# Retirement plan for young people



## Tom (Jun 21, 2012)

What do you think, what kind of retirement plan should our youngs start in today's economy?

How does a young kid start planning for retirement today anyway?


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## WhatInThe (Dec 31, 2013)

I would start out with some kind of dividend paying mutual fund in their own IRA. Also put some in CDs and bonds in order to teach diversification. Some of the initial investment is as little as 250-500 dollars for mutual funds. They can arrange to have earnings used to buy more shares every so often. Also kids should be told to develop a second source of income by working part-time or small investing on their own. That could be a rental property. If they want to speculate for money with collectables, house flipping, car selling etc make sure they do not put their entire savings into it. If they succeed a large chunk of that money needs to go in a conservative investment for use in retirement only.

The days of a 30 year career, gold watch and pension are done, gone, cahput etc. They are on their own so they need to learn finance and taxes EARLY in life. 

I say as a life lesson period try to do as much as they can on their own. Do not pay someone to do every little thing. There is no reason to have your taxes prepared if you file an ez form. You shouldn't need a mechanic to check engine oil, air in the tires or check hoses and wires for cuts, holes, wear marks etc. They should be able to swing a hammer and use an oven. Retirement is as much about independence as much as anything else.


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## That Guy (Dec 31, 2013)

When I was the youngster retirement and old age meant . . . nothing.  It will be the very rare young person who has the maturity and seriousness about life to plan for retirement . . . and they're probably pretty boring...


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## Jackie22 (Dec 31, 2013)

WhatInThe said:


> I would start out with some kind of dividend paying mutual fund in their own IRA. Also put some in CDs and bonds in order to teach diversification. Some of the initial investment is as little as 250-500 dollars for mutual funds. They can arrange to have earnings used to buy more shares every so often. Also kids should be told to develop a second source of income by working part-time or small investing on their own. That could be a rental property. If they want to speculate for money with collectables, house flipping, car selling etc make sure they do not put their entire savings into it. If they succeed a large chunk of that money needs to go in a conservative investment for use in retirement only.
> 
> The days of a 30 year career, gold watch and pension are done, gone, cahput etc. They are on their own so they need to learn finance and taxes EARLY in life.
> 
> I say as a life lesson period try to do as much as they can on their own. Do not pay someone to do every little thing. There is no reason to have your taxes prepared if you file an ez form. You shouldn't need a mechanic to check engine oil, air in the tires or check hoses and wires for cuts, holes, wear marks etc. They should be able to swing a hammer and use an oven. Retirement is as much about independence as much as anything else.



Some very good advice here....I'd just like to add...research all you can about investing, Fidelity and Morning Star have two of the best sites out there for researching stocks and mutual funds.  I also think the youth of today are going to have to be very resourceful in order to have a comfortable retirement for the future, they'll need every advantage they can find.


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## WhatInThe (Jan 1, 2014)

That Guy said:


> When I was the youngster retirement and old age meant . . . nothing.  It will be the very rare young person who has the maturity and seriousness about life to plan for retirement . . . and they're probably pretty boring...



You don't have to make young people finance gurus but when I see studies about how little people save or see people pay for software or a service to process an EZ form they will never learn. They just came out with a recent survey that young people don't even understand insurance terminology in regards to Obama Care-they don't understand concepts like copay or deductible.

Just as a semester of consumer finance should be a graduation requirement in high school. Include some basic accounting, taxes, how stocks work, real estate, insurance and contracts all at the basic/beginner  level.  

Young people of old didn't have to worry about retirement as much as they do now because a full fledged 30 year career with benefits was a much greater possibility.


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## grannyjo (Jan 9, 2014)

My son started early - he worked hard,  while still in High School and bought his first investment property at age 20.  He's approaching 50 now and owns his own home,  has a couple of rental properties that return positive results.  He has said that he's proud to be able to pay tax - that means he's doing OK.  He plans to retire in about 10 years,  and will have the income to do it.


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## Tom Young (Jan 26, 2014)

Marry into wealth!


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## Lon (Aug 23, 2015)

Depending on the age of the young person I would encourage,Yeah Insist, that they take some sort of course on basic finance before embarking on any program of saving or investing.


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## chintangrover (Jun 30, 2016)

If you start saving in your 20’s that is best decision. Saving for retirement is important at all ages. So, for that you have to manage your finances at young age. One should plan for all investments accordingly and invest some money in savings for retirement. Because it’s never too early to start retirement planning and you can refer articles and videos available at Big Decisions.


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## Butterfly (Jun 30, 2016)

WhatInThe said:


> You don't have to make young people finance gurus but when I see studies about how little people save or see people pay for software or a service to process an EZ form they will never learn. They just came out with a recent survey that young people don't even understand insurance terminology in regards to Obama Care-they don't understand concepts like copay or deductible.
> 
> *Just as a semester of consumer finance should be a graduation  requirement in high school. Include some basic accounting, taxes, how  stocks work, real estate, insurance and contracts all at the  basic/beginner  level.
> *
> Young people of old didn't have to worry about retirement as much as they do now because a full fledged 30 year career with benefits was a much greater possibility.



I couldn't agree more.  People get out of high school nowdays without a clue as to how the world works.  I also think things like how to interview for a job, etc., should be taught.  I got a lot of that info in my shorthand class in high school.

As to the consumer finance part, my dad was pretty good at giving me that knowledge, and I also got a lot of it at my first job, a savings and Loan.


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## Lon (Jun 30, 2016)

As soon as they start earning any money, paper route, cutting grass, boxing groceries etc. get them to take ten percent of everything they earn and open a simple bank savings account (don't worry about interest rates or return) As   soon as they are mid teens take the money from the bank and invest it in a good mutual fund & continue with taking 10% and now investing instead of saving. It's important to start at a early age to develop the habit of saving/investing and not spending everything you earn.


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## Marc (Jul 1, 2016)

When I talk to my grandchildren they are thinking of their retirement but they don't really can safe up a lot or pay into a fund as they need nearly all the money they earn for living costs like rent, have fun from time to time.. I'm really curious about the whole situation in general!


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## jujube (Jul 1, 2016)

The way things are going, I'd suggest dark glasses, a tin cup, and some pencils.


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## Butterfly (Jul 1, 2016)

One thing I figured out early on is that you must consider your savings as untouchable, except in case of absolute catastrophe.  The fact that you need or want a vacation or new car is NOT a catastrophe.


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