Quote:
Originally Posted by Winilyme
Agree that achieving those dollar amounts take time, the ability to stomach steep up and downs and ABSOLUTE DISCIPLINE. This is what I taught my 21 year old daughter who just graduated from college and began her investment journey in high school. We had a pact that any money she earned or was gifted would be divided three ways - 1/3 education, 1/3 retirement and 1/3 whatever she wanted. She's stuck to it for eight years and has about $7,000 saved for retirement. That doesn't seem like much but with only part time work for most of that time, she's learned the value of saving AND investing. I'm hoping that education will last a lifetime.
There's also a wealth of resources out there to learn about investing so, 40 years from now, I really don't see "I didn't know what to do" as being a very good excuse for having meager retirement savings. As I've always told my daughter - start now and you will easily retire in comfort.
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Using these numbers, your daughter has saved $7k for education in eight years. How'd she pay for the rest of college, if you don't mind me asking? $7k is one year of community college these days.
One of the things I teach my seniors is to think carefully about how they will pay for school. We go as deep as talking about the overall interest penalties in unsubsidized vs. subsidized loans.
For many, including myself, starting life in the red because of school loans is a necessary evil...and one that flushes all this talk about having an extra $100k/$300 mth. down the drain.
And this isn't just college anymore—trade schools and certifications have increased in costs, too. And, though unions and businesses will often "pay" for the schooling, the costs are often reflected in lower pay for the initial years.
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