If you were in your 20's, not knowing the future to come, would you have fun or save up for retirement?

 

There are a lot of doubts... I think out weighing the positives...

 

So if you were in your 20's how would you go about deciding your future?

I wish I started my 401K when I was in my 20's instead of having fun.

I wish I started my 401K when I was in my 20's instead of having fun.

 

+1

I'm in my 20's, and I think its a matter of both. Without enjoying the little things, people grow up lacking certain social experiences.

Personally, my legacy is the most important thing to me, so I already have some things set up... but when I think about it too much, do I really want to end up a hobbled old man who chose to be too conservative in my actions? Eh. Its not a matter of embellishing in my youth (like the people in their upper 20's, early 30's who still go to the club ), its the thought that I would not be able to keep up with my own standard. Unless I end up like Indiana Jones Sr. (Sean Connery style), I am going to be so terribly bored.

22yo here, and trying to balance the two. I have a '99 Corvette, a couple guns, take several vacations a year, go deer hunting with my pops every winter. At the same time I am paying a mortgage, try to max out my Roth IRA, and am going to start investing some money elsewhere within a month or two. My parents did nothing but save, and now that my mother has retired, with my father soon following, they own 3 houses outright. However, they have told me several times that they would have rather spent some of those savings and had more fun along the way.

I think a good balance is the way to go. I am 22 and currently saving, though I have bought (and plan to buy) a couple guns, a computer, a decent car.

 

I'm pretty frugal, but when I decide something is worth the investment, I don't skimp out. Some of the most enjoyable things can be free, such as trips to the park or beach. And sometimes shelling out 60 bucks for a concert is good too.

 

So far I just rely on being both practical but reasonable in my luxury expenditures.

Take advantage of A L L savings plans available for retirement, private or company sponsored. Try and stay away from " advice givers ". Stay with Insured institutions.

Sorry Maks, I know it is your business.....BUT....... A lot of people lost their shirts from

the private sector of advice givers. Investigate all you can before you invest. They say

that historically, the Market will reap you the greatest return. Then ask how many people

jumped from buildings after 911. Choose wisely.

Take advantage of A L L savings plans available for retirement, private or company sponsored. Try and stay away from " advice givers ". Stay with Insured institutions.

Sorry Maks, I know it is your business.....BUT....... A lot of people lost their shirts from

the private sector of advice givers. Investigate all you can before you invest. They say

that historically, the Market will reap you the greatest return. Then ask how many people

jumped from buildings after 911. Choose wisely.

 

 

Absolutely. I agree with that 100%. However, i will disagree with you on one thing. I have seen more people piss away money to gambling on stocks, listening to suze orman, than listening to a qualified professional, who is held to a fiduciary standard, that any independent advisor is.

 

the job of any true professional is not to make you alot of money, but rather make you enough to get to your goals, while taking the least amount of risk.

 

I do take it a bit as an insult to be put into the category of jim cramer, or the crap scam emails you get guaranteeing you 100% returns. this would be the same as someone calling any of us right wing radical gun nuts, who are going to bomb something.

 

People who jumped after 9/11 were short sighted and I hope had other reasons. More people commited suicide after the crash in 87. guess what, any clients working with a half decent advisor recovered by 2003, and were making money through 2008. Most of my clients, over the last 3 years are positive 5% to 10%, with a few folks who were more aggresive which are down single digits.

 

but it is not about investments, and if you ask any of my clients, they will tell you that, obviously, for privacy and legal reasons i cant disclose who. =P

 

Obviously fee based, independent advisors, such as myself, have clients interests in mind first, as we dont get commissions, and are held to the highest regards of the law in the eyes of the states and the sec. But, I am not going to throw any merril lynch type advisors, or even insurance guys, because to the greater extent, they are still liable.

 

If you invest your own money, blow up your account, because you bought a sales pitch about a sure winner, whose fault is that? If you want to blame anyone, it is yourself and Scottrade, Etrade, TD Ameritrade, Schwab. but still, they give you the tools. i will be the first to admit it, I blew up 3 of my own accounts when I traded, before I got into the planning field.

 

Obviously everyone is tempted to gamble when the market is overpriced, and panick when it is time to buy. For that reason, any of my clients that daytrade or invest on their own, I tell them to open up a seperate account, put in 10k in it, and day trade allll you want. It will not make a bit of a difference for your retirement dollars.

 

and btw... a true financial planner, doesnt matter when your money is, either in 401k or what not, we still cover those assets. =)

 

Here is an article I send out to all the prospective clients before I meet with them. http://www.maksfs.com/fiduciary.pdf

 

so yes, while I agree with you about things to look for, I am completely offended to be placed in that category.

 

 

to Chris, you should do both. You ought to be putting away enough for your future, and have the ability to get to that money in case any emergencies or opportunities come up. And no one ever said that you cannot touch your money. But quite honestly, unless you have 6 months of expenses sitting in cash, dont even think of investing a penny of your money. Any money that you forsee needing in the next 3 years, is not to be invested. In all likelyhood, at the end of 3 years, I may be worth less than it is today, or it may not.

 

After you have 6 months of expenses saved up, then..... and only then, start putting money away in investments. the only exception to the rule is if you have consumer debt, or your 401k is giving you a match (free money), in that case, put enough to get the full match.

 

Disclaimer: Nothing here is to be construed as personal advice, please consult your own financial professional.*

*: by financial professional, preferably not someone who does income taxes and decides to make extra money investing your IRA contributions with a 5% sales commission, or your estate attorney who wants to make a fee managing the trust. =P

 

my experience tells me that if i did it all over again i would have fun in my 20's and start saving in my 30's, if you make good money do both..

 

you never know when your time will be up..

 

i started a family young which was good too, you can do things with your kids and not be too old to do them.. i also still had fun with racing fishing and hunting..

I started a drip plan in Exxon and JNJ when I was in my twenties.

About $20 a week back then. I used it when I turned 40 to buy a nice house.

Then I watched the housing market crash . But that drip plan made close to 200% profit in the years I owned it. This I think is still a good way to go for a young person who has better/fun things to do then sit and play investor.

Yup, i start many people on $50 to 100 a month, just to get the psychology down. Heck, just go open up a checking account in a different bank, with no atm card, and set up a month deposit. let it grow.

 

honestly, i wish I started saving when I was 16, and got my first job. Here I am 11 years later. lol.

 

other great quote.... its not about timing the market, or picking the invest, but about time in the market.

 

Once again, even if it is $10 a week.

 

the problem is.... of adults 18 to 65, so working adults, 25% have not saved anything, and 54% have saved less than $25,000. this is a big big big problem. what this means is that you cant live on social security alone. No one new is getting pensions, so you have to suppliment it with savings. $25k will last less than 2 years to most people. What this means, more people fighting for jobs.

 

Even bigger issue, so many people listening to the fear and hysteria driven by the media, they are keeping money in cash, which is slowly erroded by inflation.

 

the same folks who were afraid of the crash of 2001, sold then, and invested it back in 07, sold it at the lows of 09. They managed to buy high, sell low, buy high yet again, and sell low yet again.

 

If someone really wants... invest in guns. ie Smith and Wesson and Ruger stock. =P Aerospace and defense. Make saving fun. =P

My 20's up till 27 or so were a drunken haze, when not working 8-) I did work a lot of OT and would save up money for things I wanted and then spend it on those things, not to mention the money I frittered away on beer, cigarettes, bimbos and gambling. But I was single, and didn't have to worry about anyone else but myself. I probably would put some small amount away monthly in a Roth IRA if it were me today. Direct deposit and Roth IRAs didn't exist back then, just savings accts

Saving is a great idea, but so is enjoying life. My girlfriend spent 15 years working as a geriatric social worker. One of the most important things that she has told me that made an impact was how many people she met, who saved their whole life for retirement, only to die within a year of retiring.

 

Need to have a happy medium. Need to save in case you live a long life, but need to enjoy as you go as well.

Live like no one will for the next 10 years, so you can live like no one can for the rest of your life. :shhh:

 

Obviously no one is saying that saving should be an impediment on getting groceries... but are you going to remember the pack of smokes you have today, 10 years from now?

 

People are so concerned about enjoying today, they will never have a future, or the bubble will burst as soon as they loose their income.

 

Someone I know.... realllllly well. Made a very good income in the last few years, between $110k and $130k with benefits. Family income close to $180k. Payment on a brand new red Z06, mortgage, etc. They were soooooo concerned about living for today, they didnt put away anything into retirement, or savings in general. Lost his job, she lost hers... their take home pay went from 14k a month to $4k a month of unemployment combined. Now... they are getting rid of all the toys, just to be able to pay for groceries and housing. Nevermind the rest of the money and crap they pissed it away on. These 2 40 year olds.

 

Yes, they may get a job in the next few months, maybe even at the same pay scale... but they have to start it all over again. Had he listened to his "younger brother" who obviously didnt know anything as a 22 year old financial advisor, 1 month into his career, to establish a cash reserve..... almost 6 years ago.... he would be able to keep his toys, because he would have money in savings to make his payments.

Hind site being 20/20, I wish I had put some away in my 20's

 

But I had fun in my 20's...

A buddy of mine said that 20's the new 30's, so old people (parents) giving advice are out of touch cause things changed.

Hind site being 20/20, I wish I had put some away in my 20's

 

But I had fun in my 20's...

+1 If only I knew then what I know now! The younger guys should definitely take the advise from those of us that are 30 or older.

A buddy of mine said that 20's the new 30's, so old people (parents) giving advice are out of touch cause things changed.

30's the new 20's you mean?

 

but while things changed in some aspects... the need to save early hasn't. What has changed is the fact that no 20, 30 or 40 year old can depend on social security being there for them. Unless benefits are cut, or retirement age pushed back to at least 70, the money you are putting into FICA... is not going to be there for you. What that means, is that most of your income, will have to come from personal savings.

 

Yes, they may get a job in the next few months, maybe even at the same pay scale... but they have to start it all over again. Had he listened to his "younger brother" who obviously didnt know anything as a 22 year old financial advisor, 1 month into his career, to establish a cash reserve..... almost 6 years ago.... he would be able to keep his toys, because he would have money in savings to make his payments.

 

Does this mean there are going to be some guns for sale??? Hope all works out for him!

 

Yes, they may get a job in the next few months, maybe even at the same pay scale... but they have to start it all over again. Had he listened to his "younger brother" who obviously didnt know anything as a 22 year old financial advisor, 1 month into his career, to establish a cash reserve..... almost 6 years ago.... he would be able to keep his toys, because he would have money in savings to make his payments.

 

Does this mean there are going to be some guns for sale??? Hope all works out for him!

 

 

He is not at that stage of dante's inferno though yet...but soon. But they are for sale as they were....

 

shooting and unemployment are not exclusively mutual. they havent been shot in years... unemployed only a few weeks.

Well thats good news then because I don't have any money after tomorrow morning so I'll need a few weeks to recoup!!

 

YAY for starting a savings in my 20's I'm BRILLIANT

Well thats good news then because I don't have any money after tomorrow morning so I'll need a few weeks to recoup!!

 

YAY for starting a savings in my 20's I'm BRILLIANT

 

right on man

 

Got 4,000 in my 401k so far, with 10 percent going out of every paycheck..

here you go..... for those that are saying lost decade, why bother savings, etc....

 

Here is a real fund, with real numbers, with a 5% commission taken out as well.

 

$500 to start, and adding $100 a month. Started in March of 2000, through march 1, 2010.

 

http://www.maksfs.com/hypo.pdf

 

You still average nearly 8% a year, after the major correction last year.

 

Yep.... saving doesnt pay. :roll:

 

Btw, this is a very popular fund with many advisors, last year, during the panic, it was down 21% as opposed to any index fund out there down 40%+. obviously working with any advisor, being down 21% you would want to jump off the bridge.

 

this is a straight up regular mutual fund. Most of the client allocations also include hedged allocation funds, which try to capture both up and down in the market, and for that reason, some are up a bit more, but the name of the game is risk management, down only 9% after 9/11, and 21% in 2008. yup.... trully worth jumping off a building.

Like Andy Rooney said......" I keep my money in my matress so I could see it when I turn it over".

Like Andy Rooney said......" I keep my money in my matress so I could see it when I turn it over".

 

 

Funny story...

 

A guy calls our office during the lehman collapse. Asks his advisor to withdraw his money. We say no problem, where do you want the check mailed?

 

The guy replies... no check, I need cash. All $200,000. After we tell him we cant do that.... ask him where he is going to keep it. The guy replies under the mattress.

 

Tell me where the guy lives. lol.

 

People truly go nuts sometimes. There is more of a chance you get robbed or your house catching fire, than you loosing your cash at an insured institution, esp since the limits at most banks were $250k at the time, and our accounts at UBS were insured to 25 million.

Max out your 401 if you can every year in your 20's. You'll be happy you did by your mid 30's. Compound interest will make it grow quickly.

You can do both. I started my retirement fund at 19 and I'm now 30. Way ahead of the curve, while still enjoying a few vacations a year and a house that I can easily make payments on.

 

By starting young you are making sure that you are really making it easier on yourself to do both as you age.