I'm sick of young people complaining about how they're generation won't ever be able to afford anything. Yes, previous generations have fucked you by messing with free-market college and healthcare prices, but it doesn't matter, heres a simple guide to retiring at 45, you should do much more research on your own.
Have the skills to have a $45,000+ year job by the time you're 24. A lot of people say this is impossible, but it's not. The average starting salary for a CS major at my state school was $75,000, and thats for 22 year olds. If you don't want to go to college, learn a trade. 24 should be more than enough time to get this salary. And if you do go to college, major in something fucking useful. If you majored in English stop reading cause you're never going to retire.
Starting investing a minimum of $1000 per month into an S&P 500 mutual fund. This is very easy, go to Vanguard or Fidelity's website to look at how it's done. If you cant do $1000 off the bat, do as much as you can, but it's not too much to ask by the time you're 24 to be able to put aside $12k. Do what you need to, live with your parents (fuck social stigma, this is your future), live frugally, buy used cars, all that shit. I would actually recommend you put away more and earlier, start working in high school and put that shit away. Being rich is not about how much you make, it's about how much you save. How much you make is just 1 factor in that.
I expect you to keep working hard and increasing that income. I want you up to at least $70,000 by the time you're 30. I want you to still be putting in that $12k a year, increase it if you can. Invest in gold/silver, max your 401k.
The Compound Annual Growth Rate (CAGR) is what is used to determine the returns on a mutual fund. It's better than percentage because if you start with $1k and gain 100% the first year, and lose 50% the next, the avg percentage is a 25% gain, when in reality you gained 0%. 0 is the CAGR.
The CAGR of the S&P 500 is 10.3%. Going by that estimate, here is what your investment will look like by the time you retire at 50, and are at 70. I might be best to work 2-3 more years, or have increased your monthly principle to say $1500 when you can, but even if you stick by the original plan, you should be set.
The gain is exponential. If you stop working when you’re 50 and don’t start spending $100k a year, you will be will on your path to securing a healthy financial future for you and your family.
Again, $1k per month is the minimum. If you put in $2k a month from when you graduate college until you turn 50, you would have $3.2M. You cannot do this late, investing like this is all about money. Invest when you’re young, don’t be looking when you’re 45. You’ll be working until 70 if you do that.
Dylan Williams
stfu boomer
Angel Price
You cant bail out banks AND keep purchasing power. You can't call a generation that requires bailing out a success.
We are fucked and its mathematically provable.
We already collapsed in 2008. We are in a financial limbo purgatory.
Inevitable total collapse will occur soon
Josiah Thompson
Why do you want to retire at 50? Why not find a job you enjoy and work until ~62? What is so important that you'll be doing between the ages of 50-62 between the hours of 9 and 5 monday thru friday that you would forego living on your own in your 20s and 30s?
People are living longer than ever before at the same time the cost of health care is increasing 4%-8% annually. 3.2 million sounds like a lot, but with a rate of CPI inflation around 3 and health care inflation double that, with a life expectancy of 85 or more, you're going to need to work till you're 60 something JUST for health care (medicare starts at 65)
Matthew Lee
Sorry but I'm 27 and made 0k so I can't follow your plan
Kayden Richardson
You won't be saving 1k with a girl friend, let alone a whole family.
Daniel Carter
Listen to the Yank poorfags. Start ingesting early, keep it mainly stocks, index trackers like the OP proposed are excellent for relativly low risk gains.
Brayden Reyes
Investing*
Jace Murphy
Get off your ass Stop having a moneysink for a girlfriend
Mason Reyes
Yes good goym, work like a slave till you're 50 and then enjoy your fucked up health for another 10 years before you die.
Bentley Carter
>something happened around 1970 4 things happened around that time 1: Going off the Gold standard 2: Women entering the work force in large amounts 3: Introduction of Computing 4: Other nations getting their industrial base back.
4-Most wage growth post WWII came from the fact that the US was the only industrial nation that didn't get the fuck bombed out of it. By the mid to late 60's most nations had their industrial base back. More labor supply, less labor demand (driving down wages). 3-Obviously Computers allowed for a relatively small capital investment a large increase in productivity. This created a labor multiplication effectively increasing the labor supply (driving down wages). 2-More women entering the work force is a strait forward increase in the labor supply (driving down wages). 1-This reduced the cost of capital, allowing businesses to invest more in labor multiplying tools rather that buy more labor (driving down wages).
Amazing how EVERYTHING relates back to the supply and demand curves.
Asher Hernandez
This, $1k/mo seems like a stretch unless you're a single guy with a good job and few expenses.
Anything you can put in (and start putting in EARLY) will help, though. But that would require delaying instant gratification and planning ahead, which is something most people (especially most young people) have trouble doing.
Owen Taylor
OP seems like a smart man but 1k per month? come on OP
Hunter Martinez
wasting best years on work you are doing it wrong. the right path is: don't work, enjoy your youth and kys at age 60-65. but it seems to me that you value old age more. retard
Owen Peterson
>mutual funds yes, he's a boomer i'm all about prudent saving and so on but this advice is shit.
Jayden Moore
>Why do you want to retire at 50? boomer dreams riding that beautiful hog into the sunset
Ryder Morgan
Is this what happens to kids who never get past elementary school? They go crazy and spout this mathematically- and reality-challenged garbage on the internet?
Mason Long
lmao all you need to do as a young person is just continually invest in the Powershares QQQ ETF the biggest holdings in the ETF are Apple, Microsoft and Amazon. It's a good one.
Sebastian Hill
yes you can endlessly bang on about all the statistics and history you want.
The facts are:- in 2008 your bank and my bank declared they didn't have the money you and I keep there. So they were "re-capitalised". Now they owe the money that vanished before 2008 PLUS whatever they got bailed out and the only way to get money is through more Quantitative Easing / money printing / borrowing.
We're fucked and Boomers will go down in history as the generation that fucked it all up and were too mentally ill / brainwashed by the end of it to even know why.
You're the proof.
Tyler Hernandez
No one in pol deserves good investment advice. Please delete your post.
Dylan Sullivan
>Quantitative Easing Maybe you're still doing that across the pond but our rates are rising here in North America
Justin Hernandez
They have to still be doing it in one way or another - theres literally no way they can stop it once started.
Stopping it would cause immediate economic collapse.
Joshua James
???? I was commenting on the attached image here not your commentary
I'm by no means an expert on this topic but FED chair Janet Yellen said inflation is an over stated issue atm and rates have been raised 3x already under Trump so I think they've stopped but idk. The US economy is just beast right now, I live in Vancouver and head down to Seattle frequently and that place is booming. I'm very bullish on the US economy. Canada on the other hand...
Dylan Adams
Sorry - I thought you were the OP. Yes you are right. You make a good point
Jaxson Peterson
OP is a faggot still living 15 years in the past If you like to help the young generation eat a bullet
Brandon Ward
Yes - it the FED chair person says it - its definitely a lie. Bernanke said the same just before the 2008 SHTF happening.
The boom in the US is entirely manufactured and is a bubble.
Alexander Jones
>retire by 50 Nice boomer dream. Being a young NEET is bad enough why would you want to be a weak ugly(er) old NEET?
Aaron Lopez
The problem is that the way we got out of the crisis (caused by a large amount of 'bad' debt) was by creating more debt (QE). This debt is now on the balance sheets of the national banks in absurd amounts.
If we look at historical patterns economical slumps tend to happen every 4 to 8 years, which means we are overdue for a period of reduced growth (or in the worst case depression). If this happens soon the national banks in the West are in no position to deal with it (because of the insane amount of debt trough the 08 QE respone). This in turn means that a crisis is likely to hit relativly hard.
And while most macro economic figures look good, there are some indicators that shit might hit the fan again. A good example to indicate that we might indeed be fucked is the increasing amount of Americans that default on credit card loans (and the falling lending standards that caused it). While credit card debt is in no way such a heavy weight on banks balance sheets as mortages it might be an ill omen.
Noah Baker
What happens when you are 50 years you workoholic? Are you going to watch anime cartoons about cute girls love with your children grown on two broken marriages?
Ethan Cox
That all seems complicated. Why not just continue working for as long as possible? My grandmother is pushing 70 and is still working though only part time. My grandfather invested in several properties which my grandmother still owns and rents out. Isn't working towards and investing in something physical more practical? Unfortunately I'm already 25 and have no practical skills. My little girl starts kinder next month and my mom has encouraged me to go back to school. I'm lucky that my childhood home, one of my grandfather's properties, was promised to me in the will so I won't have to worry about trying to buy a house.
