Quote:
Originally Posted by Vonsamhain
actually if i was under 22 and making $15 an hour I wouldnt put a dime in 401k. id spend it all on toys, save for retirement when i actually made money to save.
I still think you are not living life saving for death as a young adult.
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That's exactly when you should be doing it. That's when you have time on your side, and time is what turns most people into successful retirees. And you are not saving for "death", you are saving so you don't have to work when you are older.
I couldn't care less what I leave behind materially when I die, but I do care if when I'm 80, I have to work at WalMart as a greeter because I purchased some $10,000 brakes for my $25,000 car when I was 20.
For example, if you take that $10,000 and invest it at 20 at a relative modest 5% interest (yes you can still get that or better in some investments) and contribute to it $100 a week for the next 40 years, you will have at age 60 $725,811.29.
if you make the same investment, but don't start until 40, you have $205,601.65.
And yes I realize $100 a week is more than most at age 20 can contribute, but you get the point.
A bit of a difference.