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 07:40:33 · 8 answers · asked by zander1331 3 in Business & Finance ➔ Investing
It is an excellent idea to save, I agree. I started about your age and retired at age 56. I am not certain that I agree that you should put all of your money into a Roth IRA though. There may come a time in the future before retirement that you wish you had some ready money for some project or other such as college expenses, although you can remove your money from a Roth IRA for college.
There is no minimum for opening a Roth IRA that I am aware of.
2007-02-18 07:55:29 · answer #1 · answered by Anonymous · 2⤊ 0⤋
No, that absolutely isn't crazy. If you invest 38% of your earnings and start doing so in your teens you'll be very rich some day. My one comment is that you may want to have a significant portion of your savings in a place where you can access them easily before retirement--you'll also have to worry about paying for college, buying a house, and the less money you have to borrow when you're young the better off you'll be financially down the road as well.
Also if you haven't looked into stocks yet, I'd recommend buying exchange traded funds like the SPDR (SPY) or ishares (I-V-V) which hold stock in the 500 largest companies in the country. That way you don't have to worry about picking a bad stock.
2007-02-18 09:26:44 · answer #2 · answered by Adam J 6 · 1⤊ 0⤋
Well, one of the nice things about the Roth is that you can withdraw your principal at any time for any reason, if you need to (however, you shouldn't unless it's really necessary).
But I agree with the others that you're being very smart. You should have a very large chunk of change by the time you retire. And all those gains you've made over the years will be TAX-FREE.
2007-02-18 08:05:50 · answer #3 · answered by LongArm 3 · 0⤊ 0⤋
Starting early with help you have a really good retirement. Alot of people don't realize this until their late 20's and 30's and then it can be to late. So you are not crazy at all. Most of the older people you see working as a door greeter or fast food workers are the ones who didn't start early. You are a very smart young person.
2007-02-18 08:05:53 · answer #4 · answered by Anonymous · 0⤊ 0⤋
You should save for college first and then for an MBA or another advanced degree and then for a house and then you can start saving for retirement.
2007-02-19 07:47:27 · answer #5 · answered by Anonymous · 0⤊ 1⤋
Not crazy, smart maybe. Just remember to diversify. Go for some real estate too.
2007-02-18 09:51:53 · answer #6 · answered by 1,1,2,3,3,4, 5,5,6,6,6, 8,8,8,10 6 · 1⤊ 0⤋
No, you're not crazy; you're brilliant well beyond your years. Contact me in 5-10 years; I'll have a job for you.
2007-02-18 08:06:44 · answer #7 · answered by Rob D 5 · 2⤊ 1⤋
Do I think your crazy? Hell no.
Do I think you would be a genius for doing this? YES!!!
Save as much as you can, for as long as you can.
2007-02-18 07:55:10 · answer #8 · answered by Mike 2 · 3⤊ 0⤋