What do you think of teens saving for retirement?
I'm 15, I have a part time job and I'm saving 38% for retirement.
As soon as I have the $2000 minimum, I'm starting a Roth IRA.
I know it's about 50 years away, but it's a good habit. I've heard a lot of people complaining wishing they started earlier.
2007-02-18 06:57:02 · 11 answers · asked by zander1331 3 in Business & Finance ➔ Personal Finance
I think you are a very sensible young man,and will go far in life.
2007-02-18 07:00:32 · answer #1 · answered by Anonymous · 2⤊ 0⤋
You are not crazy at all. Especially given that you don't have any real expenses right now. Once you finish college and have to worry about rent and utilitites I would say 10% would be good. I'm 31 and only started a 401k 6 years ago. We just had a meeting at my office with our 401k company and the woman said that you should prepare to have saved 75% of your highest earned salary in your life for every year of retirement. Example. Let's say you are going to go into business and plan that at most you will make 200, 000 a year. If you retire at 65 and live to be 85 you will need 75% of 200,000 (150,000) for every year of retirement which equals 3,000,000.
Congratulations on being so smart and thinking ahead!! Just remember when you are young you want most of your money in stocks and less in bonds. You have the time to ride out the waves of the market. Once you are about 40 I would say switch to more in bonds(safe but low earning) and less in stocks (higher earning, higher risk).
2007-02-18 15:05:35 · answer #2 · answered by hsh1975 1 · 0⤊ 0⤋
WOW. That is the most intelligent thing I have heard a 15 year old say in a very long time. Go for it. You are totally on the right track and your life and retirement is going to be very comfortable if you keep practicing what you are preaching right now. Never forget that your savings are the most important. Kudos to you. Keep up the good work.
2007-02-18 15:02:43 · answer #3 · answered by Akbar B 6 · 1⤊ 0⤋
Go to www.primerica.com this company is part of Citigroup, the largest company in the world. Primerica allows investors to set up monthly investment plans including IRA's with as little as $25 per month.
You are very smart to do this and with their help you financial future will be well on its way. Don't wait until you've saved $2000 get ahold of a local representative today!
2007-02-18 15:06:51 · answer #4 · answered by Dazedandconfused 2 · 0⤊ 0⤋
If your making that kind of money then go for it. I was never really in the position to save and now oh boy is it ever getting hard. I had money a few times but I either screwed up or some one screwed me.
2007-02-18 15:06:17 · answer #5 · answered by Anonymous · 0⤊ 0⤋
You cant really be 15. Wish I had been that bright. The more capital you can aquire now, the more opportunity that will be available later. America loves to hear the story that you will tell in 10 years.
2007-02-18 15:08:17 · answer #6 · answered by sam hill 4 · 1⤊ 0⤋
Excellent plan!
Save FIRST, then play.
Life will throw a lot of curves your way. But if you can save 10%, tithe to yourself if you will, you'll be in excellent shape.
Congratulations on thinking ahead. The only caveat is don't forget to have fun along the way too. :)
2007-02-18 15:01:56 · answer #7 · answered by nitneeguy 1 · 0⤊ 0⤋
At this point in your life, you need to be saving for college, not retirement.
If you go to college, you will set yourself up to be able to save much more for retirement.
2007-02-18 15:14:51 · answer #8 · answered by Lisa A 7 · 0⤊ 0⤋
Its a very good Idea you will be able to retire young and enjoy life allot more.
2007-02-18 15:02:37 · answer #9 · answered by Anthony B 4 · 0⤊ 0⤋
Zander!
You are doing great! Someone taught you extremely well. My Dad taught me to save the max into a retirement fund when I got my first job also. It has appreciated VERY nicely!
But to answer your question, yes, you are crazy...but not because of your investments.
ST
2007-02-18 15:50:12 · answer #10 · answered by Anonymous · 0⤊ 0⤋