To: Sir_Humphrey
Saving for retirement is a good thing, but HOW you save for retirement is a topic worthy of discussion. Personally, I don’t think it’s always a good idea to max out your retirement plan contributions at a young age. At a bare minimum, it’s generally a good idea to allocate enough money to a company-sponsored 401(k) plan to qualify for the maximum company match. That’s free money, and should not be dismissed lightly.
Beyond that, I believe young people should focus on investing OUTSIDE a retirement plan, and on investing in themselves by learning valuable skills that will pay off better in the long run than traditional retirement savings.
16 posted on
05/30/2024 4:00:54 AM PDT by
Alberta's Child
(“Ain't it funny how the night moves … when you just don't seem to have as much to lose.”)
To: Alberta's Child
Beyond that, I believe young people should focus on investing OUTSIDE a retirement plan, and on investing in themselves by learning valuable skills that will pay off better in the long run than traditional retirement savings.
I agree with this. In mid-life, I suddenly realized that I had a lot of money socked away in a 401K which I would have trouble getting at if it was ever needed. I had comparatively little in liquid cash. So I decided to scale-back the 401k additions the amount needed to maximize the company match--and put the rest into a brokerage account. Now, that money is available for investment, home improvement, new vehicles when needed, etc. and is collecting about 5% in interest.
20 posted on
05/30/2024 5:54:57 AM PDT by
Antoninus
(Republicans are all honorable men.)
To: Alberta's Child
Beyond that, I believe young people should focus on investing OUTSIDE a retirement plan, and on investing in themselves by learning valuable skills that will pay off better in the long run than traditional retirement savings. Just getting fit and in shape is an investment with plenty of dividends for long-term (if only because it'll minimize your healthcare expenses as you get older).
47 posted on
05/30/2024 9:58:29 AM PDT by
Ultra Sonic 007
(There is nothing new under the sun.)
To: Alberta's Child
Beyond that, I believe young people should focus on investing OUTSIDE a retirement plan, and on investing in themselves by learning valuable skills that will pay off better in the long run than traditional retirement savings. Yes, always good advice. One of the biggest expenses is labor. If you learn skills, you can save big on things you might otherwise have to pay other people to do. My wife and I do the bulk of our remodeling projects ourselves. Got that advice when young, by craftsmen I sought advice from for large home projects and they told me I could do it myself, so I did. Carpentry, electrical, tiling, plumbing, concrete work, etc. I've passed on skills to my daughters and they can accomplish remodeling projects (and one actually worked her way through college doing tiling and sheetrock work). Many thousands of dollars saved.
But they also invested in retirement plans while investing in their own real estate. Prepare for old age, it comes sooner than you think. My wife and I started in our mid-20s, and we're enjoying senior life without worry.
49 posted on
05/30/2024 12:25:57 PM PDT by
roadcat
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