Tommy_Dolitte said:
How do I help empower him. I feel like I left him hopeless.
Any encouraging stories?
Well, point out that (according to many peoples' views on this forum which I haven't personally subscribed to
) your 20s are supposed to be your 'glory years' where you have all of your fun and piss away most of your money on fun and frivolity (i.e. not being a cheap bastard like yours truly and a few select others so you can reach FIRE when you're 39
). So, like most others in the world, he isn't very atypical.
Granted, if he wants to ER before he's 40, then he's got a tough road ahead of him....but the only day that it's ever 'too late' to start saving is tomorrow.
You could work up a variety of graphs showing him what $10,000/year saved up would be worth after so many years, etc., etc., to give him some visual incentives. Also, don't forget to show the value of starting today versus just one year later: In that graph of $10,000/year for 20 years, point out that if he waits just one more year to start saving, the difference of waiting just one year 20-25 years from now results in several times his initial investment. Also point out other 'unknowns' that might impact his budget and net worth such as possibly having a wedding, kids, cars, emergencies, job losses, etc.
Congradulate him that he didn't wait until his mid 50s to 'wake up' like, sadly, many Americans do, and realize that he hasn't saved anything. Encourage him to work up a budget of what retirement would look like, and help him see that he will need a hefty portfolio to fund his retirement (note: I'm not talking about the $3 million that many professional sharks salespeople claim you need - I'm referring to the fact that even a scant $1 million portfolio will seem enormous to a 20-something who hasn't saved a dime, much less a $2 million portfolio that will likely be required to satisfy the urgings of someone who has found a need to spend all of his earnings in his 20s.
Offer to show him some of your notes/goals/ways of saving. Give him plenty of info on savings options (i.e. make sure he understands his 401 (k) options, make sure he's funding a ROTH if his income isn't too high, make sure he has taxable investments, etc.). Not only teach him how to fish, but go fishing with him a few times to make sure he has the hang of it
.
Oh, and who could forget: e-mail him the link to this forum!