What do you think of teens saving for retirement?

Question

I'm 15, I have a part time job and I'm saving 38% for retirement.
I plan on starting a Roth IRA.

I already have a Long term savings fund and a College savings fund (and own stocks for both). I'm also starting an emergency fund.

Answer 1

I disagree with it, actually.

It may seem prudent, but in the next 1/2 dozen years, you will have financial needs. Until you have the full time job which marks the start of your career, your financial life will be unstable. If your money is locked into an IRA, you won't be able to access it.

Start saving early in your life for your retirement, yes, but wait until your out in the working world as an adult. If you kick money into a retirement plan starting at age 21, that is early enough.

At age 15, do not overdo working and being totally money oriented. You need to be developing socially. Don't be a nerd like Bill Gates, who didn't have a date until he was like 35 years old. You only have one youth.

Answer 2

Wow, you are going to have some retirement there. 38% is allot. Bear in mind you probably want to buy a house, and a few cars, have some holidays, perhaps get married and have children, all before you retire. Unless of course you retire early which the rate you're going you will be able to afford it.

Find balance as well, between saving and living.

I personally think it's a great idea to set yourself up financially all through life but be flexible with the percentage there. Circumstances in your life will change and being too rigid may not serve you.

I can see a millionaire by 30 happening here. Goodluck and go for it.

Answer 3

It's a great idea, but I would look more towards mutual funds in your retirement and education accounts. Especially the college account. You could be using a state 529 plan which would enable you not to pay taxes on any of the gains for that. But it seems like you've got a strong hold on what a lot of people 3 times your age have NO clue about! Congrats.

Answer 4

I work for a bank and I wish a third of my customers were as intelligent as you are. It's never to early to save. Social Security is not something to depend on. I think you are a remarkable 15 year old and will probably be a CEO of a giant corporation in about 10 years!!

Oh yeah, and to the person that said don't be like Bill Gates!!! Ummm-that may be the dumbest thing a person has ever said. He's one of the richest and most successful men EVER!

Answer 5

Extremely admirable!

I hope you share your ethic/drive/planning/execution with your peers - the country needs more fiscally responsible citizens like you.

You probably didn't learn this stuff in school, so don't expect too much from expensive colleges, either, IMO.

Continue relying mostly on yourself for your own education, development, and success, and I'm sure you'll achieve your life goals, whatever they may be.

Keep up the good work!!! Your parents must be quite proud of you, and you should be a little proud of yourself.

Answer 6

you are off to a good start , just remember as you get older, do not live on your wants...live based on what is needed..you will not regret it ...I have three years owed on a mortgage , a 2500 sq ft house with 2 acres of land ..I have saved all money that would have been blown on vacations for the last 15-17 years..I do not ,and have not financed anything but my home , I do not use credit cards or banks that charge fees ..I will not finance purchases nor pay a bank to use my own money..anyway it will pay off in the long run ..I am going to retire in my late 40's with enough to get out and travel, and when I reach 65 I will collect my retirement .we invested ( you can check into this for you as well ) we put the max. amount allowed in to a 401k ( check on it with you IRA) the max amount for 5 years , and have contributed no more .. when we hit 65 we will have over a million in the bank for us or the loved ones left behind , all final arrangements have already been planned out ,and paid for as well ,to lessen the burden on our kids ...it feels good to be able to do all of this....I refuse to be a sucker,and work my butt off until I am 65..I am going to enjoy living ..

Answer 7

That is awesome and I envy you.