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 years as a per-diem or traveling nurse, working no less then 60 hrs a week, 11 months a year.
so heres the math:
40hrs X $43hr = $6880 month
20hrs X $65 hr = $5200 month
total (net income) $8100 month
$2500 month living expenses so $5600 month to invest
Starting with $5,000 and depositing $5,600 monthly over 8 years (at a rate of return 12%, compounded monthly and taxed at your marginal rate of 28%), you will save $769,593.Initial balance:$5,000Total deposits:$537,600Total interest earned:$315,268Total taxes paid:$88,275Total Saved: $769,593
Now i understand that 769K will be different due to inflation 8 yrs from now, so we will say 669k so at 10% a year $66,000 a year!
Now for 8yrs i will work my ass off and be traveling and have little social life, but at age 30 i will never have to work again, and i will probably never want to in nursing cause i will be burnt out, but i think it would be worth it, what do you think?
There's a whole lot wrong with it. Patient safety being #1
Patient safety and quality professional care are a given. There are people who work 10 hours a week who are bad nurses and provide sub-standard care. I assume that someone who is this focused knows that her goals won't be accomplished if patients are getting hurt.
$2500 month living expenses so $5600 month to invest
Starting with $5,000 and depositing $5,600 monthly over 8 years (at a rate of return 12%, compounded monthly and taxed at your marginal rate of 28%), you will save $769,593.Initial balance:$5,000Total deposits:$537,600Total interest earned:$315,268Total taxes paid:$88,275Total Saved: $769,593
Now i understand that 769K will be different due to inflation 8 yrs from now, so we will say 669k so at 10% a year $66,000 a year!
Now for 8yrs i will work my ass off and be traveling and have little social life, but at age 30 i will never have to work again, and i will probably never want to in nursing cause i will be burnt out, but i think it would be worth it, what do you think?
I'll use your hypothetical figures for income and living expenses.
At $8,100/month gross pay, as a single person, you'll net about $5,500 after taxes.
$5,500 net monthly income
$2,500 monthly living expenses (your figure)
$3,000 monthly potential savings
IF
the car doesn't need repaired/inspected/tires/etc.
no accidental injury/illness
unusual expenses re: family events, household maintenance/repairs, continuing education, all that misc. stuff called LIFE.
If you can commit to saving something every single month you will be ahead of 98% of your peers. That's commendable. You'll "do the math" when you actually get a job, actually get a paycheck, and actually see exactly what your living expenses turn out to be.
And think again about that "straight cash, no benefits" thing ... I won't even address the foolishness of going without health insurance when it's available to you. As a health-professional-to-be, I'll assume you can think that through yourself. If your employer offers a 401(k)/403(b) with an employer match -- you're throwing away free money if you do not participate.
While I admire your attitude towards savings(I'm a saver myself), what about your friends? When you hit 30 and have the time, your peers will be at the busiest time of their lives with work and family obligations. Will a 60 hour week allow you to keep ties strong with your family and friends?
if atoms can be split and brains operated on, you can retire at the age of 30. go for it, disregard the pessimism, envy and regret that runs so rampant in society today.
you can earn generous returns on your 8 year savings accrual, i earn 5.00% apy just on my savings account alone. consider that the s&p 500's past 13 year return averaged 17.22%, also consider there has been no 20-, 30- or 50-year periods in which the s&p 500 has resulted in a loss.
you obviously would be able to live off of even the most conservative of interest earnings.
your financial roadmap is both outstanding and doable; just watch it unfold before your very eyes. if i didn't have to work another day in my life, i wouldn't; i would experience the world and everything it has to offer. i believe you will be able to find out when you are 30 years old just what that feeling is like;)
there are two kinds of people in this world, doers and watchers; you obviously have the mindset to be the next buffett, trump, gates type. you don't need luck, nor do you need input from anyone, just positive encouragement and proper financial planning, nothing more.
I am 29 and far away from retiring. It's a nice to have a plan but remember you are still very young and ideas change. Life can be expensive when you least expect it. I encourage you to start saving early, that is extremely wise on your part. Good luck!
And think again about that "straight cash, no benefits" thing ... I won't even address the foolishness of going without health insurance when it's available to you. As a health-professional-to-be, I'll assume you can think that through yourself. If your employer offers a 401(k)/403(b) with an employer match -- you're throwing away free money if you do not participate.
There's a whole lot wrong with it. Patient safety being #1
Excellent job performance can be maintained working 60 hours a week; it is all dependent upon the individual themselves. There exist nurses who work the "typical" 36 hour workweek and loath clocking in every shift just like there are those who work their 36 hours at their primary place of employment with 2 12-hour agency shifts.
Also, what does it matter what one's peers will be doing when he/she retires at 30, all that should matter to that person is that they have reached the goal they have set out to attain.
Working less than 60 hours per week has no greater effect on overall patient safety; it is up to the nurse to maintain their sense of mental and physical well-being to ensure their performance is up to par.
Ok, why are we not offering more advice and applauding her for actually thinking of her future at age 21? Yeah the plan isn't necessarily realistic, but even if she manages to save only 300k by age 30, wouldn't she be WAY ahead of most of us? I don't see a reason to be so condescending and judgemental. Maybe it is "all about the money" for her. WHy is that bad if she still takes good care of the patients? So maybe she isn't being realistic about how much she will need to retire early. Why not post constructive ideas for her to modify her plan? The 12% interest seems high as well, but she could get 7-8% pretty easily with a lot lower risk. I haven't read the whole thread, but I was very surprised at the first two pages here. I personally support the idea of a young person trying to do what is needed early on in their adult life to get where they want to be later on. That is acting responsibly.
Just curious, are you in NS because you'd love to be a nurse or because it will make enough $ to retire very early?
It doesn't matter what someone's reason is for entering the nursing profession just like it wouldn't matter to a doctor, lawyer or politician.
Everyone has their reasons for being in nursing; obviously money is a huge concern. If someone says otherwise, they need to rethink the trait of honesty, because I wouldn't work a day for free, and I doubt a doctor, lawyer or politician would either.
Your positive spirit has rubbed off on me, and that's just through some internet forum, imagine what is possible within your peer circle. Spread your good vibes and motivational attitude around, it's highly contagious.
James Huffman
473 Posts
Patient safety and quality professional care are a given. There are people who work 10 hours a week who are bad nurses and provide sub-standard care. I assume that someone who is this focused knows that her goals won't be accomplished if patients are getting hurt.