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RatherNerdy t1_iw7g07i wrote

$46k at 27 isn't bad, but have some goals of where you realistically want to be at 35 and figure out:

A. If your current career path will get you there

B. What changes you'll need to start making to get there

C. How do you start putting towards retirement

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Lorindel_wallis t1_iw7k7rf wrote

You guys are able to put stuff towards retirement?

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KYazut t1_iw7se1j wrote

Compound interest is a hell of a thing. Not to make too many assumptions, you can likely sock away 5-10% of your pretax paycheck and still afford to live. Wish I had committed to that in my 20s.

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Moonstonedbowie t1_iw84f77 wrote

Same here. I didn’t start until my very late 20s (34 now)but I had a job before that that did a 1% retirement match that I should have taken. Now my job matches 4% so even though it’s not much I contribute that much. I only have like $5k in the account but it’s better than nothing. I’ll be able to pay for a month at the nursing home someday.

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tmssmt t1_iw9nugq wrote

Even at just 5% returns on the money per year, if you didn't invest another dime, it would be worth 21k in 30 years

The more you put in early the better - that same amount compounding 40 years would have been worth 35k at 5%

Quick note, historically the S&P 500 has averaged over 10%

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iamnotamangosteen t1_iwaa7hf wrote

What kind of account is this? I’m new to adulting and my employer doesn’t offer retirement fund benefits but I would like to have my own

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RatherNerdy t1_iwainaw wrote

You can put money ( up to $6k a yr) into your own IRA, and pick investments.

If you have an employer that participates (sponsors) a retirement account ( often matching up to a certai npercentage that you deposit every paycheck) is a 401k

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tmssmt t1_iwbot22 wrote

I used to recommend Robinhood just because it was free and no per trade costs or anything, but I think that's pretty common across the board over the last few years.

Either way, the platform doesn't matter a ton (as long as it's free).

Once you're in, you just put money into SPY or something like it. It's basically a single stock that represents 500 of the top companies.

Another bonus for Robinhood, it allows fractional shares to be purchased. So if a single share is let's just say 1000 dollars, a lot of people would have to save up for quite a while just to purchase 1 share. Robinhood (and I'm sure some others) allow you to invest with just those 5 dollars. I pretty much exclusively buy and sell in dollars these days rather than in shares.

I mentioned SPY as the one to buy, but there's probably a dozen or so other S&P 500 indexes by other names, their overall long term value is going to be pretty similar.

I set up recurring automatic withdrawals from my bank account a few days after pay day (into Robinhood) as well as an automatic recurring purchase of more shares every 2 weeks as well.

It's really a set it and forget it thing, you're not trying to buy low sell high or anything - you're just putting in money hoping that the us economy continues to grow. The companies in the sp500 change over time as new top performers rise and others fall, do they're doing the work for you.

Warren Buffett constantly tells people that this is the best long term strategy. Over a short period, a single stock can perform better, but long term trying to buy and sell and play the market just isn't anywhere near as reliable or safe

If sp500 stops growing long term, it's only because America stopped growing

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mainegreenerep t1_iw7x6zi wrote

Even at my most broke, I saved for retirement. So much rice and beans, only free entertainment. Sucked at the time, but that little bit a month, starting at 20 gets amazing with compounding.

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tmssmt t1_iw9nk5p wrote

I put 800/month towards retirement + whatever my 401k takes automatically (5% of 80k)

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MGossyn t1_iwb7lph wrote

I put 15% of my paycheck towards retirement. I adjusted spending to do this and I don’t even notice its taken out.

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opuntina t1_iw7mls3 wrote

Yeah. Some of us got skills in fields that pay well.

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Lorindel_wallis t1_iw7nh3h wrote

In a society with as much excess and wealth as ours, no job should pay so little that people can’t retire comfortably and enjoy life.

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opuntina t1_iw85s6l wrote

Go get another job. I went back to school for an in demand skill and worked

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GeeFLEXX t1_iw7w8yd wrote

Why?

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[deleted] OP t1_iw7xgjw wrote

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GeeFLEXX t1_iw7xlk3 wrote

The person I responded to didn’t mention blue collar at all.

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[deleted] OP t1_iw7y0qt wrote

[deleted]

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opuntina t1_iw87i7s wrote

Blue collar worker here. Their statement is wrong.

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GeeFLEXX t1_iw7z7o1 wrote

That has no bearing on the assertion that every single job should allow people to “retire comfortably and enjoy life.” I’m asking the other commenter why they think that. If you have any thoughts on that I’d be interested in hearing them.

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[deleted] OP t1_iw7zpt0 wrote

[deleted]

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GeeFLEXX t1_iw80gpf wrote

I can sort of see that argument. I do think “market demand” comes in different forms, though. The demand for a barista to make you coffee is convenience (laziness) whereas the demand for, say, renewable energy infrastructure and its design/engineering is quantifiable necessity with climate change and the depletion of fossil fuel reserves. Therefore, even though both jobs have market demand, one is more critical than the other. This isn’t even factoring in the supply of individuals able to perform each job.

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[deleted] OP t1_iw814ze wrote

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taanman t1_iw86wyx wrote

The best answer I have ever read in my life. Your retirement and slice of pie is what you put in.

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opuntina t1_iw87v5b wrote

Nobody is forced to do anything. They aren't stuck being a barista against their will. I know because I went from a line cook at a dead end place to a trade where ill be making close to 200k. No college. No debt. Options exist.

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[deleted] OP t1_iw8fd92 wrote

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opuntina t1_iw8g5is wrote

I stand by my statement. Nobody is forced.

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[deleted] OP t1_iw8h514 wrote

[deleted]

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opuntina t1_iw8l8p2 wrote

You speak about this as if people are forced into low paying careers with no opportunity to leave. U act as if the only solution for them is to have other people sacrifice their money. I disagree.

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[deleted] OP t1_iw8hflp wrote

Retirement? Pretty soon, retirement won't be a thing!!!

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blackkristos t1_iw7l274 wrote

This is the right answer.

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