I know I know it is too early to discuss retirement! I am hoping to retire when I am 60. How about you?
I know I know it is too early to discuss retirement! I am hoping to retire when I am 60. How about you?
They drop dead on the job.
Age has nothing to do with retirement. Retirement is based on your cashflow.
When your back starts to hurt because you are getting old then it becomes a factor.
I've been wondering this for a while now...do you own a car? I'm really curious, mostly because I realize just how expensive it can be to own a car, even a really old one.I am currently 26 and will have the financial ability to retire in about five to seven years (I actually could now if I wanted to live like a college student). Granted, I have no children, work about 55 hours per week in pharmacy and have other sources of income. It all really comes down to your priorities, my primary goal is financial freedom so I structure every facet of my life to achieve it.
I've been wondering this for a while now...do you own a car? I'm really curious, mostly because I realize just how expensive it can be to own a car, even a really old one.
I know I know it is too early to discuss retirement! I am hoping to retire when I am 60. How about you?
I am currently 26 and will have the financial ability to retire in about five to seven years (I actually could now if I wanted to live like a college student). Granted, I have no children, work about 55 hours per week in pharmacy and have other sources of income. It all really comes down to your priorities, my primary goal is financial freedom so I structure every facet of my life to achieve it.
Hmm you definitely have me curious. May I ask what your other sources of income are? I want to get into investments and real estate once I graduate and use pharmacy as capital, and hopefully make enough passive income to retire by my 40s. Be my mentor please haha?
I once talked to a financial planner who worked for Merell-Lynch said:Brilliant. Wise man
I wish I could tell you I had some magic secret, but the reality is not very glamorous. I live as a very frugal person so not only do I save a large portion of my income, but because my expenses are so low I don't need as much money to retire as someone who buys a new BMW every 2 years. Again, it is all about one's priorities, for me, "stuff" has relatively little importance, however, personal freedom means everything.
I once talked to a financial planner who worked for Merell-Lynch, he told me a story of one of his friends who became relatively successful (as many of them had when times were good) and his colligues would always tease him abut his 85 honda accord stationed in a parking lot filled with Lexus, BMWs and Porsche. He would politely respond by telling him that it was his F-U car, because if his boss ever pissed him off enough, he could tell him/her F-U and drive home in the honda he didn't have to make payments on.
Well I work for CVS so I need to have a F-U life, and so I do.
I wish I could tell you I had some magic secret, but the reality is not very glamorous. I live as a very frugal person so not only do I save a large portion of my income, but because my expenses are so low I don't need as much money to retire as someone who buys a new BMW every 2 years. Again, it is all about one's priorities, for me, "stuff" has relatively little importance, however, personal freedom means everything.
I once talked to a financial planner who worked for Merell-Lynch, he told me a story of one of his friends who became relatively successful (as many of them had when times were good) and his colligues would always tease him abut his 85 honda accord stationed in a parking lot filled with Lexus, BMWs and Porsche. He would politely respond by telling him that it was his F-U car, because if his boss ever pissed him off enough, he could tell him/her F-U and drive home in the honda he didn't have to make payments on.
Well I work for CVS so I need to have a F-U life, and so I do.
I wish I could tell you I had some magic secret, but the reality is not very glamorous. I live as a very frugal person so not only do I save a large portion of my income, but because my expenses are so low I don't need as much money to retire as someone who buys a new BMW every 2 years. Again, it is all about one's priorities, for me, "stuff" has relatively little importance, however, personal freedom means everything.
I once talked to a financial planner who worked for Merell-Lynch, he told me a story of one of his friends who became relatively successful (as many of them had when times were good) and his colligues would always tease him abut his 85 honda accord stationed in a parking lot filled with Lexus, BMWs and Porsche. He would politely respond by telling him that it was his F-U car, because if his boss ever pissed him off enough, he could tell him/her F-U and drive home in the honda he didn't have to make payments on.
Well I work for CVS so I need to have a F-U life, and so I do.
Wise words indeed. I plan on doing the same, I think I can live quite comfortably on a "college budget" and pocketing the rest for retirement or investing. I've alway been thrifty too. Heck, I plan on keeping my 11 year old Ford Focus far beyond graduation.
Keep up that mindset! Don't let you fellow grads fool you into thinking that you need a new $30,000 car or big house right away. It'll just make you a slave to your job.
When I graduated, I did buy a new car, although not a fancy one, and all new furniture too.
I drive a 94 Ford Tarus I purchased from my grandmother that currently has just over 40k mileage. Being very old, depreciation is a non-factor, but being in superior condition for its age maintenance has thankfully also been very low. My employment has never been more than 3 miles from my house so additionally fuel cost is negligible. My total annual cost for the car is approximately 1,000, the biggest piece of that being insurance which is $300 q6 months.
Damn man you don't drive much anywhere.
In just over 2 years, I've driven 46500 miles in my Volkswagen CC, and before that I drove 47000 miles in 3 years in my Honda Accord. On average, I drive 75 miles/day.
There's an obvious (yet surprisingly ill-understood) difference between buying a new Focus and a new 7-series. I think this is where people get confused and screw themselves over.
That and thinking that your credit limit = that much more disposable income you just acquired.
*******Caution Angry Car Rant by buzzed Pharmacist*******
Ok...Why is there so much hate for a BMW? Yeah the car is expensive but if you buy a used one (which looks almost the same as the new one), certified, the company covers everything. The difference is maybe 10k-15k between that and an accord or Prius. Side note: Don't even get me started on how people in the Prius CANNOT DRIVE (what are they doing hitting the breaks every chance they get to get a better reading on the gas mileage???) Battery on the Prius also costs a lot to replace.
I got myself a used 6 series conv because before it felt like it was an unachievable goal and I had wanted that car for years since it came out in 2004. It runs great and BMW takes care of everything for the next 3 years. Now that I have it, I checked it off the list. Sure I will lose money due to depreciation but i'm enjoying the fruits of my labor and in this housing market where real estate will probably lose 25% in the next few years it made sense to me. I decided to work more hours as a result until it is paid off. Financial responsibility is important but its ok to have a toy every now and then so long as you don't get too crazy.
Counter argument:
I can already see what people are going to say:
"You are ignorant. I am investing in the market and making such and such amount. You are wasting so much money on gas and insurance.
My response:
Market is volatile There's a chance you can get burned down the line, meanwhile, I enjoyed my car and my life as a young single guy. Gas and insurance isn't that much more than an accord. Example: I used to drive a 95 Acura Legend. I get about the same mpg and rates are only slightly higher. I thought of buying gold a few months ago but that already at peak too.
Yeah but if you buy real estate yada yada yada....
Again, real estate prices in California will go down in the next couple of years.....foreclosures haven't fully hit the market yet. Yeah you could buy a plot of land build 2 units rent one and make someone else pay for your mortgage....partially true but again, good luck doing that in any major city that someone single would enjoy living in.
You could save your whole life. The market could reach 14k in on day and become half that value in a few months when you want to retire (see 2007). I would rather enjoy life a bit first....
And as far as student loans go......
I did the math, it makes sense for me to be in the IBR program for now. I would rather make minimum payments and have the liquidity to invest or open my own pharmacy in a few years after I gain enough experience (yes, you can still be profitable if you do your homework and have nice markets like compounding, 340b, diabetes, mtm, homeopathic junk that people love to pay thousands for, pet meds, medical supplies....the list goes on).
Win. Don't play not to lose, because then you lose. Play to win.
Anyway those are my 2 cents.
As previously stated, it is all about priorities. My priority is to not be forced to work (that doesn't mean I won't when I do have financial freedom). My only problem with your scenario is what happens when the economy does tank.
Let's take the example of a person like you (not you) and a person like me. Imagine we have a recession (we haven't had a real recession yet by the way) and we both lose our jobs. Your car is worth nothing and my investments are worth 25% of their previous value. You have no money saved and thus you starve, I on the other hand have a very little of my savings left and thus I can survive on rice and beans and perhaps sometimes I can afford spices to flavor them. The person like you (not you, remember?) sees that I have spices and gets furious because you are starving and could use that money to buy rice and beans for yourself. Thus, you steal my spices (or more likely the government steals them for you) and now you have rice and beans to eat.
Moral of the story, keep your hands off my spices and we will be just fine.
p.s. Again I am not saying the above example is you, I do not know you. The above example is most people in America. They take sick days whenever they feel like it, scoff at overtime and buy useless crap for themselves that they have no way of paying for. We are in a semi-recession now because of this very practice that the economy cannot sustain. Maybe we can survive a few more down cycles, but when the government not longer has the money to bail people out and subsidize gas prices, Americans will see what a real recession looks like.
When your back starts to hurt because you are getting old then it becomes a factor.
*******Caution Angry Car Rant by buzzed Pharmacist*******
Just attended a live CE seminar not long ago; I could swear that >60% of the room was >60 years old.
I am currently 26 and will have the financial ability to retire in about five to seven years (I actually could now if I wanted to live like a college student). Granted, I have no children, work about 55 hours per week in pharmacy and have other sources of income. It all really comes down to your priorities, my primary goal is financial freedom so I structure every facet of my life to achieve it.
I hope to at least be able to go part time by age of 50 and then ride it out. Right now no debt, own home, have 8 month Emergency Fund, and max out 401K and IRA...plan to stay the course next 10 years at least.
Unless I win the powerball then I have no problem dropping the mic and say See Ya!
I am currently 26 and will have the financial ability to retire in about five to seven years (I actually could now if I wanted to live like a college student). Granted, I have no children, work about 55 hours per week in pharmacy and have other sources of income. It all really comes down to your priorities, my primary goal is financial freedom so I structure every facet of my life to achieve it.
Guy who's a per-diem at my hospital.
He retired at age 55 after working 30 years at the state hospital. He collects a $100,000 pension every year, isn't 59 1/2 yet so isn't collecting the 401k yet either.
What kind of other income do you have, just curious.
100K after 30 years? That's better than military, props to him. Pensions are awesome - too bad they aren't sustainable.
I could potentially retire now, at 47, but I at least want to work enough to get health insurance. Thank heavens I'm healthy; I do have a private policy right now but I don't want to rely on it forever.
Nicely done - how many years have you been out of school?
job I ended up getting was literally killing me, and that the pharmacy profession wasn't the same one I had trained for. And I was still 47.
That's how I feel at the moment. Im too young to have chest pain and insomnia due to a job. And it seems no matter how hard you work or how much you do they still find a way to crap on you.
Honestly, the hospital I worked for treated their employees very well and overall had great morale (how often do you walk into a HOSPITAL and everyone's smiling?) I worked with some terrific people, too.
And then I had a panic attack that landed me in the ER and lost between 10 and 15 pounds in the next 3 weeks; do you have any idea how hard it is for a middle-aged woman to do that? Had I not quit that day, I would have ended up as an inpatient; it was that bad. I still think about it every day, almost 2 years later.