Retire by 30, thanks nursing! - page 15

Ok check this out, i have a plan to retire by the age of 30: I'm 21 yrs old and about to graduate a ADN program i will spend 1 year gaining experience in the ICU, then i will spend the next 8... Read More

  1. by   mikethern
    Quote from Tweety
    I'm not doubting that a 21 year old can't be millionaire by retirement. What's hard to wrap my mind around is a 21 year old new grad n nursing that has $1000.00 a month to invest for all those years, presuming other expenses, as well as cash savings (a wise investment/savings plan has provisions for at least six or more months salary of cash on hand), that owns his own home (another wise investment unless he lives with parents or inherits his home), etc.
    Guess if I lived in Calfironia with those high salaries, I could wrap my mind around it more.
    The other thing thats hard to wrap my mind around is working 60 hours a week for 10 years.
    I don't mean to be negative or discouraging, and my apologies to the op. For those shooting us down for being skeptical, you have to allow us this, because it is outrageous, not impossible for a new grad
    nurse, but outrageous.
    I graduated from nursing school in 1996 with $40,000 of debt. I paid off all my debt in 3 years including interest.

    If you think it's impossible for a new grad to save $1,000 a month, then you spend too much. Period.
  2. by   mikethern
    Quote from Tweety
    .

    I wish I was smart enough to know how to invest to consistently get 15% returns 100% of the time. I'd be a millionaire by retirement too.
    No you wouldn't. Knowing how to get 15% returns is useless if you don't have the willpower to save money instead of spending it.
  3. by   mikethern
    Quote from anonymurse
    if you have your whole nest egg in mutual funds when the market tanks, or in CDs when banks fail, you're just as hosed as if you torched the cash with a Bic.
    That's why I don't invest in mutual funds. I buy individual stocks. I don't trust stockbrokers.
  4. by   DutchgirlRN
    Quote from mikethern
    I graduated from nursing school in 1996 with $40,000 of debt. I paid off all my debt in 3 years including interest.

    If you think it's impossible for a new grad to save $1,000 a month, then you spend too much. Period.
    Not necessarily so. Things come up. People get sick, cars break down, family members need a hand up.....that's just what I can come up with in a couple of seconds. I applaude you heartily for being able to pay off your student loans within 3 years, that's truely totally awesome but not everyone's situation is the same. We're all different.
  5. by   mikethern
    Quote from Grace Oz
    I'm here to tell you .... retirement can get rather boring, sometimes!
    I retired at 51. I turn 57 next week. While I'm glad to be retired at this age, I cannot imagine being retired at 30 no matter how much money I had!.
    Nursing is the only way you can think of to spend time?
  6. by   anonymurse
    Quote from mikethern
    That's why I don't invest in mutual funds. I buy individual stocks. I don't trust stockbrokers.
    These days, that means you're trusting the market to sustain your "values" with its ebullience. Worse than total strangers: a mob.

    According to the "plans" set forth, it seems no one has ever moved, let alone eaten, the OP's cheese.

    It is the apparent intent of most of the posters in this thread to suggest to him that such things do happen, even if they have never happened to him--yet.
  7. by   MNmom3boys
    Quote from mikethern
    Most 401K plans suck because they offer actively-managed mutual funds with high expense ratios. In other words, you are paying high fees to get crappy performance.
    While that can certainly be true in some fiscal quarters (see Tweety's post), it is highly economically unsound NOT to contribute to a 401/403 (and/or advise others not to) when many employers match funds. My DH is high enough in corporate structure/salary earned that he is now limited in what he can contribute/have matched because the employees at the bottom portion of the corporate structure are not taking advantage of the availible options. Very frustrating for us. We are trying to do the right thing, also have Roth's, investment portfolios, etc. But because there are people who either don't care and don't save at all OR have decided to only invest on their own, it has started to look like a top-heavy system and so becomes an artificial limit to those of us trying to do the right thing (provide for our own retirement). IMHO it equally irresponsible to only rely on 401ks et al as the only means to fund retirement, but that seems to have been covered here already...
    I am very much looking forward to maxing out my 401k each and every year that I am employed, and in fact it was one of the things that I checked out about potential employers before I accepted a job. (The fact that SAHMs are limited in how they can provide for their own retirement in a whole 'nother rant. :angryfire) DH and I are very aware of the fact that SS will be of very little use to us in the future, but do indeed also have plans to "retire" early. (Although we obviously missed the 30 year mark...) But, for both of us retiring early means switching to a different career (for him - less corporate stress) or dropping to casual part-time or finding a really cool niche (for me) and in that way funding our travel plans, etc.

    Anyway - to OP - you have a very ambitious plan. I hope you can make it work for you. I think there are several things that you have not taken in to account, but they have for the most part been covered here already, and/or you will figure them out as you go along. You have the right idea - saving for the future, living w/in your means, and having a goal in mind. All the rest - the toll on your body, lack of social interaction, mental/physical/emotional limits engendered by the realities of our profession will become very real to you as you start to encounter them in daily life rather than in cerebral conjecture from the research (as through as it appears to be) you have done. Good-luck! :spin:
    Last edit by MNmom3boys on Dec 13, '07 : Reason: added an "enter" for ease of your reading pleasure ;)
  8. by   mikethern
    Quote from anonymurse
    These days, that means you're trusting the market to sustain your "values" with its ebullience. Worse than total strangers: a mob.
    According to the "plans" set forth, it seems no one has ever moved, let alone eaten, the OP's cheese.
    It is the apparent intent of most of the posters in this thread to suggest to him that such things do happen, even if they have never happened to him--yet.
    I don't need to trust the "market." I own 10 stocks and hold them for many years. I research these 10 stocks constantly. One of my most successful stocks was ISRG, which manufactures surgical robots. I bought the stock a few years ago at $50 a share. It is now $327 a share. I do not profit from gambling. I profit from researching.

    Chart:
    http://finance.yahoo.com/q/bc?s=ISRG...off&z=m&q=l&c=
  9. by   mikethern
    Quote from MNmom3boys
    While that can certainly be true in some fiscal quarters (see Tweety's post), it is highly economically unsound NOT to contribute to a 401/403 (and/or advise others not to) when many employers match funds.
    You are assuming that your mutual funds will beat the average return of the stock market. In reality, 80% of actively managed mutual funds fail to beat the stock market. Which means you are paying high fees to get lousy performance.

    401k's do not allow you to buy individual stocks. Individual stocks allow you to crush the market's returns.

    If you manage to choose mutual funds that beat the market over long periods of time, then you are luckier than a gambler in Vegas.

    Most people who own mutual funds do not even know that mutual funds are SUPPOSED to beat the average return of the stock market.
    Last edit by mikethern on Dec 13, '07
  10. by   LesMonsterRN
    Quote from mikethern
    You do not understand the power of compounding. If the OP works as much as possible, is as frugal as possible, and invests in premium stocks, he will be rich sooner than you can comprehend.

    The fact that you do not understand investing does not give you the right to criticize people who do understand investing.

    "Those who understand compound interest are destined to collect it. Those who don't are doomed to pay it."
    I understand investing just fine. And rich is a relative term.
  11. by   MNmom3boys
    Quote from mikethern
    You are assuming that your mutual funds will beat the average return of the stock market.
    While some of what you are saying is true, you are glossing over the amount of time and research that is required to get the type of returns from individual stocks for the amount of return that you are touting. And, like Tweety's post I referred to, there are quarters that return a double digit with much less work. I repeat, it is irresponsible to let 401ks be the only method of plannig for the future, but dismissing them entirely is also a very poor choice.
  12. by   mvanz9999
    Quote from MNmom3boys
    While some of what you are saying is true, you are glossing over the amount of time and research that is required to get the type of returns from individual stocks for the amount of return that you are touting. And, like Tweety's post I referred to, there are quarters that return a double digit with much less work. I repeat, it is irresponsible to let 401ks be the only method of plannig for the future, but dismissing them entirely is also a very poor choice.
    Agreed! I will never be one of those people that needs a stock ticker on my Palm Treo so I can watch it every second of the day.

    I also like the free money that companies will match.
  13. by   mvanz9999
    Quote from DutchgirlRN
    Not necessarily so. Things come up. People get sick, cars break down, family members need a hand up.....that's just what I can come up with in a couple of seconds. I applaude you heartily for being able to pay off your student loans within 3 years, that's truely totally awesome but not everyone's situation is the same. We're all different.
    I agree with this wholeheartedly. The OP might get lucky and never have any of these things happen, but they cannot be planned for.

    People do get sick, cars get stolen, you go through divorce....and on and on and on.

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