'd be a silly to bury my head in sand, just because it involves their mortality). I could change careers, and go UP or DOWN the payscale with that. I could move somewhere with a lower cost of living (& possibly a higher one, but that's unlikely). I could decide to take the plunge & buy a home in 5 years, to live in, OR to rent out (or both, just get an extra bedroom to rent out to a college student).

I have absolutely zero idea where I'll be in 10 years. I've got a vague idea where I'll be in five, but, to be frank, I've had a few major life changes already, so I'm not willing to set into stone what I'll be doing past, say, next week...

so, in summary, as I have no idea where I'll be living, what I'll be doing, if I've started anything other than investing that generates income, buy homes outside of NYC as rental properties (or buy in NYC is the housing market tanks - ha ha), don't know when my parents will die, heck, don't know when *I'll* die! I'm just working on living *well* below my means, saving as much as I can, and still living for TODAY, and treating myself enough TODAY to live pleasurably, because all those savings won't matter if I get hit by a greyhound bus on my way home from work tonight. :P
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Re: How do other VERY young dreamers plan?
Old 04-28-2007, 02:43 AM   #23
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Re: How do other VERY young dreamers plan?

So here's my plan in a nutshell...

I'm 26 and currently make $54,000/yr. My net worth is $73,000 accumulated over the last 4 years. Each year I max my 401k and Roth IRA. I bet your saying that doesn't leave me much to live on. Since I've invested from the beginning, I become used to living on less. My total monthly take home is about $2000 and I spend almost every cent. Promotion is hopefully around the corner so that will kick my income up to about $70,000. Then I should have enough income to live comfortably. Here's the breakdown on my NW.

Brokerage: 5000
401k: 46000
rothIRA: 22000

I only buy small cap stocks in the brokerage hoping to earn an aggressive rate of 25-30%. This money should compound nicely and allow me to retire 5-10 years before 55. The 401k is invested in index funds...60% s&p500, 20% s&p400, and 20% russell 2000. I contribute about 14,500/yr and my employer kicks in about 3,000. My roth is divided up among large and midcap value and foreign stock mutual funds and is funded by my tax refund and my yearly bonus. All this said, my brokerage will hopefully last from 45 to 55 when my 401k kicks in. Then I will live the rest of my days off my 401k. Hopefully my Roth will go untouched and the money will go to inheritance. Looks like it was a big nutshell.
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Re: How do other VERY young dreamers plan?
Old 04-28-2007, 05:16 PM   #24
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Re: How do other VERY young dreamers plan?

Originally Posted by fintoleft1
I only buy small cap stocks in the brokerage hoping to earn an aggressive rate of 25-30%.

Hope spring eternal. I "hope" to earn 40-50%. hope to earn 100%! :P

P.S. I'm a Jimmy fan too.
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